Understanding the Business Environment to Run a Successful Business Organisation
The succeeding business study is completely based upon comprehending the business environment exactly so as to run a successful business in a highly competitive atmosphere. The study would enlighten the various types of business and their purposes with proper examples. It would also allow studying the size and the scope of such business. The micro and the macro-environmental factors and all the other factors that would affect a business are effectively elaborated in the study. The internal and the external factors that would determine the strengths and the weakness of the business are also illuminated in a proficient manner. PESTLE and SWOT analysis are also done in order to comprehend the situation in a professional way. The pros and the cons of the interrelationships between the functions of the organisation are also elucidated in the study.
P1Explain different types and purposes of organisations; public, private and voluntary sectors and legal structures.
NHS Choices (Public Sector) – The NHS or the National Health Services is one of the public services for the health of people in the UK and mainly operates in England, Wales and Scotland. This public sector organisation was established in 1948 for the welfare of the residents of UK. The main purpose of the organisation is to make the residents of the place available with a wide range of free health services. The organisation do charge some nominal fee for the prescription, for some dental treatments, and for some optical cares, but it can almost be neglected as the organisation offer a large range of exemption from all these charges and all the residents of the UK are not charged anything for the medical treatments (NHS Choices, 2016).
BCA Logistics (Private Sector) – The BCA logistics is a private sector organisation which was founded in the year 1946, is a vehicle remarketing and logistics organisation & now is one of the leading companies that deals with the market for the used vehicle and are operating in more than 12 countries. The purpose of the organisation is to offer the customers with services like vehicle inspection, integrated IT solutions, vehicle driven and vehicle transporter movements and also vehicle refurbishments. The company also deals with the remarketing of the vehicle in the entire UK and is the leading one in its stream. This organisation does not usually own the stock that it uses to sell, but the company acts as the intermediary between the sellers & the buyers (BCA Logistics, 2015).
ny and runs on the rules & regulations that are set by the government. The entire government is involved in the functioning of the organisation. So the size of the organisation is also huge as the numbers of people that are associated with the organisation are also more. No individual third party is involved in the company for the functioning part. The BCA logistics is a privately owned organisation and so is not bonded much by the govt. of the nation. It has to follow some of the rules and regulations while doing the business but it runs and operates in a better condition than the organisations of the public sector. The complete authority of the company is in the hands of an individual person and so the size of the organisation in this aspect is small (Zkjadoon, 2016). The British Red Cross Society is a kind of an organisation that lies in the voluntary sector. It is a kind of organisation that runs completely upon charity and is organised & managed by some trusts. So the no. of people in the entire functioning is greater than the people in the private sector.
ScopeScope for the organisation as wide as it is run by the government, so the entire set of operations is taken care by the government.The scope of the organisation is simple and is more cost less. Being an individual owner of the organisation, the scope of the organisation is increased much more in this case.The scope is majorly distributive and is not that wide, and also due to the type of organisation that it is, it faces an increased expenditure and increased investment for the functioning (Zkjadoon, 2016).
M1 you should analyse how the structure, size, and scope of different organisations link to the business objectives and product and services offered by your chosen organisation.
NHS Choices: the structure of the NHS Choices would be wide enough as the composition of the entire workforce would be having a lot of people ranging from high to the low post. The work of the organisation is usually based on large and wide subjects due to which even the data of the company is represented in the form of large databases and books.
BCA Logistics: the structure of this kind of organisation would also be high but the members would be less than in the case of the public sector. The success of the organisation would only depend upon the quality of the products and the services that the company provides to their customers and clients.
British Red Cross: in this case, there is no such wide hierarchical structure as the complete organisation is fully dependent on the volunteers working for it. Each of its tasks is performed with the help of specialist volunteers that are experts in a particular field.
D1You should provide a critical analysis of the complexities of different types of business structures and the interrelationships of the different organisational functions.
Complexities of different types of business structures – each business is unique in its own kind and mainly due to its business structure. The structures of the different type of business differ mainly due to these factors: type of business, project size, number of partners or owners, et cetera (CPCC, 2017).
While according to Pingboard (2013), the major complexity in the businesses arises due to the differences in these contexts: customer expectations, business functions, the product, the geographic region of the business, et cetera (Pingboard, 2013).
Interrelations of different organisation functions – interrelations of different functions of an organisation should always be present so as to ensure the well-being of the company. The organisational structure of the company should be moulded in such a way that there should be proper synchronization between the functions and if there would be any misalignment the complete well-being of the company would be affected due to it. The operations should be managed in such so as to adapt to any change in a very rapid pace.
P3Explain the relationship between different organisational functions and how they link to organisational objectives and structure.
In order to meet all the goals and to fulfil all the objectives of the company, all the function of the company are required to work in proper collaboration. The collective work of all the functions would help to meet the needs and the wants of the company in a proficient manner. The basic functions of any organisation are the administration, finance, sales & marketing, research & development, design & production, and the most important human resource. The attainment of the proper alignment between the functions is mandatory for every organisation so as to ensure a better future for the organisation. Lack of communication between any of these fragments would create a commotion in the organisation which can even be disastrous to the company and can serve as the biggest disadvantage for the company (Griffin, 2017).
