Business Structures and Environments

Verified

Added on  2020/06/04

|14
|4151
|353
AI Summary
This assignment delves into the various legal structures employed by businesses in both the public and private sectors. It examines key differences in their organizational frameworks, drawing upon illustrations depicting the legal structure of public organizations and the private sector. The analysis aims to provide a comprehensive understanding of how these structural variations influence business operations and performance.

Contribute Materials

Your contribution can guide someone’s learning journey. Share your documents today.
Document Page
Business & Business
Environment

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Discuss various types of organisations with their legal structures........................................1
P2 Size and scope of various types of organisations...................................................................4
TASK 2............................................................................................................................................5
P3 Assess the relationship between different organisational functions......................................5
TASK 3............................................................................................................................................6
P4 Explain positive and negative impact of macro environment on COCO-COLA.................6
TASK 4............................................................................................................................................7
P5 Conduct SWOT analysis of COCO-COLA...........................................................................7
P6 Strengths and weaknesses interrelate with external macro factors........................................8
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................11
Document Page
INTRODUCTION
Business environment refers to combination of several inside and outside elements of
business that are required to be considered in decision making. It is related with two
environments that is micro and macro surroundings. These components are important for
operational activities in order to avoid several type of risks. There is certain relation between
such issues and internal management of an company (Astrachan, 2010). This report is about
Coca cola which is an leading organisation in beverage industry. There are several kind of
business concerns with different natures and legal framework. Along with that, there size and
scopes are also different from each others. In order to improve productivity and efficiency of
company , these factors are to be adopted in various functions of organisation. There is
relationship between different functional units working in an enterprise. These external factors
can affect operational activities of an company in both positive or negative manner. It might also
influence internal elements of an concern.
TASK 1
P1 Discuss various types of organisations with their legal structures
Organisation is an group of people that works towards common goals. It includes features
like delegation of authority, defining responsibilities and encouraging people to attain team goals
in effective manner. There is proper division of tasks amongst various departments and units that
works on certain policies and conditions. Along with that, there is adequate coordination, same
objectives and plurality of employees (Bai and Sarkis, 2010). They works collectively to enhance
profits of company. Some of the essential features organisations are as follows-
Employees works in proper teams in order to accomplish desired tasks of business.
There is proper hierarchies with shared objectives and targets.
Management seeks for opportunities to adopt innovation in operations.
Proper organisation structure and culture are followed in an organisation.
These business concerns are involved in several types of activities such as, service
organisation, merchandising business and manufacturing companies.
Different types of organisation are as follows-
Public sector- These firms are regulated by rules and regulations formed by government
therefore, these are controlled by legal authorities. Such organisations emphasises on providing
1
Document Page
better quality services at reasonable prices to consumers rather them making profits. Most of the
decisions of such entities are taken by regulatory bodies. These organisations are mainly
established for providing several benefits to customers and improving lifestyles of society. Some
the services delivered by public companies are education, healthcare, public transits etc.
Legal structure- It consist framework required for public organisations. This is concerned with
rules and regulations formed by central, state and local governing bodies. These firms are
entitled to follow policies and laws that are introduced by government. This sector does not
focusses on particular segment of consumers as their practices are focussed towards whole
society. NHS could be an perfect example of this type of organisations.
Private organisation- These kind of firms are normally free from control and regulation
of governing bodies. It emphasises on making profits from their operations. Most of the
employments are generated by this sector. Free economies like UK, mostly prefers such
companies. Pricing of product is done on the basis of competition and market conditions. There
marketing strategies are focussed towards gaining attraction of users for the purpose of sales
enhancement (Bos‐Brouwers, 2010).
2
Illustration 1: Legal structure of public organisations
Source:Public Sector Structure,2017

