Business and the Business Environment

Business and the Business
Environment
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INTRODUCTION................................................................................................................3
PURPOSE END LEGAL STRUCTURES OF DIFFERENT TYPES OF BUSSINES
ORGANISATIONS.....................................................................................3
SIZE AND SCOPE OF DIFFERENT TYPES OF ORGANISATIONS........................5
DIFERENT ORGANISATIONAL FUNCTINS AND STRUCUTRES ..............................7
POZITIVE AND NEGATIVE ASCPECT OF EXTERNAL ENVIRONMENT..............8
INTERNAL ANALYSIS TO INDENTIFY STRENGTHS AND WEAKNESSES..........11
INTERRELATION BETWEEN STRENGTHS END WEAKNESS AND EXTERNAL
ENVIROMENT.......................................................................................12
CONCLUZION. ......................................................................................14
BIBLOGRAPHY....................................................................................15
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INTRODUCTION
Business environment consist of different external and internal factors that are affecting
different business functions that consist of customers, management, employees and supply &
demand for business (Worthington and Britton, 2009). Hennes & Mauritz AB, popular as H&M,
is a Sweden-based multinational retail clothing corporation that is famous across the world for its
variety of designer garments for men, women and children. The corporation was established in
the year in 1947 by Erling Persson and the headquarters of the corporation are situated at
Stockholm, Sweden (H&M Clothing Company, 2020). Over the years, the processes of the
business have been expanded to more than 70 countries all over the world. The following report
deals with analysis of different forms of business organisations and size and range of diverse
enterprises. An attempt is also being made to determine the organisational functions and
organization and the interrelationship among diverse organisational functions. The statement also
measures the external and interior environment of a business organisation and attempts to relate
the internal power and the limitation with the macro-environment components of the business
organisation.
Purpose and legal structures of diverse kinds of business enterprises.
Organisation is defined as a group of individuals work together within a structure of
responsibilities and authorities for each individual to attain the organisational aim. The
organisational aims may be “for profit” or for “not for profit” There are different types of legal
structures depending on their aims as stated above.
Private limited company:
Private limited company is a business entity that is “private” by ownership and consist of
many jurisdictions that have to be followed and adopted for purpose of achievement of specific
objectives.
Private limited company can have a share capital and the company allots shares to its
shareholders who own the company in proportion to the percentage of the face value of the
capital they hold.
Private limited companies operate under the regulations prepared by them which are called
Memorandum and Articles of Association and is governed by the Companies Act.
Private limited companies generally have between one and fifty members and the capital is
raised without making an open offer to the public to invest in the shares.
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The liability of the shareholders is limited to the extent of the capital susbscribed . However
with the advantage of limited liability comes the responsibility to submit audited accounts,
directors particulars and file statutory returns to the companies House.
Since these companies are not registered on the stock market, the shares in the private
Limited companies cannot be transferred freely.
Large number of businesses operate as private companies limited by share capital.
Private limited companies can also operate by guarantee from its members without having a
share capital and is preferred legal structure for not for profit companies.
Sole proprietorship: Individual persons operating a business with a unlimited liability
becoming personally responsible for all the liabilities of the business is called sole
proprietorship. This does not require any registrations and is easy to start. So also it does not
require any statutory obligations to be fulfilled relating to its legal structure. Small shops,
individual professionals like doctors, lawyers, chartered accountants do operate under this legal
structure. Sole proprietor is the owner and the manager of the business.
Partnership: When two or more individuals operate a business jointly under a agreement called
the partnership deed where the liability of the individual members is unlimited is called a
partnership. There are limited members usually between 2 and 20 and the partners share the
profits of a business as agreed in the partnership deed.its action is performed within this which
talk regarding earnings allocates share and different policy of corporation. The partners are the
owners and the managers of the business.
Public Limited companies (PLC) or Corporation: These are established under the
provisions of the companies Act and raise significant capital from the public at large through a
legal document called the prospectus.The management of the corporation is separated from the
investors in the company and the provisions of the Companies Act govern their relationship. The
Memorandum and articles of the association are the internal regulations which govern the
corporation and which are in compliance of the Companies Act.The Companies Act imposes lots
of responsibilities on the directors who manage the company.
Public Sector organisation- These enterprises are possessed and operated by governments of a
country generally to provide an essential service at a reasonable price. For eg in the Uk all the
state funded schools, NHS, BBC are still state owned enterprises. The ownership has been
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