It is essential for an organisation to clearly analyze the impact of internal and external business environmental factor upon the decision making of firm. The purpose of this report is to evaluate the ability of an organisation to deal with competitive business environmental aspects.
- Describe different types of organisation as well as their size, scope and legal structure.
- Demonstrate interrelationship between different functional departments of an organisation and relate them to its business structure.
- Critically analyze the impact of macro environmental factor upon business operations of Nestle.
- Clearly determine interrelationship between macro and micro factors of Nestle.
INTRODUCTION
Business environment is described as the place in which activities are carried out according to the set business plans in effective and planned manner. This is the most useful factor in order to achieve all business goals and objectives in effectual and planned manner. There are mainly two factors known as internal and external business factors which are useful for the overall business operations (Reed and et. al., 2013). The factors are having direct implications on functions of the organisations which consist of employees, customers, partners etc. The most vital factor for business is related with analysing the most suitable environment in which activities can operate so that firms can earn higher profitability and enhance their sales and profitability ratios. The company chosen for the project is Nestle and they are having their operations in confectionery and bakery products in UK. The undermentioned report is based on size, scope and the nature of organisation who are working in various environment, interrelations among different business functions and the major objectives of business will be evaluated here. Furthermore the discussion will be carried out about about the positive and negative implications of the desired business activities.
TASK 1
P1 Types and Purpose of private, public and voluntary organisation and their legal structure
In the modern world there are various organisations working with their predetermined business goals and objectives which are beneficial for them in order to achieve strong business positions in the economy. The major aim of firms are linked with earning higher profitability ratios by satisfying need and wants of customers. Presently the Government which is operating in United Kingdom have developed plans in order to register the organisation and differentiate them on the basis of the employees who are working, size of business operations, the working environment etc. The firm is having differentiated legal structures in order to achieve competitive gains at market place and earn higher profitability index. There are some rules and regulations defined according to which the companies are classified according to their size and business activities. Example: The firm are divided among private, public and voluntary organisation according to their size and business operations. The business owner should be aware about all the rules and regulations which are implemented by UK government so they will not face any type of risk in their business operations. This is the most vital factor as firms can achieve their target in desired time frames.
Different purpose and type of organisation with their legal structure are given below as:
Private company
If the company is owned by the resident of UK and he is following all rules, regulations and plans policies which are formulated by UK government. Another factors is that government is not having any interference in the business operations and if they are earning higher profitability thus wants to expand their business operations then they can easily do it because there is no rules and regulations made which will stop them from running or expanding their operations all around the globe. This is the most beneficial factor for the growth and development of UK economy as they are providing employment to large group of people which will in turn results in growth and development of UK economy and the literacy level will also be increased.
The private firms chosen for the report is Nestle and they are running their operations all around the globe and classified under one of the largest retailing companies. They are mainly manufacturing food and bakery products. Nestle are running their operations from the year 1866 and are also selling snacks, coffee, frozen food, medical food, snacks etc.
Purpose of Nestle
They are mainly focused towards offering quality products to their customers in order to maintain their living standards.
They are organising campaigns and making customers aware about the importance of health foods for growth and development of body.
They are offering economical friendly products to all their customers.
Legal structure of private company
Partnership: This is the most important factor in which two business owner come together to run a single business then it is termed as partnership. The important factor is that they are earning high profitability from their ventures and the shares are equally divided among both the business owner who are running as partnership. This is an vital factor as it results in enhancing profitability of business.
Sole proprietorship: This is the structure where there is single business owner and they are running their activities according to their set plans and all the profits and losses are beard by them.
Limited companies: This consist of majorly two kind of legal structure one is known as guarantee and the other is shares. The owner is having full control over all the business operations and they faces less liabilities.
All the institutions which are classified as police, education, military, police , public transit, healthcare and these are running by government authorities are known as Public organisation. The persons who are having the highest position in the company takes all the important decisions which are linked with business so that firms will their main objectives. There main aim is not profit but to ensure security, develop mind set of customers and many more.
