logo

Environmental Factors of Organization : Report

   

Added on  2020-06-03

11 Pages3292 Words73 Views
 | 
 | 
 | 
THE BUSINESSENVIRONMENT1
Environmental Factors of Organization : Report_1

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3Task 1...............................................................................................................................................3P1 Describe the type of business.................................................................................................3P.2 Describe the different stakeholders.......................................................................................4Task 2...............................................................................................................................................5P.3 Describe how two businesses are organised in terms of their structures...............................5P.4 Explain the style of organisation...........................................................................................7Task 3...............................................................................................................................................8P.5 Describe the influence of two contrasting economic environments......................................8P.6 Describe how political, legal and social factors are impacting upon the business................9CONCLUSION ...............................................................................................................................9REFERENCES .............................................................................................................................102
Environmental Factors of Organization : Report_2

INTRODUCTIONThis report is about the environmental factors taking in account the organization. Thisreport also focuses on the organizational structure and its influences. It will also cover the typesof business and its influence and factors which affect them in the current business scenario.Task 1P1 Describe the type of businessSole proprietorship: A sole proprietorship is a business owned by only one person. It iseasy to set-up and is the least costly among all forms of ownership (Arrow, 2013).The owner faces unlimited liability; meaning, the creditors of the business may go after thepersonal assets of the owner if the business cannot pay them (Besley, 2010). The purpose ofbusiness is to earn profit in through sales of the dealing products.Partnership: A partnership is a business owned by two or more persons who contributeresources into the entity. The partners divide the profits of the business amongthemselves.In general partnerships, all partners have unlimited liability. In limited partnerships creditorscannot go after the personal assets of the limited partners. A partnership is ever going and onlydissolve with concern of all the partners, bankruptcy. If a partner dies or retires he is paid byother partners. This kind of firms work for earning profit through maximization of sales and production.Private company: A type of company that offers limited liability, or legal protection forits shareholders but that places certain restrictions on its ownership (Bokken, 2013).These restrictions are defined in the company's bylaws or regulations and are meant toprevent any hostile takeover attempt. Shareholders cannot sell or transfer their shareswithout offering them first to other shareholders for purchase. Shareholders cannot offertheir shares to the public over a stock exchange. The liability of a shareholder is up to hisshare in the company.The sole proprietor, private company and the partnership have a sole objective to earnprofits. The liability of the sole proprietor and partnership is unlimited whereas in the companythe liability is up to the amount of holding in the company.3
Environmental Factors of Organization : Report_3

Nonprofit organization : Associations, charities, cooperatives, and other voluntaryorganizations formed to further cultural, educational, religious, professional, or public serviceobjectives. Their startup funding is provided by their members, trustees, or others who do notexpect repayment, and who do not share in the organization's profits or losses which are retainedor absorbed. Approved, incorporated, or registered NPOs are usually granted tax exemptions,and contributions to them are often tax deductible (Carroll, 2014). The shareholders in theorganization is have no liability towards the creditors. A profit organization's main objective is to earn profits which is unlike of the NPO's whofocus on the social services.P.2 Describe the different stakeholdersCustomer : A customer is the recipient of a good, service, product or an idea - obtainedfrom a seller, vendor, or supplier via a financial transaction or exchange for money orsome other valuable consideration. The customers of McLaren are the buyers of itsexpensive cars.Employee : An individual who works part-time or full-time under a contract ofemployment, whether oral or written, express or implied, and has recognized rights andduties. Also, is called worker. McLaren has a large employee length of engineers andexecutive officers. It focuses on treating the employees with dignity.Owner of a business : Individual or entity who owns a business entity in an attempt toprofit from the successful operations of the company. Generally has decision makingabilities and first right to profit. The owners of McLaren are its the shareholders of thecompany.Supplier : A party that supplies goods or services. A supplier may be distinguished from acontractor or subcontractor, who commonly adds specialized input to deliverable. Also,called vendor. The supplier of McLaren are the main part suppliers of the company.Trade union : An organization whose membership consists of workers and union leaders,united to protect and promote their common interests. The principal purposes of a laborunion are to negotiate wages and working condition terms. Regulate relations betweenworkers (its members) and the employer, take collective action to enforce the terms ofcollective bargaining. Raise new demands on behalf of its members. Help settle their4
Environmental Factors of Organization : Report_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Business Environment of The British Airways : Assignment
|9
|2818
|28

Business Environment Induced Introduction to Business Activities
|9
|2818
|323

Comparison of Sole Proprietorship, Partnerships and Corporations
|5
|804
|192

Impact of Business Environment on Tesco
|13
|3007
|261

Types of Business Enterprise and Forms of Share Capital and Long-term Debt
|7
|1454
|364

Planning for Growth
|14
|3678
|48