Table of Contents INTRODUCTION..............................................................................................................................3 TASK 1................................................................................................................................................3 P1 Explain different types and purposes of organisations; public, private and voluntary sectors and legal...........................................................................................................................................3 P2 Discuss size and scope of a range of different types of organisations........................................4 TASK 2.................................................................................................................................................6 P3 Analyse relationship between different organisational functions & how they link to objectives / structure.........................................................................................................................................6 TASK 3.................................................................................................................................................7 P4 Carry out comparison between micro, small, medium size and large enterprises......................7 TASK 4.................................................................................................................................................9 P5 Analyse internal and external analysis of specific organisation to identify strength & weakness..........................................................................................................................................9 P6 Explain how strength & weakness inter-relate with external macro factors...........................10 CONCLUSION..................................................................................................................................13 REFERENCES...................................................................................................................................14 Books & Journal:...........................................................................................................................14
INTRODUCTION In business sector,environment plays important role on the basis of which activities, functions & operations are carried out in effective way. Business environment refers to all external & internal factors which impact upon organisational functions & operations (Benmamoun, 2016). Main aim of this report is to understand the impact of business environmentwithin enterprise. Tesco, a largest supermarket headquartered in U.K.The firm is located at global level & deals in products such a as groceries, consumable items, and many more. This report comprises of different types & purposes of public, voluntary and legal organisations, size &scope of range of different organisations, relationship between various organisational functions, positive & negative effects of macro environment on operations, SWOT Analysis and inter-relate with external macro factors. TASK 1 P1Explain different types and purposes of organisations; public, private and voluntary sectors and legal In business, it is important to understand the business structure because it reflects the workflow of enterprise. Market is wider & broader in which various types of different organisation exist. It is essential to be aware about these organisations so that goals are achieved in appropriate manner. Organisation is being selected on basis of different key factors which are being focused by every marketers. There are several types of structure of organisations which are described as below- Private organisations-Private organisations are those type of enterprises which run business with aim of gaining profit& are owned by private individual.These can be large, medium or small depending upon their level of business structure. The aim at long survival in business market &focuses of self growth development.So, legal structure of these enterprise is discussed below- Sole traders- These are those who type of business which are run by owned by single person who is to be known as owner. Sole traders are solely responsible for managing & running business solely. Types of sole traders such asclubs, restaurants, cafe,etc.Sole traders main aim is to survive in competitive for short or long period of time(Bereznoy, 2017). Private limited- This is another type of private organisationsin which business has limited number of shareholders. These type of companies mostly do not sell their share within market. Such type of businesses have limited shared & which cannot use for trading. Furthermore, these type of
organisations only trade shares between theirfriends & family. Different types of private limited companies are MC Donald which is being considered as public limited entity. Partnership- It is also being considered as another private enterprise in which agreements between two companies are carried out with aim of working together with mutual cooperation & understanding. It is most beneficial form of enterprise because profit, risks, loss are shared between both partners equally. Partnership organisations such as Louis Vouitton & BMW have been into partnership since long period of time. Public organisation- These are those kind of enterprises in which everything is managed & controlled under consideration of government rules or regulations. Main purpose of such type of enterprise is to provide products, goods or services to community. There are various type of services whichare managed by government such as water, shelter, petrol,etc.An appropriate decision making is required to carry out activities of such enterprises. For example- BBC a British broadcastingcompanyheadquarteredinU.K.Itisviewedasworldleadingpublicservice