Under this Public Sector NHS have been taken as they are delivering health care services to patients so they can be cured from those diseases which they are suffering.
Purpose of NHS
They are offering health care services to patient
They are delivering quality services to all their patients as this is the most vital factor which results establishing strong image in mind of customers.
The Legal structure of public company is stated below as:
- Central government: It consist of all the department which are classified under city or state
- State government: They are delivering work and providing support to state government.
- Local government: They are maintaining all the work and requires necessities in all the areas.
Voluntary organisation
These firms are mainly working in order to provide services at free of cost to all their customers. The main aim of firms are linked with development of the overall society in order to ensure growth and develop healthy working environment. On the other side these organisation should take approval from the UK government so they can easily deliver their services.
Oxfam was established in 1942 and they are classified under charitable trust and they are offering services to all the customers in order to ensure development of the whole society of UK.
Purpose of Oxfam
They are offering services to all those people who are in need of it.
- They are focusing on raising living standards of people.
- The development programmes are organised on a regular basis.
Also Read: Impact of Globalisation - Marriott Hotel
P2 Size and Scope of various types of organisations
There are various difference between the vision, mission and objectives of business so the most important factor for business is linked with analysing the working in order to achieve effective results. There should be plans developed in order to achieve effectiveness in their business operations. The policies should be altered according to changes in business operations. The size and scope is decided according to the requirements of firms. The scope and size of business is evaluated below as:
Nestle
Size- This is one of the most important brand in bakery product. As there is high competition at market place so firms should make plans in order to achieve competitive gains at market place. The firm have established strong brand image at market place thus they can easily expand their business operations. The firm was established in the year 1866 and they have retained loyal customers who are buying their products thus enhancing their sales and profitability ratios. The firm is earning highest amount of profits which are beneficial for them in order to enhance their overall sales index.
Scope: The firm is selling their products to people of all age group according to their needs and requirements. There should be changes applied in the process in order to achieve competitive gain at market areas. The offered products of Nestle are Baby food, medicines, Kitkat, Maggie etc are the major products which are offered by Nestle. The firm is also dealing in snacks, pet food, frozen food and milk products.
Vision: This is termed as the long term objectives of business organisation. There main aims are linked with satisfying different needs and wants of customers. They should offer healthy products to all their customers as this is the most vital factor in order to ensure healthy life.
- Mission- The mission of Nestle is to become the highest leader in chocolate brand of Asia's. They are also focusing on quality factor in order to satisfy needs of all the members of society.
NHS
- Size: In Health care sector NHS is the most vital organisation and they are offering products to all the members of the society. The company have started their business operations in 1948. They are offering free services to all their customers and have formulated plans and policies in order to achieve success and growth in their business operations. There are more then 2.5 million people who are working in order to provide services to their customers. They are also serving quality products to there customers.
- Scope: The firm is running their business operations at large scale thus they have large number of employees who are working under them in order to provide services to there customers. They are also offering free medical services to all their patients.
- Vision: The main aim is to provide solutions to the problems from which people are suffering in order to provide them comfort. If there are variations in companies then it results in achieving targets in effective and planned manner.
- Mission: The main mission of NHS are linked with serving the people of the society in most effective and planned manner. This helps in improving the living conditions of the people of society.
Oxfam
- Size: This is the biggest organisation and it covers almost 25 charitable trust who are working for the welfare of the people. They have recruited employees who are working in order to improve economic conditions of society. There are many people working as volunteer in order to achieve their assigned goals and objectives on time.
- Scope: The scope of firms are linked with achieving their goals and objectives in the desired time time period that have been allotted to them.
- Vision: If there is no income in the economy then it results in poverty ratios and the economic growth of the country will be hampered. Thus they want to provide employment to people in order to remove poverty from the economy.
- Mission: There main mission is to make improvements in the living standards of people of UK so they will easily fulfil the basic necessities of their life.
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