Business Environment and Organizational Objectives

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Business and Business
Environment

INTRODUCTION......................................................................................................................1
TASK 1......................................................................................................................................2
P1 Describing the types of organisations and their purposes such as voluntary, public and
private with specific examples...............................................................................................2
P2, M1 Explaining the organisation scope and size...............................................................3
TASK 2......................................................................................................................................5
P3, M2, D1 Evaluating the significant relations between business functions and how they
are associated with organisation objectives and structure......................................................5
TASK 3......................................................................................................................................8
P4, M3 Analysing the impact of external environmental factors upon business...................8
TASK 4....................................................................................................................................10
P5, M4 Conducting SWOT analysis organisations to evaluate the strengths and weaknesses
..............................................................................................................................................10
P6, D2 Describing interrelation between external environmental factors and business
strengths and weaknesses.....................................................................................................11
CONCLUSION........................................................................................................................13
REFERENCES.........................................................................................................................14

INTRODUCTION
There is great of internal and external environment on business in terms of operations, profits
and decision making. In this regards, the report will cover types of organisations and their
purposes such as voluntary, public and private with specific examples with scope and size.
Further, the significant relations between business functions and how they are associated with
organisation objectives and structure and the impact of external environmental factors upon
business will be discussed in this report. Finally, it will conduct SWOT analysis organisations
to evaluate the strengths and weaknesses and analyse interrelation between external
environmental factors and business strengths and weaknesses.
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TASK 1
P1 Describing the types of organisations and their purposes such as voluntary, public and
private with specific examples
In this modern business world, there are different types of businesses operates in various
sectors within a nation. The purpose is also different for these businesses such as public,
private, voluntary and legal authorities (ush, 2015). The different types of businesses and
their purposes are described below with specific organisation examples.
Figure 1 Types of Businesses
Sole Trade: An individual operates such kind of businesses who is alone responsible for the
losses and profits. Only one person takes all the liability and manage business operations.
Elixir is an effective example of sole trade organisation which provides customised services
such as software. The purpose of firm is making profits and the owner is John.
Private limited business: The purpose of private limited business is to increase profits by
delivering quality services to consumers in the marketplace. Due to the private shares, the
liability is limited. In this regards, Bestway Group which operates in several sectors such as
Wholesale, cement, banking and pharmacy is a best example of private limited business with
30 members. The owners and directors of business provide guidance to complete operations.
Partnership business: There are various people involved in managing a partnership
business. Hence, the liability may be limited or unlimited for the partners. There is a great
advantage of partnership that it helps in expanding business operations such as strengths,
market share and growth opportunities (Elkington, Burke and Hailes, 2017). In this regards,
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The Grapevine which is a partnership business in terms of 15 members operating in super
store with the purpose of making profits.
Public limited business: The ownership within public limited business is open to public that
the purpose of such organisations is to improve social life style of individuals. In this regards,
Asda which offers products and services to public is a profit oriented organisation. The
purpose of firm is to make profits by delivering services that can improve life of people.
Voluntary business: In this kind of organisations, group of individuals involved in attaining
a specific purpose. These businesses are known for their contribution in economic and social
development in terms of improving life of rural people and promoting culture, art, sports etc.
In this regards, Bloodbot is known for providing emergency blood services without any
purpose of making profits.
Government authorities: The government takes the 51% paid-up share equity in such
organisations which are also managed and controlled by government. NHS which is a UK
based government business operates in increasing living standard of individuals.
Non-profit organisation such as charitable firms etc. is also known as public charity
organisations (Gray, Harymawan and Nowland, 2016). These organisations has purpose of
focusing on religions, education and charity intentions. These are not a part of government
authority that they have individuals with similar thinking. Moreover, cooperative businesses
are also managed by individuals with the objective of making profit. The purpose if different
for such businesse
P2, M1 Explaining the organisation scope and size
The scope, size, sector, legal structure and all other information regarding types of businesses
are described below in order to understand the nature of organisations:
Sole trade: Elixir has numerous scopes that the management is so much flexible to take
fruitful decisions regarding business operations. The owner is very effective and able to
expand its business through acquisition or partnership. This will help in addition more experts
within organisation (Standing and Mattsson, 2018). The small business has 1 million capital
amount and revenue of 2.5 million where 20 employees are managing operations. Suppliers,
consumers, workers are the ley stakeholders for business.
