Business Environment Assignment | Types & Scope of Organization

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BUSINESS AND BUSINESS ENVIRONMENTTable of Content1
Introduction........................................................................................................................3Part 1.................................................................................................................................4P1 Explaining different types of organisation and its legal structures...............................4P2 Explaining size and scope of different types of enterprises.........................................7P3 Describing linkage between functions of entities and in what way, they link up withobjectives as well as structure of organisation..................................................................9Part 2...............................................................................................................................11P4 Identifying positive and negative influence that macro environment leave uponoperations of business.....................................................................................................11P5 Conducting internal as well as external analysis.......................................................15P6 Explaining in what way, strength and weakness correlate with macro factors that areexternal............................................................................................................................17Conclusion.......................................................................................................................18Reference List..................................................................................................................20Appendices......................................................................................................................242
IntroductionBusiness Environment implies the surroundings that enfold the operation of a businessorganisation. That includes various internal and external factors that are already presentand are outside the control of the organisation but definitely affects the performance andsurvival potentiality. A business has to operate in response to the changes in thesefactors; hence the primary feature of a business environment is the non-static behavior,unpredictability about the exact changes in the environment or future happenings. It ismultifaceted and has far reaching impacts, such that a single change in the behavior ofone organisation leads to an entire change in the whole market. A businessenvironment consists of the internal environment that exists within the company, theexternal environment including the micro environment. In this study the student hastalked about the different type and scope of an organisation, the various purpose that itserves, the relationships between different organizations and its nexus to theorganizational objectives, the advantages and disadvantages of macro environment onthe business operation and the analysis of the internal and external factors of anorganisation that helps to identify its strength and weakness. The study focuses on twoof the organizations, BMW (Bavarian Motor works) and Amnesty International.3
Part 1P1 Explaining different types of organisation and its legal structuresAn organisation is a formal setup with a definite objective. It is a hierarchicalrepresentation of authority, whereby each of its members works together to achieve onecommon goal. The various types of organisation can be understood with the differentpurposes that they serve. There are Private and public sector enterprise; voluntary,formal and informal organisation.Private organizations- These are owned and controlled by private individuals with themotive of profit maximization.Public sector organizations- These are controlled by the government with the soleobjective of the welfare of the peopleVoluntary organisation- Group of individuals come together to form an organisation andwork towards a common goal. These sectors perform social duty, towards thebetterment of the community, and are non-profit and non-governmental. These are thethird sector, in contrast to the private and the public sector having a direct relation to thecivic society (Guay, 2016, p156)Amnesty International is a non-governmental voluntary organisation that works in thefield of human rights, work on issues of human rights and comply with the internationallegal regulations to curb human rights violations. It mobilizes public opinion andpressurizes the government to prevent further abuse of human rights. The six maintarget areas have been women, children and minority; torture; death penalty; rights ofrefugee and prisoners of conscience and protection of human dignity. Amnesty isagainst capital punishment, and hence it campaigns against death penalty, ensure freeand fair trial and proper food and living conditions for the prisoners, free and compulsoryeducation for children, preventing abortion and recruitment of children in hazardouswork including child soldiers, preventing illegal killing and torture, promote social andcultural rights for the marginalized community and LGBT and uphold the rights of therefugees. It is a global organisation employing more than 2400 staff in over 70countries. It is financed by donations from worldwide members only and not from anygovernmental organizations to remain free from any political influence.4
The organisation has paid professionals along with worldwide voluntary members. Incountries having a strong influence, the members are divided into sections whichcoordinate the activities. In countries where the presence is not much strong, peoplecan become voluntary members. International Secretariat is responsible for setting aglobal agenda and carries out the daily work of Amnesty under the direction of theInternational Board. It consists of 500 staff under the Secretary General. TheInternational Board takes decision for the organisation, implements the strategy laiddown by the International Council and ensures that the daily working complies with therelevant laws. It has 8 members and an international treasurer. The InternationalCouncil, the senior most decision-making body, consists of a Chairperson andrepresentatives from International Board and country sections. It elects the members ofInternational Board, set the strategic goal and the policies of the organisation andamend the Amnesty law. Apart from this hierarchical division, in 2013, Amnestylaunched the global council, which is a forum that brings people from various otherfields to work towards the common cause of human rights. More than 80 countrysections provide the funding and membership to Amnesty. These sections consist oflocal groups like university students).The Bavarian Motor works is the leading German automobile company founded in 1916.It is the parent company of Rolls-Royce Motor Cars and it produces motorcars underthe ‘BMW Motorsport Division,’ Motorcycles under ‘BMW Motorrad’, and plug-in electriccars. It offers efficient and dynamic luxurious cars with efficient engine emitting lesspollution. The most innovative model is the BMW iPerformance providing the mostefficient and smooth driving, having the three components of electric motor, lithium-ionhigh durable battery and an intelligent energy management. It has followed the threemain objectives of Sustainability, Efficiency and Environmental Responsibility that hasmade it unique from the rest companies. The Supervisory Board is the highestauthorized body, with 20 members under it divided into four committees of Personal,Nomination, Audit and Mediation. Next is the Board of Management that controls theBMW Group Compliance Committee consisting of six more departments. According tothe 2016 report, BMW has around 124,729 employees.5
Figure 3: The number of employees (2006 to 2016)(Source: Bmw.co.uk.2017)According to the Wall Street Journal, the annual revenue has been 94,163 in 2016,92175 in 2015 and 80,401 in 2014. The gross annual income is 22,663 in 2016, 24,467in 2015 and 22,639 in 2014. In 2014, BMW was ranked the second most valuable brandglobally reaching the brand value of 25.7 billion U.S Dollars. The global market sharegrew from 2% in 2000 to 3% in 2014 (Bmw.co.uk, 2017)Figure 4.BMW global market share from (2000 to 2014)(Source: Bmw.co.uk. 2017)6
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