Table of Contents INTRODUCTION...........................................................................................................................1 TASK 1............................................................................................................................................1 1.Introductionofdifferentorganisationandtheirgrowthininternationalbusiness environment.................................................................................................................................1 2. Explanation, background, scope and size of the organisation................................................2 3. Functions of organisation using its and its inter-relation and its impact on structure of organisation.................................................................................................................................5 TASK 2............................................................................................................................................6 1.PESTLE analysis of organisation and its negative and positive impact:.................................6 2. SWOT analysis of G-Tech......................................................................................................8 CONCLUSION..............................................................................................................................10 REFERENCES..............................................................................................................................11
INTRODUCTION Business environment is a combination of internal and external factors which influence the company. The external and internal factors influence each other and work together to affect the business environment. The five factors affecting the business is Economic, technological environment, competitive environment, the social environment and the global environment. This report will show the different types of organisation and their growth in international business environment. This report will provide the background details of the different organisations about their products and services, the size and scope of the organisation. This will report about the impact of functions on structures like financial structure, matrix structure and divisional structure of organisation. This study shows both positive and negative impact of macro environment on organisation. This will also show the PESTLE and SWOT analysis of organisation identifying the strengths and weakness of the organisation. TASK 1 1. Introduction of different organisation and their growth in international business environment. Organisationisagroupoforganised,capableandintelligiblepeoplefor determining the purpose of specific company. Organisation has a management structure to decide the team members and different organisation relationships, subdividing and assigning the roles, responsibilities and authority for carrying out different tasks (Banica and Hagiu, 2015). The international Business Environment is multi-dimensional as it comprises cultural differences, exchange risks, political risks, legal and taxation issues. Hence, the international business environment includes economic, political, Social and cultural, regulatory, tax and technological factors of environments. There are three different types of organisation: Public Company-The public company is the company owned with equity and debt securities, and through capital markets traded by the public. The shares of public company are openly traded and distributed extensively. In a public company the ownership is shared between shareholders, involving the public shareholders and the board of management. The government raise funds for such companies which is assumed by taxes taken by the public pay. NHS is a public limited company which is committed towards providing quality of majority healthcare that meets the needs of everyone. In international market demand for knowledge, 1
services and skills enhanced in NHS is growing day by day. NHS offer their contribution to health systems in developing countries of world (Bouckaert, Peters and Verhoest, 2016). Private Company-It is the company owned by private ownership. Private companies can issue stock and have shareholders, but the company's members shares do not offer the company shares on stock market exchange to the public. Instead of this the company shares are owned, exchanged, traded and offered privately. In order to set up a private firm owner is required to choose suitable name for organisation and have to give detail related to company’s share. Private firms have separate legal identity and owner can keep part of profit after paying tax to government. Shareholders those who have more than 25% shares have right to give their views and participate in decision making of company. Growth of Grey Technology company in international market- The company went stronger by stronger in 2006, after five years of its launch and its turnover marked upto £6m mark. It has achieved huge growth since 2006 and have sold more than 22m of products in most of the countries around the world. The G tech company has expanded in international market so rapidly that it has started to focus on meeting demands in Britain instead of exporting globally (Chang, 2016). Voluntary Company-It is a group of people who enters the agreement, usually as volunteers, for its formation and to fulfil a purpose of organisation or the one who rely on temporary or regular volunteers for its operations and may have or not have paid staff. e.g. trade unions, trade associations, learned societies, environmental groups and professional associations. The chief objective of such organisation is not to earn or make profit but to promote a specific point of view. e.g Charities trust which is in Liverpool, UK and is non-profitable trust. Growth of British Red cross company in international market-It is the part of International Red cross and Red crescent movement, the world's largest humanitarian network because of its emergency services and other services given to the required public. Legal structure on volunteers firms is based on unincorporated associations. Members have voting rights and entity is not incorporated. Unincorporated firms can carry out any activity without any restriction. Group members can draw up constitutions and can set rule for running the firm. 2
