- What are the size, types and scope of London EV company.
- Give the interrelationship and functions pf the organisation
- Give the positive and negative impact of macro environmental factors of London EV company.
- Give the internal aspects for the interrelationship and also the SWOT analysis and their functions in London EV company.
Business environment consists of external & internal environment factor which is having affect on organisation and its functions. It consist of various factors such as technology, suppliers, society, trends of market and so on. It is very helpful in enhancing various opportunities of business. In this report London EV company has been considered which was established in 2013 (Schaltegger, Lüdeke-Freund and Hansen, 2016). they are willing to expand their operations in other parts of UK. For those objective various external factors are being analysed which is having impact on profitability and productivity of the company. Types of companies, scope and their legal structures are discussed in this report with this interrelatedness of organisation function is considered and lastly strength & weakness with various macro environmental factors are studied.
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P1 : Various types of organisation and their purpose &legal structure.
The size of the organization depends on their objectives as well as goals. Below are the types of organisation with their purpose and scope:
Public organisation- An organization is termed as public when more than 50 percent of its shares owned by the government. The main funding of this organisations are take place by government and are non- profitable. This organisation has three forms which includes public corporations, government company & departmental undertaking. For example, A public company in UK which is funded by Government is BBC (Dahles and Susilowati, 2015).
Purpose: The primary motive of this organisation is to being equality in nation and increase lining standards of people of society.
Legal Structure of Public Organisation :
- Central : A body who controls and give authority to organisation to work for improvement in society. The profit earned by public organisations were used in development & welfare of societies.
- State : They give authority to those organisation who is come under a state supervision.
- Local : it consist of municipal communities who control a particular locality. Their primary goal is to make life of people of society easier.
Voluntary Organisation- It consist incorporated ad unincorporated organisation as well. In this type of organisation, the group of people assemble together and work towards for a common purpose (Upward and Jones, 2016). The group develop projects as well as programmes for a specific purpose . Voluntary organisation give service to an individual, cities, countries and groups. For instance, A UK based company “ Voluntary service overseas” aims to reduce the level of poverty from the economy.
Purpose : They are non for profit organisation which motive is to upgrade societies and make environment better for people.
Legal structure of Voluntary organisation :
- Trust - Voluntary organisation funded by people and use this amount optimally for welfare of poor people.
- Unincorporated Association- These organisation projects are of short period as they work on a particular issues.
- Private Organisation- Those organisation which have more than 51 percent of share is not gain by government. It is an individual, corporation, agency or partnership as well. These organisation works to gain high profits from the public. They take loans or are funded personally by the people (Turner and Endres, 2017). London EV company Limited, a private car manufacturing company in United Kingdom is operating to earn profit .
- Purpose : Their main motive is to raise market share & earn high profits within the market.
Legal Structure of Private Organisation :
- Sole Proprietorship- In this the company is owned by a single person. The profit and loss is not to be share by any other individual. The private organisation have limited liability and have minimum laws to follow.
- Partnerships : An agreement which took place between two person or more than it. In partnership, the profit is divided in equal ratio or as per written in partnership deed. The loss and risk is also divided equally among the partners of the company (Gallemoreand Labro, 2015).
- Limited Companies : In this, the subscriber is act as a separate legal entity. The capital is generated by shares. In addition to this, it is both private as well as public and they face issues for the sake of public interest.
P2. Scope & size of different organisations.
The possibility of dealing with a subject or instances is scope. When the operations is declared outside from national level it refer as global scope. On contrary, Local scope is when functions is performed inside or at national level.
British Broadcasting Company: It is a public organisation and give services to customer with a motive to provide impartial service to its customers and public. It is one of the oldest organisation which is certified by Royal Charter (De Villa, Rajwani, and Lawton, 2015). The company has news, sports, entertainment channels through which gives information to the public and increase their knowledge. They charge an Annual fee from public which act as a funding for them. It deals in media channels of sports, news and culture. The company have more than 35,000 employees and give information to people in more than 31 languages so that they can reach to large audiences and increases its uses and profit.
Voluntary service overseas- It is a charity whose main motive is to decline the level of poverty from the country. VSO have international, national and community volunteers who helps them to work effectively and achieve goals. The organisation have more than 71,000 skilled and talented volunteers. Its main project consist of education, health & livelihood (Trad and KalpiÄ‡, 201). VSO is operating in greater than 25 countries and emphasise on young people to work with them and improve the condition of societies.
