Table of Contents
1.1 Identify the purpose of different types of organizations.
1.2 Describe the extent to which an organization meets.
Interest and the influence of different stakeholders.
1.3 Explain the responsibilities of an organization and strategies employed to meet them.
2.1 Explain how economic systems attempt to allocate resources effectively.
2.2 Assess the impact of fiscal and monetary policy on business organizations and their activities
2.3 Evaluate the impact of competition policy and other regulatory mechanisms on the activities of a selected organization.
3.1 Explain how market structures determine the pricing and output decisions of businesses.
Market structure can be determined by a number of factors:
However, the main ones are 3 factors:
3.2 Illustrate the way in which market forces shape organizational responses using a range of examples.
3.3 Judge how the business and cultural environments shape the behavior of a selected organization.
4.1 Discuss the significance of international trade to UK business organizations.
4.2 Analyze the impact of global factors on UK business organizations.
Factor Could include:
4.3 Evaluate the impact of policies of the European Union on UK business organizations.
It is the key issue for an organization like Primark to analyze and evaluate its business environment to gain organizational success. The business environment is classified as a macro-environment and micro-environment. The macro business environment includes several external issues such as political, economic, social, technological, legal, and environmental factors. The micro-business environment includes several internal issues of a business. This paper conducts a study on several environmental issues of a particular business named, Primark. Primark is a leading food company. However, it has been facing several challenges including poor performance in its current business environment and marketplace. Thus, this paper aims to analyze and evaluate the business environment of Primark and provides solutions for Primark to improve its performance.
Task 1 Understand the organizational purpose of business
1.1 Identify the purpose of different types of organization that Primark caters for or have a business relationship with
There are different kinds of organizations in the current business world. The organizations are mainly classified as sole traders, public limited companies, private limited companies, government-run companies, partnership companies, charity organizations.
What type of organization is Primark?
Primark is recognized as a private limited company that has a number of stakeholders and lots of shareholders. The shareholders of Primark have limited liabilities. Primark operates under the law of England, Wales, and Scotland. Primark does not want to offer its share to the public because it is not on the UK stock exchange market. This is because it is a private company that is not allowed to offer a share to the public. However, it issues share capital within the existing shareholders and authorized share which is declared to the register of companies. In a word, Primark is a private and limited company, whose aim is to gain profits through increased revenue and market share.
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Identify and discusses the purpose of one organization within the following categories:
Sole trader: the structure of a sole trader is very simple and easy to start. In this case, the business owner only registers the business name and starts trading. This type of organization is established by a single person. All of the business activities are processed and managed by the business owner. The aim of this kind of company is to gain profit. The profits depend on the activities of the business. The owner needs to keep the risk and be able to lose money. The example of this kind of business are doctors, farms, service businesses, professional lawyers, small corner shops (Mullins, 2015).
Public limited company: public limited companies are those which are listed in stock and public exchanges. Thus, this kind of company has the right to sell shares to the general public. This kind of company has limited liability but must have a number of directors (minimum two) and minimum share capital (£500,000). An example of a successful public limited company in the UK is Tesco, Boots, Sainsbury’s, Lloyds Groups, etc (Mullins, 2015).
A famous public limited company in the UK is TFL. It is a statutory corporation. It has more than 28,000 staff who are working in its current operation. It serves millions of customers every day. It is a London-based organization. It has a budget of £11.5 billion for 2015/2016, where it gains 40% of its budget from fares. 23% comes from the government, 20% is borrowed, and 17% come from Cross-rail funding and other income (TLF, 2016)…………………