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Business and the Business Environment

   

Added on  2020-12-30

17 Pages4533 Words332 Views
Business and the BusinessEnvironment

TABLE OF CONTENTSINTRODUCTION ..........................................................................................................................3LO 1................................................................................................................................................3P1. Different types and purposes of organisations.....................................................................3P2. The size and scope of different types of organisations. .......................................................5LO 2.................................................................................................................................................6P 3. Analysing the relationship between different organisational functions and the way theylink to organisational objectives and structure ...........................................................................6LO 3 ................................................................................................................................................7P4. Identifying the positive and negative effect of macro environmental factors on businessoperations....................................................................................................................................7LO 4 ..............................................................................................................................................10P5. Internal and external analysis of Tesco forb identifying strength and weakness. .............10P6. Analysing the way strength and weakness interrelate with external macro environmentalvariables....................................................................................................................................12CONCLUSION .............................................................................................................................15REFERENCES..............................................................................................................................16

INTRODUCTION Business environment can be defined as the sum of internal as well as external forceswhich effects business. The few internal factors which can effect the business operations as wellas decisions are employees performance, working conditions, availability of resources etc.External factors which might adversely affect the performance of organisation are changes insocial, political, economic factors. It is very much important for companies to address bothinternal and external variables as these elements can great effect on its competitive strength. The study will emphasize on analysing the legal structure and objective of different typesof organisation. It will also have focus on identifying the relationship between differentorganisational functions. The positive and effect on changes in internal as well as externalfactors on business operations in context of Tesco will be highlighted in the report. Inassignment, the focus will on analysing the way strength and weakness interrelate with externalmacro variables. LO 1P1. Different types and purposes of organisationsOrganisation can be defined as social unit of people which is structured as well asmanaged in systematic manner for meeting the needs as well as pursuing specific goals. It is alsorecognised to be as entity which performs the commercial practices in order to achieve specificobjective. An organisation consists of group of people those who work together foraccomplishing common objectives. It is entity which sells goods or services in order to achieveset target. An organisation also consists of structural framework which defines the roles as wellas liabilities of an individual working in a company. Each and every organisation is set up foraccomplishing specific purpose. The different types of organisations and their purposes Public organisation : Such type of organisation are owned, controlled and management thegovernment in the nation. The main purpose of public organisation is to provide the differentservices to people in the nation. Transportation, electricity, education etc. are some serviceswhich are offered by such types of enterprises. Revenue earned by government is generally usedfor the purpose of fulfilling the business need of public sector firm. Some public sectororganisations are Tesco, child support agency etc. Private organisation : These type of organisations are privately owned and managed. Theinvestment in such type of firm are solely done by business owner. An entrepreneur is a person

who is mainly liable for profit and losses. New Look, Nexus, Deloitte are example of few privatesector organisation. Main purpose of private enterprise is to earn higher revenue and profit. Inaddition to this, private firms also intends to increase sales and expand business. According tothe company Law in UK, private companies can not sell its shares to public. The private firmscan be further categorise into different categories These are :Sole proprietorship: It is the type of organisation of which an individual is owner. Businessowner of sole proprietor companies have unlimited liabilities. Objective of sole proprietorcompanies is to earn high profit. Example of sole proprietor enterprise is Kurt Gieger, it isbasically a popular brand. Kurt Gieger company has simple organisational structure importantbusiness decisions especially related to the investment are made by business owner. Partnership: Such types of organisations are owned, controlled and managed by two or morepeople. These type of companies are generally established with the objective of earning higherrevenue as well as profit. The partnership organisation can also be classified as general, limitedand limited liability partnership. For instance, John lewis is a partnership enterprise In UnitedKingdom. General partnership :Such types of firms are generally owned by two or more people in order toachieve common goal. Both partner in such type of enterprise are equally liable for profit andlosses. The purpose of such type of firm is to earn high profit and to lower the business risk.Limited partnership : In such types of partnership enterprise, liability of each partner is restrictedto some amount of investment in business. Limited liability Partnership : In such type of organisation individual partners are not responsiblefor the unethical activities of other partners. The main objective of establishing such type ofenterprises is to gain tax advantageCorporations:The main purpose of such enterprise is to earn profit. Such types of organizationhave separate legal identity from its members, it is the type of company which is owned by oneor more people. The example of corporations are Vodafone, Lloyds etc.Voluntary organisation : Such type of companies are generally consists of volunteers . Theseare those people who form group especially for accomplishing common goals. Social welfare isthe main purpose of voluntary organisation. National trust is basically a British foundationwhich has been established for Welfare of society.

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