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2. Explanation, background, scope and size of the organisation. Public (NHS)Private (Grey technology)Voluntary (Red cross) Backgr ound The NHS was established in 1948 with the idea that good healthcare should be providedtoall.Aneurin Bevan opens park hospital in Manchester. Bevan was oneofthefounding membersofthe“Query club” G tech wasfounded by NickGreyWhohas previouslyworkedin Vacuumcleanerbrand VAX. Today the G tech businessisnamedafter his electric sweeper that has rounding around huge success.EarlierNick GreywasaLab TechnicianwithVAX vacuum cleaners company and then his curiosity for allmechanicalthings developed. He launched G tech from garage in 2001, and finally gotfinancial supportfrompowerful market campaigns. After the war between the FranceandPrussiain 1870,ColonelLloyd- Lindsay wrote a letter to Timescallingforthe Nationalsociety formation. In 1870 it was formed. Later on in 1905 it was named as British Red cross. VisionTodeliverbetter healthcare, good value and care. Foster a winning network ofcustomersand suppliers.Bringinthe world the quality products brandsthatexpectsthe people's desire and needs. Andtobeagreatly effective, lean as well as fastestgrowing organisation. To express the spirit of its organisation's beliefs and values. 3
MissionTo give better quality of caretoeachandevery person every day. Its mission is to provide best loved floor-care and garden products in world. To organise the power of humanity. Objecti ve Totreatallpeoplewith respect. To treat them with dignity.Todelivermost compassionate health and careserviceinworld, based on its principles. Its objectives is to be one ofleadingcompanyby maximising its profits and maintaininglong-term sustainablegrowthin competition in industry. Topreparethe individualsand communities to deal allot with and recover from the crisis. Product & services NHSprovidesmedicines, healthcareproducts, medical equipment’s. Service-meettheservice of need of customers. This is the service of NHS to givequalitystandardsof itsproductswithsafety, quality,performanceand effectiveness. G tech SW01, G tech Air AM, G tech Air AM Mk2, G tech power Floor and G tech pro. It has some more products like. G tech has soldmorethan22m productsalloverthe world. ServiceofGtech-To provide the best quality of products. Products-Furniture and electrical charity products and vintage. Service-Borrow wheelchairs,helpfor emergencies,young refugees,withmoney problems,victimsof terrorism abroad, etc. Legal structur e Accountedbycentralor localgovernment.It inclines to provide public servicesinsteadof producingproductsfor benefitorprofit.Central governmentpaytaxfor public and merit goods. Run by Board of directors onselectedby Shareholders and headed by the chairman. It sells the stock exchange. The amount of capital is raised by its sale of shares. ItisGovernedby constitution. Three main legal structures used by it are-Unincorporated association,acharitable trust(Donors of money or property),trustees(who arethenominal owners)and is referred to managementcommittee, 4
executive committee. ScopeItwillachieveseamless business continuity for its healthcaresupport services. Gtechisinprocessof creating 100 jobs in UK, asitisshiftingsome operationsfromChina backtohome.Ithas employed200staff growinginto£121m business. G-tech has high scope to growintointernational market, as firm can enter into new market and can makecommunication with mass audience. Reducethepainand developrecoveryin emergency in UK. Red cross has possibility toenterintonew locationsinorderto provideservicesto people. It has wide scope to grow into international market. Market size (profit, no.of employ ees, no. of branche s) Size-1.5million employees. Branch-UK and Scotland Profit-£62.4m to £81.1m Size-Gtechhasapprox 8600 employees working with it and is ranked 8thin top 10 competitors. Branch-Worcester, England Profit-more than £100m Size-3500 staff 32500 Volunteers. Branch-Scotland, Wales, Northern Ireland and Isle of man. Profit-Non-profit organisation. Stakeho lder Public, Government and its agencies,creditors, suppliers, unions. Generalpartnersandits investors. Fundraisers, partners and donators. 5
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3. Functions of organisation using its and its inter-relation and its impact on structure of organisation. Organisation structure is the definition of activities like task allocation, co-ordination, and Supervision maintained to achieve the company goals. Organisation structure has to be efficient, flexible and innovative in order to beat the competitors in market (Pearson, 2017). G tech have Flat structure organisation. It allows all the team members and employees contribution in its decision-making. It has no barriers between the management and employees. They both can equally contribute in decisions taken by the higher-level management. It removes thelevelsbetweenallthestaffandenhanceco-ordinationandcommunicationbetween employees. Functional structure of Grey Technology Functions of Grey Technology- In society like democratic, socialistic and welfare, private organisations like G tech is crucial, as it perform a number of functions (Chang, 2016). It performs several functions and has the ability to concentrate on human and financial resources onto specific functions. It manages the product which is interdisciplinary role which reaches across teams to plan, and design and continuously bring better and quality products in the market for its customers. The product managers of G tech have responsibility to set a product's vision, define the product strategy, while develop the roadmap which meets the both company goals