Business and Business Environment: An Analysis of Asda

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Business and Business Environment
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Table of Contents
Section 1-Essay (LO1 & LO2)..........................................................................................3
Introduction...................................................................................................................... 3
Main body.........................................................................................................................3
Conclusion..................................................................................................................... 15
Part 2 – Case study........................................................................................................16
Introduction.................................................................................................................... 16
Task............................................................................................................................... 17
Conclusion..................................................................................................................... 26
Reference list................................................................................................................. 27
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Section 1-Essay (LO1 & LO2)
Introduction
The following study will focus on different kinds of organisations and find differences
between them. It will try to understand purpose of these organisations and their ways of
supplying products and services. Scopes and sizes of organisations will be understood.
Different organisational structure will be given with related to scopes and sizes.
Complexities of different structures will be found. Relationship with organisational
function with company’s mission will be given. Asda is chosen as the main organisation,
which is a retail sector in UK. CEO is Roger Burnley and they are generating 21666
million GBP. It was founded in 1949 and 165000 employees are working (asda.com,
2019).
Main body
1. Different types of organisations
Differences between profit, not for profit and non-governmental organisations
Private Public Non-profit
 Private sector
organisations can be
categorised in to
profit making firms.
Therefore, these
kinds of
organisations are
called profit
companies.
 A group own these
organisations and
government has no
 Public sector
organisations can be
either a profit or non-
profit sector. It
depends on a
company’s business
motives.
 Governments can
own organisations at
this sector.
 These organisations
do not focus on
 Nongovernmental
organisations come
under non-profit
firms.
 Governments can
own these
organisations too.
 Main purpose of
these firms is to
contribute to greater
goods of society.
 Organisations like
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share in it. Every
decision and liability
rests upon these
stakeholders.
 Profit share is
distributed amongst
them and it is not
shared with
government. Asda is
one such company,
which focuses on
making maximum
amount of profit by
selling retail products
in market (asda.com,
2019). Walmart
owns this company.
 Investors fund the
organisation.
making only profits
but considers
improving living
standard of people.
 Crown prosecution
service is a public
sector firm. Attorney
general Geoffrey
Cox is responsible
for this firm
(cps.gov.uk, 2019).
 Liabilities of this
organisation lie on
UK government.
 This firm gets funds
from government.
charity firms,
voluntary
organisation are
example of this.
 Oxfam is a type of
non-profit firm that is
owned by some
individuals known as
oxford committee
(oxfam.org.uk,
2019).
 Their funding comes
from donations and
government aids.
Table 1: Different types of organisations
(Source: Created by the learner)
Business purpose and supply of goods and services
Business purpose Asda
Asda’s main
purpose is to
generate maximum
profit by selling
their retail products
such as groceries
Crown
prosecution
services
Crown prosecution
services offers
conducts
investigation and
Oxfam
Main purpose of
Oxfam is not
business. They are
not a profit-making
organisation. The
profit they generate
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and clothes. They
are profit-making
firm, which sets
their mission for
getting maximum
sales in market.
prosecutes
criminals. Their
purpose of
business is to bring
justice for people.
Their purpose is to
assist law and
order sectors in UK
(gov.uk, 2019).
from selling clothes
and other goods
are used for charity.
Their main purpose
is to decrease
poverty and other
charitable works
(ft.com, 2019).
Table 2: Business purpose
(Source: Created by the learner)
Goods and
services
Asda
Asda sells grocery
products and other
types of foods.
Their goods
include clothing,
vegetables, dairy
products, frozen
food and more.
They have
services such
Asda mobile,
which provides
virtual network
services
(asda.com, 2019).
Crownprosecution
services
This organisation
prosecutes criminal
cases. Police or any
other investigative
firm investigates
these cases. They
decide cases for
prosecution,
determine charges
and gives advice to
police. They prepare
cases and present
these at court. Their
services include
giving information
and support to
victims and
Oxfam
Oxfam sells different
kind of clothes for
men, women and
children. They raise
money through
selling these goods
and are involved in
bringing safe water
to remote areas of
the world
(Oxfam.org.uk,
2019).
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witnesses
(cps.gov.uk, 2019).
Table 3: Goods and services
(Source: Created by the learner)
2. Size and scope of organisations
Different kinds of structures relating to size and scope of operations
Basis of
comparis
on
Micro Medium Small Large
Example Castle Hill Fire
Protection Ltd
(castlehillfireprotection.c
o.uk, 2019).
Belvoir fruit farms
(belvoirfruitfarms.c
o.uk, 2019)
Piper
crisps
Asda
(asda.com,
2019)
Workforce
size
5 people work for this
organisation.
They have about
75 employees
working for them.
They
have
about 51
employee
s at
present.
They have
165000
employees
working under
them.
