Business and Business Environment - Skoda Assignment

Added on - 08 Jan 2021

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Business andBusinessEnvironment
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1. Different types, size and scope of organisation................................................................1P2. Scope and size of different types of organisations...........................................................3TASK 2............................................................................................................................................6P3. Relationship between various organisational functions and their link with structure andobjectives of organisation.......................................................................................................6TASK 3............................................................................................................................................7P4 Impacts of macro environmental factors on business operations......................................7TASK 4..........................................................................................................................................11P5 Internal and External Analysis of Skoda Auto with other similar organisation..............11CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13
INTRODUCTIONBusiness involves economic activities involving producing, buying and selling acommodity in order to earn livelihood. Business can done by a person or group of persons inorder manage and run operations of business enterprise. Business enterprise is association run bybusiness man in order to sale product and services and earn revenue(Cassell and Blake, 2012).This report is based on SKODA which is oldest car manufacturers. This organisation wasestablished in 1985. SKODA brand is known for its vast range of products and it is a completelyowned subsidiary of Volkswagen group. In this report there is discussion about different types,size and scope of organisations, interrelationship among various functions and organisationalstructure, effect of macro environment has on business operations. It also en-lights internalstrength and weakness of business.TASK 1P1. Different types, size and scope of organisationBusiness involves activity having aim to earn high profits and satisfy customer need. Insociety, there are different types of organisations having difference in their size, scope.Difference between profit and not for profit and non-government organisationsBasisProfit organisationsNot for profitorganisationsNon-governmentorganisations (NGO)MeaningThese are theorganisations whichhas main aim to earnprofits. In suchorganisations,consumer want valuefor money and up tothe mark product andservices. In suchorganisations privateassociations areincluded such asSKODA Auto.Not for profitorganisation delivergoods and services atreasonable price. Thisincludes clubs, trust,etc. They providegoods and services atnominal price.Example of not forprofit organisation isGuide Star.NGO work in order toserve society in regardto some suffering suchas AIDS disease,education eradication,etc. These organisationrun in order toimprove living ofstandardofassociation. In suchorganisation voluntaryorganisations areconsidered such as1
Oxfam.ManagementThese are managed byindividual or group ofpeople or company.Foundations,associations, socialinstitutions run suchbusiness.These are managedand run by trustees,volunteers.Source of fundsThese organisationsraise funds from bankloans, debentures, etc.They have individualdonations, tax revenueinterestfrominvestment, etc. assource of funds.Non governmentassociations has aidsfrom government,sponsors, etc. assource of fundsAimAim of profitassociations is to earngood profits byproviding latest andupdated product andservices.Their main aim is toearn sufficient revenuein order to cover theircosts of operation. .Aim of NGO is toserve society andimprove living ofstandards of people.Micro enterprises-Micro enterprise is small business run by less than ten people. Theseare also by name of microenterprise. These business have lack of resources so they can nottransform operations in accordance to market trends. There are possibilities of shut down ofmicro enterprise because of change in consumer demand, lack of resources, etc. The Mainpurpose of micro enterprises is to earn livelihood and provide financial assistance to family.These business are managed and owned by family members.Small enterprises-Small enterprises have operations at small level and have few numberof workers. In these organisations, sole proprietor, partnership and corporations are includedoperating with less than 50 employees(Cavalcante and et. al., 2011). Aim of small enterprise isto earn profits and provide good quality product to customers. Managers of small business areless resistance to change. They arise funds through internal as well as external sources such asbank overdraft, etc.Medium-sized enterprises-Small business turns into medium sized organisation with thehelp of slow and steady growth. They have staff of 250 employees. Their aim is to provide2
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