Business environment is that I which all the organisations exist and it is dynamic in nature. It is refer to examine both internal and external factors of business operations and activities in better manner (Aterido, Hallward-Driemeier and Pagés, 2011). This is combination of several things which gives wide impact on working of business such as productivity, profitability, goodwill and growth. Assignment is based on Apple which is an multinational organisation as well its Headquarter is in Cupertino, California. Company is offering variety of products such as smartphones, iPod media players, tablets and so on the large market area to their customers. An company is dealing in different types of goods and services for satisfying their customers and also for gaining attention. Main purpose of this project is to understand different kind of organisations such as private, public and voluntary sectors. Also analyse interrelationship between SWOT and macro external factors.
P1 Purpose and types of organisation
There are mainly three types of organisation in business environment such as private, public and voluntary. Explanation of all these are given as below:-
Private Sector – These are the company which is running or operating by its sole traders. Main motive of introducing such enterprise is to bring innovative and creative for entire society which is according to the current trend. Private sector organisation is controlled and managed by group of person in partnership or single people. Such firms are running with the motive of profit maximisation by adopting several strategies. Some organisation need to take license before production of of some products such as alcohol, cigarette and various other products also which can be harmful for customers health (Avramenko, 2012). For instance, Apple is private sector organisation which is offering variety of goods and services like smartphones, computers, iPods and so on. Various other major motives of this sector are mention below:-
- Major aim of private sector business is to gain trust of international and domestic customers.
- Production of several form of goods according to the requirement of customers.
- They always try to establish their reputation in market area by smooth operating of business for long duration and also introducing creative goods.
Public Sector – Companies which is fully managed and controlled by government of particular nation. Main objective of introducing such enterprise is to provide services and development of society. In some situation public sector enterprise work for reducing discrimination as well customers exploitation and secure buyers from any fraud activity (Bill, Pasmore PhD and CMC, 2010). These help in development of economy by providing profit to country and give governing services to society whose basic motive are given below:-
- Fulfil need and wants of clients in appropriate manner.
- Provide quality products at reasonable and affordable prices.
- Focusing on protecting rights of people who are poor by applying laws and legislation which provide correct information regarding their power.
For example, Digital, culture, media and sport is a department of United Kingdom. They have responsibility for cultural and sports activity in England as well some aspects of media also throughout the entire UK like broadcasting and internet. The same is formed in 1997 and its Headquarters is in 100 parliament street, London SW1A 2BQ, England. We also provide assignment assistance to UK students
Voluntary sector – Organisations which comes under voluntary sector are working with the motive of social welfare and also for economic development. It is controlled and managed by government of particular nation but by the team voluntarily. Enterprise is not paying any salary to employees who are working in business because the are working for welfare of society. An association is spending their most of the time in analysing situation, make effectual strategies as well develop new ideas for helping poor people. For example, Oxfam is the voluntary company situated in United Kingdom. Main motive of introducing this organisation is to decrease poverty ratio and increasing living standard of poor peoples.
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P2 Size and scope of different kinds of organisation
Private Sector – Organisation comes under this sector is fully owned and regulate by who wants to earn maximum profit by investing minimum amount as capital in the business. Owner of the firm is responsible for all its functions as well it is also duty of director to run their business smoothly (Gebauer, Paiola and Edvardsson, 2010). In private sector there are several form that involves partnership, sole traders and franchise these are managed and control by single person.
- Sole Traders – It is this sector which is owned and regulate by individual person who is introducing organisation as well he/she is responsible for all its activities.
- Franchisee – It is large chain of stores who is offering variety of goods and services to several peoples.
- Partnership – In this type of business two or more than that involve for starting a new business as well all the partner have equal rights and responsibility.
Apple Inc. in private sector organisation which is situated in United Kingdom as well also offering different types products and services in market area. Main motive of this firm is to earn more and more revenue and profit maximisation. Approximately 5,00,000 employees are working and more than 3300 stores are their country (The process of departmentalization. 2015). Scope of this company is to develop more innovative techniques which can attract large number of clients in the direction of their goods and services.
Private Sector – This is the sector which is controlled and managed by government of particular nation. Main aim of public sector company is to provide benefits to public. Funds is generated by the tax which is paid by common people and government use this for welfare of poor as well needed people. DCMS is the organisation which is responsible for culture and sports activity in England and some aspect of media such as internet and broadcasting throughout the whole UK. Approximately 550 employees are working in the same enterprise and annual budget of DCMS is £1.4 billion (current) & £1.3 billion (capital) approx.
