The business environment is the most important factor that has a direct impact on the operational and functional activities of a firm. These aspects affect the performance, market values, goodwill, profitability, and growth of an organization. The business environment is classify in two different factors as Micro and Macro which has direct impact on decision making procedure. These factors has become more complex for different in order to expand their structure in new geographical regions (Reed and et. al., 2013). This report is based on Zara which is a Spanish fast fashion retailer. This organization was founded in the year of 1975 by Amancio Ortega and Rosalia Mera. Zara is a multinational clothing brand that provide its classy and trends clothings in several countries. This report include Types and purpose of different organizations as well as their size or scope. Its also determine Interrelationship between different departments and Impact of macro environment. At last it represent strength or weaknesses of an organization and interrelationship of them with the macro environment.
P1 Types and Purpose of private, public and voluntary organization and their legal structure
For a business organisation, it is essential to accomplish their target goals and objectives in effective manner. In a economy, different types of organisations are established with specific purpose and objectives that they wants to attain properly. Types of these companies can be Public, Private and voluntary that are classify on the bases of their future objectives and goals. Purpose and types of these organisations can be -
Private sector organisation– These business organisations are basically established to making money and getting desirable growth on the bases of their products as well as services. For them, it is require to build positive connection with customers to getting long term benefits easily. These types of firms is working under private ownership of an individual or group of people. They also needs to take legal licence from government of the country but proper control is held by private owners (Reinhardt and Stavins, 2010). For example Zara is a private sector organisation that provide its quality products to customers on the bases of their requirement and need.
Purpose of Zara-
- Provide classy and trendy clothings as well as services to customers on the bases of their demand.
- To create higher competition for furthers organisations that deals in same sectors.
- Maximise profitability and growth of organisation in coming years.
Legal structure -
- Partnership- These are privately owned organisation in which two or more candidates sign a legal agreement on the bases of their mutual understanding to operate business activities.
- Sole proprietorship- These organisations are basically owned by a single individual who operate all the business activities by their own efforts and skills. Sole proprietor having proper control ion such firms (Shigang, 2010).
Public sector organisation– These organisations are basically introduced to provide quality services to public. Major activities of these organisations are medical facility, education, electricity, water, transport and police services. Government of a country having proper control on such organisations. For example NHS is a public sector organisation which was established to provide health care services to each individual.
Purpose of NHS-
- Provide effective and quality services to each and every client.
- Treating each patient with respect and self-esteem.
- Central government – These governmental bodies make proper control on public sector organisation.
- State government – These legal authorities provide funds to manage functional approaches of firm (Karagiorgos, Drogalas and Giovanis, 2011).
- Local government – They provide several facilities for proper management of firm.
Voluntary sector organisation– These organisations are basically established to social care services to needy and poor people. Voluntary sector organisation are not established to maximise profitability and getting income but they work for public welfare. For example Oxfam is a voluntary sector firm that works for welfare of poor people. Main objectives of this organisation is to remove poverty from the world.
Purpose of organisation-
- Provide long lasting services to poor and needy people.
- Remove poverty from the world.
- Provide educational and health care services for public welfare.
P2 Size and scope of different organisations
For a business organisation, it is require to analyse their market size and scope that can be distinct to others. These factors can be based on future objectives and targets of firm. Size of an organisation is consider strength of employees, geographical values of firm and operation activities of them. Scope of organisation is include treading policy of organisation in several countries, customers of products and services and brand loyalty in target market. All these factors helps to mange organisational activities in effective manner.
- Size and scope- Zara is a Spanish fast fashion retailer organisation which was established in the year of 1975 by Amancio Ortega and Rosalia Mera. Firm has approx. 2200 stores in worldwide (Kolk, 2016). In these stores large number of employees are working who provide their effective services and contribution on the bases of customers demand and requirement.
- Vision and mission – Zara is a multinational clothing brand that having several award winning moments in its history. Main objectives of vision of this firm is to maximise numbers of customers for the firm to getting long term benefits and growth easily. Zara wants to design most classy and trendy clothings for their customers to build a impactful competition for other organisations.
- Size and scope- NHS is a Public sector organisation which was established to provide health care services to each and every individual. This organisation has large business structure that maximise its services areas in proper manner. For them it is require to manage their health care activities in proper way (Nishitani and et. al., 2012).
- Vision and mission – Main objectives of this organisation is to provide effective health care services to each and every individual by analysing their requirement and need. Through this, they can easily build direct connection with service user in appropriate way. Main purpose of them is to maximise health care activities and services for each and every individual.
- Size and scope- Oxfam is a voluntary sector organisation which was established for social care activities in a country. This firm maximise its structure by providing higher and quality services to each individual. Geographical area of this firm very vast because they are working to remove poverty from the world (Osterwalder and Pigneur, 2010).
- Vision and mission – Oxfam is a voluntary sector organisation so for them it is require to make clear objectives and vision on the bases of their services criteria. Mission statement of this organisation is to remove poverty from the country. For this they provide educational and health acre services for individual development and growth.
P3 Interrelation between different organisational departments and their link to objectives
In a business organisation, several employees are working who provides their effective contribution to achieving target goals and objectives easily. For this management of firm distinguish them in different department on the bases their skills and abilities. Functional approaches of these divisions are interrelated to each other as -
- Marketing– This is a most important department of an organisation that helps to introducing products and services in target market. For this they used different techniques and tools in order to maximise number of customers with their organisation. Main objectives of employees of this division is to maximising sales and growth of organisation in effective manner. Marketing and promotional tools of organisations are advertising, e-marketing, door to door promotion and B2B activities (Pulver, 2012).
- Human resources– This department of organisation helps to manage operational and functional activities in effective manner. For this, they hire new candidates who helps to accomplish organisational goals and objectives in effective manner. Recruitment and selection is one most important working approach of HR manager. They also conduct different training program for their employees to enhance their skills and working abilities.
- Operation and production –Zara is a well known clothing brand that provide quality services to their customers on the bases of their requirement and need. In this procedure employees of production department helps to provide their quality services to customers on the bases of their need. In this procedure, research and marketing division helps to provide proper information related to target market and customers. Production is a most important division of an organisation that helps to maximise income and profitability.
- Finance– This department of firm is play a most important role in order to maximising funds and investment of firm in proper way. For this firm needs to hire a skilled and talented candidate who manage all cash, expenses, income and investment related transaction of firm. Through this organisation can easily get higher probability and effectiveness as well (Avramenko, 2012).
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As per the above report it has been summarised that business environment is a most important factors that has direct impact on operational and functional activities of an organisation. For this management of firm needs to make impactful strategy to reduce the negative impact of such factors. Business environment is classify in two different factors as internal and external. Both factors has direct impact on business procedure and activities. External environmental factors are beyond the control and has direct impact on decision making procedure of firm. These factors has becoming more complex for different in order to expand their structure in new geographical regions.
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