and the customer’s needs. Marketing and Accounting-The marketing function manages and develops the sales of business. The accounting department works to monitor the efficiency of the sales promotion. The accounting functions is responsible for preparing and analysing the financial statements of sales and by compiling Marketing departments functions include the sales strategy and programs aiming for increasing sales through promotions and advertising. Accounting department includes marketing department to monitor trendsin businessand manage the effectivity of sales promotions originated by G tech. It works together to enhance the market share and improve the bottom line. They together create profitable and beneficial relationship with the company. Impact-It provides financial statements or information to stakeholders of the company i.e. managers, investors and creditors. It measures and analyses the activities of G tech. It adds value to G tech when it Is under pressure by managing the complexity, reducing the cost and utilising financial areas of G tech properly. 6
Marketing andProduction-The co-operation of marketing and production functions will result customer's needs and increase the profit of organisation. There may be conflict between this both as both functions seeks for attaining its own goals (Erasmus, Strydom and Rudansky-Kloppers, 2016.). The production function focus on creating new products, manage the quality and its quantity and arranging its deliveries. Marketing functions focus on fulfilling the needs of customers.The inter-relation between both will help to improve the performance of G tech company. Marketing and Operations-The relationship between this both functions is quite problematic. Marketing and operations in functional areas initiate the key value adding the adding areas of business organisation. The contribution of marketing and operations is important to assure effective fulfilment of G tech company's aim. Impact-Both functions relates to enhancing the quality and quantity of the product or services to create long-term relationship with customers. And it can be only attained by healthy and productive co-ordination between Marketing and production function. TASK 2 1.PESTLE analysis of organisation and its negative and positive impact There are many factors affecting the business environment of G tech company. Political Factor-It may add risk factors and leads to major loss if the company is not aware of it. The political factor defines the current situation of the country. The global political condition affects the country directly and indirectly effects the company. 7 Illustration1: Pestle analysis Source: (PESTEL Analysis,2015)
e.g.Governmentpolicies,Taxesoflawsandtariff,Governmentstability,Bureaucracy, corruption level, Trade controls, employment law, education law, Anti-trust law.If import and export tax rate is increased by government, then company have to pay extra rates on export and import (Moullin, 2017). In that case company net profit affected. Its positive effect, if Govt. stable their rules and regulation long time, then company not do change their policies Economic factors-The economic factor of includes the determinants of economy of its state and company. It includes interest rates, exchange rates, labour rate, recession, inflation, Taxes, Demand/supply which can impact Grey technology in both negative and positive manner. Like for example a hike in labour rate can act as a disadvantage for G-tech as company's operational cost will increase. Meanwhile, if labour rates are reduced by government then firm can increase its earning. Recession is economic factor where in temporary economic period decline affects the trade and industrial activity which is reduced in terms of GDP. When Gdp is strong G tech hires more employees and is able to pay higher salaries and wages to employs which increase the production of goods and services, and its vice versa with when GDP falls it decreases the profit of the company. Social factors -The social factors can have impact on sales of the product and revenues earned. It is essential for G tech to communicate with its image as a global brand to change the perception of people. The company expects from its buyers to be known about the product they are purchasing. e.g. lifestyles, buying habits, religion and beliefs, Health consciousness, average disposable income, minorities, attitude towards saving and investing (Kolk, 2016). Ifcompany not analysis customer taste &latest fashion, then customer not satisfy by company. But if frequently change in customer taste so company suffer losses because company store product and then stored product is waste. Whereas, its positive for Grey technology to produce products according to customer taste so customer attract towards the company. This will raise its demand and will enhance its profit. Mostly customer want to purchase product in bulk. G-tech keep all product so that achieve their targets smoothly. Technological factor-Technological factors directly affects the business of G tech if the company is not aware of recent technology used daily life. Automation of lots of unskilled tasks can let the G tech to replace the human resources with machines. Automation can help to deduct the costs of manufacturer, distributors, supermarkets, and other things related to business. 8
