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Business and Business Environment - Organizational Functions

   

Added on  2021-02-21

14 Pages4104 Words30 Views
BUSINESS & BUSINESSENVIRONMENT

Table of ContentsINTRODUCTION...........................................................................................................................3MAIN BODY...................................................................................................................................3TASK 1............................................................................................................................................3TASK 2............................................................................................................................................8Relationship between organizational functions along with its inter-relational with businessobjectives................................................................................................................................8TASK 3............................................................................................................................................9Negative and Positive impact of Macro environment............................................................9TASK 4..........................................................................................................................................10SWOT Analysis....................................................................................................................10Weaknesses and strengths are related to external macro factors..........................................11CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................14

INTRODUCTIONThe term business and business environment is related with forces which influencesbusiness working and its related operations. Major factors constituting business environmentincludes suppliers, competitors, government, investors, stakeholders, customers etc. Byidentifying both the internal and external business factors, every business organization can seekcompetitive edge and improves its business performance in the marketplace. By evaluatingbusiness practices, concepts and strategies as used by the competitors or profit makingcompanies i.e. which are considered as one of the best performing firm in the same industrymarket, one can formulate its own strategies and plans accordingly. The present report willdiscuss various types of business organization viz. public, private and voluntary sectors alongwith their purposes and legal structures. This report will shed light on size and scope of differentorganization types and interrelationships in organizational functions along with advantages anddisadvantages and its impact on structure. At last, explanation about positive as well as negativeimpacts of macro environment & PESTLE analysis will be provided. Also, SWOT analysis willhelp in assessing strengths and weaknesses interrelated with external macro factors.MAIN BODYTASK 1Organization – Business organization is defined as an entity which is formed by two ormore person with the aim of carrying on commercial and trading business operations therebyproviding services and products to its customers in exchange for money.Main purpose of organization is to serve customers with better quality products andservices having reasonable price so as to make them satisfied as customer satisfaction is mainmotive of every business organization before profit maximizing. The existence of businessorganization provides high return in comparison of sum of total revenue as earned by individualfrom working separately (Prajogo, 2016). Economy of UK is highly developed and market oriented. U.K. service industry basicallyincludes different industries engaged in financial services, retail sectors, entertainment etc.

Sole trader - Is owned and formed by single person having full control to run ownbusiness operations according to customised concepts and decision. Revenue made and lossincurred comes in part of the owner only making him personally liable for all the businessliabilities.AdvantagesDisadvantages1. Has full control over the business anddecision making process.2. Is liable for whole profit and lossesassociated with business operations (Bakarand et.al., 2016).3. Is easy to form and operate as directorshipremains in one hand only.1. Is liable personally for businessliabilities as no separate legal entity isthere.2. It is difficult for sole traders to raise fundfrom own and thus impact businessexpansion.Example - Taylor Taylor London is one of the prestigious multi award winning chain ofboutique hair salons which is rendering hair dressing and its related services in the city of UnitedKingdom.Partnership – A business agreement or contract which is mutually agreed and entered inby different person known as partners having common goals and objectives. All these partnercomes together thereby sharing liabilities, losses and profits on part of business in equal orprescribed ratio.AdvantagesDisadvantages1. Easy in starting of business as capital iscontributed by each partner which resolvesissue of fund arrangement.2. Decision making process is taken by allthe partners and share equal responsibility.1. In partnership business all the retiringpartner continues to be liable for all acts asdone when they were partnered(McCarthy, 2016).2. Lack of stability i.e. on death, insolvencyof partner it comes to an end.

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