Business & Business Environment Assignment - IKEA company

BUSINESS & BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION
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5
LO1
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5
P1: Explaining different types and purposes of organisations; public, private and voluntary sectors
and legal structures.................................................................................................................5
P2: Explaining the size and scope of a range of various types of organisations ............................6
M1 Analysing the way business structure, size and scope of different organisations link to the
business objectives and product and services offered by an enterprise.........................................6
LO2
......................................................................................................................................................
7
P3: Explaining the relationship between various business functions and the way they link to
obusiness objectives and structure ..........................................................................................7
M2: Analysing the advantages and disadvantages of interrelationships between business functions
and the effect that can have upon business structure ..................................................................8
D1 Providing a analysis of the complexities of various types of business structures and the
interrelationships between different functions..........................................................................8
LO3
......................................................................................................................................................
8
P4 Identifying the positive and negative effect macro environment has upon business ................8
M3: Applying PESTLE model for supporting in depth analysis of the macro environment .........9
LO4
......................................................................................................................................................
10

P 5: Conducting internal and external analysis of an enterprise for identifying strengths and
weaknesses ...........................................................................................................................10
P6: Explaining the way strengths and weaknesses interrelate with external macro variables .........11
M 4: Applying SWOT/TOWS analysis and justifying the way it effect decision-making .............12
D2 Evaluating the effect which both macro and micro component have on business objectives and
decision-making ...................................................................................................................12
CONCLUSION
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12
REFERENCES
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13

·INTRODUCTION
In present scenario, business is highly effected by several factors and which also have
influences on overall effectiveness business performance. This report will have focus on digfferent
aspects related to the business environment which have effect on the overall effectiveness of an
ernterprise. This assignment will define several aspects of business environment to develop an
understanding about the ways that can effective for running business.
IKEA is multinational company brought about in the year 1943 and providing quality
services. Company also retailing of furniture and other products. The report will cover the
functions for one of the chosen organisations, using an organisation chart to show the way
functions interrelate and an explanation of the way they link to business objectives and
construction. Further, it will apply a SWOT or TOWS analysis to IKEA to identify their key
strengths and weaknesses.
·LO1
·P1: Explaining different types and purposes of organisations; public, private and voluntary sectors and
legal structures
There are various types of organizations and majorly all types of companies which are
segmented in diffrent sectors such as public sectors, private sectors & voluntary sector organizations.
Moreover, the purposes of those organizations are not similar.
Public limited companies is operated and managed by theregulatory bodies for the people. For
example, Prudential public limited company which is the British financial service company in UK.
Public pay taxes to the legal authorities and this money is used to finance most of the public enterprises.
It has been determined that, the main objectives of public sectors organizations it to give important
public services and to use assets well for the betterment of the society.
Private employees operate and run the private sector organisations. Examples of private sector
companies are franchises, companies, partnership & sole properitors. For example Acromas Holdong
Ltd. Company in UK. Purposes of private sector organizations is to making profit, expand their
business, raising their market share and increase sales.
Individual people doe not run the voluntary groups. However, some will be accountable for
making sure that it sets targets and budgets & does what it is set up to do. It has been discovered that the
wealth of the public sector is directly managed by government or government bodies. For example,