Business Process Management and Organizational Structure
Added on 2020-11-12
16 Pages5218 Words350 Views
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Business and BusinessEnvironment
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1TASK 2............................................................................................................................................4TASK 3............................................................................................................................................7TASK 4............................................................................................................................................9CONCLUSION:- ..........................................................................................................................12REFERENCES..............................................................................................................................13
INTRODUCTIONBusiness environment can be defined as combination of different components whichpresent in the internal as well as external environment of the firm that affects the operations ofthe business. John Lewis is a multinational company which is operated in the UK and itsheadquarter in London and SW United Kingdom. It offers different products ranging fromclothing to kitchen appliances(Aithal 2016). This report describes about types of organisationswith their legal structure, size, scope and purpose. There are various functions that are present inan organisation and these are interlinked with other departments. Along with this file alsoincludes SWOT and PESTEL analysis which helps John Lewis in determining elements that arepresent in the external and internal environment. TASK 1Different types of organisations and their size and scopeThere are different types of organisations in business environment which are varied intheir size and scope. Organisation:- An Organisation refers to an entity that comprises of group of peoplesuch as institutions or association, work for a common goal and their operations are linked withexternal environment. Purpose:- Main purpose of an organisation is to earn higher revenue by satisfying theneed and wants of their customers(Bah and Fang, 2015). It exists because group of people canachieve their goals more effectively in comparison to individual person. Organisational sectors in UK:- There are mainly three types of industries in which abusiness operates i.e. public sector, private sector and voluntary organisations. These sectorsform a production chain to provide customers finished goods and services. Following are thetypes of organisations:-Private organisation:- Company which is managed and owned by an individual, an non-governmental organisations or by small group of shareholders. John Lewis is a chain of high-enddepartmental stores established in UK is taken as an example of private organisations. Its sizeand scope is very wide as it has more than 85,000 staffs who owns 50 John Lewis storesthroughout UK(Andersson, Forsgren and Holm, 2015) .Their main purpose is to earn maximum1
profit and to satisfy market demand. Its production activities are divided into three parts whichare as given below:Primary sector refers to the acquisition of raw materialsSecondary sector refers to the process of assembling raw material for manufacturing theproduct and services. This process involve conversion of raw material into components.Tertiary sector refers to the commercial services which support the manufacturing anddistribution of goods and services. For instance transport, advertising, warehousing etc. Sole trader:- It is a type of private business enterprise where a single individual manageits business and they are personally liable for all their debts and profits. Sole trade are easier toset up with the nominal cost. For example: Guildford is a sole trader and provides servicesrelated to computer repairing and maintenances for better functioning of PC. It belongs toTertiary sector(Berg and Kilambi, Siebel, 2014). Advantage:- The advantage of sole trade is that legal structure can change easily and owner cantake all the profit earn during business operations. Disadvantage:- Major drawback is that sole trader have unlimited liability for all the debtsincurred as there is no legal restrictions between private and business asset. Partnership:- It refers to the formal agreement between two or more parties to corporatea business together for the achievement of common goal. In partnership all the memberscontribute resources, fund and skills as well share profit and loses. For example McDonald's isan partnership business and is belongs to secondary organisational sector, as they have their ownchef who prepare food and sell them(Bryman, and Bell, 2015). Advantage:- Partnership firms are easier to establish and its start up cost is also low as capital ispooled by all the partners.Disadvantage:- Major disadvantage of partnership business is that debts of all the partners inbusiness is unlimited.Limited company:- Type of company is one in which the members or subscribers of theorganisation having limited liability in term of their investments or commitment. These are oftwo types i.e. limited by share and limited by liability. For example, Shop direct group is alimited company and is belong to Tertiary sector(Chang, 2016). It sell product of more than 400well known brand online such as Vodafone, Orange, Sony etc. 2
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