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Business & Business Environment

510 Downloads1 I Published: 05 Nov ,2019

Introduction

Business environment can be defined as different external and internal factors which basically impacts upon functioning of a business firm. In this context, there are a range of factors like legal, social, economic, technological, political, stakeholders that basically affects overall working of a business company. Thus, it has became very much important for multinational companies to analyse these elements at the time of taking decisions like strategies and so on. In this report, thee different organisations that are being taken are ASDA in private, Oxfam in voluntary and Crown Prosecution Services under the public sector. Along with this, report will keep its focus on size and scope of different types of organisations, relationship between organisational functions. On the other hand, assignment will also put light on positive and the negative impact of macro environment on business organisation's operations.

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P1 Different types and Purpose of organisation

There are various types of business organization prevailing within corporate world. These are given below:-

Private Organisation

These organization run with so many process with the purpose of making profit by a person, partnerships, corporation, agency or an association. ASDA is a British super market retailer company which was founded in 1949 by Peter and Fred Asquith in England. Industry deals with the grocery, general merchandise and financial services which attract to their customer in the form of attractiveness of their product. assignment help services in australia

Purpose: ASDA is a multinational retailer company with having a purpose to be the Britain's best value retailer exceeding customer needs and wants always. Main purpose of ASDA is to crate value for customers to received their loyalty forever. According to ASDA their customers wants new types of product at cheap coast. It is the responsibility of company's to accomplish the want their customer in a perfect way.

Legal Structure: The culture adopted in ASDA is highly hierarchical structure which is followed by ASDA. Its legal structure have a some values like company focuses on to provide good customers service in a effective manner. Secondly, ASDA believe in respecting each customer's value, belief and their culture. Therefore, company has responsibility to enhance their customer level on the basis of their products.

Stakeholders: In the purpose of business stakeholders can be a person, employee, suppliers, quality of the product and so on. which has interest in the organisations and as the results of their actions.

Public Organisation

Public organisation are those which are run and operated by the government and survive to render their services to their native. They are those who rarely involve in private organisation to deliver goods and services to their resident. The Crown Prosecution Service is the principal public prosecuting company for conducting criminal prosecutions in England and Wales, this was founded in 1986 by Paul Staff.

Purpose: The main purpose of Crown Prosecution Services is to defend criminal cases that have been investigated by the police in England and Wales. They provide effective legal advices to found agencies and police. These organisations conduct their services in secondary sector and received raw information and further offer advices. It is also advice the police on cases for possible prosecution.

Legal Structure: Legal structure of Crown Prosecution Services is at  higher level. In their companies examining all process of police evidence and  decide where to take criminal proceedings are done by few people who occupy next tier hierarchy. In this organisation few number of superiors can exist. It helps in making effective decisions and evaluate plans according to them. This methods is useful to communicate and share task effectively in order to create efficient results.

Stakeholders: Stakeholders of public organisation are influenced by the actions and policies of companies. It includes government employees, financial institutions which are owned by shareholders and government.

Voluntary Organisation

Voluntary organisation describes to a group of individuals who enter into an agreement, mainly as volunteers, to form a body to attain the purpose and goals of an organisation. Oxfam is an alliance of 20 independent charitable organisations which is focusing on the relief of global poverty. Voluntary associations can be corporate or incorporated because the term voluntary association covers every type of groups from a small or local residents, so that its a large association with lot of turn over.

Purpose: It has a main purpose that help in making easy solutions to the injustice of poverty. Their vision is to have a world without poverty. They want a world in which people can enjoy their lives and rights and they can describe their decisions and can assume their responsibilities. The mission is to have a world in which each and every people is treated equally.

Legal Structure: In this Voluntary organisation which consists of unincorporated association, trust, community interest company, etc.

A trust: In a trust people work in the form of manage and provide important fund to do welfare of a community. According to this trustees are the person who are able for contract that are stable on the behalf of trust.

An Unincorporated association: It is a group of people if individual in this there are no such legal existence. All legal proceeding that are taken are basically on the basis of groups.

Stakeholders: These are the one who are interested and influenced by the voluntary organisation is said to be an stakeholder. These includes in board, founders, staff, volunteers, beneficiaries and donors.

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P2 Size and Scope of different types of organisation

There are different types of business organisations which are mentioned below - 

Public organisation : Crown Prosecution Service

Product & Services

Size and Scope

Vision

Mission

Crown prosecution services is a legal sector public organisation which provides law based advice to investigators as well as police departments. They collect and examine raw data and based on that determine charges against suspects.

In context of Crown prosecution services they have 80000 and more cases of prosecution in their control. Along with this they also have around 2900 solicitors and 600 employees as well.

 

Vision statement of CPS is to be independent in their business operations and offer fair advices to people.