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
Legal structure-
Sole proprietorship- These are small firms set by individual owners in order to provide
goods and services to buyers. Ownership of assets and liabilities are related with proprietor only
as they are the one who invests funds in starting venture. Along with that, profits and losses are
also belonged to owner. Proprietor is entitled to manage day to day activities of enterprise. Such
concerns are not responsible for making proper books of account. It consists businesses like,
grocery shop owners, plumbers, carpenters etc.
Partnership- Such firms are established by more than one owner and they shares
common objectives. These business concerns does not enjoys the advantage of separate legal
entity. It means that if partners fails to pay any liability then it can be recovered from personal
assets of these person. Every member is responsible to invest their share of capital in order to
start operations of business. Profits and losses are also divided amongst all the partners in the
ratio of their holdings in company.
Private limited companies- These are enterprises that are small in size and there is less
capital investment. It is operated by family and other groups of owners. Such entities are
3
Illustration 2: Legal structure of private sector
Source:Gregory Morris,2017
Document Page
considered as more flexible in nature. They are also liable to maintain proper MOA and AOA in
adequate manner.
Voluntary organisation- Such firms are established by specific group of people for the
purpose of social welfare and charitable activities. There are different set of rules and regulations
for such enterprises. It covers institution like NGOs, social welfare foundations etc. Main motive
of these concerns is to improve living standards of backward areas of an country. Its perfect
example could be Oxfam (Chen and Chang, 2012).
Legal structure- England and Wales act regulates organisations involved in voluntary
sector. It structure consists several independent individuals, volunteers, development officers,
coaching directors etc.
P2 Size and scope of various types of organisations
Private organisation- Coca cola is an leading brand in beverage industry. Its head office
is situated in Atlanta, Georgia. This was established in the year of 1892. in current scenario, this
company is amongst biggest firm in terms of sales with an annual sale of 1 billion. There are
around 1200 plants of this entity situated all over the world. Its administration is focussed on
delivering wide range of drinks to its customers. There are approx 175000 workers working in
this company due to which it is giving tough competition to other rival firms involved in same
operations. This company can attain competitive advantages by adopting adequate innovation in
products and marketing strategies. This will assist in competing with big industries in global
market place.
Public organisation- NHS is part of this sector. It is an healthcare organisation involved
in providing medical aids such as dental, eye care, pharmaceutical etc. There are approx 1.5
million people employed in this enterprise due to which it is amongst top five company in terms
of number of employees. Around 150,272 medical practitioners, 40,581 supporting staff and
18,865 workers to provide ambulance services. It has nearby, 111,127 hospitals that are
operating its activities around the world.
Voluntary organisation- Oxfam comes under voluntary organisation. It is an
international institution involved in charitable activities. This company is operating in around 20
countries. It has approx 5300 employees and 22000 people working as volunteers. Along with
this, there are 16 member organisations of this concern (Commander and Svejnar, 2011). This
4
Document Page
firm is working towards social justice and equality . It has lot of scope in countries that are
facing problems related with poverty, unemployment etc.
TASK 2
P3 Assess the relationship between different organisational functions
Every business is having various organisational function that are preformed to grab pre
determined objective. This helps in monitoring the operations of all these task in a perfect and
effective manner. Coco-cola involves so many types of functions for its business. These are
executed by different divisions as marketing, finance, production, sales or human resource and
R&D. These departments has their specific activities to achieve its goals. All functions and task
and divisions are sharing a relation with each others and make influences on others. They offers
cooperation to other departments. These relation can be shown as:
marketing division relations with R&D and HR departments:
These two division marketing and human resources will not be separated to each others.
These are the prominent segments in a organisation cause they are not running with out each
other. If company want to introduce some thing in and wished to launched in to market them
marketing team needs to have sound persons or human resource whom are skilled and
knowledgable that how to use the trick of marketing to capture the eyes of customers. When
coco-cola wants to go in market for any product either they are new or updated marketing use
workforce that helps to place the product in market in sufficient way that will have customer's
attention (Drucker, 2017). On the other side marketing departments has relation with R&D
division as this departments is known for the research and used when company wished to make
some innovation in their product. Nature of goods will helps marketing team in what type of
method could be used for the certain things.
Human resource to finance department:
Financial department playing as investor for the company and human resource is the key
of the organisation. HR division always make its dependency for new things on financial
departments cause it will give monetary values to HR managers by which they planed for future
activities in the company. It can also be said that salary, incentives are based on financial
department but issued by HR division hence manager financial manages the financial tools and
5

