Business and The Business Environment - Report

Added on - 21 Jul 2020

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BUSINESS AND THEBUSINESSENVIRONMENT
TABLE OF CONTENTSINTRODUCTION..........................................................................................................................1TASK 1...........................................................................................................................................1P1 Different types and purposes of organisation along with their legal structure......................1P2 Size and scope of range of different type of organisations....................................................3P3 Relationship between different departments of organisation.................................................5TASK 2............................................................................................................................................6P4 Macro environmental factors that impacts upon business operations...................................6P5 Internal and external analysis of Skoda Auto.......................................................................9P6 How strengths and weaknesses interrelates with the external macro factors......................11CONCLUSIONS............................................................................................................................11REFERENCES..............................................................................................................................12
INTRODUCTIONBusiness environment encompasses all those factors that can impact upon theeffectiveness of the organisation (Deese, and et. al., 2017).They are either internal or external.Thus, it is essential to plot the impact of these forces before executing any business operation.This examination will help in effective development of the products or services. Further, thesefactors may vary as per the type, scope, range, and purposes of organisation. This report willcover different sectors in which entities run along with their legal structure. Also, roles andresponsibilities of different departments of an organisation will be studied. Further, impact ofmacro and micro environment will be analysed.In order to analyse the impact of internal and external environmental factors, the selectedorganisation is Skoda Auto. The company belongs to auto-mobile industry under private sector.The cited firm is further a global name in the industry and hence, it is significant to analysebusiness environments and functions of different departments for effective management.TASK 1P1 Different types and purposes of organisation along with their legal structure.Private Sector organisations:This is the largest sector and companies working under thiscategory focuses on earning maximum profit with the minimum possible resources. Such type oforganisations are completely owned by individuals who are liable for all the business operations.There may be board of directors of the firm who manages it or they can either be completelymanaged by an individual person (Dijkman, and et. al., 2016).Despite of the fact that theseentities earns for themselves, it should be recognised that they share maximum part in growth ofGDP of the nation. The key competitors of the selected organisation work under this sector only.The legal structure of this sector comprises of following:Sole Traders: This type of business is generally carried by an individual and its family.These organisations are generally started with a small investment. A single ownershiphelps in reducing work conflicts and other issues. However, this should be noted that itsowners are liable for all the profits, losses or risks associated with the company.Partnership: In this method of business, two/more persons or entities that shares samegoal partners with each other. This is a less risk method as losses and risks are dividedinto the partnered parties.1
Private Limited Companies: This is the most effective business structure that is widelyused by most of the organisations. Joint-stock companies have their own legal identity. Itcan be abbreviated as Pvt. Ltd. and there are various shareholders in this.Public Limited Companies:Public limited companies are the larger form of the Pvt. Ltd.firms. These are also known as PLC. Generally, such organisations are governed by theboard of directors.Co-operation:This method is quite different from the other mentioned above. In this theorganisations belonging to public sector are converted into those entities that belongs toprivate sector. In the past few years, this privatisation has been observed on a larger arraydue to various government imposed laws (Eling, and Schaper, 2017).Franchising:The present trend of internationalist has raised eh number of organisationthat are undergoing this business structure. In this method, global market expansion iscarried out by hiring regional people for the business contract. Some major examples thathighly supports franchising are Subway, McDonald's etc.Public Sector organisations:This sector is completely governed by the central, local or regionalgovernment. All businesses of the organisations belonging from this sector are managed bymentioned administrative.Public Sector organisations:This sector is completely governed by the central, local or regionalgovernment. All business operations of the organisation belonging from this sector are managedby mentioned administrative. Their major aim behind the business is the welfare of the people ofthe country. The source of funds for them are the revenue, taxes, etc. they take from the generalpublic. Some examples of this type of organisation are visitor information centres, road andbuilding departments, etc. (Kljucnikov and et. al., 2016).Legal structure for the private sectororganisation is as follows:Public Co-operations and nationalised industries:The aim of these companies is toprovide general public with the basic service such as roads, electricity, parks, etc. Fundsto these companies are provided by the central government.Local authorities:These are segregated administrative bodies over a sector.They plays amajor role in the development of overall nation. Example: Regional government.2
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