Business Environment Analysis: Different Types of Organizations

This report provides a comprehensive analysis of the business environment, exploring various organizational structures and strategies. It begins by defining the business environment and then delves into different types of organizations, including sole traders, partnerships, private businesses (like Volkswagen), public limited companies (like Mark and Spencer), and voluntary organizations. The report examines the size, scope, and legal structures of these entities, along with their objectives. It analyzes the organizational structures of Volkswagen and Mark and Spencer, detailing their relationships and functions. Furthermore, the report utilizes PESTLE and SWOT analyses to evaluate the positive and negative impacts on Volkswagen, considering macro and micro factors influencing its strengths and weaknesses. The report concludes with a summary of the key findings and insights gained from the analysis, offering a valuable understanding of business environments and organizational dynamics.

Business environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
Different types of organisations, their scope and size............................................................1
Task 2...............................................................................................................................................6
Volkswagen organisational structure.....................................................................................6
Mark and Spencer's organisational structure..........................................................................6
Relationship between organisational function and department..............................................7
Help to achieve organisational objectives..............................................................................7
Task 3...............................................................................................................................................8
With Pestle analysis, Positive and negative impacts on Volkswagen....................................8
Task 4.............................................................................................................................................13
Swot analysis of Volkswagen...............................................................................................13
Impacts macro and micro factor on business strength and weakness..................................14
Conclusion.....................................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Business environment is the sum total of all internal and external factors which influence
the development, performance, and outcome of a business. In this organisation lot of employees
working and lot of work allot to them, and their way to work, management and entire task can
include in the business environment. The present report is based on Barclays company which
was registered in 1690 and It has 120000 employees. This report is based on business
environment of Barclays's and different type of organisations, scope, size, interrelationship of the
various function within organisation and their structure.
Task 1
Different types of organisations, their scope and size
According to market, there are different types of business and companies, but they all
have different scope and size. There are five types of business, sol trader, partnership, private,
public and voluntary .
1. Sole trader
A sole trader business is based on single person or an individual, who legally responsible
for entire aspect of the business. When company can not be able to earn profit, then any debts
and losses can not be shared with others . It is the angila tax help organisation which operate in
sole trader organisations. This is the simplest and inexpensive business structure that anyone can
choose when starting a business in the area you want to start (Shehu and Mahmood, 2014). It has
some advantage and disadvantage which is mentioned below :
Advantage -
It is simple to start and operate. In this business, a person can easily take the decisions and
control the entire business and assets (Menychtas and Varvarigou, 2014). Easy to change
business structure when business grows or if wish to wind things up. Fewer reporting
requirement.

Disadvantage -
When business in the losses, then it can not be shared with other. Entire assets are at risk if
things go wrong (Belás and Novák, 2014). Unlimited liability.
2. Partnership
A partnership business is a legal structure which start by agreement between two or more
person to carry on a business as co owners (Dragoi and Draghici, 2013). This is the Campbell
company who operate in partnership firm. It is a business multiple owners who invested in the
business particularly.
Advantage -
Two person are better than one. Its a opportunity to earn more profit compare than solo trade
business. Business can start easily and it can start with low cost. In the partnership business,
borrowing capacity is greater than individual business. If circumstances change in the business
then structure can be change easily according to need (Ceptureanu E. G., 2015). It can run by
each partner and their time will be precious for the partnership business. Partner's business
affairs are private and there is limited external regulation.
Disadvantage -
Each partner is liable for losses and debts. Miscommunication can destroy the partnership
business. One person can not take the decision (Kim and Kocabasoglu-Hillmer, 2013).
Management can not be handle easily. There is a risk of management, agreements and cost.
Each partner is liable for their share of the partnership debts as well as being liable for all the
debts and they is liable for actions by other partners.
3. Private
Business firm in the non public sector of an economy, controlled and operated by private
individual and it is not operate by any government employees or civil servants (Cavusgil, and
Rose, E. L., 2014). It is based on Volkswagen which is private sector organisation.
Advantage -
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One of the best advantage of private company is that all employees or member are know to one
another, even their control is in the hands or capital's owner. Management of organisation and
their affairs and conduct of business is very high flexibility (Meiners and Edwards, 2014). In
the company at least two director is working. One of the best advantage of private organisation
is that it has limited liability, because their employees enjoy the facility. When private company
get the certificate of incorporation, then they can start their business immediately.
Disadvantage -
In stock changes shares can not be quoted. One of the big disadvantage of private limited
company is that they can not issue prospectus to general public and its a very tough thing to
transferability of shares by its articles (Crane and Matten, 2016). The number of members in
any case can not exceed 50 in the private limited organisation.
