Business & Business Environment Doc - Aldi
Added on 2020-11-12
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BUSINESS & BUSINESSENVIRONMENT
ContentsINTRODUCTION...........................................................................................................................1LO1..................................................................................................................................................1P1 Types and purpose of organisations..................................................................................1P2 Size and scope of different types of organisations............................................................2LO2..................................................................................................................................................3P3 Relationship between different divisions and their link to organisational objectives.......3LO3..................................................................................................................................................4P4 Positive and negative impact of macro environment on business operations...................4LO4..................................................................................................................................................5P5 Internal and external analysis for finding the strengths and weaknesses of the organisation................................................................................................................................................5P6 Relation of strengths and weaknesses with external macro factors..................................7CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
INTRODUCTIONBusiness entities operate in particular areas where different external and internal factorsaffect their operations in both positive and negative way. The region where they run theiractivities is known as business environment (Christopher and Holweg, 2011). Aldi is a leadingfirm in UK retail sector. It is a multinational company who is present in 20 countries and atalmost 10000 locations. This assignment will discuss about different kind of organisations andthey purpose of existence. Their legal structure and scope will also become part of this file.Every organisation has various departments and there relationship is directly connected to theobjectives which company want to attain. This topic will be included in this project as it isconnected to the performance of company. SWOT and PESTLE analysis will also be done byunderstanding the impact of macro factors on the company and for analysing strengths andweakness of the firm along with opportunities and threats which are standing in-front of theenterprise. LO1P1 Types and purpose of organisationsOrganisation is group of people who work for same purpose and support each other sothey can more forward towards their goals. Their is a general perception that all the organisationsare involved in business activities but it is not true because there are many organisation likepublic or voluntary who do not run their operation for earning money. Below is various types oforganisations and purpose of presence:Public – Public organisation are the entities who have involve on government, whether local orcentral. They are known for manufacturing and selling goods and services to the public at anaffordable price so people of every income group can afford it and improve their living standardby fulfilling their basic need. Government have various companies who are running theiroperation, some of them are run by local government while a significant number of these typesof organisations is run by central government (Hair, 2015). Legal structure – BBC has number of board committees. BBC board is run by non-executive chairman and majority of the people in board are non-executive directors. They workwith the executive director, BBC's Director-General and Editor-in-chief. Their is no necessitythat a public organisation would not work in partnership with other private firm. But, they also1
have 51% ownership of the company and this why enterprise is considered as privateorganisation. The legal of structure of public organisation differs according to the aim and workof company. All the public organisation has representatives of government and they hold seat inthe group of board directors. BBC is public company which is owned by ''The Crown'' i.e.government. Purpose – Public organisation focus on development and welfare of company. They maycharge money for the service or products which they are providing to the people but profit is nottheir main aim (Zsambok, 2014). Private – Private organisations are basically of three types. Their legal structure also differsbecause of their structure and purpose of business. Sole proprietor is first kind where a singleperson run whole business. He/she operates at a very low level and their main purpose is to earnmoney for living. They do not have any legal structure because of their small operations.Partnership is another type of private organisation where 2-20 people run their business and theirmain aim is to earn profit so they can expand their business. Their legal structure depends thatwhether they have a partnership deed of not. If they have one, then they have to follow ruleswhich is mentioned in it. Private company is the last and most popular form of private organisations. They onlyhave one purpose for formation of organisations i.e. to earn more and more profit. Private firmshave to follow the company's act and other government regulations. They have board of directorsand they have to follow the rules related to minimum and maximum number of director whichshould present in a company. Aldi is private firm who want to grab top position in retail sectorindustry. Voluntary – These organisations do not work for whole public or profit. They have work for aparticular purpose like Oxfam is a voluntary organisation who works for the purpose ofremoving poverty from the complete world. Their legal structure depends that whether they areoperating at small of large level. If they seek assistance from government then they have tofollow the rules which is made by government. P2 Size and scope of different types of organisationsAs mentioned earlier, private, public and voluntary are three types of the organisation.They size and scope is mentioned below:2
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