Scope The company offers fire
protection consultancy
to various organisations
and offers equipments
of fire stopping and
boarding.
The company sells
soft drinks enriched
with various kinds
of fruits in UK
market.
The
company
sells tasty
crisp
snacks,
which is
capturing
market in
UK.
The
organisation
sells grocery
products,
clothes to
people across
international
borders.
Legal There are four officers This is private Piper This is a
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structure in this company and
they are Christopher
Humphrey, Mark
Russell, Stephen
Russell, and Andrew
Campion Stubbs. Mark
Russell and Stephen
Russell own this
company and every
asset are divided
between them. They
chose this structure to
ensure that every right
and share belong to
them only.
limited company
with shared
capitals. Liabilities
rest upon owners
and shareholders.
Owners use this
legal structure to
have maximum
control over shares
and profits.
crisp is a
private
limited
company
owned by
Pepsi Co.
Pepsi Co
owns
every
share of
this
organisati
on and
are liable
for legal
issues.
This
structure
is chosen
by them
to keep
the profit
for owner
of this
company
(owler.co
m, 2019).
subsidiary
under
Walmart and
follows
subsidiary
legal
structure. with
its shares
belonging to
Walmart.Wal
mart owns
every share of
this company
and they
chose this
legal structure
to control
every aspect
of the
business.
Table 4: Scopes and sizes of different organisations
(Source: Created by the learner)
Market share, profit share, growth and sustainability
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Basis of
comparison
Micro
(Castle Hill
Fire
Protection
Ltd)
Medium
(Belvoir fruit
farms)
Small (Piper
crisps)
Large (Asda)
Market share Their market
share is 0.66
percent in
2018
(Duedil.com,
2019).
They have
0.43 percent
of market
share
(owler.com,
2019)
They have
3.40 percent of
market share
at present time
(
thetimes.co.uk,
2019).
Market share of
Asda in UK is
15.4 percent
(bbc.com, 2019).
Profit share Their recent
profit
amounts up
to less than
2 million
pounds.
Their profit
amounts of up
to 18 million
pounds.
They have
made 11
million pounds
in recent times
(
thetimes.co.uk,
2019).
They have 791.7
million pounds in
profit share
(theguardian.com
, 2018).
Growth There has
been a
turnover
growth of
145 percent.
The
organisation
has about 16
percent sales
increase in
recent times
(lseg.com,
2019).
They have
sales growth
about 20
percent
(thetimes.co.uk
, 2019).
Their sales grew
by one percent in
fourth quarter of
2018 (ft.com,
2019).
Sustainability They are
becoming
well-known
Due to their
high quality
fruit juices
Pepsi Co. can
acquire the
organisation. In
Asda is achieving
sustainability
through their
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fire-
protection
service
providers in
UK.
made in farms,
There is a high
chance for
them to have
sustainable
business in
future.
future and it
has a stable
market position
due to its
popularity.
proper business
planning and
operations. They
focus on CSR
activities to make
their business
sustainable.
Turnover The
company
has seen a
turnover of 2
million
pounds.
Belvoir Fruit
Farm has a
turnover of
18.53 million
pounds
(lseg.com,
2019).
Their turnover
is 11 million
pounds
They have
turnover of 21666
million Pounds.
Table 5: Market share, profit share, growth and sustainability of different
companies
(Source: Created by the learner)
3. Organisation structures and functions
Different kinds of structures relating to size and scope of operations
Functional top-down
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Figure 1: Functional top down structure
(Source: Ashkenas et al., 2015)
This is a traditional business structure. The c-suite stays at top of this structure. Middle
managers, senior management, and other employees are in middle and bottom section
respectively. This structure is divided into departments like IT, finance, HR, marketing
and others. This structure lacks from visibility and suffers from poor communication.
This kind of structure is uses by small, medium, and large organisations (Ashkenas
et al., 2015).
Flat structure
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Figure 2: Flat structure
(Source: O'Neill et al., 2016)
This kind of structure uses fewer levels in management. There are not much division
and it is quite simple. The gap between employees and executives is short. This
structure lets employees to have empowerment and gives them chance to take
decisions. This structure is ideal for any small business (O'Neill et al., 2016).
Matrix structure
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Figure 3: Asda organisational structure
(Source: Bazigos and Harter, 2016)
This is the structure, which is used by Asda. The general manager is the highest rank
for every division. This is idea because teams are divided according to various products
and services of Asda. The company operates in cross-functional groups. General
Manager is at the top of this structure. Then there is functional division manager, project
manager and under them, there are many employees. This structure is ideal for Asda,
as the size of this company is quite large. Due to high level of open communication,
vision and mission of this organisation is clearer to employees and managers.
Therefore, they work together to achieve organisational goals. They can invent better
products and meet scope of their business in better way (Bazigosand Harter, 2016).
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