ASDA Company Micro and Macro Analysis
Added on 2020-10-22
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Higher Nationals AssignmentBrief – BTEC (RQF)HigherNationalDiplomain BusinessStudentNameBejenari MarcelIDMarcel.HE10016UnitNumberandTitleUnit 1 Business and The Business Environment AcademicYear2019/2020 CohortApril 20Ter1UnitLeader AssessorRajini ChandrashekarAssignmentTitleMacro Environmental InfluenceIssueDate27/04/20SubmissionStartDate (Formative)15/06/20Submission Summative27/06/20IV NameAlfred AgyemanIV Date25/04/2020Learners Declaration: I certify that the work submitted for this unit is my own and the research sources are fully acknowledged.Learners Name: Bejenari Marcel Date: 27/06/20201
ContentsIntroduction................................................................................................................................3LO1............................................................................................................................................4P1 Explain different types of organisations legal structures..................................................4P2 Explain the size and scope of a range of different types of organisations........................6M1 Analyze how the structure, size, and scope of different organisations link to thebusiness objectives and product and services....................................................................9LO2..........................................................................................................................................10P3 Explain the relationship between different organisational functions and their linkingwith the structure and objectives..........................................................................................10M2 Analyze the advantages and disadvantages of interrelationships betweenorganisational functions and the impact that can have upon organisational structure.....14LO3..........................................................................................................................................15P4 Identify the positive and negative impacts the macro environment has upon businessoperations.............................................................................................................................15M3 Apply appropriately the PESTLE model to support a detailed analysis of the macro-environment within ASDA company...............................................................................17LO4..........................................................................................................................................18P5 Conduct internal and external analysis of ASDA company to identify strengths andweaknesses...........................................................................................................................18P6 Explain how strengths and weaknesses interrelate with external macro factors............20M4 Apply appropriately SWOT/TOWS analysis and justify how they influencedecision- making..............................................................................................................21Conclusion................................................................................................................................22Reference..................................................................................................................................232
IntroductionThe word business refers to all kind of business. It can be large, medium, and small. The UKbusiness market consists of different types of business. These are the for-profit business, notfor profit business etc. This report presents the different types and purposes of business. Thebusiness has three sectors. Among these private sectors has a great contribution to the UKeconomy. The different functions of the organisation carried out the objectives. The quickgoal attainment of the business depends on the good relationship of the business functions.This business report also illustrates the impact of the internal and external businessenvironment. The strength of the business works as a shield for the company to face theexternal environment effects. As an intern officer of the ASDA, UK company the analysis ofthe business environment is given in this report. 3
LO1P1 Explain different types of organisations legal structures.There are different types and purposes of business are available. The details about the typesof business are elucidated below: Types of business For-profit business: This is the most common types of business. The organisation that runsfor profit is known as a for-profit business (jeff madura., 2018). All the profit-makingcompany generate profits for its shareholders and employees. The economy gets advantagesfrom this kind of business. In the UK most of the company run for profit. ASDA is a retailcompany that runs for profit. The profit-making company can be small, medium, and large.ASDA creates a vast amount of employment. It shifts the economic burden. The governmentalso earn huge tax revenue form this kind of business.Not-for-profit business: Government-owned enterprise can be illustrated as not a for-profitbusiness. This kind of business runs for public welfare. Most of the Not for profitorganisation owned by the government, not by any individuals. The core of this business ispublic welfare. The size of the public business is very gigantic. In the UK NHS, Railway, etc.are the public business that has no motive to earn the profit. Different sectors of business and its legal structures: There are different sectors of business. Each sector of the economy contains several othertypes of business. These are given below: Private sector: Private sector includes the business owned by the individual and privatebody. This business controlled and managed by the individual and groups. Majority of thebusiness comes from this sector. Different private sector business is given below: Sole trader: Sole trader business owned and formed by a single person (Epstein,2017). He/she is the all in all of the business. All capital is provided by the owner.The tiny bakery, Hair and Graces saloon is the sole trader business in the UK. Theformation of this two business is very easy. Only the owner of the business providesthe capital and enjoy the profit. No legal action is required to form the business. Theobjectives of this business are not officially structured. They just provide service andearn money. 4
