The economic development of the country depends on their industrial business. If the government of country is able to develop their industry, it can bring improvement in the financial condition. There are different kinds of organisations like private, public and voluntary in the country. Different organisations serve different role like public service in the country for developing the economic condition. Henceforth, in order to run the organisation in the effective way, the business authority needs to make effective research on the market. In order to analyse the macro environment of the venture, PESTEL analysis will be done. On the other hand, SWOT analysis helps to analyse the micro environment of the organisation. In order to run the business in the appropriate way, scope and purpose of business will be provided. The organisational theory has been analysed for develop the study. Therefore, the study on business types and size will provide clear conception about the role of industry in the contemporary era.
P1 Different types and purpose of venture
There are different types of organisation like private, voluntary and public in the country. As mentioned by Holsapple et al. (2014, p.140), the economic growth depends on the organisations of country. Therefore, Oxfam is taken as voluntary venture, the Child Support Agency is taken as public sector and NLCCE (North London Chamber of Commerce and Enterprise) has selected as private sector. The purpose and types of venture are followed by-
Oxfam (Voluntary Venture)
The voluntary sector is a non-profit sector, which fights for providing justice to the people of the specific country. As commented by Achtenhagen et al. (2013, p.440), the voluntary sector helps to enrich the society in the appropriate way.
Oxfam is a voluntary sector, which was established in the year of 1942. The motto of Oxfam is to help people, who are suffering from poverty. They help people as they can lead their life in the healthy way (oxfam.org.uk, 2017).
The purpose of voluntary ventures is to help poor people as they can lead nutritious life. In case of Oxfam, they try to provide different types of services like providing meal, financial and so on for removing poverty.
North London Chamber of Commerce and Enterprise (NLCCE) (Private sector)
According to Teece (2014, p.350), private sector helps to improve the economic condition of the country. It provides employment to the people as they can earn money for living.
However, North London Chamber of Commerce and Enterprise (NLCCE) is the private sector, which offers effective membership to the business authorities for running their business in the appropriate manner. The head quarter of the venture is at Hertford road, UK (nlcce.co.uk, 2017).
Figure 2: NLCCE
The purpose of private sector is to bring economic development of the country. In case of NLCCE, the authority provides support to the business ventures for expanding their business. They try to increase employment of the people in the respective country.
The Child Support Agency (Public Sector)
As per the viewpoint of Longenecker et al. (2014, p.56), public sector is under the government of the country. The government provide payment to the employees of public sector. The public sector employees serve to the public as they do not face any kind of problems related to requirement.
The Child Support Agency is the public sector, where the employees try to provide support to the children and their parents. The agency has established in the year of 1993. They provide child maintenance service (CMS) as the child can grow up in the effective way (gov.uk, 2017).
Figure 3: Child Support Agency
The purpose of public sector is to serve people of the country as they can complete their regular duties like handling finance account in the perfect way. Children Service Agency helps to provide service to the children of the country.
Scope and size of different types of venture
Business objectives depending on business size and scope
As NLCCE provides membership to the authority of the business ventures, they try to select an area, where they run their business. As asserted by Teece (2014, p.350), if the venture is able to maintain their structure, they can run business perfectly. Therefore, NLCC sets their objectives as the employees of NLCCE can manage properly.
On the contrary, Longeneckerv et al. (2013, p.53) stated that, if the ventures are aware of their scope in the market, they can set effective objectives for achieving their goal. In case of Oxfam, as it provides worldwide service, they try to remove poverty from the specific area. As their size of venture is huge, they can bring effective outcome.
Child service agency
As commented by Vahlne and Johanson (2013, p.200), the objectives of public sector are approved by the government. In case of Child Support Agency, the authority sets their objective to provide support to the children of the country. As the structure of venture is handled by government, it helps to bring positive outcome.
Interrelationship with different functions and linking with structure
As mentioned by Mason and Brown (2013, p.215), different organisations like public, voluntary and private serve different services like providing guidance, controlling finance and many others. The different organisational functions help to solve the problems of different ventures. For example, it is seen that, in the venture, the finance department follows the financial part of the venture whereas, the managing department notices the production of enterprise. Therefore, different ventures are internally connected.
It is seen that, the private sector needs to provide tax to the government from their income. Therefore, the government pays employees of public sector for their services.