 

 

Mission of CPS  is to be fair and free in their work and to work in an ethical and professional manner.

 

 

 

Private Organisation : ASDA

Product & Services

Size and Scope

Vision

Mission

ASDA is a multinational supermarket chain store which deals in retail sector and provides a number of goods and services such as dairy products, consumable goods, fruits and vegetables etc.

 

ASDA is a large multinational supermarket with around 633 chain stores all over the world. It employs around 165000 employees.

Vision of ASDA is to provide excellent quality goods to their customers thereby enhancing customer base.

Mission of ASDA  is to maintain or retain their loyal customers for a longer period of time.

 

Voluntary Organisation :Oxfam

Product & Services

Size and Scope

Vision

Mission

Oxfam is a voluntary business concern which deals in providing services during calamity situations such as floods, draughts etc. They provide food, clothing and shelter to people who are sick or unhealthy.

In context of size and scope there are around 20 independent charitable trusts that come under Oxfam. All these work for welfare an d safety of people.

 

 

Vision of Oxfam is to provide better quality products and services to people and that too within affordable prices.

 

 

Mission of Oxfam is to remove or eradicate poverty from almost all areas and provide a healthy and safe living environment to people. Also they focus towards maintaining peace and harmony in the world.

 

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P3 Relationship Between Organisational functions.

Relationship among different organisational functions plays a crucial role for every single business organisation when it comes to attain a specific goal or objective. ASDA has kept its focus on expanding its business among different targeted areas so that their sales could be improved by 15% within a year. This is being considered as an objective of ASDA which needs proper management structure and links among different organisational functions. Through this, ASDA would directly grab a good position at marketplace and may start giving good rivalry to its competitors in specific time frame.

It has been found that, no business company could basically attain goals or objectives. It is required for managers of different departments of ASDA or of any company to have proper relation with each other so that no issue could take place in attaining a set goal. In present context, proper relationship between different departments of ASDA in order to attain their goal is comprehended beneath:-

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  • Marketing and Finance Department: Since ASDA wants to expand business and looking forward to enhance 15% of the sales in a year, that means it would require to the company to promote itself among different targeted areas. This is done by marketing department and for developing a plan or even to start marketing manager would require to have proper funds which could be allotted by finance manager. Right amount can only be offered if proper connection is there among both the departments.
  • Human Resource and Production Department : Business expansion would require a good number of staff in every single department of ASDA. This would require an effective HR department but, requirements among different sub sections can be antithetic like production section would require a special team that might know different languages so that they could communicate with targeted customers. Here, it is responsibility of production manager to inform the same that what they are looking for so that HR manager could directly recruit different individuals.
  • Sales and R&D Department : Sales department of any company would require to have link with every other department of a business organisation. If it is talked about ASDA, company has kept its focus on business expansion through improving sales by 15% in a year. Here, research and development subsection of ASDA will help sales manager in taking right decisions which will directly aid ASDA in attaining the goal.

All departments in ASDA are performing their functions in inter related manner. This will not only benefit company to achieve their target in effective time frame but also to maintain smooth working condition in their workplace. These all department helps ASDA to attain their business goals and set of objectives in order to enhance the growth of the company. Also the Interrelations between different organisation department provide various advantages to a company. In respect of ASDA, these interrelations will benefit them to adopt effective channel of communication and attain their gaol and objectives in formative way.

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P4 Positive and Negative Impact of macro environment on business operations

ASDA is a renowned name within retail industry. Its brand reputation and stake in market owes to its exceptional product and service delivery which has rendered a competitive edge to company over its rivals. Yet there are various factors present within the macro environment which influence the operations as well as functioning of enterprise. For ascertaining such factors, managers of ASDA have conduced PEST analysis:-

Political: These factors represent the policies and regulations passed by government of any country. ASDA needs to take in consideration political factors so as to avoid intervention of law in any of their activities.

  • Positive: The political condition of UK is stable which reflects that the policies and regulations made by government remain consistent from year to year. Thus, ASDA can conduct operations in accordance with these rules and avoid any legal mishappening.
  • Negative: With any change in policies such as export or import duty, financial performance of ASDA can get affected to a great extent and even lead the company to loss.

Economical: These factors represent the economy of a country and comprises of aspects such as borrowing rate, inflation, taxation policies etc. ASDA has to take into account these factors to ensure its sustainability within market for a long period.

  • Positive: UK has a strong economy which provides various opportunities for ASDA to conduct operations in a feasible manner. Also, rebates in tax rates by UK government assist the organisation in selling its goods at affordable prices.
  • Negative: A rise in borrowings or inflation rates directly affects their operations and functioning in marketplace.

Social: These factors refer to the cultural and religious beliefs of population which largely affect the operations of company.

