Business and Business Environment Evaluation
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Added on 2020-10-22
Business and Business Environment Evaluation
Added on 2020-10-22
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BUSINESS ANDBUSINESSENVIRONMENT
INTRODUCTIONBusiness refers to the economic activity carried out to generate huge revenue and profits.Businessman requires a business environment which is the combination of internal and externalfactor like customers, government, employee and so on that influences the operations of businessenvironment. For the better understanding of this report Tesco company has been taken, which isa British supermarket grocery store known for its biggest profitable supermarket chains(Erasmus, Strydom and Rudansky-Kloppers, 2016). Following report carries topics like varioustypes and purpose of organisation. Along with different type of organisation's size and scope.Moreover, discussion will be made on relationship between different organisation function andthe positive and negative impacts of macro environment on business operations are beingexplained within this report. Lastly, discussion will be made on how strength and weakness ofan organisation is related to external macro factors of an environment is being focused in thisreport.TASK 1P1: Evaluation of different types and purposes of an organisationOrganisation refer as an entity which is a collection of multiple people like an associationor institution that is structured and managed for some specific purposes. In addition, there arethree types of organisation they are public, private and voluntary. Each organisation has its ownlegal structure along with specific purposes and they are mentioned below:Private organisation: Private sector organisation is a type of organisation that is run byan individual or company rather than government. Thus, the motive of private organisation is tomaximize profit rather than social welfare. Herein, Tesco which is a private company has leadingsupermarket chains their legal structure and purpose are described below:Legal structurePartnership:The term partnership is an agreement or deed between two or more than twopartner who together manage the business operations. Thus, partners work together to fulfil thecommon goals of an organisation. Additionally, within legal structure partners are liable to shareprofit and pay the debt.
Sole proprietorship: Sole proprietorshipis a type of private legal structure which isowned and managed by an individual. These individual perform various business activities asthey start the business with their capital. So whether the business earn profit or incur loss theyare prime responsible for it. Moreover, within such legal structure business cannot be consideredseparate from its business owner that mean both are single legal entity. Limited company:Limited company is a type of legal structure where the liability ofeach shareholder is limited on the basis of their investment and guaranteed to the company.Along with that business has separate legal entity from its owners. Purpose: Tesco being private limited company objective is to earn huge profit andexpand their chain worldwide to gain global dominance. Thus, they provide healthy and hygienicfood products to their customers in order earn profit.Public organisation: Public sector organisation refer to the type of organisation which iscontrolled and run by government on the behalf of shareholders. Herein, National Health Servicesector (NHS) which is a public organisation situated in UK. Therefore, the legal structure andpurpose of public sector is explained below:Legal structureState government: It is a form of government which is responsible to address the needand problem of local resident of that particular geographical region. They basically sharetheir responsibilities and political power with national government. Additionally, theytogether establish regulation for state such as regulation in trade as well as exerciseimportant decision and function of state.Central government: The roles and responsibility of central government is to govern itsnations by making regulation as well as by controlling and governing entire nation. Thus,they have different powers at various levels which is delegated to the federal state.Local government:It is a government that have control over specific geographicalregion. Thus, they cannot make and implement any law which can affect entire nation orwider sector of society. Apart from that they perform activities like they can electofficials that affect the smaller section of society.Purpose:The primary purpose of NHS is to render best health care services to improvethe economical, social and health conditions of society.
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