Business Assignment: Division of Business
Added on - 06 Jun 2020
Division of BusinessBusiness and Business EnvironmentLearning Outcomes:LO1Explain thedifferent types, size and scope oforganisations.LO2Demonstrate theinterrelationship of the various functionswithin an organisation and how they link toorganisational structure.LO3Usecontemporary examples to demonstrate boththe positive and negative influence/impact themacro environment has on businessoperations.LO4Determine the internalstrengths and weaknesses of specificbusinesses and explain their interrelationshipwith external macro factors.CommentsAssessor’s Signature:______________ReferredDate:______________Late: Yes NoInternal Verification: Yes NoI declare that the work I am submitting for assessment contains no sections in copied in whole or partfrom any other source, unless it is explicitly identified by means of quotation mark or by means of whollyindented paragraphs. I declare that I have also acknowledged such quotations by providing detailed referencesin an approved format. I understand that unidentified and un-referenced copying both constitutes plagiarismwhich is an offence. I give my consent for my work being scanned by Turnitin formatively and summatively forthe purposes of assessment.P1P2P3P4P5P6P7M1M2M3M4D1D2
IntroductionIn the business, activities and performance are determined by the internal and externalenvironment. Combination of internal and external environment forms the business environment.The factors included in the external environment includes political, economic, social andtechnological factors. The factors included in the internal environment are employees, owners,stakeholders and customers. In the first part of this assignment three different type oforganization have identified along with their scope and size. The second part of the assignmentfocuses on assessing the business environment in which the company operates using differentmodels like SWOT and Pestle.Task 1P1 Explaining three different types and purposes of organizations.An organization can be defined as the device used by people to facilitate and perform objectivesto achieve objectives. There are different types of organizations with different purposes. Sometypes of business organizations have been listed below:TYPE OF ORGANIZATIONPublic Sector:Government own the public organization and they are operated by thegovernment employees. The main purpose of these organizations is to provide services tothe citizens of the state. Public organizations are of two type one which are completelyowned by the government and second is partly owned by government which holds abovehalf of the capital share of the company. The privet organizations which are completelyowned by government are funded by the tax collected by the government. The purpose ofpublic company is not to earn profits instead focus on serving citizens. Example of PublicSector Company is postal service(Ďaďo, Wiktor and Źbikowska, 2015)Size and scope of public sector:IKEA is global retailer organization that presently hasits operation and existence in many countries. It currently has 800 retail store across thecountries. Company has wide scope in retail sector due to continuous application of newproduct development strategy. Large size multinational enterprise that consist of high
business operations and revenue of around 115.7 million per year and employee morethan 30000 workers.Private Sector:Privet organizations are managed and operated by individuals or privetauthorities. The main aim of this privet sector organization profit maximization anddeveloping positive reputation. Private sectors of free market economy have highlycompetitive business environment hence they provide quality service to survive. Theseorganizations also comply with the government rules and regulations.Size and scope:With the continuous growth in economy, B&M has also achieved asustainable growth and expanded their business at international level. They presentlyoperate in countries like UK, Scotland and Wales with 500 retail stores. The main scopeof these firms is to expand their business in retail market and increase their profitsthrough expansion of business in other countries.Voluntary Sector:The organizations within this sector provides voluntary services tothe communities. They fulfill a certain objective in the society and are in nature they arenon-profitable. The uphold the social and moral values. Voluntary organizations cancarry out right movements and social welfare campaigns(Hollensen, 2012)Size and scope: There is wide scope of American red cross and actions of rights forchildren as they are major association as they work for resolution of social problems andhelping the people.Legal structure of the business organizationSole trade: it is the business owned by a single individual, the business is easy to setup asit does not require complex paper work. According to law the owner and the business arethe same. Sole trader does not have limited liability hence they are not responsible fordebts.
Partnership: a partnership deed is set up in this form of business structure. The deeddefined the legal relationship among the partners for example how profits and loss will beshared, and responsibilities of the partner.Companies: by law companies are separate form the owners. There are variouscompanies Act defining the ways in which company must carry out their business.P2 Explanation the size and scope of the organizationIKEAIKEA is a leading multinational organization operating in furniture industry since 1943. Itdesigns, manufactures and sells ready to assemble furniture in many nations. Headquarter of thecompany is in Delft Netherland. Ingvar Kampard is the founder of the company. Ikea is famousfor its modern designs if furniture and appliances. The design of Ikea stores is usually thought tobe with eco-friendly. Ikeas ability to control the cost of operation allows it to charge low pricefor the products and services offered to the customer(Inter IKEA Systems B.V., 2017)Products andServicesFurnitureMost of the furniture designed and sold by Ikea are ready to assemble. Using ready to assembledesign helps the company in reducing the cost as the can ship large volume of products in singlecargo. For instance, space required to ship an assembled bookcase is more than the space neededto ship ready to assemble book case.Houses and flatsIkea has also introduced flat-pack house and apartments in it product portfolio. The aim is toreduce the price for the customer purchasing home for first time. In 1996 this product of Ikeawas launched in Sweden by the name of Boklok(IKEA, 2016).Mission and VisionIKEA’s mission statement: