BUSINESS AND THE BUSINESS ENVIRONMENT
In this particular study, a detailed elaboration of the business environment conditions and their possible advantages and limitations has been portrayed. An overview of the vision and mission has been discussed. There are a mix of three kind of business sectors that have been chosen that is public, private and voluntary and the names being, The BBC, TESCO and the British Red cross. Initially, the size, scope and legal structure of each organization have been explained, specifically. These are further elaborated with findings and occurrences of the micro and macro environmental factor impacting the chosen company that is TESCO. In the later part, a detailed critical analysis has been done on the factors with the help of PESTEL and SWOT analysis in precise and key points, concluding with the ultimate business environment factors, as gathered from the case study.
The concept of business industry has been broadening its branches drastically since early times into several categories and sectors. The kinds of business industry have made a mark in recent times by emphasizing of innovative styles of business. The self driven venturing type of business is also expanding in several parts of the United Kingdom. In fact, a large number of fresh pass outs and graduates are acquiring training on entrepreneurship, which is one of the advanced strategies to reach business target rapidly. Apart from the typical or signature business sector, there are several forms of earning established in today’s world, which are also legally registered as well as authorized by the government.
In general, the business industry consists of three main sectors, such as the public, private and voluntary. In this scenario, three organizations, that are, Tesco, BBC and the British red Cross have been selected, which shall be broadly classified and elaborated based on their organizational structure and business environment.
LO1. P1 The motives and purposes with legal structure of each organization
Each of the sectors comprises of specific functioning elements and a distinct functional flow. According to Prajogo (2016, p.241), the public form of business as the name suggests, are mostly focused on public welfare purposes, whereas the private category can be stated as a core profit earning quarter, based on its own criteria. The third sector is the voluntary business, that is one of the fastest growing business type and largely encouraged and initiated by a particular group of mass for the betterment of the society. It can be categorized as both commercial and non profit.
Similar to the selected firms, there are several other firms under the category of public, private and volunteering sectors. Some of the renowned companies in the United Kingdom are,
Each of the organizations, possess different types of legal structures that can be differentiated briefly. As per Menychtas et al. (2014, p.104), the volunteering organizations are solely run by personal or corporate charities and donations and most acts of the company law are assimilated by the Royal Charter. While, the public sectors are open business bodies which serves for the general mass and public for their regular and basic needs and promotes public awareness. Some of the examples of such examples can be, the NFC, the natural England and more. Most of the public organizations are also enforced by the royal charter in UK, as per the legal structure.
Unlike the above two, the private sector can vary and are mostly considered via partnership and sole proprietorship, where the internal functioning system depends on its type.
P2. An outline of the size, scope and structure of the different sectors
The motive and legal structure of the public body BBC
The British Broadcasting Corporation of the United Kingdom is a broad governmental body that determines certain public services to the entire section of mass, which is supported by the (Ofcom) that is the office of communication, which is the main broadcasting regulatory of the nation.
The mission and vision of this particular company is to serve the mass with eminent and current news affairs and spread certain kind of urgent awareness that is helpful for the general public. Since, it is a public body, the legal structure of BBC comprises of several hierarchies and a large group of people, such as BBC board, its sole traders and executive committee, functioning under the jurisdiction. The Royal charter was responsible for establishing the company and the financial and funding structure requires to be maintained as per the Charter criteria.
The motive and legal structure of the private company Tesco
According to Bah and Fang (2016, p.159), The Tesco is one of the leading retail companies and aims to provide a large variety of services to its customers. Its business is based on products like, groceries, home ware and hardware services. The profit made by the company is solely restored by the organization, itself. The Tesco legal structure is based on corporate governance, and is maintained by different hierarchies, such as the decisions making is split between the internal hierarchy to deal with and shareholders mainly. The company also consists of a licensing team that deals with any legal or license related matter.
The agenda and legal structure of the voluntary body, the British Red Cross
The British Red Cross is one of the leading volunteering organizations of UK and its purpose is to train the3 mass with high level trainings for self health care and first aid. It is enforced by a large number of professionals as well and qualitative training is provided to many youth and fresh graduates, such as, CPR, aiding in natural disasters, operating certain tools and more.
The fundamental legal structure runs via corporate donations and the regulations were incorporated by the Royal charter. The organization consists the chief executive and more than 30,000 volunteers.
M1. Analyzation of the scope and sizes of several organizations are interrelated to business goals and product and services
As stated by Epifanova et al. (2015, p.137), in a way, the nature of scope in a public body incorporates innovative ideas, which works for the betterment of the products and services. For example, a new venture that is to be established by company can be modified as per experts opinions and practical samples to meet consumer demands.
The private sector involves several risk factors, like narrow corporate culture, lack of justification unlike the public bodies, the scope being lesser.
The volunteering organization cherishes the utmost independency in decision making about advanced and new ideas, it is open to different opinions about introducing new services, or involving new members in the group and are not bound to the meeting of targets and profits like the rest of the sectors, in most cases.
D1. A critical analysis of the entanglement of different organizations and the interlink between the mechanism
Along with the functioning of the organizations, there are minor and broader complex criteria are attached to them. In Order to breakdown some of the most important complexities in each organization, the human and system behavior can be taken into consideration. In evidence, human behavior complexity or environmental complexity is comparably more in case of BBC. It is a large organization and internal conflicts between employees can influence the corporate culture, eventually affecting the business.
Whereas, the complexity in system behavior often termed as the operational behavior can be higher in a private firm like, the Tesco. According to Shehu et al. (2014p.101), apart from Tesco there are other companies which are based on smaller scale of business and undergo lack of operational management. Some of the blazing examples of such scenarios can be, work culture and social pressure, miscommunication in management team, lack of record storage, flowchart maintenance and usage of appropriate technologies.
According to the five basic complexities in business framework, the complexity in productivity, which comes under the later part of organizational functioning, is another common issue. This issue can arise in case of any nonprofit organizations such as the the Red cross. As this type of organization solely focus on its services provided to the public and is not completely profit based, a well designed strategic planning failure shall highly affect several aspects of the company, such as company reputation, increase in attrition rate, employee or voluntary dissatisfaction and other complex issues.
As mentioned above, there exists a highly competitive market creating impact on the internal and external functioning system of each organization.
Communication between the departments in each type of organization
The public, private and nonprofit organizations work in specific ways, but above all possess similarities between the functioning structures. The similar related factors like firm communication between each of the departments in the company, is one of the most eminent links between the working structures.
In the opinion of Rubtsova et al. (2015, p.241), the public sector like the BBC, requires immense amount of interaction in between the departments and assertive communication for proper collaboration among the teams. This specific organizational function qualifies for all kind of organizations.
The indulgence of organizational charts
The similarity in the functioning style of the organizations includes the formation of charts in order to portray the clarity in the company thread. For example, which set of employee’s reports to the specific manager, the different levels of management and the distinctive chain of management.
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