London Electric Vehicle company- The company head office is in United Kingdom and deals in manufacturing of cars and its parts. The company is renowned as Black cabs in UK. The manager of London EV wants to expand its business operations in other cities so that they can raise customer base and profitability level.
The vision statement of company is “ To gain the leading position in the industry of cars”.
The mission of the company is “To manufacture those vehicles which defines their class and upgrade standard of people”.
The company was formulated in year 2013 and have greater than 550 employees in the company.
The company wants to expand its business in other cities of United Kingdom and increase their presence in market.
It is a joint venture and is based on manufacturing of china.
The vision is to provide unique service and data to customers and gain high profits.
The mission statement of BBC is “ To educate people by giving proper information and give high quality service to customers”.
The staff members of company is greater than 35000 and functions in 33 countries.
The company is planning to add more channels which educate young people and brings changes in society.
The company have external as well as internal stakeholders which includes customers, tele partners, media partners and many more.
The vision statement of VSO is “to remove poverty from the nation”
To address marginalisation and remove poverty is the mission of the company.
The company has around 76000 skilled and talented volunteers and function in greater than 16 countries.
VSO wants to attain more people by expanding its function at global level. With this, they reach to large audiences and remove poverty from all over the world.
Beneficiaries, Volunteers are the stakeholders of VSO who provide service to public.
P3 Relationship between organisational functions & their link with structure of organisation & its objectives
Every organisations has to perform necessary activities which are performed by various functional departments (Vij and Bedi, 2016). For all activities to be carried on in an effective manner it is necessary to utilize resources available with a company. Relationship between different functional departments are described below:
- Sales & Marketing: Marketing department of company is involved in making strategies of how to sell various goods & services and main objective of sales department is to maximize sales so both these department impact each other and help each other in achieving objectives laid by both of these department.
- HR & Operation department: Operations department has the responsibility of performing all major functions of company and HR department has responsibility of hiring people according to requirements in organisation so both these department coordinate with each other so that there is high effectiveness and efficiency in overall functions of organisation (Saebi, Lien, and Foss, 2017).
Organisational structure: This is defined as a structure which helps organisation and their employees to understand how to perform various organisational functions. This structure helps in understanding of roles, responsibility which have to be understood by employees in company. There are various different structures which are present in any organisation such as:
- Divisional structure: This is a structure which is divided according to various products and service lines which are present in organisation (Hansen, 2018).
- Matrix structure: In this type of structure there is reporting which has to be done to more than two managers in organisation. This relationship is there between managers and subordinates in form of a grid or a matrix.
P4 Positive & negative impact of macro environment on business operations
Micro factors: These consists of these factors which are affecting the strategy of a business when they are making decision and their performance level. This also has impact on individual business as there are different strategies, resources and capacities which are affected by the changes which are take place in macro environment . Different micro environment factor are employees, competitors which are helping in achieving various business objectives
Internal factors: These are factors which have impact on operations of a company and also its overall culture such as structure, leadership etc. employee support is a factor which is also having impact on achievement of laid objectives (Wood and Logsdon, 2017).
Macro environment factors: These are factors which are having both positive & negative effect on organisation and are beyond the control of organisation. For analysis of such factor it is necessary for understanding various trends prevailing in the macro environment.
PESTLE analysis is a tool used for understanding various macro environment factors.
- Political: These are those factors which are having a relation with intervention of the government on functioning of business . London EV company Limited is dealing with some legislations which are having relation with policies and vehicles with low emission of harmful gases.
Positive: London EV company has to form strategies so that negative impact can be minimized.
Negative: There are large number of changes which are taking place in the external environment and are concerned with changing rules of government.
- Economical: There are various economic forces which also affects functioning of a company.
Positive: This is related with the purchasing power of customers and increase in this will lead to increase of sales in company .
Negative: If the economic factors are not in favour of company then this will lead to reduction in overall sales and wastage of resources which have been invested by this company.
- Social: This is related to the changing patters of individual behaviour. There are many socio cultural factors which are having an affect on sales of company (Kopnina and Blewitt, 2018).
Positive: If there is a sudden change in preference of customers and they develop liking for vehicles then this will have a positive impact in form of increase in sales of company .