The organisations taken in the preceding part of this report have one thing common in all of them work for the welfare of others on a national as well as international level. Through their functioning in a proper way each of the company promote the same reason and is dedicated to the service of others. All the organisations have a different functional business structure but all of them perform for the same reason. The major functions of any organisation that are even prevalent in the three chosen organisations are the operations, marketing, and the finance.
NHS Choices – this organisation, being one from the public sector continuously announces new forums and properly planned strategies to execute the operations of the company. All the stakeholders hold the responsibility for participating in the marketing fragment and the finance part of the macro-environmental is handled by the government of the nation.
BCA Logistics – this organisation, being one from the private sector completely depends upon its goods and service & on their quality for the well-being of the operations segment. The marketing part is done by the marketing team of the company to spread the awareness about the company and about its good and the services that it provides. The finance part is single-handedly managed by the company itself.
British Red Cross – the company is one from the voluntary segment and so all the operations of the company handled by the stakeholder themselves. The marketing part is done by the works that the company does as it is a kind of charitable society that is known only for its works. The finance fragment of the organisation is completely dependent on the donations it gains from the society and from various other sources and the volunteers play a vital role in the well-being of this organisation.
M2 You should analyse the advantages and disadvantages of the interrelationships between organisational functions and the impact that they can have upon organisational structure.
Interrelationship between organisational functions
Advantages: The major advantage to the BCA Logistics would be the grouping of all the staff and the specialization and the increase in the efficie3ncy that would be obtained from this. This would also help in the segregation of the work and would allow the work to be finished in a more efficient way.
Disadvantages: The major disadvantage to the BCA Logistics is that the functional areas of the work get distracted and sometimes it becomes very difficult to manage.
Impact of Interrelationship between organisational functions on structure
Advantage: The advantage to the organisational structure of the BCA Logistics would be the enhancement that it would provide to the performance of the organisation. This would draw the complete attention towards achieving the goals.
Disadvantage: The major disadvantage to the BCA Logistics would be the poor structuring and due to which conflicts may even occur among the workforce if not managed in an effective manner.
P4Identify the positive and negative impact the macro environment has upon the business operations of the organisation (M3) (D2).
BCA logistics is a vehicle logistics company. They provide managed delivery of vehicle including inspecting, collecting, demonstrating in time. They hold customers from nationwide, Macro factors are generally the external factors that exist in the market, which has the influence on business. These influences can be of positive and negative. These can make an impact on running the business. Macro factors are generally measured by tools like PESTLE analysis. PESTLE analysis helps business to analyse the existing structure of the company to strategies their business needs and to make changes in their plan if needed. PESTLE is an acronym for Political, Economic, Social, Technological, Logical and Environmental factors. These factors are considered to take the positive and negative impact of them on the business (Business Dictionary, 2017).
Negative Impact -Political factors like a new imposition of taxes make the transportation costs for their customers, instability of political parties that may make instability in new rule and laws for industries. Different region political parties may make different trade barriers, which will account on the cost plan of business.
Positive impact- BCA logistic is a transportation industry carrying vehicles nationwide. This industry carries goods through roadways. Granting permission across nationwide delivery and not imposing tariff barriers allow business to run smoothly.
Positive Impact: Improving in manufacturing sectors of automobile industries helps business to make the impact in the market, good manufacturing results in more demand of automobile which will help BCA logistic more deliveries to the customer and acquire more customers. Nations increasing GDP can be the contribution of the logistics industry and vice versa. Increase in currency value in the market can give a boost to the revenue generation of a business.
Negative Impact: Rise in prices of a commodity can negatively impact on the logistics industry sector. Different rates of commodities in the different region affect the business. The fluctuation in cost related to the transportation charges and economic condition of the different region affects the cost stability and cost plan for a business.
Positive impact: High living standard of customers nationwide increases the demand of automobile industry. This helps the business to grow more, as a purpose of delivering the product. Countries having large population are more customers of the business. Large labour cost can affect business.
Negative Impact: Increase in cost investment on labour force can disrupt the cost plan of business. Security of vehicle through road transportation cause trust issue among the customers. Increase in storage space and availability for the vehicle in time constraint by manufactures disrupts the operational function of a business.
Positive Impact: Business has updated its operation with the new advancement in technology. The updated system helps a customer to keep tracks about their delivery and to calculate time estimation for the arrival of their orders. Direct feedbacks and interaction with customers had helped the business to grow more and make changes in their respective plans.
Negative impact: Poor management of database affects business to lose their customers. Lacking in synchronization with their existing infrastructure can lose their clients and proper management of timely deliveries. Not updating the software according to changing the pace of technology affects business giving incomplete information about their order to customers (Oxford College of Marketing, 2017).
Positive Impact: BCA logistics is continuously following the laws implemented by the existing government to not affect their business run. It follows the certification asked by the government to easy movement of good through their carriers. Following the laws for the transportation industry for movement from region to region had made their service fast.
Negative Impact: Price discrimination among different region makes the service questionable. Working hour’s operation is legally objected by the government and working force. The time constraint for delivery has to be made that make the business to make certain changes in the laid rules for the movement of good.