On the other hand, public and private both sectors contribute money to voluntary sectors for developing their services. Thus, the functions of organisations depend on different ventures.
Figure 4: relationship of different ventures
The Child Support Agency
As child support agency is the public sector, the stakeholders are employees, surveyors and many others. They collect data from media and provide service to the children.
As it is a voluntary sector, they recruit many employees for removing poverty. Therefore, they link with media as media provides information to the authority of Oxfam. Therefore, they give their services to the users.
As it is a private sector, the authority needs to provide tax to the government. In time of marketing, they prepare the marketing team for earning effective outcome in the contemporary competitive market.
As NLCCE is the private sector, they can provide employment to the huge number of people in the country. However, it helps to expand the business of the authority of NLCC.
On the other hand, the employees of NLCCE need to keep information about the share market as they invest money. Profit of share market helps to gain huge success to the organisation NLCCE.
As NLCCE is the private venture, they need to provide tax to the government. It considered as the disadvantage of the enterprise.
Many a time, the employees are not able to perform in the effective way. Therefore, production of venture is decreased.
Impacts on organisational structure
The organisation of NLCCE is able to expand their business, for which, the economical condition will be developed.
The employees can be de-motivated due to excessive work pressure
As mentioned by Burrell and Morgan (2017, p.32), authority of different ventures follow unique strategy for increasing their sale. However, customer expectation creates complex among the organisations. On the contrary, Vahlne and Johanson (2013, p.201) stated that, product quality of the venture creates complex among the ventures.
Therefore, different organisations need to select different areas for promoting their products.
In order to maintain good relation among the ventures, the enterprises need to maintain synchronisation. It helps to develop good relation and operate the functions in the efficient way.
P4 Negative and positive impact of macro environment (m3) (D2)
Macro factors can be considered as external criterions that exist in any industry and has several significant businesses on the operations and profits of an organisation.
As per the Good Act of Sales of 1979, the goods need to meet the satisfying standards; the seller must know the purpose of selling the commodities.
The Act of Trade Descriptions in 1968 states that the goods must involve information related to the methods utilised for their manufacture and the purpose they would be serving
There are several social factors that influence the business in a region and they include cultural aspect, population demographics, health and well being and public policies.
According to Schneider and Spieth (2013, p.134), these factors have proved to be detrimental for a business and its performance, especially in the conduction of operations related to a non-governmental organisation that primarily involves a humanoid factor
In order to thrive a business in London, the immigrant organisation needs to understand the lifestyle and preferences of the UK citizens and the citizens also need to provide their assistance in order to help the business to flourish in the location
The business has been global with the increase in globalisation of trade and implementation of the World Trade Order
There are certain factors that influence the daily operations of business in UK which comprises of the Exchange rate, inflation rate and interest rate
With the increase in the value of pounds as compared to the other international currency it has been quite favourable for UK-based organisations to go global as the investment in other nations have been made easier
Technology has been a vital factor and its proper implementation is necessary to make a business prosper
As per Veit et al. (2014, p.47), when technology is used appropriately, it helps to understand the nature and trends of a business, thus providing a clear indication regarding the implementation of any policy
Several laws like employment law, the Health and Safety Law
Consumer Law and Product Labelling Requirements
Environmental factors are the latest considerations that have been affecting the operations of the organisation
As a result, it has become mandatory for these organisations to minimise its footprint of Carbon
Table 1: PESTLE Analysis
Analysis regarding the positive and negative impacts of these factors on Oxfam
Positive and negative impacts of political factors:
There are several new laws that have been developed lately which has limited the operations of Oxfam significantly. On a negative note, these laws have bounded and has stated clearly what Oxfam can and cannot do while performing its daily businesses. It also needs to describe the operations they carry out precisely and comply with the people who are involved with their daily operations. However, on a positive side, Oxfam has been regularly adhering and complying with these policies that have been imposed on them, and as a result, a goodwill is being maintained.
Positive and negative impacts of social factors:
As per Carayannis et al. (2015, p.88), social trends such as donating to these Non-Governmental organisations like Oxfam have been on a rise recently with the decrease in the selfishness of people. Negatively, with the increase of charity work, it has created more pressure on other people to donate their money for charitable gestures as well. Moreover, there have been several renowned corporate organisations, who have expressed their interests to act as sponsors to Oxfam (Teece, 2014, p.26).
