Business and the Business Environment - Assignment (solved)

Added on - 22 Nov 2020

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Business and theBusiness Environment
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1 Different types and purpose of the organisation structure................................................11.2 size and scope of different types of organisation.............................................................3TASK 2............................................................................................................................................42.1 Relationship between different organisational functions and linking them with businessobjectives and structure..........................................................................................................4TASK 3............................................................................................................................................63.1 Positive and negative impact of macro environment upon business operations..............6TASK 4............................................................................................................................................84.1 Internal and external analysis of organisation to identify their strengths and weaknesses84.2 Explaining the strength and weakness interrelated with external macro environment....9CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12
INTRODUCTIONIn the present era, it is important for firms to consider all factors existing in the businessenvironment so as to run business with sustainability in the long run (Concept of BusinessEnvironment, 2018). This project discusses about different types and purposes of organisationsalong with their advantages and disadvantages. Some organisations operate with the motive ofearning profit while some operate to serve society. There are different internal and externalfactors which have direct impact on the business operations. Marks and Spencer has analyseddifferent factors like political, economic, social, technological, legal and environmental. Thisproject discusses about the importance of organisational structure to perform various activities ofbusiness. Further, size and scope of different types of organisations, relationship betweendifferent organisational functions and their link them with business objectives and structure willbe explained. Also, positive and negative impact of macro environment upon business operationsas well as internal and external analysis of organisation to identify their strengths andweaknesses will be discussed.TASK 11.1 Different types and purposes of the organisational structureOrganization structure is defined as how managers divide business activities in differentdepartments (Botha, Kourie and Snyman, 2014). In order to gain sustainable competitiveadvantage, organization needs to be innovative and flexible. Managers coordinate the efforts ofdifferent department towards achievement of goals and objects. Organization structure definesworking environment of business. This provides base or foundation for performing all businessoperation (Hamilton and Webster, 2015). Managers encourage employees to be the part ofdecision making. There are different types of organization, some of them are as follows.Sole trader: All activities of business are controlled and managed by single person. There is nodistinction between company and owner. Sole proprietor has direct control overall activities ofbusiness. All debts and assets of business belong to business. Registration of sole trader is acomplex process, it involves fictitious selection of company name. Tessa Scott needs to getapproval from the local authorities and government. Further business owner is required to gettitle of “doing business as “from local authorities (Hair, 2015). Sole trader has a simple businessset up. Proprietor maintain complete record of all decisions related to business. The main
objective of this business to meet daily requirement. Business man can easily wind up or expandtheir business according to the requirement.Example of sole trader operating in UK is TessaScott.Advantages:This business is owned and managed by single person. They are sole owner ofprofits, which they earn from operation of business.Disadvantage:Biggest disadvantage of this structure is unlimited liability. They bear all risk andloss if anything go wrong in business process (Hair, 2015).Public sector organisation:It consists of both public services and public enterprise. This deliverbasic goods and services like electricity supply, water to general public. Public sectororganisation consist of large part in economy. Their main object is to provide basic services tosociety. Organisation of this sector get direct funds from taxation. NHS does not define anyspecial criteria of production (Crane and Matten, 2016). Operation is directly controlled andmonitored local or state authorities. Public sector has outsourced some of their activities toprivate sector. Size of government budget decides negotiation for workers.Example of publicsector organisation in UK is NHS.Advantages -This sector has little competition because it operate on large scale. Their main aimis to serve society. Public sector offer good and service to lower level people.Disadvantages-Public sector organisation lack innovation and motivation. All the importantdecisions are taken by state authorities.Private sector:All activities of organisation are controlled and monitored by private individualsand groups. Main motive of private sector is to earn profit. Government do not interfere inworking of public sector organisation (Falkner, 2017). Marks and Spencer provide employmentto large part of economy. All important decision of business are taken by private individuals.They have control over the price of products. Example of private sector organisation operating inUK is marks and Spencer.Advantage:They have control on the overall affairs of company. This sector follows flexibleorganisational structure. Minimum two person is required to start up private organisation(Bryman and Bell, 2015).Disadvantage:It restricts transferability of share because members of private sector cannotexceed more than 50 people. Prospectus of the organisation cannot be issue to general public.
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