  • Positive: ASDA takes into considerations the lifestyle of people of UK and ensures that company produces such products and services which meets the needs and demands of consumers. This helps in improving their profitability as well as brand image.
  • Negative: To avoid any discrepancies, ASDA adhere to CSR responsibilities. In case, they do not follow CSR initiative, the brand name and stake of company can get hampered.

Technological: With passage of time, there have been a number of advancements taking place within retail industry of UK. ASDA needs to consider technological factors so as to maintain their reputation in market.

  • Positive: The R&D department of ASDA analyses and evaluates the latest trends and techniques existing within the market to ensure that techniques of company are aligned with those being used within retail sector.
  • Negative: Executing the latest tools and techniques of industry across the organisational premises leads ASDA to invest a huge amount.

P5 Internal and external analysis of organisation and their strength and weaknesses

ASDA is a chain of supermarket retailer which is headquartered in West Yorkshire. This company offers supermarket chains as well as financial services and mobile phone manufacturer. There is the SWOT analysis of the company, which will help them to identify their strength and weaknesses -

Strength

Weaknesses

ASDA provides amazing marketing campaign which shows services and customer delight.

The company is involved in various CSR activities.

ASDA is proactive in successful acquisitions in the company.

It provides online services to customers which helps in increasing customer satisfaction.

ASDA is not involved in expansion of it's business at global level.

Their entry is restricted in some areas because the country fears a competition with local vendors.

Opportunities

Threats

Expansion of business in different areas including pharmacies, jewellery and opticians.

Introduction of ventures in growing markets like China, India, etc.

Existence of price war with other retail chain brands.

It has a threat from various changing policies of government and taxes.

It is concluded from above analysis that ASDA should work upon expanding its business globally. As it is providing good service to customers since years and it has become a globally well known  retail chain of supermarket there are various possibilities of success of it's profits in foreign countries too.

P6 Interrelation of strength and weakness of macro environment elements on a company

There are different ways by which an organisation overcome its weakness and develops its strength for maximising sales of company. The company is surrounded by various elements  that helps to shape opportunities and pose threat to the company and these are called as macro factors. ASDA requires to meet the demands of consumer and expanding their business in foreign countries. Interrelation of strength and weakness of macro environment in case of ASDA has been described below:

Political Factors– ASDA provide access to high quality fresh food at very low price across the globe. It is necessary for this company to work as per laws and regulations of  the country.

Strengths : When organisation follow all rules and regulation given by law it helps in smooth functioning of organisation.

Weaknesses : It is necessary for them to follow UK government laws as it affect their decisions and strategies of business is large manner.

Economic Factors– These include factors like interest rates, demand and supply, recession, inflation, etc which affects ASDA's business at domestic as well as international level. Therefore, the company should be aware of the changes in government rules and policies such as changes in taxation.

Strength : It is advisable for ASDA to make policies and rules keeping economic factors in mind. This helps to increase company's competitive advantage.

Weaknesses: Rise in different type of economic factors in market have a great impact on smooth functioning of organisation.

Social Factors– ASDA focuses on social factors and changes are offered in services and products  because of these factors. ASDA has started focusing on improving brand trust  among employees.

Strength: This helps in increasing customer satisfaction and loyalty.

Weaknesses: If any company does not consider social factors it directly affects the efficiency of organisation.

Technological Factors- Change in technology has given new opportunities to ASDA in building good customer relation by providing them fast facilities. Online delivery, payment methods, customer feedback portals are used in ASDA retail supermarket chain to provide customers a great experience. It is essential for ASDA to introduce online shopping with facilities for home delivery and self-service checkout points have provided convenience to customers.

Strength: Growth and development of business is increased.

Weaknesses: A lot of Capital is required to adopt and install technology in functioning of company.

Legal Factors: The government policies and legislations have an  impact on the company's performance.

Strength: ASDA has provided its customers price reductions on few products on the basis of laws and rules  government.

Weaknesses: Due to this factor ASDA is not able to perform effectively.

Environmental Factor: The pressure on company to address environmental issues ASDA has clear objectives to be supplied by 100% renewable energy, to create zero waste and to sell products that sustain environment and people.

Strength: It benefits society and environment.

Weaknesses: This interrupt the growth and performance of company.

Conclusion

From the above mentioned report it has been concluded that business environment refers to a sum of all internal as well as external forces that affect overall functionality of business. It is quite important that business concerns examine and evaluate all such forces and factors which will further help them in attaining better sustainability and growth as well.  As per this report there are basically three types of business concerns namely private public and voluntary. Also their legal structure along with vision and mission have been stated in this report.  Interrelationships between various organisational functions have also been stated along with  internal as well as external analysis regarding environmental factors has been included. Also these will help in raising performance and productivity of a business entity.

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