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Unit 6 Business Environment HND Business Level 5

Introduction

There are many factors which affect business it is essential to consider all the factors so it can be implemented in better and effective way. There are possibilities that due to change in external factors management of company ahs top change their policies too. It is essential to make good and long relations with customer and to compete with competitors. Business environment means surroundings of business. It is essential to perform policies which affect business and this can be effective with change in time (Al-Swidi and Al-Hosam, 2012). As environment changes so change in necessary. It is essential that managers of company ahs to analyze it properly so corrective measure can be taken, which are beneficial for growth of business. There are possibilities that managers have to motivate employees to work under changed environment so corrective measures can be taken. This report is based on based on Marks and Spencer which deals in luxury clothing segment. This company has big image in market and it gets affect due to change in business environment. In this report there is discussion about various types of organizations, their scope, number of workers, etc. And impact of external and internal factors on

Task 1

P1 Different types and purpose of organization

These days scope of business is increasing, so it is essential to perform, activities as per society need. This helps to compete with external parties and achieve goials and objectives. It is essential to know what aim behind office is and then take corrective actions. Due to change in aim there is difference in organizational structure (Bryman and Bell, 2015).

Basis

Profit

NPO

NGO

Meaning

These organizations run for earning profits. They have to regular check demand of society.

These organization does not work to earn profits but to provide services in society. This is effective with the proper involvement of government.

There are some trust which help in severing society. They are formed by mutual understanding of people.

Area of operations

Area of working of profit organizations can be either large or small.

NPO works to provide basic facilities to society, so they large are of operations.

They have small area of operations as the work to serve for specific purpose.

Objectives

Their main objective is to earn profits and expand their business. This can be done by promoting their brand.

The revenue earned by these organizations are used to serve society only. So their main aim is to serve society.

They are having different factors which affect business in better and effective way. They try to reduce sufferings from society.

Purpose of different organizations is as follows-

Private sector- These are organization which are set to earn profits. In this sector, there are many organizations, so completion increasers. It is one of the effective approaches which can be efficient in performing activities. There are many workers in this business, so their motivation is essential (Christopher and Holweg, 2011). There is business at individual level, partnership level, and company level to achieve targets. Purpose behind having this origination is effective with the help of company. It is essential to earn profit and then expand and earn profits.

Public sector- These organizations are managed by government. These are effective with the help of political party and their main aim is to provide facilities to society. These companies are organized by local, district and central level.

            Their purpose is to improve status of society and this is beneficial for having different changes in society. This helps in improving living of standard of company.

Voluntary sector- These organizations are framed to provide assistance to some specific group of society. Such as child education, Poverty reduction, cancer, etc. are main behind such organization. Revenue they get are used for specific purpose only (Cross and Miller, 2011).

Purpose of this organization is to make strategies which are effective for improving specific group of people. This is voluntary association of people who work for specific reason.

P2 Size and scope of various types of organization

There is different purpose for which company has to achieve work. There is different reason for which company works. It is essential to perform activities to purpose such important responsibilities.

Private company- Marks and Spencer is examples of this organization. In this company there is very government interference and this is effective with the probable changes in business. They are more flexible in their policies as they have created good image in market and compete with other brands. They keep eyes on requirement of society and take corrective actions.

Size- There is requirement of 2 people to set this company and maximum 50 people. They are legally bound by their terms and policies.

Scope- This is the comaony which deals in luxury clothes, home and food products. This is the brand which is effective for company's growth. Annual net income of Marks and Spencer is £ 115.7 Million.

Public company- BBC is examples of this organization. In this organization government has full support and control. These organizations are more reliable and they are not accept changes so frequently. There is no competition, they are market drivers. 

            Size -There is requirement of 7 people to set public company and they are registered under some act (Dibrell, Craig and Hansen, 2011).

            Scope- These organizations are owned by government, so they work in wide span. It is essential that company has to use factors which audit can be performed in effective way. Green paper of BBC prefers ton future aspects.

Voluntary association- Oxfam is examples of this organization. Voluntary organizations are effective with the efforts of few people. They are working to achieve same objectives and serve society.

            Size- There are 15 charitable trusts which are covered under Oxfam. This organization works at large scale in all over the UK.

            Scope- This organization works to improve condition of association. It is essential to know what has to be performed through which welfare of people residing is society is possible.

Micro

Small

Medium

Large

This is the smallest unit which is set up at initial level and this is effective with the help of family members. This is set up to earn basic livelihood. They get affect with change in external factors of company. There are possibilities that due lack of fund these businesses get affected and close down.

This is at high level as compared to micro level. There do not have shortage of fund but due to change in businesses there are possibilities that they might get influenced and either positive or negative result is get. In this business there is involvement of two or more people. They use their own funds to satisfy financial need of company.

These are big organization and there is competition among this company. They have regularly check what changes are happening in business and then corrective measures has to be taken. They tries to improve standard of company and this affects operations of company. They have good name in market but within same geographical background.

This is the biggest form of organization. In these organizations there are different outlets at various places, so they tries to maker strategies as per location. There are many workers in these originations which are guided by top level management of company. These companies get affected due to change in business policies. Operations of this business are at very large level which provides assistance in achieving targets.

 

P3 Relationship between organisational functions

Marks and Spencer is big brands in market and it is essential to perform activities in better way. There are possibilities that company has to manage all departments simultaneously to get best results. There are many activities which have to be done to provide satisfaction to so9ciety. In business, it is not essential business environment remain constant for lifelong so regular check has to be done and deliver appropriate orders for concern department (Gharajedaghi, 2011 Kolk, 2016). There are many departments in Marks and Spencer which work to give satisfaction to society. Some are discussed below-

Research and development- This department plays important role and scope of this unit is increased these days. This helps company to know what changes are taking place in society and what need of consumer is so production department starts giving emphasise on it. Research department helps to increase sales and know what society think about brand.

Accounting department- They keep all the records of financial related data. It is essential to perform activities in n better way, so cost reduces and this helps to know how much has to be expanding and what, so various departments are concern about use of resources and optimal utilisation is there (Li and et. al., 2011).

Production department- This department is related with various departments such as accounting, purchase, operations, sales, research, etc. So it is essential to perform activities which help in proper production as per need. There must not be over and dead stock. Change in seasons of different countries has to in mind. R&D department ahs to analyse market and take corrective actions to develop

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