Business Environment
Added on 2020-06-04
15 Pages4627 Words60 Views
BusinessEnvironment
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Explain different types and purposes of organisations..........................................................1P2 Size and Scope of various types of organisations..................................................................3P3 Relationship between different organisational functions.......................................................5P4 Positive and negative impact of macro environment upon business organisation.................8P5 Studying on Internal and External Analysis..........................................................................9P6 Ways in which Strengths and Weaknesses interrelate with macro factors..........................10RECOMMENDATIONS...............................................................................................................11CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12
INTRODUCTIONIn a business process, all external and internal factors which affect functions of companyincluding staff members, customers, management, supply and demand as well as otherregulations of company are said to be the business environment. Effective environment occursonly when the customer's actual needs and wants are satisfied in maximum level (Aula, 2010).For the growth and success of organisation, it is highly required that both the factors shouldcombine for the achievement of common goals of the company in an effective manner. Companychosen for this report is Coca Cola which is a multinational company who deals in carbonatedsoft drinks across the globe. This company was established in 1886 by John Pemberton and it isthe UK based firm which is headquartered in UK (Atlanta) itself. In this report, different size andscope of different types of organisations will be discussed with their legal structures. Also,relationship between different organisational functions will be discussed as well. Apart from that,PESTLE analysis will be done to determine positive and negative impacts that macroenvironment has on the organisation. TASK 1P1. Different types and purposes of organisationsThere are various types of organisations that work in different sectors with the differentmotives of earning what they desire for. For example: NGO that works with an aim of providingsocial welfare and uplifting the development process of people who are living in a society (Belásand et. al., 2015). Apart from that, there are organisations who work with a motive of makingprofit by generating revenue and they basically run in two different sectors. They are public andprivate sector which will be discussed as below. Basis of Comparison NGONPOFor Profit MeaningIt is basically a non-governmentalorganisation which isformed by ordinarycitizens whichoperates independent.It is basically anorganisation which Iset up with the aim ofproviding services andgoods to the civil butits profit is not sharedamong anyone. It is a kind oforganisation which islaunched with themotive of earningprofits by sellinggoods and services tothe people. 1
Area of Operations Large limitedCan be Large andlimited Objectives For the welfare of thesociety and itsdevelopment. Promoting the art,science, commerce foruseful motives.To earn profit bygenerating revenuefrom the products andservices sold tocustomers (BillPasmore, 2010). There are three major sectors in an economy and they are described as follows: Public Sector: It is a sector in which organisation is made and owned by government bodies as well as profit isbeing shared among the members of firm. Finance is the root of this sector and this is generatedby people of society in form of tax and other pays. The main authority and policies are beingregulated by government of country. For example: Marks and Spencer is a public limitedcompany that mainly deals in the food products aiming target market of middle class people. Purpose: There are various purposes of the public sector is provide boost to the development ofUnited Kingdom economy along with the development of backward classes. This main purposeof this sector is to provide employability to the people so that standard of living can be improvedand thus, confidence for doing something big can be seen in the society (Blanchard, Tolbert andMencken, 2011). Private Sector: This kind of sector is not run and owned by the government of country. Although thepolicies of organisation is made by the government but there is much freedom enjoyed by thecompanies and they can expand their business without any hesitation. Their main purpose is toearn the profit by selling their products and services to customers and provide high satisfactionlevel. For example: Waitrose is a company which comes under private sector and thus, generatesrevenues by selling their products and services (Cantwell, Dunning and Lundan, 2010). Purpose: Main purpose of this sector is to manufacture products according to society’s tastes andpreferences and sell them in market to gain high market share along with large customer base so2
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