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Assignment Sample of Business Environment

   

Added on  2020-06-04

18 Pages5780 Words57 Views
BUSINESS ENVIRONMENT

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P 1 Types and forms of business organization in a business environment............................1P2 The size and scope of a range of different types of organisations....................................4P 3 Explain the functions for the organization that are interrelated and the link to the structureof the organization..................................................................................................................7TASK 2............................................................................................................................................9P 4 PESTLE analysis of British Airways (M3)......................................................................9P 5 Conduct internal and external analysis of specific organisations in order to identifystrengths and weaknesses (M4)............................................................................................11P 6 Explain how strengths and weaknesses interrelate with external macro factors...........13CONCLUSION..............................................................................................................................13Books and journals...............................................................................................................14

INTRODUCTIONBusiness environment is considered as the situation in which the business grows orsustains (Pulver, 2012). Circumstances surrounding the business are knows as the factors of thebusiness environment. Business environment include the several internal and external factors,which are determinants of the business growth. These factors may sometimes also influence eachother and they work together and affect the business. This report will focus on British Airways,McLaren Automotive and Oxfam to contemplate the factors of business environment. It willcover the types of business; factors of each type with the influence of these factors the currentscenario. TASK 1P 1 Types and forms of business organization in a business environmentThere are generally two kinds of businesses: Profitable organization : These kinds of business have their sole purpose as to earnprofits. They focus on generating revenue in order to maximize their profits. Thesebusinesses are more focused on the growth in terms of revenue generated. Earnings of thebusiness are distributed among the owners of the business (Klapper, 2011).Nonprofit organization: This kind of organization's main goal is to serve the society. Anyrevenue earned by the organization is not distributed among the core operators instead,the money is put into the mission and activities that will be performed for welfare of thepeople.Organization types :The organization can be classified into 3 parts. i.e. private, public and voluntaryorganization. Private sector organization: These are privately owned institutions, which are establishedwith the sole purpose of earning profits. These do not adhere any governmentinterventions until there is an open case against the company or the institution is facing ascrutiny charge or tax invasion charges. The owners of the business manage this kind oforganization. McLaren automotive focus on maximization of profit with superiorcustomer satisfaction. Public sector organization: The company which is owned and controlled by thegovernment fall under the category of public sector organization (Ebert, 2014.). British1

Airways’ main purpose is to satisfy customers and the employees by giving necessarysupport and facilities. At same time company, main aim is to earn good amount of profits.It are intervened by the government and the objectives of the company mostly line withthat of government. To get financial support the company can approach governmentwhenever require or they can also borrow money from the public by varied sources.Voluntary organization: This kind of organization is established in order to serve thesociety. Oxfam focus on improving the current condition of the society. It does notconcentrate on maximization of revenue to earn more profits, the profits earned are alsorecycled to finance the objectives of the organization. Legal structure of private sector organization:Sole proprietorship: A business operated and functioned by a single owner is known assole proprietorship. This kind of business needs the least capital and is easy to start ascompared any other form. The purpose of the business is to earn profits. Profit earnedand the loss incurred in business is faced by the only person running the business. Thebusiness earns profit with the sale of dealing products. ◦The proprietor of the business has unlimited liability towards the business, i.e. thedebts of the business can be compensated by personal property of the proprietor. ◦The owner is the only decision-making authority and his decision is final. Thedecision making quick as only one person takes all the decisions. ◦The owner is the only financing party of the businesses. ◦At the death or retirement of the proprietor, the business may end.◦No separate legal entity, the sole proprietor and the proprietorship are considered asthe same person.Partnership firm : When 2 or more individuals agree to commence business togetherunder the binding of a partnership agreement, then it is called partnership business (SenaFerreira, Et Al. 2012). ◦All the partners have unlimited liability towards the debts of the business, i.e. thecreditor may claim on the personal property of the partners to recover his debt. Withan exception of limited partnership, where claims can not be made on the personalproperty of the partners. The purpose of the business is to generate maximum revenueso as, to earn profits. 2

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