Business Structure Analysis: Online Retail Start-up (Subway)

This report delves into the structure of businesses, specifically examining various structures such as partnerships, sole traders, and corporations, with a focus on an online retail start-up inspired by eBay. It analyzes the business environment through PESTEL analysis, evaluating political, economic, social, technological, ecological, and legal factors. The report also assesses the strengths and weaknesses of the chosen start-up in relation to legal frameworks, emphasizing consumer rights and the General Data Protection Regulation (GDPR). Furthermore, it explores the financial aspects and key human resource policies within the organizational context, providing a comprehensive overview of the challenges and opportunities facing the business. The report highlights the importance of understanding the legal framework to ensure sustainable growth and ethical operations, considering factors like the Consumer Rights Act and GDPR to protect consumer interests and maintain a positive business image. The analysis underscores the necessity of adapting to changing technological and social factors to maintain competitiveness in the dynamic online retail landscape.

THE STRUCTURE OF
BUSINESS

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
QUESTION 1..................................................................................................................................1
QUESTION 2..................................................................................................................................3
QUESTION 3..................................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Structure of business indicates towards the entire phenomena of operations and process that
provides a legal identity to a business (Netzer and et. Al., 2012). There are type of business
structures found in business environment as partnership, company, sole trader or corporation.
This report explores the structure of business in various structure of business. The report is based
on subway an online business that is started recently after getting inspiration from the success of
E-bay. Strength and weakness of chosen business start-ups analysed in respect of various legal
framework. Financial strength and weakness of business for better analysis and control also
analysed in this context. Assessment of environment to analyse the impact upon business also
analysed in this report. Importance of key human resources policies with in the organisational
context also determined in this report.
QUESTION 1
Proper analysis and evaluation of business environment is necessary as well as required to
examine the inner strength and weakness to execute the business idea. There is a business idea of
online retailing business inspire by eBay initiated by entrepreneurs. Before initiating the concept
of new business idea, it is important to analyse the business idea. The evaluation is based upon
the business online. The environmental evaluation is carried out in the form of PESTEL, which
is as follow:
Political factor
Political stability of a country is essential to maintain the business operations in effective
and legal form. As eBay had to face political factors influenced the operations of eBay. The
online marketing policies can affect the business. The influencing factor that can lead the
business idea to form in real organisational world (Scheer, 2012). Governmental support for e-
commerce, advanced and effective infrastructure of IT developers and centres are some
influencing factor that can assist the business idea. Apart from it, stricter antitrust policies can
create challenges to support the business ethically. Inbound and outbound political process of
business is one of the major political factor that may influence the decision making process. Thus
it is observed that political factors would also definitely impact the business of subway in case if
manager do not properly analyse these factors. Such as, if government increase the internet tariff
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rate then there would be less number of customer using online sources for shopping this could
reduces the overall profit of newly established business.
Economic factor
This factor represents the economic structure of country. Economic growth and trade
volume of a nation are the main influencing factor that affect the business at domestic and
international level. As eBay also gained the benefit of economic growth of developing nations.
Overall consumption level of customers get increased in most of the developing countries as
India, China. External influencing factors as classification of income groups, monopoly and
ticket exchange business may impact the decision making power of managers. As eBay get
beneficiated by rapid growth of international online retail, sector in developing countries same as
increment in disposable income can lead the business at international (Al-Gharaibeh, Zurigat and
Al-Harahsheh, 2013). Therefore it is necessary for the manager of subway to consider economic
factors as they can badly impact the overall business, such as in case if inflation rate rises that
prices of product will definitely rises reducing the value of money. So consumer stop buying
good at that period and wait for the correct situations to make needed shopping.
Social factor
Social interest and behaviour of people are considered in this context. Macro
environment of nation and the community plays vital role in terms of managing and operating
the business activities at international level. However, eBay got benefit through online retail
concept in public. The idea attracted the humankind towards exploring their buying and selling
capabilities through e-commerce and online business. People supported this unique business idea
because small retailers be able to find out large consumer market through online business and
consumers be able to get large options of suppliers. Our business idea of online retailing can be
benefited by rising online. Changing preferences can influence the decision-making strategies of
business for organisation and may explore the activities in more strategic and specific manner.
All important social factors can have negative influence on business of subway, such as when
customer are not educated properly then they are not habitual of using online sources for
shopping as it will reduces sales for company. similarly when people of society have number of
health issues then the only basic requirement for them is to get best possible treatment, so
customer will not buy any other product this will reduces sales volume for subway.
