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Business Environment: Industry Analysis and Organisational Functions

   

Added on  2023-06-10

27 Pages6038 Words343 Views
Faculty of Business and Management Studies
BTEC HND in Business
Business and the Business Environment
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Table of Contents
Introduction ...............................................................................................................................................2
A. Industry Analysis Factsheet.....................................................................................................................4
Organisation Types of Different Sectors and their Purpose and Legal Structure ....................................4

Sizes and Scopes of Different Types of Organisation ..............................................................................5
Global Growth for Businesses and Development ..........................................................................6
Factsheet of Admiral ...............................................................................................................................7
Organisational Flowchart of Admiral..............................................................................................9
Fact sheet for public organisation...........................................................................................................9
Fact sheet for voluntary organisation....................................................................................................10
Organisational Functions and Organisational Structure with Their Interrelationship ...........................10
Diverse Organisational Structure and interrelationship of Internal Departments to Meet Business
Goals ............................................................................................................................................12
Various Business Structures interrelating with Functional Departments in meeting Business Goals
......................................................................................................................................................13
Conclusion ...................................................................................................................................13
B. Environmental Business Audit Presentation .........................................................................................14
Business Environment and its Impact over Admiral’s Operations ........................................................15
Admiral’s Strengths and Weaknesses ...................................................................................................19
SO, SW, WO, WT strategies:..................................................................................................................21
Strengths and Weaknesses of Admiral Linking to External Macro Factors ...........................................21
Conclusion and Recommendation ...........................................................................................................25
References................................................................................................................................................26
Introduction
There are many internal and external factors that highly impact the business world.
They have to adapt according to these changes to sustain in the niche market. The
company leaders and managers must analyse these elements to reduce market
competition and risky challenges. The report is produced for the Strategic Planning

Team of Toyota as the Junior Insights Strategist. The report will discuss diverse
organisation types, sizes, and scopes. Then the report will assess how diverse
organisational functions are interrelated and their link with the structure of the company.
Then the report will identify the positive and negative influence of macro environment
and ways the internal strengths and weaknesses interlink.

A. Industry Analysis Factsheet
Organisation Types of Different Sectors and their Purpose and Legal
Structure
Businesses must select necessary goals, aims, structures, and processes. They have to
overcome challenges and take advantage of potential scopes for retention of high
profits. Business leaders and managers need specific structure to control the business.
There are three kinds of business organisations (Davies, 2015).
Public Business Organisation: The govt. owned businesses serve the public and offer
products and services at a low cost. The example of public businesses are law
enforcement, schools, medical colleges, hospitals, public transport and so on. The
organisations are funded from the tax money of the citizen. The company processes
and operations are managed by management committees. In the sports sector, the
example of a public business organisation is Sport England (England, 2021). The goal
of the company is to help sporty people and arrange for necessary sports equipment
and resources for them to achieve a remarkable position in the sports field. The
company is operated through NDPB.
Private Business Organisation: Generally individuals develop a private business
without any interference of the govt. within the business. They also sell similar products
and services sold by the public organisations but at a higher rate. The purpose of their
products and services is to make huge profits by meeting market demands. The
organisational structure of the private business can be simple or complex. They have
different types like sole tradership or limited partnerships. Large businesses usually
have diverse types like corporations, limited companies, LLC, social enterprise and so
on. A good example of private business is Admiral Sportswear (Admiral, 2022). The
purpose of the company is to help their customers to get casual clothing and sportswear
at an affordable prices, and to strive for better together. They own a rich history in the
sports sector and aims to become the most reliable top quality brand available at an
affordable price (Blair, 2019 ).

Sole
Tradership
Limited
Partnerships
Limited
Companies
Social
Enterprise
Corporations
The entity is
run by an
individual to
meet own
financial
needs. The
owner is the
sole bearer of
the profits and
risks of the
business. The
entity has no
legal structure
in sole
tradership or a
simple form.
The entity is
developed with
more than one
individual by
sharing
investment. The
owners are
liable for the
invested share
only. Unlimited
liability is
shared by
limited and
general partners
(Craig &
Campbell,
2012).
With limited
amount liability,
limited
corporations
are developed
through
shareholders.
In this entity
type, there are
open shares
that others can
buy
The entity type
is liable for
making positive
changes in the
community and
society. They
work with
donations,
charity, and
reinvestments.
Their goal is to
meet and solve
the social
issues.
These are
large entities
that operate
in many
locations.
Generally
there are four
types, S corp,
C corp, LLC
and non-
profit. The
business is a
separate
entity than the
owner
(Wetherly &
Otter, 2014).
Voluntary Organisation: These business entities are developed as non-profit
companies. They are operated through board of directors or trust, or guarantee
company limited, unincorporated association and so on. There are many types of NPOs
like foundations, charities and so on. Their purpose is to identify the social issues and
solve them without making any personal profits. In the sports sector, a good example of
not-for-profit organisation is Sported (Sported, 2021). Their goal is to help and support
enthusiastic youth within the UK and help them achieve success in the sports sector.
The private NPOs are funded by high society, corporations, and individuals and so on.
Public NPOs are funded by govt., local corporations, and private companies and so on.
NPOs cannot have any shareholders (Worthington, et al., 2018).
Sizes and Scopes of Different Types of Organisation
Micro Business: These entities are developed with an investment of a limited amount.
The owner operates locally and makes small amount of profit. The purpose of micro
business is the self-solvency of the owner. This is why it is run by sole proprietorship
mostly. Generally the small scale business has a simple form of organisational structure
like flat organisations. Entities that has 0-9 employee size and a turnover of 2 million is

referred to as a micro business. From the manufacturing to retail sector, micro
businesses has great scopes and improve local GDP.
Small Business: These entities also have a low investment amount. The owner
operates based on sole proprietorship/ partnership and makes small amount of profit.
Usually the investment and profit rage is higher than micro business. Small businesses
improve local GDP because they can hire local people for smooth business operations.
The purpose of small business is to create solvency of the people connected to it. The
employee size of small businesses is 10-49 people and the revenue size is 10 million.
They highly influence the local GDP because it creates a cycle of income (Veleva, et al.,
2016).
Medium and Large Businesses: They are comparatively large entities and invest
regularly to make high profits. The companies have complex legal structures as they
operate regionally or globally. They may also have different product lines. Their primary
aim is business growth so they develop products and services that meet the market
demand and makes high profit through aggressive business strategies. The medium
companies have an employee size of 50-249 people and a turnover of 13 million
(YURDAY, 2021). It is also the minimum threshold of large businesses but there are no
maximum threshold. These businesses operate in the business world to make high
profits. In return they develop the economy and standard of lifestyle. They create high
employment ratios and also develop the GDP regionally/ globally. Because of operating
globally, large businesses are able to exploit diverse geographical location for
increasing revenue generation.
Global Growth for Businesses and Development
Transnational Businesses: These entities operate in diverse geographical locations.
Also referred to as the multinational/ international corporations, they must have
operations in at least two countries. The headquarter controls the processes and
operations of the entity. They have complex legal structures and require huge and

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