Volkswagen size, scope, legal structure and objectives -
Volkswagen maintained the biggest market share in Europe for over two decades. Its
headquarters is in Wolfs-burg and Germany. It is worldwide organisation in the auto mobile
sector. Its products are Auto mobiles, commercial vehicles, engines, motorcycles, and turbo
machinery (Othman, and Rahman, 2014). It production output of 2016 is 10.41 million. In the
services area it is scope giving Banking, financing, fleet management, insurance and leasing
services. Volkswagen has 626715 employees are working till 2016. Total assets of Volkswagen
is 409.702 billion in 2016. Main objectives of this company are profitability, very best
employers, role of the environment, safety and integrity, excited customers. It is the parent
company of the Volkswagen group. In the list of shareholding in accordance with section 285
and 313 of the Handelsgesetzbuch, which can be accessed at www.volkswagenag.com and is
part of the annual financial statements (Jennings, 2014). Volkswagen provides the information
services presented here on the basis of these as Notice in accordance eith directive 1999/94/EC
regarding fuel consumption and CO2 emissions and delivery of information services and related
guarantees.
4. Public limited company
A public company is a company that has issued securities through an initial public
offering and is traded on at least one stock exchange or the over the counter market (Amit, and
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Zott, 2014). A public company is corporation whose ownership is among the entire public in lot
of shares which are freely traded on a stock exchange.
Advantage -
One of the main advantage of public limited company is that better access to capital and vales of
shares. Through public limited company it is to give a company a more honoured profile
(Zsambok, 2014). It has more opportunities in the public sector and easily make acquisitions.
Disadvantage -
One of the biggest disadvantage of public limited organisation is that more regulatory
requirements. In the public company higher levels of transparency required and lot of issues of
control and ownership (Belás and Macháček, 2015). It is a short termism company and initial
financial commitment is more higher, so that it is very big disadvantage for public limited
company. More vulnerable to takeovers in it.
Mark and Spencer's size, scope, legal structure and objectives -
Mark and Spencer is a public limited company in London. It has 979 stores in the UK
including 615 that only sell food products. It is a first British retailer company in the market. It
is worldwide retail company. It revenue is 10,622 million in 2017. It has 84,939 employee in
2017. It has 979 store in the UK, 454 international stores, 58 stores in india, 48 store in Turkey,
and rest of the world. Mark and Spencer is the biggest company in the UK and their objectives
are influence of stakeholders, give a sense of the future, complete the mission on time, want to
become food selling company in the market, want to give best service to their customers,
employee orientation, sale objectives, increase number of sale, and environment friendly.
5. Voluntary -
It is the non profit sector or non for profit sector. It is the service of social activities
undertaken by companies that are not for profit or non governmental (Bryman and Bell, 2015).
Voluntary company's main purpose is to benefit and enrich society, without profit. It is for
public and society who can not able to complete the need for survival in their life.
Advantage -
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One of the biggest advantage of voluntary company is that they don't have to pay income tax,
capital tax (Pestle, and Smith E.K., 2017). It is a tax free organisation, because it is not
profitable company and it is for society or people who can not able to survive in the world.
Charity can get special VAT treatment in some situations. Charities are able to provide the
public assurance that they are being monitored and advises by office of the Scottish charity
regulator or in England and Wales, The charity commission. One of the another advantage of
this company is that they can get charity from the another people or another companies or
celebrities.
Disadvantage -
There are very strict rules that apply to trading by charities. Trustees are not allowed to get
financial benefits from the charity which they manage. When charitable and personal interest
conflict then trustees need to ignore this situations. Can not get the profit.
Friends of Williamson's size, scope, and objectives -
It is a certified charity dedicated to the protection and exploration of the Williamson
Tunnels and to increasing knowledge of Joseph Williamson's works. It is the worldwide charity
company in the world. Its scope is very large than other companies. Objectives of this company
are provide the services to the people who need that services like fund, food, house etc. Other
than that their main objective is help the poor people who can not able to survive their life.
Company provide charity to the people for their survival, children who can not able to pay in
schools, colleges, and many more activities done by this company for different objectives or
purpose. Further, main objective of this organisation is non profitable and wok without profit or
earnings.
Task 2
Volkswagen organisational structure
Each and every organisation in business environment has a particular structure. This
structure usually includes the framework, features, manage of organisation and their objectives.
The main structure of Volkswagen is Inline, functional and staff aligned structures
organisational structure examples - inline. Volkswagen follow the both type of structure which
are Project bases structure and matrix structures. Project base structure is based on entire project
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which started by the company. Volkswagen structures are very good in term of products and
services.
Mark and Spencer's organisational structure
Every public sector organisation in the business environment has different types of
structure. This company follow the Vertical structure for their organisation. In this structure,
people who on the top are increasing number of people in the middle management and lower
level positions. Other than that some people make decisions and policy and make people carry
them out. Other structure is Horizontal, which characterized by some people who at top position
and middle position. The third one is Divisional structure which based on speciality or
geography and it divide responsibility and function. Mark and Spencer follow these three
different type of structure for their organisations and through these they can able to make good
structure for their company.
Relationship between organisational function and department
In every organisation they hire many people for the work and complete the different task
on time. They make different department for each and every different work which allotted
according to employee's profile and knowledge. These all things manage the relationship
between Volkswagen's function and department. There are lot of function in the Volkswagen.