Technological Factor
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Technological factors are the factors that mainly associated with evaluating the
Developing money transfer technological factors and the transparency retain some specific
aspect in decision-making process (Serrasqueiro and Caetano, 2015). The feasibility of
increasing trend in online business can influence the business strategies in terms of representing
the business image in more strategic and contingent manner. In eBay, the strategic management
committee analysed the need of online trading requirements at initial stage. Technical reach
enhanced at wider range that can influence the decision-making in current online business idea.
The external factors can explore the opportunities to business in terms of exploring the mobile
technology. The typology of business in environment mainly intended towards improving the
customer experience through online mobile applications. Introducing new technology can be
harmful for new business such as subway develop their online portal and mobile app but do not
have proper knowledge about bugs and hacker due to which fake order made by customer. This
will reduces sales volume for company as they have to properly analyse technological factors.
Ecological factor
This is one of external environmental factor indicates towards managing the business
operations image by considering safe environmental policies (Karabag and Berggren, 2014). As
eBay adopted green online shopping policy to motivate consumption of natural consumable
goods. Renewal energy is being used by eBay to make the business image more natural. Use of
paperboards and say no to plastic campaign are some external environmental factor that can
enhance the feasibility to explore the business scale at global level. Same as, the new business
concept can also be improvised by adopting natural and environment friendly schemes and
strategies. All These factors have a major drawback for prompting business such as the scale of
business can also be essential in terms of building the credible online business image at global
level. Natural consumption and sustainable structure is one of the influencing factor that must
consider in while making strategic decision in organisation.
Legal
The factors affect the legal phenomena of business. This factor is also the part of macro
environment that affect the organisation externally (Wu, Zhang and Lu, 2015). The strategic
business environment also helps in managing the e-commerce business image in more strategic
way. The use of different structure of business formation helps in connecting the scales of
customers properly eBay had to face the challenges due to continuous legal requirements of
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business in developing countries and it also assist the business to incorporate the scale with
different legal aspects and environments. Certain rule and regulation implemented by
government related with online business have major influence on business of subway such as
employment law due to which company have to fix a certain amount for every worker those are
part of company.
QUESTION 2
Review of strength and weakness of the diverse legal factors are required to analyse while
preparing the legal framework for business (Clarke, 2013). The legal framework for
communicating the consumer and stakeholder rights is important for business for sustainable
growth and development. The structure of business in terms of managing the business objectives
in effective and essential form the rights of customers become specific for constringing the
business rights for more specifically. In the present era online retail industries are growing fast
and competition also have become one of the challenging situations for online businesses. In the
race of high earning through online business and retailing consumer rights are violated and the
cost is bearded by the customers at last. To protect the rights of customers and maintain the
ethical image of business different type of legal framework are considered by organisation for
better growth and development.
Consumer rights Framework: The framework that remain associated with the rights and
protections to customers are considered in the consumer rights framework. This framework not
only helps the consumers to protect their rights from any losses but also provides aid to their
legal compensation rights subject to legal consideration and claim. This is also one of the
specific and essential assessments for the managers and the organisers to analyse such kind of
situations in which customers claim for their losses (Cosh, Fu and Hughes, 2012). Organisation
keeps try to prevent legal compensations and complaints of customers because it reduces the
credibility of business and ruins the business image at global as well as domestic level. To get rid
of these kind of challenges and circumstances business persons prepared a legal framework in
itself so customer get legal solution without taking any further legal assistance.
In online retail business customer perspective and feedbacks matter for building online
customer network and managing the image of business more effectively and consciously. The
major challenge in managing the customer perspective is to analyse the different taste and
requirement of business. There are type of laws and legislations are made for maintaining the
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consumer rights. Some of the legal terms are defined as follows that must consider while
constructing the consumer right framework;
Consumer Right act (2015): This is one of the legal frameworks that helps customers to
retain their rights form the losses and the constructucted form of business in different streams.
The UK consumer legal framework is quite different and complex in terms of managing the
consumer liabilities (Oesterle, Richta and Fisch, 2013). From past decades organisations have
been bound by taking care of consumer rights due to various consumer laws and legislations.