Positive Impact: Introduction of the new environment-friendly mode of transportation helps the business to cut cost in investment in the heavy vehicle. Using technology in their business operational functions makes the business paperless operation for the transportation of goods. A mass movement of the vehicle through the single transport mode plays a positive impact on the environmental condition.
Negative Impact: Changing weather condition affects the delivery rate as it affects the movement to nationwide service. Laws relating to the environment conservation restrict the business to invest in lightweight goods carriers (Claessens, 2015).
D2 Analyse the macro & microenvironment for the impacts upon the business objective & decision.
The complete analysis of the macro factors has been done in the preceding fragment. The internal factors that influence the development of the business and the decision making and can be controlled if proper methodologies are used and applied are:
Positive - The effectiveness and the efficiency of the supplier may boom the productivity for the company.
Negative - The position of the supplier in the supply chain and the nature of the supplier may also cause a negative impact on the business.
Positive - The distributor may help in multiplying the name and fame of the company and can also help to increase the sales for the company.
Negative – The distributor can also hamper the business as they have a large availability of the products with them, which could also negatively impact the business (Learnmarketing, 2017).
Positive – A healthy relationship with the customers would allow the business to expand at a very high pace.
Negative – The customers hold the responsibility for the regulation of the supply and demand of the products in the market and can highly impact the business.
Positive – Helps in building up a competitive advantage in the market and can also allow and suggest the company to make the modification for the benefit of the business.
Negative – The competitors could highly impact the business by increasing the pressure in the market and by regulating the prices.
P5Conduct internal and external analysis to identify the strength and weakness of the organisation (M4).
It creates a complete range of competitive advantage for the company that analyses their roles in the market and the product for the betterment of the company.
Generation & implementation of attractive ideas by the company for the purpose of attracting more and more people to the business.
The abundance of vehicles in the place helps the organisation to enhance their services by reaching out to the maximum number of customers.
The BCA logistics encompass several teams of highly trained professionals that serve to be the strength of the company.The properly designed strategic plan is not made for the future of the company that is leading to be the major weakness for the BCA logistics.
The market for this specific field is very competitive and to fight all the competitors, rising up of new technologies is crucial.
The requirement for the implementation of new and creative ideas is necessary.
Global markets are very wide for the business and provide a lot of opportunities to spread the business.
New target markets are to be found and the overall development of the existing market is required.
The growth and the development rate and the overall profitability of the business are high.The technological updates are not easily available that becomes a major threat to the company.
The lack of continuous innovation may divert the customers.
The strategic plans and innovative ideas would help to conquer the threats for the company.
M4SWOT analysis to analyse affect upon decision-making approaches of BCA Logistics.
The complete SWOT analysis is done to analyse the complete set of strengths & weakness and the opportunities & the threats to the BCA logistics. The complete set for the advancement in thecompany all are analysed in a proficient manner with the help of the SWOT analysis. The results oftechnologies, the areas for the improvisation, the impact on the organisation; the risks to the the SWOT would help the company to focus on the increase in the profitability from the business, and for gaining the competitive advantage in the market for the enhanced growth and development of the business in the local as well as in the global market.
P6 Explain how strengths and weaknesses interrelate with external macro factors.
Macro factorsStrengths and weakness Factors
The changes in the legal, political and economic factors may change according to the nations govt.If properly planned and executed, these factors may not affect the company on a large scale as the number of vehicles in the market are very large in no. and so these factors become less effective.
These factors on the same side would impact the company if properly designed strategic plans are not implemented in an effective manner.
The social and the cultural factors demand the changes in the existing business functions.Innovation in reaching out to maximum people would help the company to grow at a faster pace.
The cultural factors may affect the sustainability of the business on a large scale and are to be taken care for the success of the business.
Technological factors may impact any business. Technological changes in this stream of business are not prevalent, so if properly strategized plans are implemented the company can easily reach their goals and objectives.
Environmental factors may impact the company through the natural forces.Natural forces may have a positive impact on the business by providing them more customers that are affected by the natural forces upon their vehicles.
These forces may also harm the business by causing natural hindrances to the well-being of the business.
The preceding business study entirely concentrates upon understanding the business surroundings exactly so as to run a flourishing business in a highly competitive atmosphere. It would also allow studying the size and the scope of such business. The micro and the macro-environmental factors and all the other factors that would affect a business are effectively elaborated in the study. The study would enlighten the various types of business and their purposes with proper examples. The pros and the cons of the interrelationships between the functions of the organisation are also elucidated in the study. PESTLE and SWOT analysis are also done in order to comprehend the situation in a professional way. The internal and the external factors that would determine the strengths and the weakness of the business are also illuminated in a proficient manner.
project management assignment help, business management assignment help, business management assignment, management assignment help services, strategic management assignment help, management accounting assignment, management homework help, marketing management assignment help, human resource assignment help, human resource management assignment help, managerial accounting assignment help, management accounting assignment help, financial management assignment help, it management assignment help, project management homework help, hospitality management assignment help, hr management assignment help, operations management homework help, brand management assignment help, database management homework help