Business and Business Environment - Zara
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Added on 2020-12-18
Business and Business Environment - Zara
Added on 2020-12-18
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Business and BusinessEnvironment
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3P1 Different type and purpose of organization: private, public, voluntary and legal structures.3P2 Size and scope of different types of organisations................................................................5P3 relationship between different organisational functions.......................................................8TASK 2..........................................................................................................................................10P4 positive and negative impacts the macro environment has upon business operations.......10P5 internal and external analysis of specific organisations.......................................................12P6 strengths and weaknesses interrelate with external macro factors.......................................13CONCLUSION..............................................................................................................................16
INTRODUCTIONBusiness environment is refers as the aggregation of both micro and macro element thatdetermine firm operation exists in it. It is dynamic in nature that gives direct impact upon firmsworking (Hilton and Platt, 2013). For this report the choosen company is Zara which is a privatesector and retail sector company. It is established by the Americo Ortega and Rosalia Mera inyear 1975. Its headquarters is in Arteixo, Spain. In this assignment, public, private and voluntarysectors are discussed. This assignment is going to describe various types of organisationsinvolved in business environment along with their purpose as well as legal structure. There arevarious division within firm and their working is interconnected is highlighted below. Moreover,factors of macro environment has huge effects on the business operations in both context positiveas well as negative. Apart from this SWOT and PESTEL is performed for finding the externaland internal environmental factors. TASK 1P1 Different type and purpose of organization: private, public, voluntary and legal structuresBusiness environment includes different types of organization in which these are doingtheir business activities (Bharadwaj and et.al., 2013). As every business organization have theirown decided goals, objectives mission and vision. Business environment includes mainly threetypes of organizations such as public, private and voluntary. Apart from that, organisation is agroup of those peoples who are together for achieving a common goal. There are a wide range ofexternal factors which gives various impact on business organization. These factors are asfollows: Private organisations:This includes the small entities including LTD and privatelimited firms in which owners have limited liabilities and these companies may consist around50 shareholders accordingly. These companies have imposed prohibition towards shares policyas well as on trading. For instance, the private organisation can consider Zara company that hasbusiness of providing clothes and accessories to desired customers. Zara is theprivate sectorcompany which deals in clothes and accessories. Legal structure of that type of organization areas follows:
Sole trader: These type of traders are individuals who run their business activities bytheir own and also these traders have no separate legal entity from their business. Theowner of that type of business is solely responsible for all the business activities. Partnership: partnership refers to the involvement of two or more than two persons,same as in partnership business the two or more than two person invest capital jointly in aspecific ratio to run a business. In that type of business, all the partners are liable forbusiness activities as per according to pre decided criteria. PLC (public limited company): That type of business organization is running by Govt.for enhancing the economic situation by introducing new product and services to people for theirhigh living standards (Berg and Kilambi, Siebel, 2014). For example, NICE is public sectorcompany and they are providing services to required person as well as most important is that,they focus on health and care for public. Main basis behind providing services is to upliftment ofUnited Kingdom population. Legal structure of that type of organization are as follows: Central Govt. department: The organization is running by the central Govt. bodies. Local authority: These authorities are those who manage and run organization ofparticular city.Voluntary organizations: These are also non-profit organization that are working for thesocial welfare of society. For example, wellcome trust is a type of voluntary organization ofEngland. It is the largest research providing companies. Legal structure of that type oforganization are as follows: Trust: That type of business organization has not any members but these have trusteewho donate some funds for running out these organization.Unincorporated association: These business organization can be called as managementcommittees which have don't distinct identity from trustee. Others: Royal charter bodies, community and several others.There are various factors which leads to growth of international environment,which are as follows:sales and profit: As in the international market the business get a higher sales and largeprofit volume so that the international business environment grow day by day.
Diversification:Diversification is the way of expanding any business in many otherareas and outside the boundaries of a country. It helps in entering into a new market withthe existing products to attract various targeted potential consumers. Demand for variousproducts are affected by many cyclical as well as seasonal factors. The consequences ofsuch factors leads to sales fluctuation and various risks in operation of any business.Difference between public, private and voluntary sector:Public sector Private sector Voluntary sectorPublic sector is governmentowned and different frompublicly held entity.Private sector is notgovernment owned and goodsare delivered outside oforganisation.Voluntary organisations is annon profit organisation that arnot government organisationand makes grants on basis ofother charities.In public sector includesorganisation that providepublic services such as armedforces, policing and roads andeducation with health. They work for both profitmaking and social welfare.The private organisation inwhich individual and group ofindividuals with primary aimto earn profit. Example shops,manufacturers,financialservices.They work for only profitmaking objective.Voluntary sector is differentfrom both these sectorsbecause they are notgovernment controlled.They only work fordevelopment of citizens.P2 Size and scope of different types of organisationsBusiness environment studies various type of organization such as public, global ,Cooperatives, private, transactional, MNC and so on. Such types of organizations has variousfeatures which are discussed below:Private limited: As discussed above that, this type of organization is only working formore and more profit. The shares of these companies can't be traded publicly. The owner of theorganization is liable for all the business activities. Zara is a private sector organization andconstitute the following features:Background: The company is established in year 1975 and owner of this organisationis Amancio Ortega and Rosalia Mera. The products which the company servingworldwide are clothing and accessories.
Products: the company currently offering the clothes and accessories for all thecategories. Size: The organization have approx. 7500 stores all over the world according to the dataof year 2016. Objectives:The main objective of Zara is to contribute towards sustainabledevelopment of the society and to the environment with which they can interact. Structure: Zara operates in such an organisational structure which adds more customersvalue by utilising less resources rather than traditional.Vision: Provide best and attractive services at every store. mission: "Zara Textile mission is to achieve consistent improvement in the system byproviding products & services to its customers through on time delivery & enhancingcustomers satisfaction by means of quality and value."Scope: The Scope of Zara brand is very wide as it provides wide variety of products. Public limited company: These type of organizations are running by the Govt. bodiesfor upgrading the living standards of people with the help of providing better products andservices (Schaltegger, Lüdeke-Freund and Hansen, 2012). For example, NHS ltd. is the publicsector enterprise and it is one of the largest company. The major stakeholders of company areBlackRock, Inc., Norges Bank, Schroders plc, etc. Public limited company: These type of organizations is running by the Govt. bodies forupgrading the living standards of people with the help of providing better products and services(Schaltegger, Lüdeke-Freund and Hansen, 2012). For example, NICE ltd. is the public sectorenterprise.Background: NICE organization was founded in 1986 and its headquarter in Israel. Products and services: The services and products are offerning by that respectiveorganization such as, Software, business intelligence, speech and video analytics,business and IT consulting. Size: The organization provide its services first in 1989 in Israel and after that it formedpartnership with Tekelec enterprise which is US based company providinbgtelecommunication services. According to the statistical data of 2016, respectiveorganisation has approx. 5000 employees. And its operating income is approx. $135million and net income is $ 177 million.
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