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
resources of the company that helps in providing proper funds to other segments of
organisations.
Coco-cola has flat structure of organisation which is divided in several department according to
the activities. All segments are working together to achieve the objective (Du, Bhattacharya and
Sen, 2010).
TASK 3
P4 Explain positive and negative impact of macro environment on COCO-COLA.
There are different factors that are available in the external surrounding of business and
has indirect influence on t operations of Coco -Cola. There is no hold of management in the
fluctuations that take [lace in these factors as they are present outside the boundaries of business
and therefore needs to be adopted as it is. In order to investigate these resources PESTLE
analysis is of great help as through this the changes and effect that outside variables has on
business can benefited:
Political factors – The Food and drug administration regards beverages which are non
alcoholic for example Coca – cola. The manufacturing process of this product is regulated by the
legal body so that no unfair trade practice is being followed. It is important that all the activities
are performed within the legal limits so that no actions are taken against the same. Health and
safety is of very much importance as the company is dealing in consumer goods which needs to
be given extra care. Any change in the laws and regulations related to this industry needs to be
adopted as it is so that it remains free from any external action from the authorities. The ability to
penetrate emerging and developing trends also gets effected by the political changes (Ford and
Richardson, 2013).
Economical- This factors has sound importance for an organisation. It is very dynamic
that cannot be predicted cause economy will never be same this continues to change its nature as
they creates changes in GDP and recession, rate of inflation, population these elements has
power to make effect on purchasing capacity of people. As coco-cola will start producing it
goods to all income level of persons this will help them to garb goods number of customers.
Social- this factors shares they relation with society and culture. The preferences and
tastes of persons are make major influence of the production or graph of sales cause they are has
base of their personal, demographic features. In the current era customer tend to be more
6
Document Page
influenced and attracted to new things which is comes in their budgets too. Hence Coco-cola has
farmed small sized bottles of soft drink which are affordable by them.
Technological- this factor is known as the most vital and prominent thing in retail sector.
People are more advance in these days and with the helps of technology company will showcase
their product in front of customers which helps in placing the product in to market and make
good promotion which increase the graph of sales. Coco-cola use this tools as it's communicator
to make persons more aware about product.
Legal- This phase of analysis has the base of law and legislations which are dynamic and
unpredictable in nature. In accordance of the fair labelling and packing act, regulation of the
packing are applied in a very strict ways it is compilation for all the companies that they need to
give all the core details to customers which should be printed with the product. Hence Coco-cola
is more concentrating of their packing policies they delivers core details to customers with goods
what they are selling on the packet of the product (Hamilton and Webster, 2015).
Environmental- This phase is known as important part in business decisions, the current
scenario of environment, climate condition are make impact on the product of company. Here
this point is all said that any organisation are not allowed to frame those product or stuff whim
are harm full for the climate condition or make negative impact on the nature. Hence Coco-cola
is in ways to build up those product this will not harm person and its packing is recycle which
minimise the use of nature and improve its values.
TASK 4
P5 Conduct SWOT analysis of COCO-COLA.
SWOT analysis provides help in defining external and internal factor which are more
powerful to make impact on the working of coco-cola. The process of SWOT involves
strengths,weaknesses, opportunities and threats of this organisation. These are the factors tart are
present with the organisation and can be controlled by the management as they are under the
control of organisation. These factors has their direct impact on the company and can be
converted into opportunities if given more care.
Strengths: The company coco-cola has many powers that provides aid in growth. The
brand coco-cola has major demand in the UK market for its drink product. Its brand vale goes
high as more or large number of user are preferring to purchase it from its own store whether
going to other markets. This brand name is the one whom are majorly recognise in the world.
7
Document Page
This is the largest beverage distribution system in the world cause they have operation in approx
200 countries (Harrison, 2011).
Weaknesses: coca cola has limited verity of products they generally tend to sells
drinkable items such as soda pop and and those foods that have easy flow like they can move to
one to others. But on the other side company has few draw backs but they cannot be ignored. The
organisation coca-cola has using a techniques which are not so very effective for them as they
are out dated and people are not interested to seeks out the old thing in advertisement cause they
are not effective and not covers new trends. Other one in draw backs of this organisations is that
has involvements to huge level of manual working which increase the graph of cost for the
company. Some time they will neglects the advancements of technology forb the company.
Opportunities: market has demand for health foods and demands which coca-cola grabs.
They have continues growth of the company in markets place as a beverage industry. Now a
days people has more belief in health drinks hence this make profits for the company. They
introduced the options in drink as they have launched the sugar free drinks which took
appreciation from diabetic persons. This step is the major thing for those firm whim are serving
beverage in markets. This company has expansion in global market and they seeks out the major
scope in international market. Organisation has chance to improve the methods of segmentation
of the target markets by starting more branches in order to increase the business activities and
generate good revenue (Laumer, Eckhardt and Weitzel, 2010). They are setting up the stores in
accordance the preference. Company will made up some innovation with product with helps
them to gain goods finance.
Threats: Market has cut throat competition for coca cola. Rivals are come up with the
innovative products which offers that things in lower price. Water can be the only threat to this
company. Water is the only thing for the product which are made up by the coca cola. In the
chains of competitors for coca cola some names are listed as Starbucks, cafe coffee day, costa
coffee are the major competitions which are dealing in same verity of the product. By them coca
cola are having health face off in market. On the other side tropicana and red bull are grabbing
the market share in indirect way.
8