broadcaster(Gligah, 2020). Voluntary organisation-These are those type of enterprise in which are carried out with purpose of social welfare & helping people within community. Such type of enterprise generate revenue throughcampaigns, business man etc. Thus, legal structure of voluntary organisation specified below- Trust-It istypeof voluntaryentityin whichit comprisesof association,bodies, shareholder, investors etc. Therefore, from above discussed paragraph it is seen that as there are various type of business organisations, with proper knowledge of these corporation running business become more easier & approachable. P2 Discuss size and scope of a range of different types of organisations In enterprise, it is necessary tobe aware about size & scope of entity so that decisions making is done accordingly. As business sector is wide & large, every firm has different type of size & scope which are described below- Private limited They are those who run business with aim of earning higher profit in market & generating more sales revenue. Under thesethey follow their own implemented rules, regulations depending upon their own requirements. So, Sainsbury is being viewed asprivate company which is
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headquartered in U.K. Mission-Main mission of Sainsbury is to be first choice for food delivering products & to provide high quality to achieve competitive benefits. Vision-Company's vision is to be most trusted retailer in field. Objectives- Their objective is to increase productivity of business at higher scale. Size-Sainsbury has larger size in employee as they have 116,400 employees working all around the globe. Structure-This firm has hierarchical structure & they it reflects their working flow system (Gomes, 2020). Public limited- In these, shares of entity are not used for sale & are used within a company only. So, BBC is viewed as public limited firm. Mission-BBC mission is to provide & serve all audiences with higher quality of content. Vision-Their vision is to be the leading broadcasting company globally. Size-The size of BBC is larger as it is considered a larger broadcaster in world & has employees over 22000 staff . Structure- This firm has hierarchical structure in which decisions are made by higher authorities (Hiršová, 2018). Voluntary enterprise In such type of firms,they are established with purpose of helping people or society.For example- Cancer Research is part of voluntary organisation. Vision- Main vision of firm is to help & protect health of people who are affected by cancer. Mission-Main mission of entity is to bring up cure for cancer affected people. Objective-To provide best cure to community & society. Size-This firm has employee around 300 and some volunteers. Structure-Cancer Research hasflexible structure & they carry out both horizontal & vertical structure. Thus, it has been stated that it is crucial to be aware about different types of size as well as scope so thatstrategies are implemented accordingly in effective way. Therefore, enterprise such
aspublic, private & voluntary are explainedwith their size/ scope.By examining of these it is easy to make decisions. TASK 2 P3 Analyse relationship between different organisational functions & how they link to objectives / structure In the current operating environment, it is essential to analyse all the functions of the company so that resources can be utilised in effective manner. By interlinking all the objectives firm can enhance their sales at higher scale. Organisational functions are necessary to be focused so that it is easy to carry out everything in appropriate way. Moreover, they are responsible for achieving of objectives in most effective way(Lin, 2019).Each & every entity has different forms of functions depending upon which they firm is able to accomplish both short & long term goals appropriately. In relation to Tesco they are multinational retailer having their operations at higher scale and their overall functions are linked with structure of business which are evaluated below as: Finance & market department- These departments are interconnected with each other as they are the main pillar behind executing business operations in effective manner. The marketing department is having responsibility of promoting goods at market place and developing awareness among the people. The finance department plays role of arranging finance for different activities so that business goals can be achieved effectively.In reference with chosen entity they are having focus on these department as it results in achieving organisation goals and interrelation of all strategies at work place. Marketing & HR department:The HR department at work place is the major pillar because they are having the responsibility of managing the workforce in order to effectively carry out business activities. This department is useful for effectively executing business activities so that business goals can be achieved. Tesco is having good human resource personnel who will enhance work productivity so that organisation can achieve success in their operations. The marketing department assign roles to employees so that work can be executed accordingly this results in achieving business success. The inter-relationbetween these toois easily connected & these are top most core functions of business which are responsible for achieving goals(Mahlangu, 2018). Human Resource & finance department-These departments are also interrelated with one another as they help business to make decisions in the most effective manner. Their main role is to arrange funds for executing business activities. These are related with HR department of business as they can recruit potential employees who will enhance their sales index. In context of Tesco, they are working effectively so that business objectives are attained. By accepting the relations, the
