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MC4F10 Business and Business Environment Assignment Level 4

Introduction

Business environment as the name says is the activity of human like production, sales, etc. keeping the surrounding safe. The environment in which a business is established is business environment. It is basically set of conditions that are uncontrollable and can affect the operations of the organizations. It consists of two types : Internal and external. Internal environment includes : Machinery, management, money, material and human being. External consist of outside factors like political, socio-cultural, government and legal factors. This report will include the overview of different types, size and scope of TESCO and it will show the interrelationship of various functions within the organisation. Also, the various macro environmental factors that impact on the business operations is stated and the internal and external analysis of the organization is done (Belás, Bartos and Novák, 2014).

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Task 1

P1 Providing an overview, explaining of different types of organisations and the growth of the international business environment

Business has become an important part in everyone's life. It can be said as a source of employment and growth of economy or it can be a system to improve some factors of our society. Organisations has many forms, types and objectives. Organisation is referred as the place where group of people work for achieving company's objective and increase company's profit. The main types of organisations are: Profit and non- profit organisation.

For Profit Organisation

Their main goal to earn more profits, capital and market share by providing best services to customers They provide services to people in return they get revenue, good customer base and popularity. When more customer will buy the service, it will automatically increase organisation's productivity and gain more profits.

For non profit organisation

These are the organisation which depends on stakeholders or owner of some organisation and their capital that they invest in this organisation to serve the society gaining no profits. These does not aim to gain profits. It is just a social service (Simoes, Singh and Perin, 2015).

 Non profit organisation are of several types:

Volunteering organisations

They are the groups of people that contribute together to a society. These organisations are controlled by those people who don't get paid. There are no legal issues for this organisation as they totally depend on others for capital.

Charity organisation

They are a bit similar to volunteering organisation but the contribution to society has wider range and big objective. Their main aim is to improve education, health care, improves poverty.

Cooperative organisations

They are the small communities which has no legal issues. They are the smaller group of people from the same industry who benefit their stakeholders. They cooperate with each other and with their stakeholders.

Profit organisations can also be categorised:

Sole trader: It is a type of business who has single owner who legally accepts the debts and profits. This kind of firm adapt the market changes easily. E.g.; local salon.

Partnership: It is a system in organisation where 2 or more owners equally divides the shares of the company so for business debts they are legally equal and if failure occurs, Creditors can take their personal assets.

Private Companies:

These are the organisations which is owned by a group of people who invests. These companies are not with their owners so the business debts are legally liable to investors. Companies that use Ltd. at the end of their company name are the private companies.

Their shares are not listed (Leonidou, Fotiadis and Katsikeas, 2015).

Public companies: These are the companies that have sold some portion of the shares to public for increasing funds and their shares are listed.

Private sector: Financed by individuals, stakeholders or bank loans. It benefits the owner fully by  profit and sales capital.

Public sector: They controlled and financed by government for public funds to serve the society.

E.g.: public hospitals, public libraries, etc.

The revolution taken in industry increased the growth of international business as it provided production for markets and methods to use raw materials effectively. The new innovations and technology developments gave a good benefits in the flow of materials and services. Factors that led to growth in business are:

Development of supporting services and expansion in Technology: Various development in technologies are taking place in every shore period. Also, there are services developed by the government and companies that facilitate international business and customers. Many institutions developed effective way for companies to receive payment of their sales. Digital information processing is the innovation that needs to be implemented in the organisation. This innovation created a level of advancements for the organisation to increase their activities.

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