When that functions are followed by employees then a relationship create or build between both
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side ( Kolari and Smith, 2016). It can be positive or negative, but if employees and department
will work good and together then entire negativity will reduce as soon as possible and positivity
will be increase. Each and every department receive different task from the organisation. They
hire a manager in every department for entire work. It will help to company in increasing brand
value, smooth work , profitability, numbers or employees, numbers of satisfaction employees
and entire department's work. When some department will work according to task then their
relationship will increase in good or positive thing. It all relationship will help employees in
term of execute the task, complete the work on time, etc. Volkswagen follow the different type
of structures for their employees and department, so they can work together and help each other
in very professional way. That entire structures help the people or employee in increasing help,
work on time and employees happiness. The relationship between organisational functions and
department are based on organisation's structure, It depend on which structure is followed by the
company and how that create a good relationship between bot part. Relationship is very
important thing in any organisation, because lot of work and thing depend on relationship. If
company's employees will be happy then their entire department will be automatically happy
and they will able to give their best at work place .
Help to achieve organisational objectives
Organisational objectives are main part of any business, because through this company
can get the result as they want in future. They receive fund or profit and become the brand in
competitive market. There are some benefits from organisational objectives which are
mentioned below :
 Through Marketing department company can increase their sale and profitability.
 Marketing team work according to customer need and their satisfaction, then
Volkswagen can be able in increasing numbers of customers and satisfy customers.
 Human resource team hire employees and manage the entire employees or department.
 They can be able in learning and teach to employee about company's relationship and
professional working.
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 Finance department manage the entire fund of an organisation and they provide fund
when its required by company. It will help company in best investment and accounting
for the goods, profit or loss and sale or purchase.
 Through learning session, development program company increase the employee's
development. When company required employee's development, then its very beneficial
for the company and employees.
 Entire department complete their task according to allotted to them and they can try their
best at workplace to execute the work in professional way.
 Company can increase their profit and revenue through these all department and
objectives.
 They can invest in best business and increase the business in term or size, customers,
locations and product wise.
 Satisfaction customer make more customers, because they are happy and satisfied with
the services and products which provided by the organisation.
 Company can increase their product and services for the customers and according to their
need or requirement. So people can easily get the product which they want and use the
services in easy way.
Task 3
With Pestle analysis, Positive and negative impacts on Volkswagen
Introduction
In this present task pestle analysis of the Volkswagen organisation is covered. Other than
that their positive impacts and negative impacts are discussed. Along with this, their political,
economic and social impact are discussed in the task.
1. Political -
Positive impacts -
 Some time government reduces tax, then it is beneficial for the organisation and it will
help company in deceasing expenses. Tax can be reduce when government will change
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in the specific country. When change the government, then also cage the tax slabs or
their rules and regulation.
 Economy can be improve through political working, some politics leader work according
to economy so it can be better in the company (Boons and Lüdeke-Freund, 2013).
 Business environment can be good and it help company in making healthy workplace.
Negative impacts -
 Some time government increase the tax, then company has to face some of the issues
regarding fund and investment.
 Company's revenue system can be damage and profitability can be decrease, if tax will
be increase. Some time government increase their tax system for the business, and it will
be not beneficial the organisation.
 Volkswagen is a world wide organisation, so when tax slab is change of different
countries then they have to face problems of tax return and fund.
 Business expand can not be possible. There are different tax rules and regulation and
different countries, so it is very touch to expand business in another area.
2. Economic -
Positive impacts -
 When economic performance will be good then it is also profitable for the Volkswagen.
because company's economy is depend on world's total economy.
 When company's product prices will increase then they will be able to increase more
profit, because they can stock their product and they will sale after price increase.
 Purchasing power of customer can increase and they purchase more then before.
 World wide business can be expand and they can explore their business more.
Negative impacts -
 In the low economic factors, company has to face issue of their prices and rate.
 Foreign exchange services can not be use by company, when prices will decrease.
 When economic performance will not be good, then company's shares
automatically go down.
 If prices decease of any products, then Volkswagen has to face a issue of selling
their product in the market.
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 Volkswagen can lost their customers and their loyalty or faith in the bad
economic circumstances.
3. Social -
Positive impacts -
 Through marketing company can increase their customer's number and explore the
business in different areas.
 When people satisfy and happy with company's products and services, then they start the
mouth to mouth marketing and its helpful for the company in marketing their product in
large scale.
 Volkswagen can sale their products to the customers, who requirement of their product.
 Through cultural scheme company can increase their sale and provide best scheme to
their customers.
Negative impacts -
 When customers not satisfy with services and product of the Volkswagen, then they have
power to destroy image of the company. If they start destroy image then company has to
expense in marketing and it is a liability for the organisation.
 Through normal selling, company can not get the best revenue and profit from their
customers and can not sale their product. Product sale can be decease and liability can be
increase, if company will not start the cultural scheme.
 If company can not be able in produce their goods according to customer need, then it
will very bad impact on the organisation.
 When company expand their business in different areas then some location is full of
population and company can not able to provide their product and services to their
customers.
4. Technological -
Positive impacts -
 Well operational work and employees are able to do their work in easy way.
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