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Business Environment Introduction 3 Task 13 P1 Different types of business organization

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Added on  2020-06-04

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Business Environment Introduction 3 Task 13 P1 Different types of business organization 3 P2 Different stakeholders its influence the objectives of two contrasting business 4 Task 25 P3 Describe how two businesses are organised 5 P4Explain how their style of organisation helps them to fulfil their purposes 6 Task 37 P5Describe the influence of two contrasting economic environments on business activities within a selected organization 7 Task 47 P6 Describe how political, legal and social factors are impacting upon the business activities 7 Conclusion 9 REFERENCES 10

Business Environment Introduction 3 Task 13 P1 Different types of business organization

   Added on 2020-06-04

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Table of ContentsIntroduction...........................................................................................................................................3Task 1.....................................................................................................................................................3P1 Different types of business organization .....................................................................................3P2 Different stakeholders its influence the objectives of two contrasting business ........................4Task 2.....................................................................................................................................................5P3 Describe how two businesses are organised...............................................................................5P4Explain how their style of organisation helps them to fulfil their purposes.................................6Task 3.....................................................................................................................................................7P5Describe the influence of two contrasting economic environments on business activities within a selected organization.....................................................................................................................7Task 4.....................................................................................................................................................7P6 Describe how political, legal and social factors are impacting upon the business activities.......7Conclusion ............................................................................................................................................9REFERENCES.........................................................................................................................................10
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IntroductionBusiness environment is having a large impact on company and its future performance. It istoo complex and competitive which needs a careful analyses and evaluation of businessenvironment in order to minimize its impact (Cantwell, Dunning and Lundan, 2010). Thepresent report is based on ASDA PLC which is one of the leading organization in retail andconduct their business in United Kingdom. The main purpose of this study is to analysisvarious aspects and different types of business and how they perform in an effective mannerto attain their long term goals and objectives. Task 1P1 Different types of business organization There are three main types of business that those seeking self-employment can look toestablish: sole trader, partnership and limited company (Cavalcante, Kesting and Ulhøi,2011). Each differs in terms of the paperwork you must complete, the tax you must pay, theway in which profit is distributed, and your personal responsibilities if the business makes aloss.Sole trader:This type of business is owned and managed by one individual. There's no legaldistinction between the owner and the company, meaning that all debts and after-tax profitsare personally yours - this is called 'unlimited liability'. Specialist service providers such asplumbers, hairdressers and electricians are often sole traders. Sole trader businesses are easyto establish and discontinue, are subject to relatively few regulations, and typically haverelatively low running costs. The owner is responsible for keeping day-to-day financialrecords, but hands responsibility for the end-of-year accounts to a professional accountant(Chesbrough, 2010). Partnership:Similar to sole traders in the sense that they are subject to unlimited liability,partnerships differ in that they involve two or more people pooling their expertise to own andmanage the business. Professional service providers such as dentists, doctors and accountantsoften fall into this category. Partnerships usually offer the advantages of sharedresponsibility, reduced time pressure for each individual, and an increased level of financialclout and specialisation (Child and Möllering, 2013).Private limited company:There are two types of limited companies: private limitedcompanies and public limited companies. The former are often small businesses that don't
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trade on the stock exchange, while the latter are usually well-known businesses that do.Unlike sole traders and partnerships, these businesses are registered at Companies House andhave their own legal rights and obligations (Kaplan and Norton, 2015). Ownership is dividedinto equal parts called shares. Anybody who owns one or more shares is a shareholder.P2 Different stakeholders its influence the objectives of two contrasting business In this section I will be describing different type of stakeholders internal and external. Alsoexplaining who they are and what they are, then contrasting them with two differentcompanies NHS and Ford Motor describing what the stakeholders want from the chosenbusinesses and why the stockholders are useful.Stakeholder is a person who is in an organisation and is affected by the organisation in termsof strategy and project. Stakeholders can be internal or external at different levels e.g.Internal stakeholders are groups within a business such as owners and workers and externalstakeholders are groups the outside a business such as suppliers and community.List of internal and external stakeholders and explanation of what they are and who they are:Employees: Their stake is that the company provides them good rates of reward andpromotional opportunities. They also want a very good security of employments. Also theyare concerned about their salary (Lewis and Gates, 2015).Customer: The reason for a company’s existence is to provide products or services that meetthe needs of its target customers and benefit them in a meaningful way. The role of customersis critical to the company’s survival and success. Through the purchase decisions they makeeach day, they select which companies will prosper and which will fail.Community: The community provides the skilled workforce that a company depends upon tomaintain its competitive edge. Members of the community, including the news media, oftenplay a watchdog role, ensuring that the company is a good citizen with fair business practices,concern for the environment, and a willingness to contribute to charitable and social causes.
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