Business Environment Types and Aims
Added on 2021-02-21
12 Pages3053 Words111 Views
Business and BusinessEnvironment
Table of ContentsINTRODUCTION...........................................................................................................................1Activity 1 ........................................................................................................................................1Different types and purposes of organisations.............................................................................1Size and scope of different sizes of sectors.................................................................................2Analyse how business size, scope and structure link with organization objectives. ..................3Explain the relationship between different organizational function............................................4Advantage and disadvantage of interrelations between organizational functions......................5Critical analysis on Different type of business structure and interrelationships of differentorganization function...................................................................................................................6CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8
INTRODUCTIONBusiness is activity of making money by buying or purchasing and selling services orgoods. Business environment is collection of all external and internal components such ascustomers expectations and needs, clients, activities of government, social trends, economicchanges, supply and demand, etc. business environment is affected due to all these factors thatimpact on overall functions and operation of firms (Bah and Fang, 2015). The present report isbased on three different types and aims of companies; public, private and voluntary and explaintheir legal structures, size, scope, goals and business objectives. It justifies structures, relationships between various organizational function of companyand link to organisational structure and objectives . This study explain disadvantages andadvantages of interrelations between organizational functions and its impact on organisationalstructure. It justifies complexities of several types of business structures and also explainsPESTLE and SWOT analysis to identify or determine the external and internal factors impact oncompany. Furthermore, influence of internal and external factors upon decision makingprocedure of LIDL.Activity 1 Different types and purposes of organisationsThere are three different type of organisations which are operating with differentpurposes. Three type of sectors are public, private and voluntary which can be explained below:Public organisations: Public sectors are those sectors which are controlled by the governmentwhich may include state, central and even local government of a country. Public sector includesall the public companies or entities or public enterprises and services ( Nikolova, 2015). Suchcompanies form an important part of the country's economy which is controlled by thegovernment. Main purpose of public sector is to supply quality products to citizens, for exampleBritish Petroleum is public sector, it is a Britain's multinational gas and oil company and is theworld's largest organisation due to its turnover. Products: Products of British Petroleum includes petroleum, motor fuels, natural gas, motorfuels and petrochemicals.Legal Structure: BP is a public limited company which means that it can sell shares to generalpublic on the stock exchange. The decision power lies under the government and has to publishits accounts in public.1
Voluntary Organisation: Voluntary sectors are run by group of people or unions of differentindividuals who are interested in entering the agreement in order to achieve a particular objective(Sugden, 2018). Its main purpose is to serve humanity for example Oxfam is a voluntarycompany which is one of the largest non-profit organisation of UK. Services: Main focus of voluntary sectors is to help people and to eradicate poverty and toprovide services related to it like charities, disaster relief etc. Legal Structure: Being a charitable company, its decision making power lies under the directorof company. Private organisation: These are such companies which are run or operated with a purpose ofmaking profits. A private organisation may be an association, any corporation, partnership or anyagency or any person which does not come under public body. For example LIDL Stuffing & Cois a private company operating in retailing industry, which is German's global discount supermarket chain.Products: It is a discount store which offer retailing products on discount to its customers acrossthe world. Legal Structure: LIDL is owned by Board of Directors which are mainly elected byshareholders and it is headed by a Chairman Joseph Schwarz and each shareholder of LIDL hasgot limited liability towards the debt of a company. Size and scope of different sizes of sectorsLIDLSize and scope: LIDL is a German's global discount super market chain which operates acrossUnited States and Europe. There are more than 10,000 stores of LIDL and there more than315,000 employees working across the world. Vision Statement: To improve the life of customers by offering high quality products withinthe market and ensuring the high level of customer satisfaction is first priority organisation does(Vision and mission Statements, 2019.). Mission Statement: To deliver high customer's satisfaction across the world. Objectives:To ensure market leading value and quality through innovationsTo deliver high customer's satisfaction.To achieve long term success in retailing sector. 2
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