Voluntary Sector – These are also known as non-profit organisations because they are working for the welfare of society as well assist to poor peoples. Qxfam is voluntary sector enterprise which have approximately 51 stores which provide different types of products and services to people for their development as well growth. Also authorities provide fund approximately 4.2 dollars which they invest in helping the poor people who need it. There are more than 3000 members works in Oxfam for helping people. The organisation aid those public who are in major problem.
P3 Relation between different department functions
Apple Inc. is multinational company which is serving several types of goods and services to both foreign and domestic customers. They are also developing innovative and attracting products which can gain attention of large number customers. This association is popular for their services and quality of goods which assist in targeting large number of customers. Products mainly offering by them are iPod, iPhone, Smartphones, tablets, personal computer and so on. They do market research for analysing customers need and demands for fulfilling their demand in best possible manner (Halbert and Ingulli, 2011). As per the structure of the enterprise they have to distributes work to several staff members for achieving their goals and objectives. There are several department is organisation which is formed for its smooth running are given below:-
- Sales and marketing :-this department have its major role in company because they work for the promotion of goods and services marketing help in attracting large number of customers by attracting them towards their offerings.
- Finance :– It is the backbone of every enterprise this need to organise capital of enterprise in best possible manner. All the activities of enterprise is totally depended on funds or resources available in the association. Major role of finance department is business is to prepare budget for working of company as per its department.
- Research development :- It is necessary for company to do market research properly before introducing their products and services in market. Apple have to analyse data and info which is important for making accurate decisions.
- Human resource management :- This is main division because it control and manage overall working of company. HR manage is responsible for hiring and placing persons at right place according to their skills and knowledge.
P4 Positive and negative impact of external factors on business
MACRO environment is consist of various elements which are having major impact on a company performance as well as does not control by organizational bodies due to the involvement of governing bodies. In fact, various factors are identified which are playing very crucial role in assisting company towards corrective path for generating maximum revenue by satisfying clients needs. However, all the elements are interlinked with each other due to which an organization requisite to consider necessary components for understanding changes that is occurred at marketplace (Hamilton and Webster, 2015). Apple is a most leading association by having its outlets in numerous of countries but similar motive that is; maximization of revenue. Along with this, company getting succeeded in establishing their goodwill at international marketplace by analysing fluctuation of each or every aspects that are having major influence on company policies. Hence, study of PESTLE are indispensable for planning organizational strategies in perfect manner so that staff members can easily accomplish their assigned job in best manner. At the same time macro components are affecting organizational strategies in positive as well as negative way which is discussed as follows:-
Political:- Governing bodies are engaged in designing corporate policies, plans and procedure for assisting organization how to run a business in effective manner. Their main objective is to control exploitative activities from marketplace by preventing buyer and seller from wrongful conducts. However, sales of Apple is mostly comes from foreign market other than America because consumers are becoming more qualitative and believes in maintaining their standard. Apart from this, unstable relations with political bodies such as U.S government are influencing company while expanding their business across the borders. It means, company needs to consider trade policies and relations between governing bodies while emerging into new marketplace.
Economical:- Its all about assessing the inflation and deflation rate as well as competitors strategy which is influencing pricing scheme of an association. For example; cost of Apple products are very expensive as compared with their competitors but quality of firm is out of the world which only attract to the rich people. Economic issues in Europe resulted in falling in pound and it automatically decrease the sales of Apple products in UK. Additionally, maximization in labour cost of China is affecting cost of Apple items and most of the parts of goods are produced in china only (Zeng, Li and Duan, 2012). Thus, it shows the economic relations with organization and its impact on overall performance.
Social:- Societal image of an organization is highly indispensable because products are finally consumed by community members. It means, an association requires to design goods or services as per the choice or preferences of society. In fact, image of Apple items are having outstanding image at international marketplace. Moreover, having iPhone is seen as high class standards at societal place and act as symbol of high quality image. Additionally, purchasing potentiality of individual are maximized due to which entire society are getting more luxurious.
Technological:- Emergence of advanced technology influencing organization to utilize modern equipments while running business entity in order to maximize company profits by capturing the minds of distinct clients. However, in modern world consumers are becoming more advanced due to which usage of high standardized technology is becoming more indispensable and Apple is fully surrounded with modern products for coping up with current trends.
Legal:- Legitimate bodies are involved in designing creative items for managing business activities by protecting consumers from misused (Harrison, 2011). In around 2009 Nokia sue Apple due to infringement of Nokia's patent. Apart from this, selected firm is engaged in numerous of patent cases with their rivalries such as; HTC, Samsung.