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Internet connectivity can help to reach its customers efficiently. A global rise in internet connection can reduce the interest in traditional communication. e.g.The3Dtechnology,Engineefficiency,Automation,wirelesscharging,securityin cryptography. The Business is affected by changes in technological environment. It is the application of knowledge to manage, control and change the business environment to achieve its goal. It will help G-tech in improving the existing products and process and to create new products and process which helps to enhance and expand the profits in market. If not aware of this technology the company will be not able to beat the competitors in markets as it will not able to fulfil demands of customers knowing about the latest technology (Wheelen and et.al., 2017). Legal Factor-There are legal factors affecting the environment of company which are consumer law, discrimination law, copyright law, Health and safety law, Employment law, Fraud law, Import and export law. Consumer law is designed to prevent the consumers from fraud companies and maintain their rights in marketplace. This lets G tech company to devote the huge amount of its resources in giving the detailed information of their products and services. Also, it has negative impact that if the firm is not engaged in following these laws then it can lay negative impact on the mind of consumer's. Environmental factor-Business is affected by different factors contributes forming the business environment. There is internal and external factors affecting the business also known as ecological factors. The factors like consumer health, climate change, culture, the availability of energy, direct result in company loss.Various laws related to environment protection has been implemented by government that needs to be followed by G-tech. Like for firm is engaged in making consumer's aware about the ill-effects of using poly-bags and encourage them to use paper bag. This has laid a positive impact on the mind of consumers. Also, company is engaged in performing the CSRactivities that can negatively impact there business. 2. SWOT analysis of G-Tech 9
Strength: G-tech is one of the most popular brands in manufacturing industry across the world. It has sold over 22million products in 19 countries. G-tech has recipient of almost 53500 reviews, with 84% of customers giving five-star rating to G-tech. Company has planned global expansion in other eight countries across Asia, Europe and the middle east in the next 12 months. It has also employees in US and china other than UK. G-tech holdings has strong financial position. G-tech holdings makes the turnover 100 million pounds during latest financial year. Firminvestsalsoforadvancetechnology.G-techcontinuouslyinvestsinresearchand development focusing on new technologies like battery technology. Weakness:Marketing strategy isessentialelementfor getting successin market. Marketing informs customers what product company produce or sell. G-tech has poor marketing strategies compared to other manufacturing firms. It spends less money on marketing compare to its competitive firms (MacGregor, Doyle and McEachern, 2015). Therefore, customers are not aware about the products of G-tech compare to other firms. Company also have poor product diversification. Opportunities:G-tech sold its products in many countries like US, China etc. G-tech can improve its technology by adopting new technologies for manufacturing quality products. It expands its market by collaborating with other manufacturing companies of other countries. G- tech can be increase its revenue by online marketing. 10 Illustration2: SWOT Analysis Source:(SWOTAnalysis.2016)
Threats:Competitivepressureinmanufacturingindustryhasgrownthatcreates difficulties for G-tech to survive in manufacturing industry. Increasing raw material and labour costs also a threat for G-tech. It is facing much competition in global markets that increases expenses in marketing as well as technologies. SWOT analyses of Electrolux Strength It has strong financial position Company uses advance technologies Strong brand image Unique products Weakness Highdebtburdenisthemajor drawback of firm Staff turnover rate is too high Supply chain system is weaker Opportunities Globalisation Technological advancement Threats Changing government norms Inter-relationship with the external macro factors Political factor:Reduce in the rate of tax for import and export of products like vacuum cleaners, bikes sold by G-tech can act as a strength for them. By this they can expand their market share and increase their profitability (Silva, 2017). Economic factor:A reduce in the rate of labour is strongly connected with the increase in G-tech profits and reducing operational cost. It can act as a strength for firm and can help them to grow. Social factor:G-tech needs to prepare and design the products according to the values and beliefs of consumers. Providing dis-respect to their values and beliefs can act as a weakness for firm. Technological factor:Making use of advancing technology like booking through online apps can become strength for G-tech. By this they can target more wider range of consumers. Legal factor:Various laws like anti-discrimination law is been followed by G-tech in which they make sure that all the employees get equal pay for same job. This has helped them in creating employee satisfaction and also acted as a strength for them. 11
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Environmental factor:Firm is not engaged in following the CSR activities that can act as a weakness for them. This can hamper their goodwill. Strength and weakness of organisations BasisGrey technologyGoblin vacuum cleaners StrengthStrong brand imageStrong marketing capabilities WeaknessLimited business portfolioLowpenetrationoutsideUnited Kingdom CONCLUSION From the above study, it has been summarized that marketing function has been inter- related with accounts and production departments of company. It has helped the organisation in attractingmoreconsumersandincreasingtheirsales.Also,variouslawssuchasanti- discrimination law has impacted the decision-making process of enterprise. They have made a policy that defines equal pay for same job which has helped them in retaining the employees. It has also laid positive impact in the mind of consumers. 12
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PESTEL Analysis.2015. [Online]. Available through<https://pestleanalysis.com/what-is-pestle- analysis/> SWOT Analysis. 2016 [Online]. Available through <https://www.liveplan.com/blog/what-is-a- swot-analysis-and-how-to-do-it-right-with-examples/> 14