chances of errors are minimal so both these divisions can work effectively for achieving set business goals. Furthermore, HR are responsible for hiring & recruiting skill & talented staff . From the above analysis it can be stated that it is most vital factor for managers in order to develop interrelationship among the departments. This is most important factor for TESCO in order to accomplish business goals so their set targets can be easily accomplished in desired time frame. The interrelations of structures help in minimising chances of mistake so that operations are performed smoothly without facing any difficulty. Moreover, it is also specified that the functions are required to be carried out in such way that positive results are achieved(Metcalf, 2019). TASK 3 P4 Carry out comparison between micro, small, medium size and large enterprises In market, different types of enterprise exists which are small, micro, medium & larger on the basis of which activities, & operations are carried out. It is important to be aware about these so that it is easier to achieve goals & objectives in appropriate way. Through understanding these type of enterprises, decisions are made accordingly. BASISMicro Enterprises Small firmMedium enterprises Large enterprises MeaningMicro enterprise arethosewhich has balance sheet ofamount€2 million.These typesofentity mostlyhavenine people or less than nine. Thesearethose typeoffirms which do not have turnovermore than£6.5million &balancesheet morethan£3.26 million & also do exceedtheir employeessize morethan50 employees. Theyarethose typeofentity which has balance sheet of£18m & hasmediumsize businessincome of£36million. (Nguimkeu, 2016). Large firms are in whichtheyhave 250ormore subordinates workingin management. FundsThesekindof business generated funds or financial Suchtypeof entitygenerate capitalfrom In medium firms, theygetfunds fromsellingof Inthese organisation,they generatesfunds
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resourcesthrough smallbanksor money lenders. personalsavings orassets,banks etc. shares,investors andmanymore. Inthesetypesof businesses, they of tenuseresources inmostefficient mannersohat fundsareutilized & used properly. frombusiness associations investors,banks etc.They mostly invest their funds in appropriate way withaimof expandingtheir business activities at higher level. PurposeMain aim of this firm is tosurvive in market by any cause.Also, another purpose is achieve profit for businessfor smooth functioning. Inthis,objective istoaccessto resources at wider scale for achieving business objectives. (Schuetz, 2018). Purpose of these corporationisto enhanceprofit& earn dales revenue &increasing brandvaluein market. Largeentity objectiveisto increasegoodwill ofcompanyat global level. Growth Insuchkindof companies,they have slow growth &limited developmentin specific market. Growthscaleof theseentityis slowisatin steadyprocess& theysearchfor differentwaysto achievehigher growth. In medium sized, growthrateisat moderate scale & theyadopt differentmarket tacticsfor developmentof theirgrowthof business. Incontextof larger firms, they havehigher growth comparing itwithother entities(Tang, 2018). From above specified matter, it is examined that these type of organisations are different from each other & perform their activities accordingly. Through analysis of comparison, it is easier to understand theircharacteristics of business. It is important for manager to analyse these differences through which everything is carried out effectively.
TASK 4 P5 Analyse internal and external analysis of specific organisation to identify strength & weakness PESTEL analysis is framework which defined as macro environment factor that affect the business. Its provides knowledge and work force & helps to know about impacts whichpolitical, economical, technological, and governmental. It is time taken tool because it need time to collect information related to market in context with organisation. It is further explained below- Politicalfactor-Tescooperatestheirbusinessworldwidesoglobalfactorgenerally influence the market of organisation. Which include, tax rates, acts of legislation and also change in government company facing short problem related in term of monetary & employee. In U.K, due to impact of Brexit, it affects the firm capability to operate in appropriate way(Benmamoun, 2016). Economic factor- This factor is major concern for many of companies. In viewpoint of chosen entity, they are facing problem while change in the policies such as change in taxation policies which affects their operations in foreign countries. Organisation is totally dependent on the UK market where it has share up-to 30%.It is crucial to examined & be aware about such policies so that it is easier to execute activities accordingly(Torvinen, 2016). Social factor- It encompasses social culture, age, income level, population etc.Consumer demanded organic food and services. The firm provide it which forwardly increase the flow in supplies of product inlarge scale. The customer raises concern like chemical food that formulate health issue. Due to this approach the firm adapting the new change for organic products. Technological factor- Technological changes arrives with new opportunity. This comprises of use of artificial intelligence. Thus, in viewpoint of chosen corporation they grab this and they have started as they develop and introduce online shopping facilities which allows home delivery. Formulate self service checkout program which helps in convenience and ease for customer. By this reduce in labour cost observed. The advancement in field of retail store deals with management of new department. Further, money investment also included to create new segment cabins for the online food processing for customer(Bereznoy, 2017). Environment factor- In this environment concern raises by government with serious node. Tesco committed and reduce its carbon footprint by 50%. waste product that produces by firm is stored(Yeung, 2018).Moreover, stored waste discarded gently that follow authority guidelines. Focusing on such element assist firm to increase goodwill in market at wider level. Legislativefactor-Government&legislativepoliciesalsoeffectperformanceof organisation. For example- food retailing commission in 2004 advised a code of practice in the
