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(solved) Business and Business Environment Doc

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BUSINESS AND BUSINESSENVIRONMENT1
Table of ContentsINTRODUCTION..............................................................................................................................3LO 1....................................................................................................................................................4P1 Different types and purposes of organisations: public, private and voluntary sectors and itslegal structures..............................................................................................................................4P2 Size and scope of different types of organisations...................................................................5M1 Structure, size and scope linked to objectives and products of organisation..........................5D1 Complexities of types of businesses and interrelationship of different organisationalfunctions.........................................................................................................................................6LO 2...................................................................................................................................................6P3 Relationship between different organisational functions and how they link to organisationalobjectives and structure..................................................................................................................6M2 Advantages and disadvantages of interrelationships between organisational function and itseffect on organisational structure...................................................................................................7LO3....................................................................................................................................................8P4 Positive and negative impacts macro environment has upon business operations by someexamples........................................................................................................................................8Marks & Spencer..............................................................................................................................8M3 PESTLE model for analysis of macro environment within organisation..............................10D2 Impact of macro and micro factors on business and decision making...................................10LO 4..................................................................................................................................................11P5 Internal and external analysis of specific organisation to examine its weaknesses and stregth.......................................................................................................................................................11P6 Strengths and weaknesses interrelated with external macro factors.......................................12M4 SWOT analysis to justify their influence on decision making..............................................14CONCLUSION:...............................................................................................................................14REFERENCES:................................................................................................................................152
INTRODUCTIONAn organization observes many global changes in business environment. It is organized bya skilled group of employees and leaders having a some goals and objectives to achieve like publicserving or doing business. Organisation is run by different actions like coordination, structureselection, organising, logistics management and planning (Abdel-Basset, Mohamed andSmarandache, 2018). Here affects of business environment in Marks & Spencer, River Island andOxfam has elaborated. Marks & Spencer is a popular retail group which has been listed inLondon's stock exchange. It is specialised in home products, luxury food products and attires. Ithas long- term relationship with British manufacturers.LO 1P1 Different types and purposes of organisations: public, private and voluntary sectors and its legalstructures.There are various types of business organisations which have convertible process ofmaterials and skills according to the request of customers and their service. Business environmentincludes different factors like resources, competitors, suppliers, distributors, regulations, economy,industry trends, government activity and many more. There are almost three types of organisationslike public, private and voluntary sectors. Public sector like Marks & Spencer has direct controlfrom government and its several agencies. Thus, different operations are held on its behalf and forthe well being of public (Atighechian, et.ail., 2016). It does not include any voluntary or privatecompanies and it has government ownership. There are many ways of owning a company such asby becoming a sole trader in which if a business fails then owner is responsible for all debts. Thenthrough partnership and lastly licence is required by giving name to a company. Here by sellingshares capital is raised.In private sector such as River Island the firm is completely controlled by group of people orprivate individuals. Their purpose is only profit of organisation. This profit is restricted tostakeholders of the company, then transparency in annual and financial reports should be there.Legally they have to follow provision of Companies Act 2013 (Banahene, Ahudey and Mensah,2016). Each Shareholder has limited liability. Company is awaken all the time in case ofbankruptcy, death, insolvency etc. It is compulsory for every private firm to use private limited for3
its name. Lastly voluntary sector is there such Oxfam whose purpose is fully social and providebenefits to society. It never aims at material wealth. Its focus is on social welfare. It comprisesorganizations which enrich society without profit and have no government intervention. The returnreceived by voluntary sector is again invested back to the community or in its organisation. Itcomplies with the charity law and act according to legal obligations of charities under Companiesand Charities Act. Records are kept as evidence and checks (Bentley, et.al., 2016). Communityshould know about rules and regulations that are applied to them. Oxfam provides services forlegal help. There should be accountability and transparency in the records by the board of trustees.P2 Size and scope of different types of organisationsAccording to the size, business can be categorised into Micro level, Medium level andMacro level. A micro business is a small business which have a turnover less than a definiteamount. It depends on different sectors depending of the economy of the country. These microenterprises do business to support their families and themselves. Plans and inventory in microbusiness are grown due to demand at local level. Customers tastes and pattern of buying changeswith time and so they have to remain aware. Micro business have fewer employees and they arefirstly the proprietors who run the business. They have threat from other competitor as they haveless resource. It faces difficulty in sustaining the business. While, medium level business haveemployees ranging from 50-300. Various small business grow into medium size business.Companies yield profit with low barriers and lack product differentiation. Medium level face riskdue to competition with the Macro level business. Macro level industries grow domestic productand is concerned with government policies (Borio, Drehmann and Tsatsaronis, 2014). They havelarger number of employees. Macro level business is expanded at various level. Government hereplays an important role in macro economy and it is internationally attached to various companiesall around the world. The scope of different organisations has extended widely. Marks & Spencerhas extended its retail to by managing it top level and baseline staff and left responsibility on frontline staff to answer the delayed customers. By cutting middle men cost and decreasingcommunication barriers it has increased its productivity. Scope of voluntary sector like Oxfam isexamining charity's governance and handling general disclosure to the Commission, agencies andstakeholders which have taken place since 2011. it protects themselves against large organisationwith more resources and thus risk factor for sustaining in the market is high. It has increased itssupervision of its employees and level of recruitment has also increased. Lastly Private sector4
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