IKEA Business Environment: Doc
Added on 2020-10-22
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BUSINESS AND BUSINESSENVIRONMENT
Illustration IndexIllustration 1: PESTLE Analysis....................................................................................................10Illustration 2: SWOT Analysis.......................................................................................................11
INTRODUCTIONBusiness is an activity or process which is carried out by an individual or group of peopleto earn money from this by selling their products and services in the market to customers. Abusiness structure does not allow for corporate tax rates. The proprietor is personally taxed on allincome from the business. It is known as the overall surrounding aspects of that business. It isvery important for the effectiveness of organizational functions to achieve their goals andobjectives. It is a set of conditions which can be institutional, political, economical, legal orsocial that is uncontrollable and affects the functions of the organization. Maintaining thebusiness environment is very important for the owner to run it successfully.This report will focus on different types of organization and its size, scope and range anddifferent organizational functions exist in the market. It will discuss the positive and negativeimpacts of the macro environmental factors on IKEA and will analyze its strength and weakness.LO 1P1 & P2 Different types and purposes of Organizations and size and scope of different firmsSlide 1Bussiness and Business Environment
Slide 2P1 Different types and purposes of Organizations•Public Sector: These are those organizations which are operated and owned by the government for the people. In this sector, tax which is payed by the public is used to finance most of the public sector organization. It helps to improve the business.•Purpose: The main purpose of these organizations is to provide services to the people for their well being and for the benefit of the society as well.•Private Sector: These are the organization which is owned by people for their own profit. All the expenses are maintained by them only. All the profit earned is used to develop their business in order to increase their sales in the market. For examples, franchises, companies (private and public), partnership and sole traders all these come under private sector business.Organization is an entity consisting of multiple people, such as an institution or an association,which has a collective goal and is linked to an external environment. Business environmentalso contains different factors like customers, government, suppliers, competitors, localcommunities and distributors etc. It can be of different types based on their structure, suchas, public sectors, private sectors and voluntary sector organizations.
Slide 3Continue...•Sole proprietorship : These are also known as sole traders. It is generally owned by a single person. However, he can hire employees to work in hid business. All the expenses required for the business is done by him only.•Partnership : In this type of business, there are two or more people who are engaged in the business. All the decisions are taken by a mutual understanding between both the parties. All the profit and expenses is divided between them.•Franchises : It a process in which an entrepreneur purchase the rights from a large organization to open and run a business. This practice can help them to expand their business in the market and earn a good profit.
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