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Business and the Business Environment TABLE OF CONTENTS LO 1 3 P1. Different Types of Organizations

   

Added on  2021-01-02

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Business and the BusinessEnvironment

TABLE OF CONTENTSLO 1.................................................................................................................................................3P1. Different types of organization and their purpose ...............................................................3P2. Size as well as scope of different types of organisations....................................................4LO 2.................................................................................................................................................5P3. Analyzing the relationship between different organizational functions ..............................5LO 3.................................................................................................................................................6P4. Analyzing the positive as well as negative effect of macro environmental factors onbusiness ......................................................................................................................................6LO 4 ................................................................................................................................................8P 5 Internal and external analysis of Tesco ..............................................................................8P6 Presenting how strength and weaknesses are interrelating with external macro factors.......9CONCLUSION .............................................................................................................................10REFERENCES..............................................................................................................................11

INTRODUCTIONBusiness environment can be defined as sum of internal as well as external variableswhich have great influence on business. There are basically two types of business environmentthat is internal as well as external. Changes in both macro and micro business environment hassignificant effect on the operations of companies. It also has great influence on business strategy,plans and decisions. Study of business environment is important in order to address those factorswhich might affect the business. The report will have focus on identifying the different types of organization and theirpurpose. Study emphasizes on analyzing the relationship between different business functionsand the way they related to organization objectives as well as structure in context of Tesco. It isBritish multinational organization operating business in retail sector. Assignment will include thedemonstration related to the way strength and weakness interrelates with external macrovariables.LO 1P1. Different types of organization and their purpose Organization can be referred to as group of people working together in order toaccomplish desired objectives. It is also defined as the entity established with the purpose ofexecuting the commercial practices that is selling of products or services in order to cater theneeds of customers. Organization can also have considered to be as structural framework ofduties as well as responsibilities. There are different types of organization which are establishedspecially for accomplishing specific objectives. The different types of organization are :Private: It is company which is owned as well as managed by one or more than oneperson. Business owner is responsible for profit and losses. Examples of privately ownedorganization in UK is Nexor, New Look. Deloitte etc. (Bertram and Chi, 2018). In addition tothis, private firms cannot sell its shares to public. Private limited companies in UK does notrequired to have minimum capital requirement. In context of UK, private firms are liable to theamount due on shares (Yu, Ramanathan and Yang, 2018). The private companies can be further classified into different form of firms such as: Sole proprietorship: Such types of organizations are mainly owned by single person. Incontext of sole proprietor company, an entrepreneur has unlimited liability. These arebasically a small company which are established with the purpose of earning high profit

as well as revenue. The sole proprietor firm in UK is Kurt Gieger which is well knownshow brand. Sole trader firm has simple business structure. Investment in business ismade entirely by an entrepreneur. Partnership: It is the type of company which is owned as well as managed by two ormore people. The main objective of such types of enterprise is also to earn high profit aswell as revenue. In context of partnership firm, unlimited personal liability in terms of thedebts incurred by partnership business. Partnership organization can further be classifiedinto different firm such as general partnership, limited liability and limited partnerships.For example, John Lewis partnership organization in UK. Such types of organization alsohave simple business structure. Corporation: The main purpose of such enterprise is to earn profit. Such types oforganization have separate legal identity from its members, it is the type of companywhich is owned by one or more people. Corporations consists of boards of directorswhich are mainly responsible for monitoring as well as controlling business activities.For instance, Lloyds, Vodafone etc.Public : These are the organizations which are generally owned, managed and controlled bythe government. It consists of public corporation , public sector undertaking etc. Purpose of suchfirm is to provide the services to people in the country. The different services offered by suchtypes of enterprise are water supply, electricity, transportation , public education etc. Publicorganization is recognized to be as state owned firm. These organizations are generally self-funded. For instance, child support agency, Tesco etc. In context of public enterprises financesare separate from the personal finances of their members.Voluntary organization : It is basically a group of people which are formed with thepurpose of providing the various benefits to the society (Young, 2020). Voluntary organizationsare generally governed by a constitution. For example, national trust UK. British heartfoundation etc. P2. Size as well as scope of different types of organisationsThe size and scope of different types of organization in UK are:Private limited companies: These are basically a small business. Private limitedcompanies have only few shareholders that is 50 in context of companies established in UK.According to the companies act 2013, private enterprises in UK can employees minimum two

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