(doc) Business Environment Report
Added on 2020-07-22
22 Pages5811 Words35 Views
Business Environment
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1 .......................................................................................................................................1P1 Different types and purpose of organisation.....................................................................1P2 Size and scope of different type of organisation...............................................................6TASK 2..........................................................................................................................................10P3. Relationship between different organisational functions and their relation with itsobjectives and structure........................................................................................................10P4 Positive and negative impact of macro environment on TESCO operation...................13P5. SWOT analysis of TESCO.............................................................................................15P6 Ways in which strengths and weakness are linked with organisation macro factors......17CONCLUSION..............................................................................................................................18REFERENCES .............................................................................................................................19
INTRODUCTIONBusiness environment refers to the surroundings in which a company has to function asper the changes taking place. It is made up of two words, Business and Environment. Business issomething that involves exchanges of products and services in turn of money. It is established forearning profit, solving a social issues and serving the targeted population as per their needs andwants. A business is impacted by various internal as well as external factors which arecollectively called business environment. These factors have indirect as well as direct link to theorganisation effectiveness and profitability (Aula, 2010). PESTLE analysis will be used in thisreport as to evaluate the macro factors and SWOT will be used to evaluate overall organisationcapabilities and weakness. Any variations in the factors will bring positive and negative sideeffective on organisation capability and effective necessary company need to understand theimportance of assessing these factors and make necessary changes so that it is able to faceuncertainties and issues in future. This report will describe business environment and ways inwhich it influences organisation operations. For this report Tesco, BBC and Oxfam will stateabout, private, public and voluntary organisation. Various factors and their link with organisationfunction will be covered in this report.TASK 1 P1 Different types and purpose of organisationThere are different types of organisations operating in the business world but they alldiffer on varying grounds. Usually they are differentiated on the basis of their field of serving,legal structure, purpose of business, aims and objectives, etc. some of the organisations aretotally based on the idea of earning profits and maximising its market share in a set period oftime. While there are some companies which are established for serving society and solvingsocial issues which exist. There are some companies which are run by voluntary members. Inthis era, private companies have taken over the market share of government organisations. Thishappened due to stagnant structure and slow decision making which hampered the growth ofthese publicly funded organisations. Today, private companies are much larger in size and scopethan these government firms. Sole traders is an individual who do not have much resources andhis/her areas of operation of also very limited. Plumber, owner of coffee shop, electrician aresome of the example of sole proprietor. They use their own capital and their main aim is to earn1
livelihood. Sole trader do not need to register their business anywhere. Partnership is anothertype of private organisation. In this for, 2-20 people start a partnership business. Their is no legalbinding for registering their partnership but in some special case they have to register theirbusiness from reveal government authority. Private limited company do not have authority toraise capital from market. Their main aim is to increase their areas of operation along withrevenue. For a private company, it is compulsory for them shows their financial statement totheir shareholder and provide this report to register of companies. Public limit company haspermission of raising capital from market and they have option of paying dividend to theshareholder if they are more profit. These companies are run by private individuals who own the rights of making changeswithin company and its decision making. The shares of these companies are traded in stockexchanges and they are registered company. Even government is funding this sector as it knowsthat private sector will assist country economy in growing and expanding its influence overseas.There are different size of organisation which are divided into four parts, micro, small, mediumand Large. It depends on their capacity of production, number of employees and capital. Thesecompanies are regulated by the Companies Act 2006 enacted by parliament of United Kingdom.The basic aim of private company is to earn maximum amount of profits and achieve marketshare which can let it gain more in future. Private sector organisation gets financial assistancefrom banks, personal savings on promoter, government packages, and investors. Majorcompanies such as Tesco sell their shares as to get required funds for developing betteroperational capability and continue functioning.These are the organisations which are controlled by the government of country. They areestablished to deliver goods and services as per the needs and requirements of citizens. The basicaim of these organisations is to assist country in developing basic amenities and act as a coresector which keep economic stability. They are run by public funds and taxes which are paid bycitizens of the country. The government decides as to how to utilise various funds in developingbetter capabilities in the organisation. The aim of these organisations is to provide stability tocountry and assist it in delivering qualitative services to the consumers. Government hasdifferent level of interference in these organisation as they are usually liable for theirperformance but in case of health care or core public services, government over looks at all theactions taken by organisations. The public sector organisation can be a producer, buyer or2
provider of various goods and services. There are many companies which are running into publicsector and proved their worth, such as, BBC (British Broadcasting Corporation) which is aBritish company operating into world media and broadcasting. This sector is also known as non profitable as people form these organisations as toaddress various social issues that are hampering society and its people. Such type of organisationare usually owned by private individual or group of people. They are set up for a specified reasonwhich needs to be addressed by government, authorities or companies. As to achieve the goalsand objectives on which organisation has been set up, they utilise all resources in a very tactfulmanner. It involves NGO's, charitable trust, social groups and social enterprises. They mightgenerate profits but it will not be given to any individual, it will be re invested into theorganisation as to boost its capability and effectiveness. With their initiatives, they assist localcommunities in overcoming issues which were hampering their living and causing pain. One ofthe example of this type of organisation is Oxfam, which is acting as a charitable trust inbiomedical field. 3
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