Assignment Business and the Business Environment

Added on - 06 Jun 2020

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Business and the BusinessEnvironment
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3P1. Different types, size and scope of organisation....................................................................3P2. Scope and size of different types of organisations................................................................4P3. Relationship between various organisational functions and their link with structure andobjectives of organisation...........................................................................................................5TASK 2............................................................................................................................................6P4 Impacts of macro environmental factors on business operations..........................................6P5 Internal and External Analysis of Skoda Auto with other similar organisation....................8P6 Evaluate how strength and weakness interrelate with the external macro factors...............10CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12
INTRODUCTIONBusiness environment is defined as the surrounding in which firm performs its operationswith a motive to gain profit. There are number of factors present in the internal and externalenvironment of company which highly influence the working of its business(Cassell and Blake,2012).It is important for an organisation to determine these forces and its influence on theactivities of business. Identification of these factors assist the manager in formulating strategiesto deal with them. In the present assignment, given company is Skoda Auto which deals in automobile sector. Company is known for its wide range of products and it is a completely ownedsubsidiary of Volkswagen group. The report covers different types, size, scope and purposes oforganisation. It also defines the relationship between various functions of organisation and theirlink with the objectives of firm. Apart from this, various factors of external environment andtheir influence on the operations of business are explained. Besides this, SWOT analysis ofcompany to identify strengths and weaknesses and their interrelationship with external factors isdone.TASK 1P1. Different types, size and scope of organisationMain aim of every business entity is to generate high revenues by fulfilling the needs ofcustomers with their quality products and serve public. Various kinds of activities are performedby different departments of the firm. Scope of business is highly affected by the size oforganisation. There are different purposes and types of organisations which are as follows:-Public limited company:Firms which are regulated by the government and whosecomplete ownership is in the hands of government, these types of companies are referred aspublic limited. In order to satisfy the needs of customers, these entities emphasize on offeringhigh quality and low priced products. In order to raise funds, company issues its shares in themarket for executing commercial activities(Cavalcante and et. al., 2011).TESCO is an exampleof Public Ltd. Co. that takes approval from its shareholders in order to make major decisions.Government sector is further divided into 3 parts:-Central government:It is an apex body who has the power to control every issue ofnation. Collection of taxes and printing of currency are the activities which come undercentral government.
State government:Main function of this government is to regulate the affairs of aparticular state. For example, in order to promote higher education, various policies andprogrammes are framed by the higher authority.Local government:All the affairs of a particular area or town are regulated andcontrolled by local government. This regime has less authority than central and stategovernment.Private company:Those organisations which are owned and controlled by singleindividual or group of people are referred as private companies(Cronan and et. al., 2011).Government has no role in these kinds of firms. These companies offer innovative and qualityproducts in order to attract customers. Main aim of these firms is to earn high profit. Skoda Autois an example of private company which has its strong brand image in the market. It offers highquality of products to its customers. Private sector is further divided into following:-Sole trader:In this, all the activities of a business are operated by a single individual. Thefirm is fully owned by single person who is responsible to bear all the gains and losses ofbusiness.Partnership:In this, two or more than two persons come together and start a business. Apartnership deed which is a written document is signed in between the individuals so thatin future, conflicts will not arise between them.Franchising:In this, the person, who is owner of a well-known brand called franchisorgives the right to sell its products with his brand name to another person calledfranchisee. In return, franchisee pay some amount to franchisor for giving him the right touse its trademark.Voluntary sector:Those organisations which are formed for the purpose of socialdevelopment of people are referred as voluntary firms. Their main aim is to serve the society andfulfil their basic needs in order to improve their living standard(Elliot, 2011).The example ofvoluntary sector is OXFAM who works to remove poverty.P2. Scope and size of different types of organisationsPublic sector organisationTESCO is a company of United Kingdom which is a public limited firm and deals ingrocery sector. Every year, large amount of profits are generated by the firm. Currently, morethan 5600 stores of company are operates worldwide through which the firm offers services to its
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