Question :
'The objective of this report is to analyze the influence of internal and external environmental factors over the business decision making. In this regard, it is required for firm to develop an effective strategy by considering:
- Analyze different types of organisation as well as their size and structure.
- Discuss the interrelationship between different organizational function and their link to business structure.
- Evaluate positive and negative impact of macro environmental factors over business decision making of Nestle.
- Determine strength and weaknesses of Nestle as well as its interrelationship to external factors.
' Answer :
INTRODUCTION
Business environment can bee defined as a place in which several kinds of activities are being conducted in an effective and efficient manner. Through this they are also able to achieve the goals and objectives in a proper manner. There are two kinds of factors which are included in business environment and they are named as internal and external factors. All these kinds of factors are having an impact on the functioning of company which includes employees, partners, customers etc. this is very difficult fir every company to understand that which environment will suit them the best so after deciding this they will decide their business operations. It is required to be effective because then only company will be able to earn profits. The company which will be referred in this report is Nestle which is a food and confectionery company operating in UK since many years (Osterwalder and Pigneur, 2010) . This report will basically discuss about the nature, size and scope of the organisations who are working in different parts of the environment. After this, the interrelationship between the organisational functions and its link with the objectives of the company will also be discussed. The discussion will also be done on positive and negative impacts of micro environment on the activities of the company.
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TASK 1
P1 Types and Purpose of private, public and voluntary organisation and their legal structure
It has been analysed that there are ample number of organisations are present in today's world that works with different objectives. Most of firm's main motive is to make profit at maximum level through delivering products and services to consumers that are in need. On the other hand, government of United Kingdom has legalised all the registered organisations and differentiated them according to their operations, employee numbers, working and so on. Along with this, it has been located that company usually consist with distinctive approaches and have totally different legal structure then others. Here, government have given instructions and made some rules in order to distribute companies in different sector.
Different types and purpose of organisation and their legal structure are given beneath:
Private company
If a common citizen owns a company of at United Kingdom can be considered as private firm and does work under all the legislations, rules that has been set by UK's government. On the other hand, government bodies do not have control over these firms and if they wants to expand their business they can easily do it because there is no law has been made by government to stop an organisation in a specific area. Majorly, these are the firms who directly gives employment to citizens of United Kingdom and aid in enhancing economy of UK.
Under this, reporThey deal in food industry and manufactures products that comes under food category. Firm was found in the year of 1866 and are dealing in baby and medical food, coffee, dairy products, frozen food, snacks and so on.
Purpose of Nestle
- Deliver quality products so that to maintain the living standards of its consumers.
- Awaring customers to stay fit and fine through consuming healthy products.
- Give pollution free life to its customers through offering them environmental friendly products.
Legal structure of private company
- Partnership: When a company have two owners comes under this sort of legal structure. This sort of company usually earns high profit as two minds of people work where they both try to enhance their profitability and productivity both at the same time.
- Sole proprietorship: This is sort of company where an organisation is owned by an individual. Usually this person do not need to share profit and have to bear all the losses which are being faced by firm.
- Limited companies: Two kinds of legal structure comes under this and these are shares and guarantee. Under this, owner have full control and do have less liabilities,
Advantages and Disadvantages of private organisation
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Advantages
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Disadvantages
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Mostly government bodies do not interfere under this sort of sector.
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Legally getting registered is a time taking process.
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Both owners and investors do consist with less liabilities.
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Business needs funds which is hard to be made under this secor.
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Public organisation
Governmental bodies like military, police, infrastructure, public education, public transit, healthcare comes under this sort of organisation which is being run by government of United Kingdom. On the other hand, mostly high profiled or high ranked person like of military ususally takes decisions and runs whole organisation.
Under this assignment, NHS has been taken as this firm delivers services to citizens of United Kingdom. They deal in public healthcare sector.
Purpose of NHS
- Delivering healthcare services,
- Provide quality services in order to enhance standards of living of every single individual or citizen of UK.
Legal structure of public company
- Central government: Looks all the department that comes under state or city.
- State government: Delivers work and supports central government.
- Local government: Maintains all the necessities and does work in a specific area.
Advantages and Disadvantages of Public organisation
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Advantages
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Disadvantages
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Developing standards.
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Tax are not being paid by citizens of United Kingdom which may reduce money through which operations can be done.
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Voluntary organisation
Mostly this sort of firm does work and deliver its services in free of cost. On the other hand, it is much required for these companies to take approvals from government of UK so that to deliver their services.
Oxfam which is one of most famous charitable trust through which many celebrity and others are connected and are delivering products and services in order to develop the living standards of citizens of United Kingdom. Company was found in the year of 1942.
Purpose of Oxfam
- Deliver services to people who are in need.
- Upgrading living standardisation of people of UK.
- Development programmes are being organised on a regular basis.
P2 Size and Scope of various types of organisations
There is difference between objectives, vision, and mission of companies so before making policies it is essential to analyse them and take actions in better and effective. It is important rto make policies which are competent to achieve targets. It is essential to make policies in better and effective way. This size, scope are effective are as under-
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