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
P6 Strengths and weaknesses interrelate with external macro factors
For an organisation the impact of both external and internal surroundings is vital. Both of
them effect the business operations in direct or indirect way which further increases the pressure
on management to make changes accordingly. In order to take maximum advantage of the
internal strengths of business it is required that they match with the factors present outside the
organisation. If the internal weaknesses are converted into opportunities by using the factors that
are present outside the boundaries than it will help in achieving better results. Management of
CO-Cola has no influence on the changes that take place outside boundaries and need to make
alteration with the business so that continuity in operations can be maintained.
The marketing activities of this brand are effective enough in acquiring greater market
share and also resulted into increase in its total sales (Sosna, Trevinyo-Rodríguez and Velamuri,
2010). It can earn higher revenues if the political conditions remain same as in case of change in
political practice management can not continue with the same code of conduct. There are
countries which have strict laws related to export and import of goods and in that case even if the
refereed organisation has capacity to expand in new areas it can not grow due to excess of rules
and regulations that are present at global area. Apart from this the another way through which the
strength of business gets effected is due to the continuous change that take place in the
technological environment. It takes time to develop skills regarding use of various tools and
techniques and in case of change in the present techniques the whole organisation gets disturbed
as they have to again plan the training sessions which is a time consuming process. This way the
strength of Coco - cola gets effected as their human resource who is effective enough in carrying
out operations in a particular manner needs to again get trained.
After this the continuous increase in the laws related to environment protection has also
effected the functioning of business. It is due to the reason that chemicals which are used by the
firm has their effect on the surroundings and due to this they fall under the monitoring of legal
authority concern for surroundings protection. The production process gets effected due to strict
laws associated with the business and therefore strength of maintaining availability of goods in
market gets effected (Welford, 2013). The above discussion shows that how external and internal
surroundings are interrelated with one another and change in any one of them has its effect on
the other as well. Therefore it is important that balance between them is maintained so that
strength do not get effected and continuation in the organisation operations is maintained.
9
Document Page
CONCLUSION
From the above discussion this has been summarised that in the present business world
there are a number of business enterprises each of which operate with their own separate
objective. There is a difference in size and scope of different business due to variations in
investment made. Co-co- cola is a huge brand and is privately own business unit. There are a
number of departments which has responsibility to perform their own duties. Though they are
separate from one another bust still has strong interrelationships due to the fact that results of one
department has its influence on the other too. Thereafter, internal and external audit of refefred
organisation was done through which it is identified that they have their major impact on the
operations of business.
10
Document Page
REFERENCES
Books and Journals
Astrachan, J.H., 2010. Strategy in family business: Toward a multidimensional research agenda.
Journal of Family Business Strategy. 1(1). pp.6-14.
Bai, C. and Sarkis, J., 2010. Green supplier development: analytical evaluation using rough set
theory. Journal of Cleaner Production. 18(12). pp.1200-1210.
Bos‐Brouwers, H.E.J., 2010. Corporate sustainability and innovation in SMEs: evidence of
themes and activities in practice. Business strategy and the environment. 19(7). pp.417-
435.
Chen, Y.S. and Chang, C.H., 2012. Enhance green purchase intentions: The roles of green
perceived value, green perceived risk, and green trust. Management Decision. 50(3).
pp.502-520.
Commander, S. and Svejnar, J., 2011. Business environment, exports, ownership, and firm
performance. The Review of Economics and Statistics.93(1). pp.309-337.
Drucker, P.F., 2017.The Theory of the Business (Harvard Business Review Classics). Harvard
Business Press.
Du, S., Bhattacharya, C.B. and Sen, S., 2010. Maximizing business returns to corporate social
responsibility (CSR): The role of CSR communication. International Journal of
Management Reviews. 12(1). pp.8-19.
Ford, R.C. and Richardson, W.D., 2013. Ethical decision making: A review of the empirical
literature. In Citation classics from the Journal of Business Ethics (pp. 19-44). Springer
Netherlands.
Hamilton, L. and Webster, P., 2015. The international business environment. Oxford University
Press, USA.
Harrison, R., 2011. Learning and development. Development and Learning in Organizations: An
International Journal. 26(1).
Laumer, S., Eckhardt, A. and Weitzel, T., 2010. Electronic human resources management in an
e-business environment. Journal of Electronic Commerce Research .11(4). p.240.
Sosna, M., Trevinyo-Rodríguez, R.N. and Velamuri, S.R., 2010. Business model innovation
through trial-and-error learning: The Naturhouse case. Long range planning. 43(2).
pp.383-407.
11

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
Welford, R., 2013.Hijacking environmentalism: Corporate responses to sustainable
development. Routledge.
12
1 out of 14
circle_padding
hide_on_mobile
zoom_out_icon
[object Object]

Your All-in-One AI-Powered Toolkit for Academic Success.

Available 24*7 on WhatsApp / Email

[object Object]