Partnership: When the business formed under the association of two or more peopleit is called partnership business. For eradicating the problems of a sole trader businesspartnership business is formed. The gist of these business contracts. Without thecontract, this business cannot be formed. NotOnThehighStreet.com, CarphoneWearhouse is the example of successful partnership business in the UK. The ownersof this business share their profit according to the contract. Both partners inject capitalinto the business. unlimited liability is the main problem of this partnership business.Private limited company: It is a company business. Company business has aseparate business entity. Legal registration is required to form this business.Generally, the private limited company are small. A private limited company is oftenmanaged by family members. Brakes is the food distribution company in the UK. It isa private limited company. Shareholders have limited liability. It is the advantage ofthis business. The business will continue even if the owner died. Public limited company: This is the large size of business in the private sector. ThePLC required permission to form the stock exchange for their initial offerings(Littlejohn, 2016). This business requires lots of legal papers. Until manage thesepapers they cannot start their business. ASDA is the large public limited business inthe UK. They collect capital from the public through IPO. The huge amount of moneycan be collected through public offerings. The production cost of ASDA become lowbecause they produce a large quantity of product. The business formation is veryexpensive and difficult. It requires lots of legal actions. Public sector: Public sector businesses are accountable to the central or local government.The objectives of this sector business are public welfare. In the UK NHS, road, and transport,the defense is the example of public sector business. London north stern railway company is apublic company. The main motive of this business is a public welfare and ensure the easy andcomfortable transportation service for the London people. Voluntary sector: The business that is formed and managed by those people who arewillingly ready to rendered service for free (Hussey and Perrin, 2019). They work for ahumanitarian and altruistic purpose. The voluntary organisation works for positive change insociety. Oxfam is a large voluntary organisation in the UK. They work on human rights andfight against poverty. 5
P2 Explain the size and scope of a range of different types of organisations. Based on the size and scope of business it can be segmented variously. Based on the sizeorganisations can be segmented into micro, small, medium, and large. A brief discussion ofthis organisation is given below:Micro firm: The micro organisation has 1-9 employees in the firm. All the operation of thesefirm carries out by these small number of employees. The objectives of the micro businessare the expansion of the business. Gathering family members and friends is also theobjectives of this micro business. Hair and Graces saloon is the micro-business in the UK.Small firm: A small firm has 10-49 employees. It is an independent business with limitedsize. The objectives of this business are generating new idea and creation of the job. Medium-firm: Medium size firm has 50-249 employees. Increase of sales is the primeobjectives of this business and serving the niche market. Oxfam international is the mediumsize business in the UK.Large firm: The name refers something big. The large size firm contains employee morethan 250 (Antonelli and Scellato, 2016). The large firm always wants to dominate thebusiness market. Growth, profitability is the common objectives of these large firms. ASDAis a large firm in the UK. It is a multinational retail company. The ins and outs of these three types of company are elucidated below:ParticularsMicro/SmallMediumLargeOrganisationHair and Graces saloonOxfam internationalASDA, PLCGoal andobjectives Hair and Graces is thesaloon business. It is smalland very few membersmanage this business. In thelocal street of Birmingham,this saloon operates itsbusiness. The goals andobjectives of this businessare gathering more familymembers and friends. Makesatisfied the local customerand compete successfully inthe local market is the goalof this business. Oxfam international isthe Medium sizecharity business(Oxfam International,2020). The goal of thisorganisation isincreasing the serviceand working for thewelfare of society.Their main goal is todecrease the povertyrate. ASDA is a largemultinationalcompany (Asda.2020). They aim toprovide good qualityof product at a cheapprice. The UK retailindustry is verycompetitive. Withoutcustomer satisfaction,it is impossible tosurvive in the market.6
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