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Macro-environmental Factors on UK Supermarket Sector : Report

   

Added on  2020-07-23

26 Pages6411 Words53 Views
BUSINESS AND BUSINESS ENVIRONMENT

Table of ContentsINTRODUCTION ...............................................................................................1PART-1.............................................................................................................1P1 Comparison between different types of organisation .............................1P2 Size and scope of organisation ...............................................................3TASK 2.............................................................................................................4P3 Organisational structure and function ....................................................4PART-2.............................................................................................................5TASK 3.............................................................................................................5P4 Positive and Negative impact of macro environment has on businessoperation .....................................................................................................5TASK 4.............................................................................................................7P5 Conduct internal and external analysis on UK Supermarket...................7P6 State how strength and weakness is interrelated with external macrofactors..........................................................................................................9CONCLUSION .................................................................................................10

INTRODUCTION Business environment can be defined as sum total of all internal andexternal factors that affect how the company operates and functionsincluding management, employees, customers, supply and demand andbusiness regulation (Business environment, 2018). In order words, it is acollection of all entities, individuals ad other factors which may or may notbe under the control of company but can influence its profitability,performance, growth and survival either in direct or indirect manner (Casselland Blake, 2012). According to Wheeler, “it is the sum total of all things thatare external to industries and firms that impact organisational function”. Thisreport determines the influence of macro-environmental factors on UKsupermarket sector. In addition to that, it also talks about scope andstructure of different types of organisation, difference between small,medium and large enterprises and how strength and weakness is linked withexternal factors. PART-1TASK 1P1 Comparison between different types of organisation A business can run in several ways and the form chosen by businessowner will affect legal liability of both company and owner. The goals andobjective of each form is vary from one another. For instance: Objective ofNon-Profit organisation is to improve the condition of society whereas goal ofprofit organisation is make maximum profits or revenues. Businesses aremainly categorise into three types:Profit Organisation: It includes company's whose primary mission is togenerate immense profit and create effective product and services that arevaluable to buyers. Such types of organisation are profit-oriented. Privateowners arrange their funding through bank loans, revenue generated fromsales, local investors. The contribution of profit sector towards UK's economyis quite high as compared to non-profit and non-governmental. The morethey earn, more they contribute toward the society in terms of taxes and this1

tax is ultimately used for the betterment and welfare of public or localresidents (Cavalcante and et. al., 2011).For example: From past 75 years,IKEA runs with an aim of generating more and more profits. Non-Profit Organisation: These are also known as non-business entity. Itinclude all such business entities who uses its surplus to accomplish itsultimate objective instead of distributing its income among company'smembers, leaders or shareholders. Non-profit entities are tax exemptedwhich means they do not need to pay income tax on the money they receivefor their company. They generally arrange their funding through privatedonations, government grants, corporate sponsorship, crowdfunding etc. InUK, Internal Revenue Service (IRS) identifies the tax status and validity ofnon-profit entities. NPO's often depend upon the dedication of employeesotherwise it become difficult for them to cope up with private sector. Theyare approaching their audience with a message about concerned product,services or actions. In addition to that, NPO's promote community-orientedculture as workers are asked to solve and address issues that have lessfinancial incentive. For example: Fair Ways delivers massive services toyoung children and people including education services, training and socialcare. Non-Governmental Organisation: Non-Governmental Organisation arecommonly referred as NGO's, independent of government and internationalgovernment organisation that are active in educational, health care,environmental, human rights and other areas to effect changes as per theirobjectives (Cronan and et. al., 2011). These are sometimes known as civilsocieties that run with an aim of improving economic condition of thecountry and makes them better place to live. They also laid stress onincreasing the welfare of poor people in poor countries. NGO's are generallyfunded by private donation, sales of goods and services, membership suesand grants. Despite to the fact that there is no interference of Government inNGO's but there are certain NGO's who rely significantly on governmentfunding. This is mainly because they require funding in billions and millions2

of dollars. For instance: 4theCHILDREN is a UK based NGO that mainlydeals with human rights and safety of children. The company was created inApril, 2016.It is generally made up of small team of students or mothers.With the passage of time and expansion in their work, large number ofvolunteers works from the local community has associated with them. BasisofComparison NGO NPO ProfitOrganisation MeaningAn NGO refers toanon-governmentalorganisationformed byindependentcitizens thatoperatesindependent ofgovernment. Such type oforganisation oftenset up to providegoods andservices to peopleand operates onthe principle thatprofit or losseswill not be shareby its members. Profitorganisations runswith an aim ofmaking higherprofits. AreaofOperations Large Limited Can be large orlimited Purpose andObjectives Main objective ofNGO is to work forthe betterment ofcountry and itsmembers. It alsodeals in bringingawarenessregarding womenempowerment,human rights etc. Their mainobjective is topromote art,science,commerce or anyother usefulpurpose. Their mainobjective is tomaximise theirprofit by satisfyingcustomer needsand wants in aneffective manner. Examples:By collaboratingFair Way deals inIKEA is a Dutch3

with local schoolsand communities4theChildrenarefocusing onimproving theirknowledge andalso conductvariousdevelopmentprogrammes forthem as well.providingextensiveservices to youngchildren and otherpeople byprovidingeducation,arranging trainingprogram for themetc. basedmultinationalgroup that sellsand design readyto assemblefurniture, homeaccessories andkitchenappliances. Themain purpose ofthe company is togain highcompetitiveadvantage inoverseas marketand to maximizeoverall revenuesor profits. P2 Size and scope of organisation Micro SmallMedium Large Definition Such types ofbusinessesruns andcontrolled byits owner.Small-business arenormallyowned bysole-proprietorshiporpartnership.They arereferred asemploymentcreator ofparticularcountry.Largeenterprisesare normallyrun, managedand controlledby itsmembers orpartners.Purpose The mainThey run withMediumTheir main4

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