(PDF) Business Environment Assignment
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Added on 2021-01-02
(PDF) Business Environment Assignment
Added on 2021-01-02
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Business Environment
Table of ContentsINTRODUCTION...........................................................................................................................3P1: Types and purposes of organisations....................................................................................3P2 Describe the stakeholders and their influences on the purposes of public limited andvoluntary organisations...............................................................................................................6P3: Describe how two businesses are organised.........................................................................7P4 Explain how their style of organisation helps them to fulfil their purposes..........................9P5 Describe the influence of two contrasting economic environments on business activities.10P6 Describe how political, legal and social factors are impacting upon the business activities...................................................................................................................................................11CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13
INTRODUCTIONBusiness is an activity in which an individual performs its duties for earning money sothat it can spend its life in an effective manner. In other words, it is a group of individuals whowoks together for making and selling products and services. Chosen organisations for this reportare, Tesco for private and Oxfam for charity both firms are based in UK and providing theirservices across the world. Tesco was established in 1919 by Jack Cohen whereas, Oxfam wasfounded in 1942 along with 20 trusts by Oxfam international group. Present assignment willcovers about the types, purposes and ownerships of two organisations along with stakeholdersand their influences on these business firms. How structure of organisations helps them infulfilling their purposes. Organisational structure of both firms along with influences of political,economic, legal or social factors on the business activities.P1: Types and purposes of organisationsPublic Limited company(PLC)Main objectives of these firms are enhancing the profitability and productivity so thatstrong position of firm can be maintained in the marketplace. In order to maintaining this,purposes and kinds of these organisation also plays an important role which is briefly explainedas under with example of Tesco (Adeoye, 2012).Background of Tesco – Tesco is a British multinational groceries and merchandiseretailer along with based in Hertfordshire, UK. It was founded in 1919 by Jack Cohen after thefirst world war in UK. Company is also known as the third largest retailer across the world and itis termed as the profitable organisation which sell its products for earning profits. Company isproviding its offerings in various nations like India, Malaysia, Hungary etc. Purposes of Tescoare briefly defined as under:Serving Shoppers a little better every day- Company was built with a simple and clearmission which is to make a strong brand image in the mindset of customers along with assistingthem to live their life with better quality products. As customer wants great products atreasonable prices so that it is the main liability of firm to provide better products at affordableprices to them so that good market presence can be made at the marketplace.
Providing services- Company is also providing various services like finance, Tax,accounting, Help desk to the citizens of various nations so that a good market position can bemade in front of their customers.Types of OwnershipSole traders- This is the simplest form of ownership which is relatively easy andinexpensive for establishing. In this kind of ownership, a single individual have to take alldecisions about running and starting of business. The owners have to face unlimited liabilitiesbecause all their assets are at risk if any decision will go wrong.Liabilities – It is the biggest drawback of functioning a business as a sole proprietorbecause if debt is incurring in the business functions or the owner has no ability to pay this debtsthrough the profits. Then owners have liability to repay the credited amount to the creditorsthrough selling their house or taking loan from financial institutions (Belás, 2015).Responsibilities of owners – Owners in this kind of ownership have to adhere variousresponsibilities like paying tax, allocate resources of funds for running the business in systematicmanner. Owners have also responsibility to pay all debts to the creditors at the end of financialyear even if business can't generate sufficient incomes for repaying the credited amounts ofcreditors.How sole trader is setup- Owners of this kind of structure should make registration withHMRC and follow specific rules and regulations which are formulated by UK government inorder to running the business activities in more effective manner.HMRC requirements for sole traders- Proprietors have duty to provide all the detailsof business to the HM revenue and customers and also take a registration of self assessment taxand class 2 national insurance from the department. Through this, they will be able in filling taxat the end of every financial year.Public Limited companies- Organisations whose securities are listed on stock exchangeand can be bought or sold by anyone. In it, government have more than 51% of shares and theseauthorities have also responsibilities to bear all the losses or debts of organisation. Publicorganisations are highly regulated by the government and also have responsibility to publishtheir complete financial performance so that investors can easily determine the true value ofshares.
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