Business and the Business Environment Assignment Sample
33 Pages16055 Words131 Views
Added on 2021-02-08
Business and the Business Environment Assignment Sample
Added on 2021-02-08
ShareRelated Documents
BUSINESS AND THE BUSINESS ENVIRONMENTForLevel 4 Higher Nationals Diploma (HND) in BusinessName: Ismail TukurStudent ID No: 19001806Learner’s DeclarationI certify the work submitted for this assignment is my own and research sources are fully acknowledged.Learner’s Signature: Date:
Table of Contents1.0 Introduction...............................................................................................................................................................2P1 Explain different types and purposes of organizations; public, private and voluntary sectors and legal structures.21.1 Types of Organization and Legal Structures........................................................................................................3M1 Analyze how the structure, size and scope of different organizations link to the business objectives and product and services offered by the organization........................................................................................................................7D1 Provide a critical analysis of the complexities of different types of business structures and the interrelationships of the different organizational functions.........................................................................................................................91.2 Functional Structure.............................................................................................................................................91.4 Matrix Structure....................................................................................................................................................91.5 Flat Structure......................................................................................................................................................101.6 Hierarchical Structure.........................................................................................................................................111.7 Divisional Structure............................................................................................................................................11P2 Explain the size and scope of a range of different types of organizations..............................................................13P3 Explain the relationship between different organizational functions and how they link to organizational objectives and structure.................................................................................................................................................15M2 Analyze the advantages and disadvantages of interrelationships between organizational functions and the impactthat can have upon organizational structure..................................................................................................................17P4 Identify the positive and negative impacts the macro environment has upon business operations, supported by specific examples..........................................................................................................................................................18M3 Apply appropriately the PESTLE model to support a detailed analysis of the macro environment within an organization...................................................................................................................................................................18P5 Conduct internal and external analysis of specific organizations in order to identify strengths and weaknesses...21P6 Explain how strengths and weaknesses interrelate with external macro factors.....................................................24M4: Apply appropriately SWOT/TOWS analysis and justify how they influence decision-making...........................24D2) critically evaluate the impacts that both macro and micro factors have upon business objectives and decision-making...........................................................................................................................................................................257.0 Conclusion..............................................................................................................................................................28References.....................................................................................................................................................................281
1.0 IntroductionAt contemporary times the business environment in which various organizations run their businesses is significantlychanging the scope and structure in which businesses operates. Various businesses run for different purposes whichdepends on the purpose in which the business was found and what it intends to serve the public. The environment isthe situation and condition that surrounds an organization which comprise of social, political, environmental, legal,economical and many more[ CITATION Ach09 \l 1033 ]. These factors influence the operations of a businesssignificantly. Besides various forms of business organizations such as suppliers, competitors, debtors, employees,financial institutions, environmental groups, government agencies and more whose interest has to besatisfied[ CITATION Den15 \l 1033 ]. The business