Unit 1 - Business and the Business Environment

Business and the Business
Environment
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Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
Different types, size and scope of organisations....................................................................3
LO 2.................................................................................................................................................7
Interrelationships of various functions within organisation and link to organisational structure
................................................................................................................................................7
LO 3.................................................................................................................................................9
Positive and negative influence/impact of macro environment on business operations........9
LO 4...............................................................................................................................................12
Internal strengths and weaknesses of business and their interrelationships with external macro
factors...................................................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
Business is referred as enterprise or organisation which is engaged in industrial, commercial
and professional activities (Alotaibi, 2016). On other hand, business environment is defined as
aggregation of both internal as well as external factors that helps in contribution of development
of organisation and enhancement of employees, technological innovation, meeting need and
demand of consumers and others. It is very important for organisation to consider each and every
factors of environment in order to run business activities and operations in effective manner.
Such factors impact business for attainment of optimum results. The organisation selected for
given assignment is Next Plc which was established in 1864 at United Kingdom. It is
multinational business dealing in retail sector and serving worldwide. This is private organisation
having 700 stores across UK market. According to scenario given in report, public as well as
voluntary organisations are chosen names as NHS and Oxfam respectively. The main aim of
report is to discuss about different types, purpose, legal structure and mission, objectives of all
three private, public and voluntary organisation. It has covered various functions of organisation
and their interrelationship in order to attain set goal and objectives. For evaluation of
environmental factors, PESTLE analysis has been conducted to find relation with both micro as
well as macro aspects.
LO 1
Different types, size and scope of organisations
It is very important to identify types, sizes and scope of all three forms of organisation. They
are described below:
Private Sector
It is defined as form of partnership, person, corporation and agency which is not operated
through public or profit body (Bah and Fang, 2015). This consists of those businesses which has
motive of earning profits that are not operated as well as owned by government. Next Plc is
private organisation that is running their activities and operations for motive of profits.
Mission
The mission statement of Next Plc is to become natural choice of retail segment at UK by
providing fashion wear for men as well as women who are expecting high quality, style and
distinction in clothing.
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Vision
The vision statement is to make commitment to offer beautifully designed, excellent
quality of clothing, exciting and home products which are functional, made, safe, outstanding,
sourced for meeting expectation of consumers.
Objectives
Main objective of Next Plc is delivering long returns to shareholders with collection of
sustainable growth in order to earn per share as well as paying cash dividends.
Purpose
The main purpose of Next Plc is to supply premium quality of products to consumers in
order to provide them satisfactions so that they are attached towards business and brand along
with rise in profit margins and sustainability (Calabrese and et. al., 2018).
Legal structure
Private organisation legal structure is divided into three categories such as:
Sole Proprietorship- It is defined as single person business that is liable to run, operate
and manage. Such types of enterprise require small investment and resources for business
activities and operations. This includes market traders, hairdressing and newsagent.
Partnership- This is defined as association of people including two to twenty partners.
All working partners are responsible for equal proportion of sharing of risk, liabilities and others.
It is formed by making an agreement among partners which includes all legal rules and
regulations.
Private Limited Company- It is defined as joint stock business which has separate legal
identity from their owners (Chládková, 2015). Such organisation is small in size that is run by
families who are owned by shareholders. In this shareholders are part of business where they are
not liable to sold shares to general public.
Size
There are more than 50,000 numbers of employees working in an organisation. Size of
respective business is approx 3500 square feet as well as small stores which are 500 square feet
following concept of large departmental store. Moreover, activities are divided into two different
complementary named as catalogue as well as retail store across Ireland and England.
Scope
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