Unit 1 Business and Business Environment Assignment Solution

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UNIT 1: BUSINESS ANDBUSINESS ENVIRONMENT
Table of ContentsINTRODUCTION...........................................................................................................................3LO 1.................................................................................................................................................3P1. Different types of organisation and growth of International Business Environment.......3P2. Explanation of different types of organisation in detail...................................................5LO 2.................................................................................................................................................7P3. Different functions and their interrelationship with advantages and disadvantages........7LO 3.................................................................................................................................................9P4. PESTLE analysis to identify macro environmental factors and its positive and negativeimpacts....................................................................................................................................9LO 4...............................................................................................................................................12P5. Internal and external analysis for identifying key strengths and weaknesses................12P6. Strengths and Weaknesses interrelate with external macro factors...............................14Critical reflection on the key findings and its influences on decision-making process.......14CONCLUSIONS............................................................................................................................15REFERENCES..............................................................................................................................16
INTRODUCTIONBusiness environment refers to the surroundings in which any enterprise operates its dailyroutine functions. Every business organisation gets affected with various factors present in itsenvironment. Different factors affecting business are classified as internal and externalenvironmental factors that brings impact on working of the business. Harrods is the largestdepartmental store in Europe and is situated in London. It deals in designer clothing, fashionaccessories, quality and luxury gifts. In the following report, different types of organisation withdetails about their mission, vision, legal structure, information about key stakeholders, size andscope are explained. Key functions of an organisation are also explained and theirinterrelationship. PESTLE and SWOT analysis is done to identify various internal and externalfactors that affect the working of organisation.LO 1P1. Different types of organisation and growth of International Business EnvironmentOrganisation aims at managing and organising its various activities and operationseffectively so that it can bring better outcomes and achieve overall goals and objectives.Organisation focuses on properly analysing the internal and external factors in order todeveloping effective business strategies(Lucas, 2015). Today's competitive businessenvironment makes every business organisation to develop effective strategies in order to sustaintheir position and profits.Growth of International Business Environment:Business organisation are focusing to develop their business in international and globalmarkets, which leads to bring various affecting factors. International Business Environmentrefers to factors that brings affects to the working on business and includes cultural differences,political risks, issues regarding legal and regulatory frameworks, fluctuation rate risk,technological developments, etc.Different types of organisation:Private SectorsCompany owned privately having at-least 50000 euros of share capital are known asprivate sectors businesses. The intention of private sector is to make profits and develop itsbusiness. Private sector business is profit oriented. It is not compulsion for private sector
companies to offer their shares to public and listing them on stock exchange. The owners are theshareholders of company and liable for profits and losses of the business. Various companiesoperating their business under private sectors are McDonald's, Apple, Disney, Harrods andPepsiCo.Legal structure of private companyPrivate limited company must be registered and incorporated at Companies Act and alsoneeds to file its annual accounts. The private company needs to have at-least one member andone director. Private sector organisation needs to follow various legal regulations provided underCompanies Act, Employment Act, etc. The private company gets its finance through loans,retained profits and shareholders.Public SectorPublic sector companies are governed by various rules and regulations provided byCompanies Act, 1980. Organisation operating as public sector business are generally customeroriented. Public sector organisations need to offer their shares to public and must trade theirshares on stock exchange.Legal structure of public limited companyItis governed by government as 51% shares are owned by central, local or stategovernment(López-Gamero and Molina-Azorín, 2016). List of public limited companies areRolls-Royce holdings Ltd., British Petroleum and Burberry Group Plc.Voluntary SectorOrganisation operating under voluntary sectors aims at providing services to public ratherthan making profits. There is not much intervention of government and its rules and regulations.Voluntary sector businesses get its funding from charities, donation from various communitygroups and trust. The main aim of voluntary sector organisation is to provide welfare servicesand some examples of this sector are Oxfam, Red Cross and Wellcome Trust.Legal structure of Voluntary sector organisationThe voluntary sector organisation's rules and regulations are set out in constitution andprecise form that depends on the legal structure adopted by the company. Trust, unincorporatedassociation and a company limited by guarantee are three types of legal structure for voluntarysector organisation.
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