Partnership business: In partnership business, organisation is able to expand its operations
by adding more partners as per the requirement. In this regards, the scope of Grapevine is
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also numerous. Profession partners with more expertise, knowledge and skills can increase
ownership efficiency. They are also able to provide solution towards issues by participating
in business seminars and meetings. The 15 owners in Grapevine are working with this
objective with 40 employees and revenue of 50 million. The medium size business is able to
expand its operations through satisfying needs of stakeholders such as employees, consumers,
government, investors, partners etc.
Private limited business: Bestway Group operating in as private limited business has some
restrictions in terms of scopes. However, the individuals involved within business with
similar thinking can manage operations and functions effectively (Koester, 2016). The firm is
able to expand through capital, skills, knowledge and resources. The firm has 30 owners and
revenue of 4 billion. The size of business is big as there are 34000 employees working.
Employees, consumers, partners, investors and government are the key stakeholders for a
private limited business.
Public limited business: There are numerous opportunities available for a public limited
business such as Asda in order to expand its business by investing in project, technologies
and human resources. The top management is responsible for the problems as they are
separate from staff. The firm avail finance from public by issuing those shares. Asda scope is
very big and nature of business is also big that it has 180,000 employees and income of 1
billion through its 650 locations. In this regards, public is the key stakeholder for business
including government, suppliers, shareholders, investors and customers.
Cooperative: Cooperative businesses such as the cooperative bank also have different scopes
to expand its business to achieve success. Within a short time period, the bank is able to
expand as the firm has revenue of 513 million and has 400 employees working with business
to deliver customer services.
Hence, the scope, size, nature and operations are different for various types of organisations
operating in different sectors with various objectives and purposes (Doppelt, 2017). In this
regards, these organisations operate as public, private and voluntary business to provide their
services to consumers to achieve their objectives.
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TASK 2
P3, M2, D1 Evaluating the significant relations between business functions and how they are
associated with organisation objectives and structure
It can be said that Asda is one of the biggest British supermarket retail chain operating in
retail and trading sector. Roger Burnley is the current CEO of Asda. There are almost
185,000 employees working with organisation. In this regards, there are number of services
provided by business to its consumers such as clothing, retail, grocery, financial, general
merchandise etc. at 633 locations worldwide. The firm has objective to become the best retail
brand within the UK by providing high quality products and services to consumers to satisfy
their desire and expectations (Shaw and Barry, 2015). This is helpful in increasing
competitive advantage for business to improve position in market. In addition, Asda also
managing a wide range of portfolio towards products and services to attract number of
consumers
The mission is also to become the best retail brand in the UK. The purpose is to understand
the need of stakeholders. In this regards, the management is focused on improving services
by addressing internal and external environmental factors to formulate strategies to improve
overall performance. The hierarchical structure of organisation helps in taking decisions
regarding operations by senior level management. trade unions, customers, suppliers,
investors, government are the key stakeholders for business.
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Figure 2 Business Structure of Asda
The roles and responsibilities within business are delegated according to the business needs
to manage work of various departments in different situations. The major functions of
business are provided below that helps in understanding the interrelationship between
organisation objectives and structure.
Human resource: Human resource management plays a vital role in organisation in order to
increase business efficiency by managing employees and work of departments. There is a
direct impact of business functions on business structure and objectives as it helps in
providing values and growth (Bini, Bellucci and Giunta, 2018). In this regards, human
resource management must ensure that the departments are working effectively towards their
tasks. The strategy is also based on employees as they have crucial contribution in the success
of Asda. In this regards, several programs are organised by business to accomplish success in
providing satisfaction, retention and succession to employees.
Distribution: Every organisation has different methods of distributing services to consumers.
The method is useful in providing final goods to consumers. In this regards, Asda manage
transportation and storage services to provide their services. In this process, breakdown has
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an impact on customer services. The firm is managing quality relations with its suppliers to
ensure that the goods are available according to the requirement of market and consumers.
Marketing: Marketing is an effective business function that helps in providing customers
with information regarding Asda operations and services. In this way, business is able to
create brand awareness in the marketplace towards consumers through various promotional
activities. This also helps in achieving large customer base to meet their expectations and
demands depending on the market environment.
Customer service: Every organisation aims to provide values to customers thorough their
services. Hence, it is important for business to provide high quality services to customers to
increase their growth in operations (Smith and Rönnegard, 2016). Customers look for quality
service hence the behaviour of staff plays an essential role in managing their loyalty.
Hence, there are some business functions involved in Asda that has major impact on its
structure and objectives. These factors have both good and bad impact depending on the
business process. The advantage of these functions is that it helps in driving business
performance to accomplish their aim and objectives. It helps business in expanding their
operations in new target areas to gain competitiveness. However, Ineffective management of
these functions can affect the objectives of Asda in terms of decreasing image towards
customers and challenges. Thus, organisation functions interrelate with the business
objectives and structure.
