Business & Business Environment Introduction 01: Business and Business Environment
Added on 2020-10-05
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UNIT 01: BUSINESS &BUSINESS ENVIRONMENT
Table of ContentsIntroduction......................................................................................................................................1TASK 1............................................................................................................................................1Explanation of various types of organisation and growth of an International BusinessEnvironment...........................................................................................................................1Explanation of each of the business organisation with details...............................................2An Explanation of different functions and their interrelationship..........................................4TASK 2............................................................................................................................................6PESTLE analysis to identify macro environmental factors with positive and negative impacts6SWOT analysis to identify key strength and weaknesses and comparison with similarorganisation............................................................................................................................8Critical reflection and evaluation of its influence on the decision-making process ..............9CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
IntroductionBusiness organisation gets affected and impacted by various factors present in theinternal and external environment. Plans and business strategies are made in accordance with thebusiness environment factors so that organisation sustain in competitive markets. IKEA is amultinational corporation that deals in designing and selling furniture. IKEA also deals withhome appliances and kitchen accessories and various other multipurpose products. In thisfollowing report, different types of business organisation with details of their size, structure,products and services offered, legal structure, scope and key stakeholders is explained. Reportalso explains interrelationship between various functions and its advantages and disadvantages.PESTLE and SWOT analysis is done to identify and analyse various impact on internal andexternal factors of the business environment. Reflection of key findings and evaluation of itseffects on decision-making is also given further.TASK 1Explanation of various types of organisation and growth of an International BusinessEnvironmentBusiness organisation aims at improving the performance of its employees so that theycan bring creation and innovation in business operations so that it leads to increase productivityand profitability. Organisation also aims at analysing both internal and external environmentalfactors that bring influence in performance of business activities. Micro and macroenvironmental factors impacts decision-making of the organisation (Andersson, Forsgren andHolm, 2015). Growth of International Business EnvironmentToday's competitive business environment consists of various that brings influences inbusiness operations and activities. The International business environment includes factors suchas, political risks, social and cultural factors, regulations, tax, technological factors and legalrules. With growing competition in every industrial sector, it leads to increase its externalbusiness environmental factors. These various factors bring influences in the working andperformance of Business. There are various types of organisation like private sector companies, public companyand voluntary sector organisation having different purpose and scope. 1
Private CompanyBusiness organisations operating under legal rules and regulations and which is privatelyowned is known as private company. The Private company may or may not offer or trade theirshares to public. Private companies have shareholders who are the owners of business and liablefor profits and loss (Chang, 2016). Minimum 2 people and maximum 200 members can form aprivate company by registering under the Companies Act. Examples of private companies areIKEA, McDonald's, Sainsbury's, Virgin Group Ltd, etc.Public Limited CompanyCompanies which are registered under the Companies Act, 1980 and also havingminimum capital requirement and offers shares to public is considered as the public limitedcompany. Minimum 7 or more people can form a limited company and it grants limited liabilityfor its shareholders. The Public limited company needs to trade its shares on the stock exchange.These companies are under strict regulations of government. Examples of the public limitedcompany are British Petroleum, Burberry Group PLC, Rolls-Royce Holdings PLC, etc.Voluntary Business OrganisationVoluntary sector aims at delivering services to public rather than making profits.Voluntary sector organisation does not have much intervention of government and its mainmotive is to enrich society. Charities, faith-based organisations, community groups, socialwelfare organisation are all included in voluntary sectors (Deasy and et.al., 2016). Examples ofvoluntary sector organisations are Wellcome Trust, Oxfam, The British Red Cross Society, etc. Explanation of each of the business organisation with detailsPrivate Company(IKEA)Public LimitedCompany(British Petroleum PLC)Voluntary SectorOrganisation(British Red Cross)BackgrounddetailsIKEA is a furniture retailerthat was founded in the year1943 by Ingvar Kampard inSweden. This is a multinational gasand oil company that wasstarted in 1909 and wasfounded by William KnoxD'Arcy. Red Cross was foundedin the year 1870 thatprovides supports tosociety by focusing onhuman-centered aid.2
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