environment comprises of the eternal and internal environment.The internal environment comprises of the factors that enhances the internal operation of the organization andtherefore directly affects the company. The external factors affect the business organization from outside thefirm[ CITATION Bry12 \l 1033 ]. They are the factors that cannot be controlled by the organization and usuallycomprise of the general market conditions. An organization is comprised of group of people that has a specificpurpose such as for business or serving the public[ CITATION Cho08 \l 1033 ]. There are various forms of actionscarried out by managers within an organization and t includes planning, organizing, coordination, arrangement,structure selection, logistics, running and management. Toyota is one of the major companies within the global market in contemporary time. the company was establishedin 1937 by Kiichiro at Japan [ CITATION Bas04 \l 1033 ]. As at the 19th century, the company has been able toexpand its operations and sales of their products in various countries of the world reaching the demand of vastnumber of consumers [ CITATION Sch122 \l 1033 ]. The corporate structure of Toyota comprises of 364,445employees all over the world and by 2018, and by revenue was the 6th largest world company. As at the year 2017,the company is the largest manufacturer of automobile. It was the fit company in the world that produce 10 millionvehicle per year since the yar 2012 an has produce worth of 200 million in quantity[ CITATION Eth17 \l 1033 ]. Inthe sales of hybrid cars, Toyota is the market leader in the world and the largest company to encourage adoption ofhybrid vehicles massive scale. It is also the leader in the hydrogen fuel cell vehicles in 2017, the cumulative globalsales of the company hybrid car model reached 10 million milestones[ CITATION Eth17 \l 1033 ]. The organization has been successful in observing the changes in their business environment all through the worldas the demand for automobiles has fallen and price and production cost have increased gradually. The equipmentand parts of cars are getting higher. Nevertheless, the value for money and strategies for innovative products of theorganization have enhanced their ability to sustain a strong competitive position in the global competitive market.As a result, strategies for continuous improvement for the organization will help the company get to an even morereliable position in the global automotive market [ CITATION Sch122 \l 1033 ]. Nevertheless, based on thecontemporary competitiveness in the market, this report aims at assessing Toyota understand the various functionscarried out by various organizational unit and structure and how the company and the external environment of thebusiness effectively relate with one another. P1 Explain different types and purposes of organizations; public, private and voluntary sectors and legal structuresBusiness deals with the conversion of processes, material and skills to meet the request of customers or provides aspecific form of service to meet customers demand. As identified by Achcaoucaou, et al. (2009), businessenvironment comprises of various factors such as resources, customers, supplier, competitors, substitutes, industrytrends, distributors, government activities, population the economy and innovation, demography and technologicaldevelopment. There are therefore various types and purpose of business organization and they can be identified asprivate, public, voluntary organizations which has various legal structures that binds them[ CITATION But12 \l1033 ]. The various types and purpose of various forms of organizations are identified in the table below. 2
Table 1: Types and Purpose of Various Types of OrganizationTypesPublicPrivate VoluntaryDefinitionThe public sector is an organization that is directly controlled by the government or through government agencies. This form of organization runs for the wellbeing of the populace of a country[ CITATION Den15 \l 1033 ]. An example is the National Health Service in England which is non-profit oriented government organization that provide health services for people in the society[ CITATION Bry12 \l 1033 ].According to Akindele et al (2016), the private sector is an organization that is controlled and owned by private individuals or group and they are for profit making businesses. This form of organization varies and they include the sole proprietorship, co-operatives, limited company, partnerships and more.As identified by Bryson (2012),the voluntary organizations areinvolved in activities such asvoluntary services, charity andcommunity-based businesses.They are primarily non-profitoriented and not owned by thegovernment. In the UK CancerResearch is one of the mostpopularvoluntaryorganizations[ CITATIONAlQ14 \l 1033 ]. They are thebody that carry out various socialactivities that are specificallymade not for profit.PurposeThe aim of the public companyis to deliver public goods andservices by the governmentsuch as police, military, publictransit, public infrastructureswhich is directed towards thebetterment of the entiresociety[ CITATION Ahm16 \l1033 ].These are firm that aremajor parts of the economicsystem which runs itsbusiness to makeprofit[ CITATION Bry12 \l1033 ]. They are alsoessential for the growth anddevelopment of a countrythrough generating incomefor the populace. This form of organization iscreated mainly to enrich andprovide benefits for the society atlarge without expectant of anyform of profit[ CITATIONAch09 \l 1033 ]. They createimportant social wealth and helpin improving the society. 3
