Unit 1 Business Environment Sample Assignment with ASDA (GC01234)

Table of Contents

INTRODUCTION

TASK 1

P1 Describe the type of business, purpose, and ownership of two contrasting businesses

P2 Describe the different stakeholders who influence the purpose of two contrasting businesses

TASK 2

P3 Describe how two businesses are organized

P4 Explain how their style of organization helps them to fulfill their purposes

TASK 3

P5 Describe the influence of two contrasting economic environments on business activities

TASK 4

P6 Describe how political, legal and social factors are impacting upon the business activities

CONCLUSION

INTRODUCTION

In modern times, the internal environment of a company has been to be managed and controlled with the help of new and smart technologies. It is very important to properly analyze and evaluate external market environment as well as major factors that can be impacting operations and their production level (Baxter, 2012). This research project will be explaining about different type of businesses and their major purposes as well as major factors such as social, legal, political, etc. which be influencing the firm. ASDA is of the fastest growing and leading retail company in the UK, which is dealing with a different type of home products. Its already set a brand image in the external market place and customer’s mind.

TASK 1

P1 Describe the type of business, purpose, and ownership of two contrasting businesses

Asda Stores Limited, commonly known as ASDA, is the second-largest retail store and a national public limited company. It is a profitable business and it is the subsidiary of American company Wal-Mart. It was founded in 1949. Furthermore, as Asda is a profitable business it is also in the private sector (Breton‐Miller and Miller, 2013).

WellCare is a local charitable, non-profit organization. They earn no profit out of their work however do accept forms of donations and fundraisers. The charity was set up by a church over 100 years ago. It was originally founded in 1894. Furthermore, as it a non-profit business and is giving service it is in the public sector. Purpose of the business: A charity is a group of profitable people whose aim is to give service and help those in need. WellCare charity provides services that include social work and family support, support groups and life skill workshops and a children’s health clinic. They work to keep families together and encourage parents to give their children a happier childhood (Chaffey and White, 2010).

Asda is a retail supermarket and the purposed of Asda is to make a profit and to supply goods to customers. It sells general merchandise such as food, drink, clothing, and various other items. It also has services such as insurance, financial services, and a mobile telephone network. Business Ownership and level of liability: Asda was founded by Associated Dairies & Farm Stores Limited in 1949. This is situated in Leeds. The company has limited liability, therefore any debts within the company are paid by shareholders investment and this means the owner wouldn’t have to sell their assets and belonging to pay the debt. Being a shareholding company, you can freely sell shares, this is an easy way to have money contributed to the company.

WellCare was founded in 1894 and was originally called The Diocesan Association for the Care of Friendless Girls. This company has limited liability, this means any debt is paid for and the owners do not have to sell any assets (Cauchi, Pena and Sneha, 2012).

P2 Describe the different stakeholders who influence the purpose of two contrasting businesses

There will be explained about companies and major stockholders, ASDA, and WellCare Charity. Firstly, Stakeholder is an individual or a group who has an interest in the success of a business that delivering high results and maintaining the viability of the business’s products and services. There is an internal and external stakeholder which stated under the following:

Employees: Employees are people who have contracts with two parties, one being the employer and the other as employees. Employees rely on their job for pay. Most employees work for money but there are some who work voluntarily. Employees can work part-time, full time, temporary, and permanent all depend on their commitments (Greenrooms, 2011). Employees are one of the Stakeholders, they are interested in the business and want it to do well and succeed. The employees will have job security as they will be well secured by the business. Employees are interested in good sales and good service to the customers therefore they can get rewards/ promotions and bonuses.

Suppliers: Suppliers want to feel valued by the business and get regular orders and get paid quickly and on time.

Owners: Owners mostly spend a lot of time and money on a business. Therefore, shareholders or the owners like to see that their business is at a high rate of profit and increasing the profit and, they would like to see the values of their business is rising.

Customers: Customers want valuable and high-quality products at an acceptable and average price.

Local and National Communities: Employers of local people often have a stake in the businesses within the community. Financial activities and events significantly affect the local environment (Hahn and Gold, 2014).

TASK 2

P3 Describe how two businesses are organized

All organizations need a business structure that can help to manage the business so that it can be successful. The structure can be shown in an organization chart which is used to represent lines of authority within an organization. Businesses use hierarchical structures to show how an organization is organized by showing the levels of authority, the span of control, and the chain of command. In a hierarchical structure, the person with the greatest authority is at the top and each level has a subordinate apart from the bottom level. Each level has managers or employees of equal authority or status. The advantages of a hierarchical organization are that it shows the lines of authority, the formal lines of communication between managers and, how many people each manager is responsible for (Lamer, Eckhardt and Weitzel, 2010)…………..

Business Environment