Business and Business Environment

Business and business environment

Table of Contents
Introduction....................................................................................................................................3
LO1..................................................................................................................................................3
Different types of organizations..................................................................................................3
Large, medium and small organisations......................................................................................5
LO2..................................................................................................................................................6
Interrelationship of various functions within the organisation....................................................6
Organisational structure...............................................................................................................8
LO3..................................................................................................................................................8
Positive and negative impact of macro environmental factors on business................................8
LO4................................................................................................................................................11
Introduction to the SWOT and VRIO........................................................................................11
Conclusion....................................................................................................................................12
Reference......................................................................................................................................13

Introduction
Business is always surrounded by the internal and external Factors that have huge impact
on the company’s profitability and their growth. It is necessary for the company superiors to be
aware of internal and external factors so they can . identify the opportunities and take
competitive advantages within the market where they are operating their business.
This report will cover case study of IKEA Is Swedish multinational conglomerate That
sells and design readyment Furniture call my home accessories and kitchen appliances among
the other useful goods and occasionally home services.
This report will explain the scope, type, and size of organisations. it will explain how the
function within the organisation are interlinked with each other, including influence of positive
and negative impact on the macro environmental Factors. in the end of this report will
determine how the weakness and strength of the company interrelate with macro factors.
LO1
Different types of organizations

Profitable and non profitable business
There are always two type of organisation of one who always work to identify the needs
and demand of the customers so they can sell their product and earn the probability (Oliva and
et.al., 2019.). Ikea is also Profit earning organisation who sell their product and services to their
customers and earned probability to grow their business more. the other side some of the
organisation does not work to earn probability but their main motivation is to help this society
without earning any profit, they work just to add value in society not to earn money. Examples
of the known profitable businesses are NGO's.
Micro, small and medium sized enterprise and different purposes of businesses
Small medium sized businesses whose personal number fall below certain limits. they're
having a huge contribution in the economy to grow and create large number of employment
within the country. every business start with micro, small and media and slowly they grow to the
large businesses. The Made purpose of every business is to earn profitability by selling their
good sense services. they always come up with the new product and services that can add some
value in customers life and help them to grow effectively within the market. they said their
objectives and supply, good sense services on various channels and their stores.
The range of legal structure associated with the different form of business
The most common legal structures are the soul proprietorship, partnership and private
limited companies. this all type of legal structure have their own way of working and contracts
are totally different from each other.
Sole traders
Sole partnership Or the sole trader is the business which is individually owned by the
person. They are owner of the business alone so they do not share their profits and liabilities with
any other person. If there are need probability then it will be their own and liabilities are also
their own.
Partnership
Partnership business has done between two or more than two people where partners come
in a contract to do business with each other. they share fix amount of capital, profits and shares.