Environment:- Changes in climate is also influencing organizational policies as well as sometime manufacturing chemicals create global warming across the surrounding. Thus, it is essential for organization to make sure that environmental resources must get protected from harmful effects.
P5 SWOT analysis of Apple
Apple incorporated in 1977, and headquarter in Cupertino, California. Apple is one of the most valuable and strongest and world leading brand. It designs, manufactures and markets personal computers, mobile devices, media devices, portable digital music and sell related to software, services, networking solutions and applications. It is the top revenue generating company in the world. The product line includes Iphone, Ipad, Ipod, macintosh notebook, personal computers franchises (Isik, Jones and Sidorova, 2013). These devices are predominately through the company's online, retail stores and third party cellular network carrier around the globe.
The swot analysis of Apple presents the analysis of innovative company and how it is leading to the market technology.
- S(STRENGTH):- Apple is one of the most valuable and innovative company. It is one of the world's leading company around the globe. Apple's best organizational features includes the sustainable and credible image. It has strong profitability as company's pricing is upto the product quality and the effectiveness as required and customize by the consumer. Apple is constructive and innovative that aid to the profitability.
- W(WEAKNESS):- In this part, we will discuss the weaknesses of the company is the relatively high prices of the product as compared to the existing competitive market. Apple has the limited distribution network globally (Welford, 2013). The main customer base belong to upper and upper middle class consumer. Therefore we can say that the distribution and selling strategy is a major hindrance to the future growth.
- O(OPPORTUNITIES):- This aspect of Apple's swot analysis pinpoint the most significant factor that company can exploit. The significant opportunity in its business environment are distribution network expansion emphasis on the need for a company to change the distribution network that help the firm to reach their customers. Creation of new product lead by research and development methodology.
- T(THREATS):- In this aspect, Apple focuses on the threats of various sources such as, competitors which can limit and reduce the financial performance of a company.
P6 Explain how strengths and weaknesses interrelate with external factors
Apple is a well knownd organisation that provides hardware and software devices to customers. Firm has large number of customers who enjoy effectiveness of its products as well as services. for Apple, it is require to analyse their strength and weaknesses that are interrelated with macro environmental factors. Through this, they can easily make impactful strategy to reduce negative impacts of all weaknesses and maximise strength of firm easily. Interrelationship with macro factors are -
Political factors– These factors are related to governmental norms and regulation that are requires to implement effectively. Through this, Apple can easily build legal framework for their firm.
- Strength- Political factors can be a strength of Apple limited while they expand heir business structure in new countries (Kang, Lee and Leem, 2010). For this, they needs to analyse impacts of political and legal factors that helps to maximise their business structure easily.
- Weaknesses – Political and legal are those mandatory factors that requires to implement properly in firm (Teece, 2012). Ineffectiveness of such elements can reduce goodwill and market image of firm.
Economic factors- For a business organisation, it is require to analyse impact of economical factors on business organisation. Apple is a world class organisation that provide quality products and services to their customers. These kind of activities maximise growth of economy to develop it properly.
- Strength- All these factors are beneficial to maximise economical values of a firm.
- Weaknesses – Some of the inappropriate factors as inflation, growth rate, maximum interest rates impact negatively on firm's policy and procedure.
Technological factors– Apple is a well known organisation, that implement advance technology in their business procedure (López-Gamero, Molina-Azorín and Claver-Cortés, 2011). Through this they can easily manage advancement in their policy as well as services.
- Strength- Advance technology and digitalisation is strength of Apple because they are more likely to adopt such transformation in their products and services. Through this , they can easily provide higher satisfaction to customer on the bases of their requirement and need.
- Weaknesses – Apple always adopt high level of technology in their services that can be hard to understand for others easily. Such factors can be a weakness for Apple when some new users identify their services and products as well.
From the above assignment it has been analysed that assessment of micro and macro elements are highly indispensable for studying the fluctuation in order to make correct decision. Main objective of this report is to understand each or every aspects for controlling possibilities of mistakes and errors for maximizing organizational profit. Mainly, various types of organization are identified at marketplace such as; public, private and voluntary. Along with this, it has been understood that they all are having different motives and distinct in size and scope. Furthermore, positive and negative influence of macro elements was also mentioned for analysing major components that are highly difficult to handle. Last, one thing is also determined that macro and micro factors are having major connection with them and affecting company in various manner.
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