Negative: Consumer behaviour is very unpredictable and this leads to negative impact by reduction of sales in London EV company.
- Technological: This factor is related with technology advancements which may have positive or negative impact on a company.
Positive: Innovation will help in attracting more customers as if a technology is developed where vehicles are environment friendly then this will help in sustainable advantage by the company.
Negative: There may be situations where competitors may adopt the technology faster and this may lead to difficult survival for London EV company in market.
- Legal: Laws of a country have to necessarily followed and whenever any new Strategy is being adopted by the company such as expansion, merger or acquisition.
Positive: This leads to more safety of their customers (Aithal, 2017).
Negative: Large number of laws and regulation leads to rigid policies in a company.
- Environmental: every business is operating in a external environment and this is having both positive & negative impact on a company .
Positive:If London EV will be having vehicles which are having low consumption of fuel then this will help in conservation of environment.
Negative: Various pollution laws have become very strict which leads to compulsory adherence and if not followed then high penalties are imposed.
P5 Internal & external analysis used in identification of strength & weakness
Internal analysis helps in analysing competencies, competitiveness and viability which is related to opportunities and threats which are present in macro environment. This is very necessary for all organisations based on SWOT:
- Strength: London EV company so engaged in engineering services . They are offering various facilities like distribution of various parts of vehicles, designing of structure of body of cars. Having presence across world is also big strength of this company.
- Weakness: It becomes very difficult for them to approach a new market or enter a new country as such countries already have presence of many established car manufacture companies which leads to a lot of investment and resources which have to be invested by company.
- Opportunities: There are many opportunities in year 1950 UK was a country which was at second position in terms of manufacturing of cars. Hence, there is a great opportunity for this company that they can expand their market operation's across various parts of UK which can help London EV company in expanding their market share.
- Threats: There are many threats which are present in external environment such as presence of many competitive brands such as Morgan, Land Roverm Bnetley, Rolls-Royce which is imposing huge threat on London EV company and because of presence of such competitors there is a need for continuous modification for survival in the external environment.
P6 Interrelation of strength & weakness with external factors
In every organisation there is a necessity that analysis has to be done both internal and also externally this is very important for identifying various opportunities which can be availed and understand the impact of threats present in market (Brown, 2018). Such threats must be minimized by usage of core strengths of of the company. There is always a relationship internal & external factors.
Impact of external environment factors on London EV Company Limited:
- Strength:UK Government is helping various companies in their expansion plans. Government is helping the companies in having a market so that they can do expansion. This has created many opportunities for London EV company limited.
- Weakness: There are many political barriers which have a negative impact on companies operating in manufacturing industry like increased taxation regulations, political barriers which leads to rigidity.
- Strength: This is very helpful for London EV company as they can implement their expansion plans which can lead to overall development of company.
- Weakness: There is a decrease in sales of companies which are existing because of recession and other environmental issues this has also impacted London EV company as its sales have also been reduced (Chiadamrong and Sophonsaritsook, 2015).
- Strengths: With the increase in personal disposable income of people they started spending their money on purchase of luxurious items this leads to increase in their status. This will be having a benefit for London EV company as their sales will also increase.
- Weakness: There are different requirements of very customer and this has to be continuously monitored by London EV company which leads to continual modification by this brand.
- Strength: Advancements in technology has created a situation where there is demand for electric cars which is using minimum fuel (Boda and Zsolnai, 2016). This will be beneficial for London EV company Limited.
- Weakness: Technological advancements may lead to adoption of latest technology faster by various competitors this can negatively impact sales of London EV Company Limited.
- Strengths: If all legal requirements and compliance is done by company then this will lead to effective brand image in market.
- Weakness: Every country has different legal laws which leads to lot of modifications which has to be taken care of by London EV Company.
- Strength: Various resources such as sustainable energy resource will help in establishment of effectiveness in functioning of company (Dirican, 2015).
- Weakness: Each country has their own set of rules in relation with protection of environment which has to be implemented by London EV company Limited.
It is being concluded that macro environmental factors posses a impact on achievement of goals in every organisation. Various tools such as PESTLE analysis, SWOT analysis are taken in use which help in making a analysis of various environmental factors. Overall mission & vision of company is also understood with help of services which are being provided to customers. Environmental analysis plays a very important part in assessment of all the factors which are affecting a organisation's internal functioning.
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