Business and Business Environment - Nike Assignment
Added on 2021-02-21
13 Pages3091 Words85 Views
Business andBusinessenvironment
ContentsINTRODUCTION...........................................................................................................................3ACTIVITY A...................................................................................................................................3Different type of organisations...............................................................................................3Size and Scope of different organisation................................................................................5Different type of business structure and interrelationship on different business function.....7CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................11
INTRODUCTION Business environment is collection of internal as well as external factors such ascustomer's needs, employees, owners, client, suppliers, innovation in technology, social trends,economic changes and many more (Andersson, Forsgren and Holm, 2015). All these factorshave wide impact on working of organisation in positive and negative both manner. Businessenvironment is classified within micro and macro environment. In this report chosen company isNike which is part of Apparel, accessories and sports equipment industry. It was founded in1964 by Bill Bowerman and Phil Knight they are serving at worldwide level. Respective reportwill include detail explanation related to type of organisations along with their scope as well assize. Along with this, it also involves explanation of relationship within different organisationalfunctions along with their advantages and disadvantages as well as its impact on organisationalstructure.ACTIVITY A Different type of organisationsOrganisation is social unit of people which is structured as well as manage for meetingcommon goal. It has management structure that determine relation within several activities andmembers, responsibilities and authorities for carrying out various task. Moreover, organisation isopen system and they get affected by business environment (Babu, 2012). There are various typeof organisation available in business environment i.e., private, public and voluntary. All thesehave their own aim, objective, goals, purpose and so on. Explanation of these with suitableexample are as follows :- Private Limited Company – These are the companies which privately held by smallbusiness entity. Private limited companies limit owners liability to their shares as well as thereshould be limited number of share i.e., 50. most important is that publicly trading of shares isrestricted for shareholders. Such organisations have limited liabilities which is according to thetotal amount invested for running business. Furthermore, there should be minimum 2 membersand maximum 200 are required for starting a private limited company. For example, Nike isprivate limited Company, Founded in 1964 by Bill Bowerman and Phil Knight. They are offeringathletic footwear, apparels, sports equipment's and many more at worldwide level. It includesome enterprises such as :-
Partnership – It is one of the best method for starting business because throughpartnership in less funds also business can be establish (Boons and Lüdeke-Freund,2013). Partnership is classified within two main categories i.e., two partner business aswell as more than that. Within this type of business every partner invest money forrunning business and profit & loss divided as per the ratio of amount invested. Sole traders – In this type of business, particular person have authority of operating andrunning business. Moreover, in sole trader owner of company is liable for occurrence ofboth profit and loss. Within such corporation family members are included by owners. Limited Company – It is important for an entity to get register for becoming limitedcompany. Profit of limited companies directly belong to company not with shareholdersand they get profit in form of dividend. On the amount of profit earned corporation taxhave to pay by company in every year. Voluntary Company – These are the organisation which working for welfare of societyand not for generating profit. Companies working in voluntary sector are separate from publicand private organisation. Moreover, respective sector corporation way of think is to create socialwelfare instead of material wealth (Dima, Grabara and Modrak, 2014). It has been analyse thatmotive of voluntary companies is to develop underdeveloped individual of society. For example,Oxfam is biggest charitable company which working for removing poverty as well as aim is topromote happiness at global level by removing poverty. In addition to this, Oxfam have largemarket share because they are working at worldwide level. Respective company mainly work onhealth, trade justice, education, gender equality, livelihood and many more. Trust – They cannot enter within any type of legal agreements with their own namebecause they are not legal entity. Unincorporated Association – Such association have no limitation of liability as theycome under an agreements on the behalf of charity as well as personal liability.Unincorporated association is not legal entity. Public limited Company – They are he organisation which owned controlled as well asmanage by government of particular nation. Such companies have limited liabilities and theysold their shares to public (Ehret, Kashyap and Wirtz, 2013). For instance, National HealthServices (NHS) is public limited company introduced in 1948 and it is one of the biggest healthcare services provider. Aim of NHS is to develop effectual services for their customers. There is
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