Both the UK and EU consumer legislations are essential to adhere for businesses in UK. The
guidelines and legislations are require for organisations to follow in order to maintain unfair
practice and mislead marketing activities and distance selling. Online business is one of the
growing and dominant sector in which customer do not remain connect to the seller directly in
that case customer’s rights and rights become more concerned and specific to retain at global
level. The formation of business at global level can be performed better by adhering the EU
charter of fundamental rights of the customers and promoting the customer interest first.
Strength and weakness of Consumer rights Framework
Strength
The framework is mainly related to protect the
rights of consumers in case of frauds and
complain.
Weakness
The Framework contains too much time to
complete the process for a particular complaint
and task.
Consumers are able to get benefits at large
level through this legal framework. This
framework direct bound the organisation to
adhere the regulations of business and
organisation.
This framework has lots of complexities that
create more confusion and formalities to
customers and extend the lag in process of
completing the process in time
GDPR: GDPR stands for general data protection regulation that was formed in 2016 to
protect the general information of customers who deals in online trading and retailing. It is
another course of action of standards proposed to give EU occupants more direction over their
very own data (Balland, Belso-Martínez and Morrison, 2016). That finally suggests that
essentially every critical endeavor on the planet needs a GDPR consistence procedure. GDPR
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applies to any affiliation working inside the EU, similarly as any relationship outside of the EU
which offer product or organizations to customers or associations in the EU.
The progressions are proposed to reflect the world we're living in now, and brings laws and
duties - including those around up close and personal data, security and consent - across over
Europe up to speed for the web related age. It hopes to streamline the authoritative condition for
business so the two locals and associations in the European Union can totally benefit by the
automated economy. Your name, address, Visa number and even more all accumulated, stalled
and, possibly most importantly, set away by affiliations. On an extremely essential dimension,
basically all aspects of our lives turn around data. From web based life associations, to banks,
retailers, and governments - essentially every organization we use incorporates the social
occasion and examination of our own data. In
Strength and weakness of GDPR
Strength
The framework is mainly related to general
information of business customers and helps in
managing the records safe and secure via
online trading.
Weakness
The Framework of GDPR is limited in terms of
managing and maintaining customer interest
for resolving issues and complaints.
The framework provides separate legal
protections to customers subject to their
personal identifiable information and non-
identifiable information.
This is limited to providing the aid to
customers subject to their personal and general
identifiable information. It does not provide
solution regarding another complains and
compensations.
All these above discussed strength and weakness of consumer right and GDPR legal
guideline help new online business subway to attain the desired objective in most economical
manner. Such as GDPR is an effective software that support maintain and secure meaningful
information into proper accounts and documents. This aid to reduce the chances of losses and
conflicts within company, further support build a trustful network between employees and other
team member. With the help of this software subway manager are able to develop trust between
user and buyer as they save the following information of customer such as name, address, bank
detail etc. this help to increase overall sales for company.
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The other legal framework help subway to gain immense success in short period such as
they provide essential important features to entire customer base. Such as company have easy
return and replace policy that makes customer feel comfortable while shopping needed product.
Sources of funding:
Bank: In order to run business in meaningful and profitable manner it is important for
responsible manager to effectively plan for raising funds. The best possible way that help
subway to conduct business operation in appropriate manner is raising funds by taking loans
from bank at reasonable interest rate so that payable amount do not exceeds income.
Capital: As manager is planning to launch new business that they require to bring
sufficient amount with them as capital that help them to manage and run initial activity in
progressive manner.
QUESTION 3
In present business scenario, online businesses are getting huge success because of quality
Services offered to respected customer. The concept of online business is wide and thus includes
Different sectors to operate and gain profitability (Bertels, Koen and Elsum, 2015). The business
inspired by one of the leading eBay has also determined several business sectors within UK to
operate activates and attain the overall objective. These business sectors are business coaching,
online retail store and the most famous reselling. These are defied below:
Business coaching: Business instructing is one of the great specialties that are gaining
success in recent time (Ward, 2016). Where numerous entrepreneurs know about their industry,
they may require some assistance with different parts of maintaining a business. Promoting,
Sales, Web Strategy and the sky is the limit from there. The company have appointed a
professional team, which help, guide and assist other business owner in running business in
economical and profitable manner so that desired goals are attained with particular time frame. It
will also aid to make plan and prioritize what goals and policies that are needed to help
development the business closer to its goal. Receptive company have launched free basic videos
and provided the option of premium customer for needed business owner those are actual needed
a guide for helping them to run business. In recent time the demand of this sector in UK have
increased at a 5 fast pace as people are involving themselves more in business rather doing any
private job. As the demand for business coaching are high and there are very few company that
provide the useful services would help respective company to gain better result in upcoming
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time. Company have also focus to give physical coaching to needed business owner in which,
business coach resolve issues by meeting with the business owner frequently, either weekly or
monthly, to keep them on track to the obligations made throughout the past coaching conference.