Positive and negative impacts of Economic factors:
On a positive scale, there have been several funding for the non-profitable organisation as of late. In addition to this, several sponsors have gathered funds to enhance and improve the daily operations carried out by the organisation. With the commencement of its journey in Canada, it now has a source of international recognition, and funds and has started to pour in, as a favourable criterion for the organisation. Negatively, it has portrayed this non-profitable organisation in a negative light with the image that it has been carrying out its societal work because of the funds it has been receiving.
Positive and negative impacts of Technological Factors:
On a positive note, when Oxfam is incorporating technology in its daily operations, it is subjecting its presence on a global scale, thus making them available to receive international funds. According to Boons and Lüdeke-Freund (2013, p.16), technology has helped Oxfam in promoting various campaigns with the usage of social media. However, it has reduced the sense of personal belonging that Oxfam once had with the citizens of London, thus creating a decline in image.
Positive and negative impacts of Legal Factors:
There are several new laws that have been developed lately, which has limited the operations of Oxfam significantly. On a negative note, these laws have bounded and has stated clearly what Oxfam can and cannot do while performing its daily businesses. It also needs to describe the operations they carry out precisely and comply with the people who are involved with their daily operations. However, on a positive side, Oxfam has been regularly adhering and complying with these policies that have been imposed on them, and as a result, a goodwill is being maintained.
Positive and negative impacts of Environmental Factors:
There have been several talks about minimising the emissions that took place during the conduction of operations in Oxfam. The emissions of greenhouse gases have put significant pressure on the environment and there have been several allegations regarding the way operations are being carried out in Oxfam lately. As a result, it has become mandatory for these organisations to minimise its footprint of Carbon. Hence, energy efficient cars and recyclable paper are being utilised by Oxfam along with the notion of implementation of major changes like using solar panels
External and internal analysis
SWOT Analysis of Oxfam
Analysis of SWOT of Oxfam:
As the organisation has a clear value regarding the way its business is to be conducted, it attracts more consumers because of its clear policies. It has an international presented because of the abundance of international supporters and affiliates. As this organisation is extremely into advertising, several opportunities are being presented to the organisation regarding the expansion of their businesses. According to Carroll and Buchholtz (2014, p.23), it has been built as a brand from the perspective of a retail shop that enhances the image of the organisation. However, amongst all these favourable situations, there have been several issues, that have been posing problems to Oxfam. They are the least preferred organisation from a consumer’s perspective regarding the buying of luxurious products. They have the least international presence and a result, their reach is limited. It also faces the dire issues of facing minimal interests and enthusiasm from a consumer’s perspective, thus hampering the growth of the business. Moreover, it has been plagued with the threat of availability of better products from rival organisations at much lower prices (Vom Brocke et al. 2014, p.533).
Weaknesses and strengths related with external macro factors
Referring to Bocken et al. (2014, p.44), there are several new laws that have been developed lately, which has limited the operations of Oxfam significantly. On the brighter side, Oxfam has been regularly adhering and complying with the policies that have been imposed on them, and as a result, goodwill is being maintained. When the organisation has clear mission and vision regarding its business, it becomes easy for the organisation to consider the location and market segmentation of business. Due to the adhering of rules, both on a local and international level, Oxfam has built a reputation globally which has resulted in promotion of its activities and gain international funds. As per Carroll and Buchholtz (2014, p.40), with the commencement of its journey in Canada, it now has a source of international recognition and funds and has started to pour in, as a favourable criterion for the organisation. Negatively, it has portrayed this non-profitable organisation in an inappropriate light with the image that it has been carrying out its societal work because of the funds it has been receiving.
As it has been renowned for being a non-profitable organisation, the feasibility of luxurious commodities in that organisation is much less. As a result, the consumers who are its target audience include those who emphasises on buying regular products, whose feasibility is much large on a global scale. Hence, the reach of the organisation on a global scale is limited.
The organisations named Children Protection Agency, North London Chamber of Commerce and Oxfam have been selected to conduct this study. It emphasises on the various factors that these organisations need to comply with to successfully carry out their operations of the business, moreover, the purposes of the organisations have been explained along with its legislative structure, scope and size of the organisation. It has been observed that each of these organisations have a clear set of business objectives that have been formulated based on the mission and vision of the company. Following this, a PESTLE analysis have been formulated that would depict the various factors which would result in the flourishing of the business.
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