1.1 Types of Organization and Legal StructuresThere are various legal structures for different kinds of organizations and even within their subdivision. As a result,the legal structure of various forms of organizations can be identified in the following Tables.Table 2: Legal Structure for Various Forms of Private CompanySoleProprietorship PartnershipPrivate Limited CompanyPublic LimitedCompanyA soleproprietorship ischaracterized byunlimited liabilityfor the debts andfailure of thebusiness andtends to be anunincorporatedbusiness[ CITATION Sch103 \l1033 ]. Thisindicates thatlegally, there is nodifferencebetween theowner of thebusiness and hebusinessitself[ CITATIONAhm16 \l 1033 ]. If the business issued for a breachof contract, fordebt collection,personal injuryand so on, thecourt can alsohold the ownerliable and mightuse his or herpersonalbelongings tocompensate.Partnership is theassociation of variousindividuals which areusually between 2 to20 people[ CITATIONBut12 \l 1033 ].Each of the partnersholds responsibilityfor the debt of thepartnership and as aresult, a form ofagreement is essentialto clarify each role ofthe partners(identified as theDeed o Partnership)[ CITATION Bry12 \l1033 ]. As earlieridentified, majority ofthe partners arecharacterized withunlimited liabilityregarding the debt ofthecompany[ CITATIONSch122 \l 1033 ].The only partner withexemption from thisis the limited partner.This is the party thatraises an additionalfiancé for thecompany but does notpartake as an activepartner.This is a joint stock company which is anincorporate organization, where the businessstands as a legal entity that is separate fromthe owners. Each shareholder in this kind ofcompany must be part of the company and inno cases can they sell shares to thepublic[ CITATION Ach09 \l 1033 ]. Eachshareholder is entitled to one vote during theannual general meeting (AGM) of thecompany and also takes their fraction ofshare of the company at the end of the year(the dividend). Each of the shareholder haslimit liability for the debt of the companyand can only face a loss of the investedamount in case the company foldsup[ CITATION Bry12 \l 1033 ]. This kindof company is headed by the board ofdirectors that the shareholders have electedand being headed by a chairman. Before theformulation of the company there some legaldocument should be adopted, the mostimportant which is the Memorandum ofAssociation and the Articles of Associationwhich comprise o he details of the companysuch as the business objectives, the registeredheadquarter and offices and the capital thatis being raised by the from the details of thedetail of the sale of shares concerningmeetings within the arrangement of thebusiness for account auditing purpose of thebusiness[ CITATION Bry12 \l 1033 ]. Withthe completion of these, they send them tothe Registrar of Companies in which the firmwill be issued the certificate of incorporation.By the law, the name of the company mustend with the word “Limited” and setup witha share capital of 50,000 pounds a sharecapital. This is anotherform of joint stockcompany, which isa public limitedcompany (PLC).The PLC is abusinessincorporated andran by Board ofDirector on behalfof the company’sshareholders andhas a period inwhich shareholdersvotes on certainissues concerningthecompany[ CITATION Ara07 \l 1033 ].The differencebetween PrivateLimed companyand PLC is that aPLC can list itsshare on the stockexchange such thatthe members of thepublic can buyshares[ CITATIONCos16 \l 1033 ].But in othercharacteristics theyshare majorsimilaritiesespecially in termsof liabilities.4
Table 3: Legal Structure for Various Forms of Public CompanyPublic Sector OrganizationsThe public sector organizations refer to the companies that are accountable to the government whether centrally or locally. They are directly funded by the government and tend and are used for providing government goods and services and are not profit making oriented[ CITATION Ati10 \l 1033 ]. The public sector produces three kids of goods which includes[ CITATION Bry12 \l 1033 ]:1.The public goods that cannot be easily provided by private organizations, as a result of the venture not being profitable but essential or the populace (such as armed forces and emergency)2.Merit goods are the goods in which the government believe that everyone has to possess whether they have the capability of possessing it or not (such as healthcare and education). 3.Essential services include, parks, libraries, roads, reuse collection, street cleaning and many more. A public corporation is the term used in describing an industry that is nationalized for the provision of goods and services for the general public. Public goods, merit goods and essential services are funded by the government through taxes and are liable for the provision of essential services to the peopleTable 4: Legal Structure for Various Forms of Voluntary OrganizationUnincorporatedAssociation TrustCompany Limited byGuaranteeCharitable IncorporatedOrganization (CIO)This structure is usuallyadopted by small associationsbuilt for a short-term goal,low income, withoutintention to acquire propertyor employ staff[ CITATIONAlQ14 \l 1033 ].Unincorporated associationsare very quick and affordableto setup. Unless