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TASK 3
P4, M3 Analysing the impact of external environmental factors upon business
It can be said that every business is surrounded with external environmental factors that has
impact on business operations and decision making. In this regards the good and bad impact
of these environmental factors upon business such as on Asda and Bestway group is provided
below (Bendell, 2017). This will help in providing comprehensive understanding towards
impact of macro environmental factors upon organisation.
Figure 3PESTEL ANALYSIS
Political: Political environment such as impact of international, national, EU on both
Bestway group and Asda is effective in terms of rules, regulations, legislations, customer
rights, employment, tax rates etc. The political instability such as war and also has impact on
business operations (Peterson, Jaret and Schenck, 2016). Hence, it is crucial for both to
manage the political factors by evaluating influencing aspects associated with it. However,
the political environment in the UK is stable and beneficial for both firms.
Economical: Economic environment has impact on business in terms of supply and demand,
changes in prices of fuel, credit costs, income of people and competitors. Hence, the firm
must consider these factors by managing their production and pricing strategies to operate in
an effective economic environment as per the situation.
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Social: Social factors such as pollution, population, lifestyle, trends, social policies, celebrity
following etc. also has a major impact on organisation in terms of new operations and product
launching. In this regards, both firms need to manage the segmentation policies in order to
ensure growth within business (Carroll, 2016). However, social changes also influence the
decision making within business regarding operations.
Technological: Technology is getting innovative and updating in this modern world. There
are number of benefits for an organisation by adopting latest technologies and techniques to
improve their business growth and development. In this regards, Asda and Bestway Group
requires to make use of digital technologies such as click and pay, mobile applications, latest
services etc. to increase efficiency within operations. However, technology has impact on
human resources, business structure and objectives.
Legal: The government in every particular nation has established rules, regulations, laws and
legislations regarding business that helps in having control over market (Pestle Analysis,
2018). Hence, both Asda and Bestway group require to manage their operations as per the
rules formulated by government. In this regards, they cannot pay less employees according to
the UK minimum wages act. It has a major impact on business operations in terms of laws
and changes in policies as per the requirement of government.
Environmental: Environmental factors such as pollution, managing wastes, carbon
footprints and organic products are important to be considered by both firm as it has impact
on business in terms of operating in an eco-friendly manner (Kasemsap, 2017). The
organisation must consider that the operations must be effective enough to provide values to
environment and external stakeholders in order to improve growth. There is a great impact on
organisation objectives and structures of environmental factors in terms of fluctuations in
prices and changes in operational strategies.
Hence, it can be said that the macro environmental factors have both good and bad impact on
business operations, objectives, structure and decision making. This impact can be managed
by organisation through effectively managing their operations as per the requirement. This
will help in analysing strategies that are effective in managing balance to reduce the negative
impact.
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TASK 4
P5, M4 Conducting SWOT analysis organisations to evaluate the strengths and weaknesses
SWOT analysis is a tool that helps in evaluating the organisation strength, weakness,
opportunity and threat. In this way, organisation is able to improve their performance by
managing policies and strategies (Marchesini and Alcântara, 2016). The strengths and
weaknesses of business also has interrelationship with external environmental factors in
terms of operations and decision making.
ASDA SWOT ANALYSIS
Strengths: Asda has a strong products portfolio
that helps in managing its large offerings
towards customers. The financial services
provided by firm are the major strength that it
helps in managing relations with consumers
through interaction. This is made through social
media or other practical ways such as feedbacks
and website monitoring. The management is
also successful in managing operations in an
environment sustainable manner to increase
business efficiency.
Weaknesses: There are some weaknesses of the
organisation that it has not much effective
global presence as compared to other businesses
operating in similar sector. Further, in many
countries, the government has made restrictions
over prices of products and services offered by
Asda due to the fear of having competition for
local businesses effectively. This is influencing
the pricing strategy.
Opportunities: Asda is a leading multinational
business that it has number of opportunities to
expand its business operations in various
departments such as pharmacies, photo and as
opticians. Further, emerging market like China
and India is also an effective option for business
to establish their new operations (Kranz, Hanelt
and Kolbe, 2016). In this regards, acquisition
will help in improving business growth and
development.
Threats: The pricing war is a major threat for
business since its establishment as the
competition is increasing in this modern
business world and firms are providing services
at cheaper prices. In this regards, the pressure is
affecting the business operations to remain
competitive within market. Further, different
policies are managed by central government
which also required changes in business
strategies, structure and objectives.
Figure 4 SWOT Analysis of ASDA
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