Business and the Business Environment

BUSINESS AND THE
BUSINESS ENVIRONMENT
(UNIT 1

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO1..................................................................................................................................................3
P1Difference between profit, not for profit and non-government organisations...................3
P2 legal structure of business.................................................................................................5
LO2..................................................................................................................................................6
P3 Critical analysis of interrelationship of different organizational functions and their link to
organizational objectives........................................................................................................6
LO3..................................................................................................................................................7
P4 Macro environmental analysis..........................................................................................7
LO4..................................................................................................................................................8
P5 Micro-environmental analysis...........................................................................................8
P6 Interrelation using TOWS matrix....................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business environment is basically the mixture of various internal as well as external
factors which have a direct or indirect impact upon the operations and functioning of the
organization. Business environment is predominately the various forces like customer needs,
competition which addresses that how an organization functions within market. The main aim of
this report is to analyze the business environment of Asda and hence understand its competitive
position within market.
Asda is basically the British supermarket organization as well as retail chain being
established in 1949 by Peter & Fred Asquith and headquartered in West Yorkshire, England.
This organization have various subsidiaries like Asda Supermarket, Asda petrol, Asda Mobile,
Asda Money etc. This organization have its place in London Stock Exchange and the current
market share is around 18.5%. Asda is currently present in more than 40 countries and have its
stores across the various geographical locations. In the year 2018, merger of Sainsbury and Asda
became the hot topic in market and thus this combined effort provided a great competitive
advantage to the organization.
This report gives a brief overview of difference between profit, non-profit and NGOs,
Difference between micro, small and medium-sized enterprises, legal structure of business,
analysis of interrelation between organizational functions, macro environmental analysis, micro-
environmental analysis, value chain analysis, SWOT analysis and TOWS matrix.
MAIN BODY
LO1
P1Difference between profit, not for profit and non-government organisations
Profit organizations: Profit organizations are those who mainly set up business for earning
profits (Finkler, Smith and Calabrese, 2018). The main and primary aim of these types of
organisations is to earn economic as well as monetary profits. For example: ASDA.
Not for profit: These types of organizations are those who run businesses for not earning
money. Their primary aim is to improve lives of societies and people. They are also not required
to pay taxes. For example: Community arts, religious organisations.
Non-government: It is known as NGO it is somehow as like non-profit organizations who set up
independently but receive government findings in some specific cases. One of the main
difference between non-government and non-profit organization is the scope of work. Non-

government organizations address larger issues which may include; Child trafficking, natural
disasters famine etc. On the other hand, non-profit work at small level and also have smaller
scale groups (Chenhall, Hall and Smith, 2017). For example: save the children UK etc.
Difference between micro, small and medium size organisation
Micro Small Medium
Definition and
aim
These are small businesses
with having minimal
employees. One of the main
aim is to foster family and
add value to the economy
(Champenois and Etzkowitz,
2018).
Those businesses
which employ small
number of workers.
Aim of this companies
is to survive in the
market and earn profit.
One of the main aim is
to earn more revenue
and creating a bridge
between small and big
businesses (Gibson,
2019).
No of employees There is a requirement of
having maximum 10
employees.
In small size of
businesses, there is
requirement of having
50 employees.
It can employ up to the
250 people.
Size and
investment
Investment in plant and
machinery can not exceeded
25 lakh rs.
It varies in size and
revenues. For
example: home
accounting business
needs business license
and other day care
organisations are
heavily regulated.
They can invest in
plant and machinery
more than 25 lakh and
up to the 5 crores.
There is a requirement
of investing more than
5 Crore and up to 10
Crores.