behalf of customer. The changing in price without noticing or demanding payment from supplier has been banned. Then selected firm provide customer price reduction on fuel they purchase. They promoted their product with help of several promotional technique where they indicated the prices is lowered. SWOT Analysis It is framework which is used by entity with aim of analysing & examining internal capabilities of firm. To use this tool, appropriate market information is needed so that tool is carried out appropriately. Throughusing this tool, it is easier to gain competitive advantage as because improvement in weak & strong areas areas is done at all aspects. Strength Main strength ofTesco is that firm is located globally & it has strong customer base(Gligah, 2020). Anotherstrengthisthatastheyare financiallystrong&onthebasisof which it is easy for them to invest or expand more in business. Weakness Due to impact of Brexit, it is difficult for them to operate at global level. Also, another weakness is with rise of changing expectations of customers they have to change their market strategy. Opportunity In reference with selected entity, they haveopportunity of merging up with other supermarketsor retailingbrands which gives them easy access to foreign countries. Threat Due to increase of competition they have manycompetitorssuchasAsda, Sainsbury,Walmartetc.whichcan dominance their market. Therefore, it is analysed that it is necessary to use both these PESTEL & SWOT framework which help in carrying out appropriate decision making. Furthermore, both these tools are beneficial & which leads to better results. Through adopting of these two tools it is easier to make improvements in business & perform market analysis(Gomes, 2020). P6 Explain how strength & weakness inter-relate with external macro factors In context of organisations,macro elementsare inter-related withstrength & weakness becausethese factors occurs both in positive & negative way. So, to achieve better results both macro factors are carried out by focusing oneach strength as well as weakness. So, there inter- relation with each other is discussed below-
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BASISStrengthWeakness Political factors In relation with chosen entity, duetostablepolitical conditions of U.K they are able toexecutetheirbusiness activitiesinefficientway.It makestheirorganisational structure also strong & effective (Hiršová, 2018). In political factors, uncertainties are tends to arise. It is biggest weakness because it affects the politicalconditionsvery frequently. Economical In this element, strength is that inflation rates in home country is gradually decreasing. Thus, it is beneficial for firm totake it as opportunity. In economy, there are various changesthatoccurwithin development of economy which are essential to be considered. Social It is macro factor which focuses ondisposableincomeof consumers,religion,culture etc. In reference with selected entity,theydeliverproducts after proper consideration of Duetogradualchangeof markettrends&people preferencesit might disrupts the overall processing of Tesco at deeper scale. TechnologicalIn this type of macro factor, it comprisesofadvanceuseof software, hardware, etc.It is biggest strength ascompany uses high end security system which leads to development & highgrowth.Withriseof competition,ithasbecome importanttousetechnology withinentityforadvance development&growth opportunities. The biggest weakness is thatit using technology is strength but it is cost expensive which leads todisruptingoverallfinancial resources of firm.Also, to use technology high level of skilled employeesarerequired(Lin, 2019). EnvironmentIn this type of macro factor, itThe mission & vision of firm
focusesongreenagenda, pollution,climatechangeetc. Main strength is thatthey use resourcesefficientlywhich leadstoprotectingof environment. mightnegativelyaffectsthe environmentalfocused conditions.Moreover, it is not possibletouseevery environmentalpracticesand linkthemwithorganisational goals. LegalIt last element of macro factor inwhichitcomprisesof agreements,contracts,etc.In viewpointofentity,legal departmentoffirmhas appropriateinformationofall clients&makeassuresthat everythingisdonewithall properlyfollowedrules& regulations. In this weakness is thatnot followingbusinessactivities legallycancauseahuge problem to business.Thus, it Tesco has obey all legislation of everycountryinwhichthey operate(Mahlangu, 2018). Therefore, it has been analysed that it is essential tofocus on these macro factors so that decisions making process I carried out in proper way.
CONCLUSION After a brief analysis of above report it is specified that business environment is wider concept which is to be focused so that macro factors affecting organisation structures are identified. Moreover, discussions has been made about types of enterprises, comparison between large, micro, medium & small. Then also,PESTEL, SWOT analysisand inter-relation of strength & weakness with macro factors has been explained briefly. Furthermore, it is also evaluated that it is necessary to examine impacts of business environment on enterprise.
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