Unit 1 Business Environment Assignment with ASDA and NHS (GC01247)
Table of Contents
Introduction
Task 1
P1 Different types of business organization
P2 Different stakeholders its influence the objectives of two contrasting business
Task 2
P3 Describe how two businesses are organized
P4Explain how their style of organization helps them to fulfill their purposes
Task 3
P5Describe the influence of two contrasting economic environments on business activities within a selected organization
Task 4
P6 Describe how political, legal and social factors are impacting upon the business activities
Conclusion
REFERENCES
Introduction
The business environment is having a large impact on company and its future performance. It is too complex and competitive which needs careful analysis and evaluation of the business environment to minimize its impact (Cantwell, Dunning, and Lundan, 2010). The present report is based on ASDA PLC which is one of the leading organization in retail and conduct their business in the United Kingdom. The main purpose of this study is to analyze various aspects and different types of business and how they perform in an effective manner to attain their long-term goals and objectives.
Task 1
P1 Different types of business organization
In this assignment, the two businesses were taken. One is ASDA and another one is the NHS. ASDA is a well-known super shop and it is a profitable business. On the other hand, NHS is a non-profitable organization.
There are three main types of business that those seeking self-employment can look to establish: sole trader, partnership, and limited company (Clavulanate, Kestin, and Elhi, 2011). Each differs in terms of the paperwork you must complete, the tax you must pay, the way in which profit is distributed, and your personal responsibilities if the business makes a loss.
Sole trader: This type of business is owned and managed by one individual. There’s no legal distinction between the owner and the company, meaning that all debts and after-tax profits are personally yours – this is called ‘unlimited liability’. Specialist service providers such as plumbers, hairdressers, and electricians are often sole traders. Sole trader businesses are easy to establish and discontinue, are subject to relatively few regulations, and typically have relatively low running costs. The owner is responsible for keeping day-to-day financial records, but hands responsibility for the end-of-year accounts to a professional accountant (Chesbrough, 2010).
Partnership: Like sole traders in the sense that they are subject to unlimited liability, partnerships differ in that they involve two or more people pooling their expertise to own and manage the business. Professional service providers such as dentists, doctors, and accountants often fall into this category. Partnerships usually offer the advantages of shared responsibility, reduced time pressure for everyone, and an increased level of financial influence and specialization (Child and Mullering, 2013).
Private limited company: There are two types of limited companies: private limited companies and public limited companies. The former are often small businesses that don’t trade on the stock exchange, while the latter are usually well-known businesses that do. Unlike sole traders and partnerships, these businesses are registered at Companies House and have their own legal rights and obligations (Kaplan and Norton, 2015). Ownership is divided into equal parts called shares. Anybody who owns one or more shares is a shareholder.
P2 Different stakeholders its influence the objectives of two contrasting business
In this section, different types of stakeholders internal and external are described. Also explaining who they are and what they are, then contrasting them with two different companies NHS and ASDA describing what the stakeholders want from the chosen businesses and why the stockholders are useful.
A stakeholder is a person who is in an organization and is affected by the organization in terms of strategy and project. Stakeholders can be internal or external at different levels e.g. Internal stakeholders are groups within a business such as owners and workers and external stakeholders are groups outside a business such as suppliers and community.
List of internal and external stakeholders and explanation of what they are and who they are:
Employees: Their stake is that the company provides them good rates of reward and promotional opportunities. They also want very good security for employments. Also, they are concerned about their salary (Lewis and Gates, 2015).
Customer: The reason for a company’s existence is to provide products or services that meet the needs of its target customers and benefit them in a meaningful way. The role of customers is critical to the company’s survival and success. Through the purchase decisions they make each day, they select which companies will prosper and which will fail.
Government: The government always ready to help those businesses, which provide helps the society to become the people more aware. The government also supports either profitable or non-profits able business for their success as they pay the taxes, which help, for the welfare of society.
Community: The community provides the skilled workforce that a company depends upon to maintain its competitive edge. Members of the community, including the news media, often play a watchdog role, ensuring that the company is a good citizen with fair business practices, concern for the environment, and a willingness to contribute to charitable and social causes.
Task 2
P3 Describe how two businesses are organized
Companies choose an organizational structure based on some factors that include their size, geographic dispersion, and the number of different products and services, which they offer. While the functional structure of an organization mainly focuses on some important area that forms the core of any organization. The organizational and functional structures are an important factor, which helps the organization to contribute to achieving its strategic plans.
Organizational structures are the framework of an organizational hierarchy (Chesbrough, 2013, p.18). The relationship between stakeholders and interconnected network from the employee to the owners and the suppliers to the employers all are related in a chain………..
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