this groupapplies for being a charitableorganization, it needs noother agencies to be involvedin its activities. They do notmake any fee payment exceptfor getting legaladvice[ CITATION Ach09 \l1033 ]. Nevertheless,legally, the owner orfounders of unincorporatedassociation do not have aseparate legal identity andremains for the purpose inregards to the collection ofindividuals. Any form ofcontract or property is heldby an individual for the restof the group members, or anyIn general, trusts arecreated to manageproperty or moneytowards a clearlydefined objective andgoals (Ahmady, etal., 2016). They arethe basis of a formalrelationship betweenthree parties whichincludes the donor ofthe property ormoney, the trusteeswhich are usuallythree and are thenominal owners ofthe property of thetrust and thebeneficiaries. Trustcan be fast to setupand significantlyaffordable[ CITATION Bry12 \l 1033 ].Mainly, they arenondemocraticorganizations as theyhave no legalstructure forThis tend to be one ofthe most commonvoluntary organization.They are limited liabilityorganizations, registeredat the Companies Houseandincorporated[ CITATIONAhm16 \l 1033 ]. Thearticle of associationgoverns the activities ofthe group. It is on itsown a legal entity andtherefore could holdproperties and enter intocontact in its name. Thisis a well-recognizedstructure and it being oflimited liability providesits members with acertain level ofprotection[ CITATIONBut12 \l 1033 ]. One ofthe disadvantages of thisis within the expense andformality that mightarise as being a limitedliability company. TheThe CIO is the most recentlegal form for a charityorganization as it isdesigned specifically forsuch purpose[ CITATIONAch09 \l 1033 ]. TheCharity Commission solelyregulate them and thereforeavoids the need for filingscompared to the limitedliability company. Theactivities of the organizationare governed by aconstitution which is givenby the Charity Commissionand does not have muchflexibility as theunincorporated associationor the trust. The benefit of aCIO arises due to the factthat its members are able topossess limited liabilitiesand the association havingits own legal identityproviding a level ofprotectionformembers[ CITATION Ara07\l 1033 ]. The negative5
form of legal proceedinglegal position filled againstthe entire group is filledagainst the individuals withinit which makes the membersliable[ CITATION But12 \l1033 ]. The liabilitycircumstances can be quiteunclear.membership. Thetrustees can be liablepersonally for thecontract the trustenters into and arenot protected frombeing personallyliable.filings have to besubmitted to the CharityCommission and theCompany House. Thetrustee is alsoresponsible for the dutiestheir trustee duties andalso work as directorsunder the CompaniesAct of 2006[ CITATIONAhm16 \l 1033 ].aspect of this structure isthat it is relatively untriedand new which could bringabout potential problems inthe process of seekingfinance from financialbodies which maybe not befamiliar with the stricture.Legal structure of Toyota (as example of private company): Toyota is a private company that covers various form ofareas such as objectives, people, resources and management. The main objective of the Toyota is to make profit,maximize shareholders interest, market share, excellence and corporate social responsibility. The company is apublicly traded company which does not possess a single owner or does not even have a majority owner. In theJapanese keiretsu model, the largest shareholder of the company is Toyota Industries (holding about 6.7%),[ CITATION Sey12 \l 1033 ] which is a member of the Toyota group of companies. Toyota is a publicly tradedlocally on the Osaka, Tokyo, Fukuoka, Sapporo and Nagoya and also foreign listed in the London Stock Exchangeand New York Stock Exchange. Toyota h been traded publicly since 1949 in Japan and internationally as from 1999.Since the company is a publicly traded company, it is bound by the legal structure of a public corporation outlined inTable 2 as a private company[CITATION Hit18 \l 1033 ]. Legal structures of Cancer Research UK (voluntary organization): The Cancer UK is a voluntary organizationfocusing on sensitization about cancer and taking care of cancer victims. Their social service also includes theconduct of research and campaign directed to prevent cancer from taking over the society. As a voluntaryorganization, they aim to spread awareness relating to cancer amongst everyone in order to eradicate the disease atall levels. Being a voluntary organization then, the company is bounded by the legal structures in Table 4 mainly inregards to CIO.Legal Structure of The National Health Service (NHS) (Public Company): is the UK public healthcare providerwhich include the, NHS Scotland, NHS England, NHS Wales, and affiliated with the Northern Ireland’s Health andSocial Care (HSC)[ CITATION Cho08 \l 1033 ]. They wee formulated to be one of the social reforms that comesafter the Second World War. Each of the health service providers offers a comprehensive range of health servicesthat is free for people ordinarily residing in the UK at the point of use, apart from optical care and dental treatment.The NHS however requires payment for prescription charges with some exceptions from such charges. Each of theseservice providers operates independently, but accountable politically to the relevant government Welsh Government,the UK Government, Northern Ireland