Reselling: It is obvious that Re-selling variety of products through internet to needed
audience can be a abundant way to produce money, the main element is that businessperson must
be able to find sources at low cost and could be able to sell for more. The concept is old enough
and the famous business like eBay, use to find items are very low cost from outer sources and
sell the same with much higher amount to earn profit. As company is inspired by eBay business
idea thus managers also ascertain this sector to be one of the most profitable unit for making
huge money and accomplish the desired objective. Company have launched an online website
form where willing customer can buy some specific product such as clothes, shoes, watches. In
UK the concept of reselling is getting increased day by day as most of the people are founded to
buy product from online site as they provide valuable after sales services. To meet the emergent
success of Re-selling respective company have arranged a team, they are responsible to analyse
the market properly and found the best product from yard sells, thrifts store, tag sales and
auctions. The collected item are then published and posted on online portal for desired customer
so that they can make choices and buy the most suitable product according to their needs. There
are few ways that can help company to become successful in future such as to be honest about
their product to customer, deal every client like a professional as fulfil their requirements, before
Offering goods they must buy these stuffs at low cost.
Online retail store: Online retail sector is one of the form of electronic retailing of goods
and services to customer through email. It is also considered as an internet or E tailing retaining
sector (Markides, 2013). This sector is mainly based upon B to C business model in which
goods and services are delivered to customers directly and customers remain directly related to
the business. Online shopping is a sort of electronic business which empowers clients to
authentically buy items or organizations from a dealer over the Internet using a web program.
Such retailers fuse specialists, programming originators, authorities, and wholesalers. It is one of
the fast growing business stream through which businesses and organisations are growing their
business properly. Wholesalers sell their things in mass from their collecting plants to
associations. The greatest of these online retailing organizations are Alibaba, Amazon and eBay.
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B2B selling is also one of the growing business streams that are providing sellers a global path
and vast network of business buyers.
HR policies are also retain their separate importance in an organisational context while
forming a new image of business. Some of HR polices may assist the current online business
Idea which is as follow:
Health and safety: This HR policy is formed to provide employees and staff members a
safe and healthy workplace environment. There is a proper safeguard and instructions are made
while constructing this policy. This policy bound organisation to pay legal compensation to
employees in case of any loss or inappropriate act within the organisation.
Equality and Diversity: This policy indicates towards true and fair treatment to every
staff member and employee whether lower class or upper class. Any kind of biasness or
discrimination on the basis of physical appearance, cast or religion is prohibited in organisation.
Three main sectors in an economy:
Primary: In UK, the holds the biggest part of economy, such as 3% of labour are
engaged in agricultural production that help to contribute around 12% of GDP. They have major
impact on the overall economy of country as raw material are needed to develop various types of
essential finished goods.
Secondary: The part of economy that includes heavy and light industrial manufacture
goods that are essential to meet the basic requirements of customer.
Tertiary: Tertiary sector is also known as the service sector. It helps in selling and
marketing the goods, which have been produced under the primary sector and secondary
sector. The have a major impact on the economy of UK as more than half of the
population are engaged in service industry that support to grow profitability of
whole nation.
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Reflective statement
It is observe me that, after reading this lesson I was able to acquire that to run any
business the very first need is to determine the market condition and situations in proper manner
with the help of PESTEL analysis. In case if I am going to start any business in future that it is
also compulsory for me to have specific knowledge about essential rules and legal framework
that support in doing business in better manner.
CONCLUSION
Form the above report it is summarised that behind a successful business an effective and
sustainable business idea remains exist. The idea not only assist the organisation to form the
business in effective form but also helps organisers to maintain the ethical image of business in
organisational context. The report gives an idea and support to entrepreneurs subject to start a
new business in competitive organisational environment. It is shortened that with evaluation of
strength and weakness organisation be able to construct new structure to extend sustainability in
future. Classified structure of business in the UK and HR policies provides a path to operate the
business in modern era.
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