Business and the Business Environment

Business and the Business
Environment
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Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1 The different types and purposes of organizations; public, private and voluntary sectors and
legal structures.............................................................................................................................3
Public organization....................................................................................................................3
P2 The size and scope of a range of different types of organizations.........................................6
LO 2...............................................................................................................................................10
P3 The relationship between different organizational functions and how they link to
organizational objectives and structure.....................................................................................10
LO3................................................................................................................................................13
Constructive and unconstructive impacts the macro environment has upon trade....................13
LO 4...............................................................................................................................................17
P5 The internal strengths and weaknesses of specific businesses and explain their
interrelationship with external macro factors............................................................................17
P6 The strengths and weaknesses interrelates with external macro factors..............................18
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20
PRESENTATION..........................................................................................................................21
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INTRODUCTION
The organization compromises of people who are working together with a motive of
serving a common purpose or goal related to business. The managers play an important role by
taking up various roles and responsibilities such as planning, synchronization, framework
assortment, organizing, array, operation, logistics and administration. Toyota is a multinational
company that deals in automobiles which was launched in 1937 in Japan. The company was fast
expanding and has already spread to different countries like UK. Off late the company is
witnessing change in the trading environment in the international scenarios. As the prices of the
fuel have increased a slowdown in the demand of the cars is seen due to which the prices of the
cars are reduced. Although a considerable increase in the cost of the spare parts and other vehicle
parts is seen from the previous year (Sekaran and Bougie, 2016). The company has adopted
innovative production techniques and due to the value of money the company is able to maintain
its stand in the international markets. The incessant and unremitting innovative and enhanced
strategies adopted by the company which helps it to acquire a reliable position in the
international automobile markets. Keeping the recent competitive scene into consideration the
researcher has carried out the study to help Toyota UK to learn about the various functions of the
organizations and organizational framework of other organizations.
LO1
P1 The different types and purposes of organizations; public, private and voluntary sectors and
legal structures
Public organization
The trade or business is termed to be a translatable procedure of talents and goods and
articles which are produced or manufactured as per the demand of the consumers or deliver
services as per the demand of the consumers. The operational structure of the business consists
of varied elements like clientele, consumers, patrons, capital, assets, competitors, suppliers,
distributors, commerce trends, alternatives, convention, administration commotion, the financial
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system, populace and demography and modernization and technical growth and expansion.
Additionally it is cited that the elements like human resource, physical resources and financial
resources form a vital constituent of the companies. The multinational companies like Toyota
can incur competitive benefits by monitoring the cost of the product and services, quality of
product and services and the effective marketing strategies. In addition to that it has also been
found that the trade proportions of the company have been duly impacted by a number of other
factors like technological advancements and government involvement and interference.
Legal structure: The role of the customers has also played an important role in
formulating the course of actions of the company to bring about growth and expansion of the
company’s prospects. The competition in the segment of the automobile industry is basically
found to be of two types that is direct competition and the other is indirect competition. Apart
from direct competitions there exists competition between the other types of competitors as well
who belong to the category of private or public ownership group. About five kinds of
organizations that exists which held a direct or indirect competition with any of the organizations
that belong to any of the following segments. The other organizations are private institute, public
institute, government institutes, co-operatives institutes, charitable institutes and Non- profit
organization (NGOs.) Hence it can be said legal strict structure of public organization are fully
governed and controlled by Government and legal authorities who hold 51 % of the private share
liable for public listed organization.
Private Organization
The private institute is one where the decision making power and the control is in private
hands either by a group of people or sole individuals. The main aim of such organization is to
earn profits. Sainsbury is regarded as a prominent private organization that deals in the
international markets (Sekaran and Bougie, 2016). The private organizations are of different
kinds such as individual business holders, partnership firms, limited companies, cooperatives or
governmental units. The different business organization carry out activities that are necessary to
be met the different needs and requirements of the customers on behalf of the citizens for the
well-being of all the public and population. National Health Service is among the most famous
public organizations that is operational in England. Many of the organizations incorporate
involuntary activities which are functional into the operating systems of the organizations are
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charity, donations, and contributions. Such organizations that focus on the conductions of social
work and social welfare activities are considered to be non-profit organizations and non –
governmental organizations. Cancer research is regarded as one of the most popular voluntary
non-profit organizations that is functional in UK.
Legal structure: The private organization mainly operates their business for earning the
profit by giving products and services ot the customers. The main motive of the private
organization is to earn profits and not to provide service to the customers. Hence the legal
structure of private authority and government has no role to make a control of their functions.
The Partnership Firms
The multinational trading units like Toyota enclose the functionaries of different
segments like human resource, vision, mission administration and capital which are collaborated
together to produce quality products and services. The trade motive of the global company
Toyota is based on a number of factors like market gains, market allocate, technological
competence and corporate communal accountability. It is cited that Toyota is generally an
individual trading unit, hence it can organizes its business activities and develop them without
the involvement of any legal complications. The proprietor of the company is the head of the
company and takes the overall charge of the company and its all the business activities. The
entire functionaries of the global company Toyota is managed by a set of managers which has its
headquarter located in Japan. The administration has the liberty to select the working conditions
as well as time constraints for the functionaries of the company. The human resource department
of the organization has created an affluent environment to ensure that a healthy and close
relationship is developed between the management and the marketing group and working force
which helps to establish a close relationship with the customers. It is found that the entire trading
conductions and administrative responsibilities is carried out by the high level administration
officers in comparison to the employees contribution. The company posses’ unlimited liability
and credits upon itself which possess a greater threat to the interest of the owners, investors and
stakeholders of the company. The company is experiencing a tough competition with other
automobile companies that are functional in the open markets (Sekaran and Bougie, 2016).
Toyota faces direct competition with other multinational companies like Volkswagen group that
are operational in the international markets. The difficulty level for the individual trading units to
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bring about additional increase in the collection of capital is far more than the other
organizations. The top grade officials work extra hard and devote a lot of time to bring about
new business to the company. A scarcity in the permanence in the company is observed.
Legal structure: The partnership firms is a cooperation of more than two people who
mutully agreed to share their profit and loss as per the agreed contract. They perform unlimited
libality and operstions in rder to succseesful implenmtain f their leagal as well as functional
activity. A partnership is iperated as per the Partnership Agreement 1947 which is governed and
controlled by the government.
Charitable Organization
The charitable organization is considered as non voluntary organization, which has main
motive to provide service to the people and not to earn the profit. For example NGO, charitable
trust like orphanage, Women charitable trust old age homes etc are considered in this type of
organization.
Legal structure : In order to analyze the legal structure of the charitable organization it
can be said that these types of organization is operated and based on donation , government
funds, financial support given by financial support authorities which has main motive to provide
and give financial support , needful support to the people. Hence it can be said that the whole
portion of the charitable organization are fully controlled by the government or charitable
authorities.
P2 The size and scope of a range of different types of organizations
The prevalence of about five kinds of organizations is observed in the operational levels
of the markets which are private sector companies, public sector companies, cooperative
companies, charitable trusts organizations and non-profit organizations (NGO).
Public Limited organization: It is cited that the organizations which belong to the public
of limited organizations are generally a form of corporate associations who follow the legal
aspects which are applicable to its own right and identity. The possessions and the other
belongings of the company are owned by the company itself and not by its members or
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