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Unit-1 Business and Business Environment Assignment
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Added on 2021-03-08
Unit-1 Business and Business Environment Assignment
Added on 2021-03-08
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Unit-1 Business and Business EnvironmentStudent Name:ID:1
Table of ContentsIntroduction......................................................................................................................................3Section -1.........................................................................................................................................4Different types, sizes, and purposes of organizations and their growth......................................4Background, Size and scope of different types of organizations.................................................6The relation exists among the functions of the organisation and with the objectives andstructure of the business.............................................................................................................13Section- 2.......................................................................................................................................17PESTEL analysis as macro-environmental factors and their impacts.......................................17The interrelationship of strength and weakness of Solesmith with PESTLE factors................21SWOT analysis of the Furniture Practice..................................................................................22Internal and external analysis impacting business objectives and decision making..................24Conclusion.....................................................................................................................................26References......................................................................................................................................272
Introduction The operations and functions of business are shaped and run by the environment and thesituation of the surroundings since the evaluation of business (Banzhaf, 2012). As businessorganizations have to run their operations in the local, national, and international community atlarge to accomplish the vision and objectives, the environmental situation affects the business ina great manner. Thus, to kiss the organizational vision and goals, organizations have to considerthe environment in decision making and in operating business. Both the internal as well asexternal environment exert great impact which can be in both positive and negative manner(Knill and Liefferink, 2014). This study is divided into two sections. The first section willdiscuss the purposes of different types of organizations including private, public, and voluntary,and their growth in the international market; size, vision, mission, and objectives oforganizations including private, public and voluntary; the interrelationship of different functionsof Solesmith in comparison with other business organizations. The section two will discuss themacro environment and PESTLE analysis to highlight positive and negative impacts onSolesmith, to understand the strength and weakness of Solesmith SWOT analysis will beexecuted and the analysis of the key findings. 3
Section -1Different types, sizes, and purposes of organizations and their growthEach organization is formed to perform different purposes and to serve different functionsaccording to the purposes. The size and types of organizations set the purposes (Blackstone,2010). In terms of ownership, organizations can be divided into three types such as public,private, and voluntary organizations. Figure 1: Different types of organizationsSource: (Blackstone, 2010)Private sector Private sector organizations are the for-profit organizations that are privately owned by theindividual of the country (Bohlman and Dundas, 2015). These organizations are basically formedto make some profit by doing business. Private sector organizations can be any of the followingtypes-Sole trader refers to the private sector organisation where the owner of the organisation playsthe all in all role in initiating, operating, and managing the business (Dietz and Stern, 2012). Themain purpose of a sole trader is to earn profit and economic progress for thyself and for society.A private limited company refers to the business where two or more individuals, not exciding50 incorporate the business whose liability is limited to earn some profit. The main purpose ofthe organisation is to earn profit and distribute it among the shareholders. Unlike a private4
limited company Public limited company is a business formed by two or more shareholders andthere is no limit to the number of the shareholders. The main purpose of the business is to earnprofit and expand the business to aid in the growth of the business. For example, Solesmith is a private limited company which deals with customized socks in theUK. On the other hand, Tesco is a public limited retailer business that serves its product in theUK and around the world. Public sector Public organizations refer to the organization which established and operated by the governmentof the country to serve the general people within the country (Fernando, 2011). Unlike theprivate sector public sector is established to ensure the well-being of the general people of thecountry. The stated-owned organisation is the legal business entity established by the government of thecountry to take part in commercial activities on the side of the government of the country (Knilland Liefferink, 2014). State-owned organizations formed for the purpose of maintaining andaccelerating the economic growth of the country, ensuring the well-being of the general public,and participate in commercial activities on behalf of the government. Government organizationis governed and regulated by the government of the country which is formed to ensure differentdevelopment activities to increase the well-being and living standard of the general people of thecountry. For example, Network Rail is a public sector or government organization in the UK whichensures the transport service to the general people of the UK. Voluntary OrganizationVoluntary organizations refer to the organizations which are formed by the members of acommunity to improve the well-being of the members of the community (Maitland, 2014).Voluntary organizations are formed for the following purposes-To ensure the social welfare and well-being of the general people. To satisfy the needs, demands, and desires of the members of the community. To ensure basic human rights for the general people of the society. 5
For example, The British Red Cross is the humanitarian charity that serves support at the timeof crisis in the UK and around the world. Growth of the international business There are several factors which work behind to lead the growth of an international business suchas- Development and expansion of technology: As the technology had evolved and has beendeveloping and expanding across the border, these technological advancements pushed thebusinesses to expand the international activities (Bohlman and Dundas, 2015). Liberalization of cross border activities: As the cross-border business has become liberal, thisliberation leads the organizations to expand the business internationally. Supporting services: To initiate and run businesses internationally, organizations need differentsupports (Pride, Hughes, and Kapoor, 2010). In this globalized world, different supportingservices have evolved which also lead to the expansion of the international business. There are also several reasons behind the growth of an international business-like- Availability of low-cost labor: In developing countries, the labor cost is low which inducesgiant organizations to expand international business. Increased demands: Global demands of some products have increased which is also anotherreason behind the growth of the international business (Dietz and Stern, 2012). Diversification: To gain economies of scale, organizations now entering into a new market todiversify their product offerings. Background, Size and scope of different types of organizationsThe four different types of organizations of private, public, state-owned, and voluntaryorganizations are- Solesmith, Tesco, Network Rail, and British Red Cross respectively. Thebackground, size, scope, vision, mission, objectives and legal structure of four different types ofbusiness are-6
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