Examination of various kind of organisation in which relationship of different stakeholders can be inculcate.
- Explanation of various types of organisation along with their scope.
- Demonstration of interrelationship of different function and their linkage to organisational structure.
- Analysis of negative and positive aspect of macro environment in business.
- Determination of strengths and weaknesses of business and linkage to external macro factors.
Business environment is considered as combination of internal and external environmental factors that influence a company's operating situation. It is also correlated with various important individuals who may have their involvement in establishment and regulation of this enterprise (Lancaster and Massingham, 2017). Present report involves an analysis of different kinds of organisation such as profits, non-profits and non-government organisation in order to analyse difference between them. Further, differences between micro, small, medium size and large enterprises are also discussed along with the market share, profit share, growth and sustainability. In addition to this, different kinds of structure relating to size and scope of business operations have also been discussed. Various important functions relating to the mission and objectives are evaluated along with the problems of transnational, international and global business enterprise. In case study, analysis of various UK leading supermarket chains have been accomplished in order positive and negative influence of macro environment on UK retail sector. Further, they also need to conduct an internal and external analysis of UK supermarket to identify its strength and weaknesses along with its interrelationship with external macro factors.
P1 Different kinds of organisations Difference between profit, non- profit and non-government organisation.
Business environment consists of sum total of all individuals, business enterprises and other important forces which are outside the control of business enterprise but the business still depends upon them as they affect overall performance and sustainability of the business. It also consists of various business enterprises which are established by individuals with different purposes and motives to regulate business operations (Kew and Stredwick, 2017). Then again, difference between three important types of organisation have been analysed such as Profit, not for profit and Non-governmental organisation. Profit enterprises are also considered as private business ventures which are owned and regulated by private individuals with an aim to maximise profits. These organisations usually get investment from financial institutions, investors and bank loan for establishment and regulation of business. Purpose behind regulation of business is to achieve high profits in business operations and make efforts to increase market share. For example: B&M retail is a retail organisation that carry out its operations in UK to achieve profits from markets.
In contrast to this, Non-profits organisations are analysed legal entity which operates for serving the society as a whole. They are established by individuals with a motive to serve people in society at large. These organisations commenced through donation, subscription and membership fees. For example: Oxfam and Age UK are two non-profitability organisation serving local community people in UK. In comparison, with this, NGO refers to non-government enterprise formulated by ordinary citizens or social workers, which operates autonomously of government. Area of operation of NGO is comparatively wider than NPO. It is established with motive for the betterment, enlistment and development of society rather than earning profits.
Business purpose and supply of goods and services.
Profitable enterprises usually have wide scope of operations as they believe in evolving continuous innovation to earn profits. B&M retail is fashion retail business enterprise that usually supply fashion retail products and service to customers for earning high profits in market (Hillary, 2017). They usually aim to achieve high market share and recognition from customers to increase profitability. B&M retail has almost 560 stores and continuously making strategies to attract customers to earn high profitability. Company also have their own supply and distribution channels which easily accessible to customers. Not for profit enterprises involves enterprises in OXFAM which is confederation of 20 independent charitable organisation concentrating upon the alleviation of poverty. Company regulates business to provide employment to people in local communities that will reduce an issue of unemployment and profits are used for purpose of providing support to individuals in society at large (Botha, Kourie and Snyman, 2014).
Non-government organisation involves enterprises like Dan Church Aid (DCA) which is Danish humanitarian NGO established with the purpose of supporting world largest the poorest population in countries. The HMA Programme is supported by international donors and is one of DCAs the largest mine action programmes with 6 international and more than 45 national staff.
P2 Size and Scope of organisation
Difference between micro, small, medium sized and large enterprises.
There are many differences between micro, small and medium sized enterprise and large entities namely speed of making decision, attitude towards risk and resource allocation as well as understanding and management of business models and differencing definition of innovation.
Micro business enterprise are considered as any business which has a turnover up to 1 million dollars; they usually tend to utilize the Mortgage Brokers and other business brokers for getting assistance with capital raising. These enterprises usually employ less than 10 employees at workplace and regulate operations at domestic level (Belás and et.al., 2015). Further, small enterprise is a business that usually employs some workers and does not have high sales volume. These enterprises are analysed as privately owned enterprise established with the purpose of getting maximize profits in market. Additional types of small scale enterprise involve privately owned restaurants, law firms, inns, engineering and architectural firms.
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