Executive, Scottish Government.M1 Analyze how the structure, size and scope of different organizations link to the business objectives and product and services offered by the organizationThe size structure and scope of any form of organization are interfaced with the objectives of that businessorganization. It was identified that any form of organization set a significant focus towards its goals through thestructuring of their organization. In the case that an organization possess people in their working structure withouteach group having to know what to do in terms of their goals then it might not be feasible for them to achieve theobjective and goals of the organization since they are have less level of clarity to carry out duties [ CITATION Aki16\l 1033 ]. Organizations identifies their objectives based on evaluation of their scope. In the case that the scope ofthe organization is to serve national clients, the objective of such organization will be specified in such manner. Ifthey aim to serve the global client, they have to set their objectives in such manner. In general, organizations settheir scope, size and structure based on product and services, markets they aim to cover, expectant level of6
profitability and more[ CITATION Gab13 \l 1033 ]. If businesses venture to identify that their organization teamdoes not require them to possess massive structure at any for and point, then they will not setup such structure.Moreover, if the objective scope is tremendously large then such business will set up massive organizational size.The scope, size and structure of organizations in the market gives a very clear idea and implication on the purpose ofthe business and the kind of products and services they aim to offer. The relationship amongst them can be veryclear in enhancing decision making by the manager which will further enhance efficiency an effectiveness of abusiness [ CITATION Dem112 \l 1033 ]. A firm that is a public limited company possesses large size with a scopethat is enhanced in the market. It has high number of customer base to serve with clear implications over theproducts and services offered in line with the business objectives. A large firm like Toyota which is a business in theprivate sector possess significantly dynamic and huge business objectives which drives the company forward insetting it size and scope. Based on the large scope and size expansion to man countries and regions, the organizationhas been able to produce and market large number of products all over the world. Besides the large scope and sizeToyota enjoys large scale economies, learning advantages and other combinations of competitive edge over itscompetitors though operating at lower cost, enhancement of benefits and values being created for customers[ CITATION Chi131 \l 1033 ]. Moreover, a sole trader possesses a smaller scope and size which deters it in offeringimproved and expensive products. Their objective is based on a shorter period of time which serves the organizationin a poor way in meeting goals in longer term period.At recent times, Toyota has restructured in order to streamline the work process of the company on its globalcompany wide bases in regards to its scope of business. The primary goal is to create an organization that is builtaround its product base rather than functions[ CITATION Con15 \l 1033 ]. This will enable the organization distortvarious barriers within the company and eliminate the coordination of work that are unnecessary, therefore helpingto make sure that the efforts of all team members will be significantly towards the purpose of manufacturing ofmaking better cars and also developing workforce that are talented[ CITATION Hit18 \l 1033 ]. Such structuralchanges are implemented by the company in order to achieve the objectives of making better cars supporting theautonomy and strength of the regional operations of the company and laying emphasis on the importance of theproblem solving and onsite learning (genchi genbutsu) in the training of personnel particularly in 2011, the companyrestructured the organization to achieve the objective of promoting autonomous regional based management and bythe year 2013, a significant proportion of the company’s automobile operations was splatted into four business units[CITATION Sey12 \l 1033 ]. In spite of the structural changes, Toyota however identified that the company stillrelates significantly on efforts made by individuals by its own stakeholders and team members as a result of thepresent work process and structure and in most cases, it has been found that cross-functional coordination consumesa disproportionate amount of effort and time. Toyota has been confident that higher value can be added through thisnew structure of management in which nine-region and product-based business units will have to compete and learnfrom one another while having to operate along with the head office (which holds responsibility for the corporatefunctions)[ CITATION Srd12 \l 1033 ].Figure 1: Product Based Structure of Toyota7
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Business and the Business Environment PDFlg...
|37
|8262
|192
Business and Business Environmentlg...
|19
|5899
|1
Business and Business Environment.lg...
|19
|5751
|1
Introduction to Organizationslg...
|21
|5485
|65
Business and the Business Environmentlg...
|23
|5405
|75
Business and Business Environment - General Motorslg...
|15
|4706
|279