Impact Of Business Environment On Operational and Functional Activities of a Firm

TASK 1

P1 Types and Purpose of Private, public and Voluntary Organizations and Their Legal Structure

For a business organisation, it is essential to accomplish its target goals and objectives in an effective manner. In an economy, different types of organisations are established with specific purposes and objectives that they want to attain properly. Types of these companies can be Public, Private and voluntary and are classified on the basis of their future objectives and goals. The purpose and types of these organisations can be -

Private sector organisation- These business organisations are basically established to make money and get desirable growth on the basis of their products as well as services. For them, it is required to build positive connections with customers to get long-term benefits easily. These types of firms work under the private ownership of an individual or group of people. They also need to obtain legal licences from the government of the country but proper control is held by private owners (Reinhardt and Stavins, 2010). For example, Zara is a private-sector organisation that provides quality products to customers on the basis of their requirements and needs.

Purpose of Zara-

• Provide classy and trendy clothing as well as services to customers on the basis of their demand.
• To create higher competition for further organisations that deal in the same sectors.
• Maximise profitability and growth of the organisation in the coming years.

Legal structure -

• Partnership- These are privately owned organisations in which two or more candidates sign a legal agreement on the basis of their mutual understanding to operate business activities.
• Sole proprietorship- These organisations are basically owned by a single individual who operates all the business activities with their own efforts and skills. Sole proprietors have proper control ion such firms (Shigang, 2010).

Public sector organisation- These organisations are basically introduced to provide quality services to the public. Major activities of these organisations are medical facilities, education, electricity, water, transport and police services. The government of a country has proper control over such organisations. For example, NHS is a public sector organisation which was established to provide health care services to each individual.

Purpose of NHS-

• Provide effective and quality services to each and every client.
• Treating each patient with respect and self-esteem.

Legal structure-

• Central government - These governmental bodies make proper control of public sector organisations.
• State government - These legal authorities provide funds to manage functional approaches of firms (Karagiorgos, Drogalas and Giovanis, 2011).
• Local government - They provide several facilities for proper management of the firm.

Voluntary sector organisation- These organisations are basically established to social care services to needy and poor people. Voluntary sector organisations are not established to maximise profitability and getting income but they work for public welfare. For example, Oxfam is a voluntary sector firm that works for the welfare of poor people. The main objective of this organisation is to remove poverty from the world.

Purpose of organisation-

• Provide long-lasting services to poor and needy people.
• Remove poverty from the world.
• Provide educational and health care services for public welfare.

P2 Size and scope of different organisations

A business organisation is required to analyse its market size and scope which can be distinct from others. These factors can be based on future objectives and targets of the firm. The size of an organisation considers the strength of employees, the geographical values of the firm and its operation activities of. The scope of the organisation includes a treading policy of the organisation in several countries, customers of products and services and brand loyalty in the target market. All these factors help to manage organisational activities in an effective manner.

Zara-

• Size and scope- Zara is a Spanish fast fashion retailer organisation which was established in the year of 1975 by Amancio Ortega and Rosalia Mera. The firm has approx. 2200 stores in worldwide (Kolk, 2016). In these stores large number of employees are working who provide their effective services and contributions on the basis of customers' demands and requirements.
• Vision and mission - Zara is a multinational clothing brand that has several award-winning moments in its history. The main objective of the vision of this firm is to maximise the number of customers for the firm to get long-term benefits and growth easily. Zara wants to design the most classy and trendy items of clothing for their customers to build impactful competition for other organisations.

NHS-

• Size and scope- NHS is a Public sector organisation which was established to provide health care services to each and every individual. This organisation has a large business structure that maximises its service areas in a proper manner. For them, it is required to manage their healthcare activities in the proper way (Nishitani and et. al., 2012).
• Vision and mission - The main objective of this organisation is to provide effective healthcare services to each and every individual by analysing their requirement and needs. Through this, they can easily build direct connections with service users in an appropriate way. The main purpose of them is to maximise healthcare activities and services for each and every individual.

Oxfam-

• Size and scope- Oxfam is a voluntary sector organisation which was established for social care activities in a country. This firm maximises its structure by providing higher-quality services to each individual. The geographical area of this firm is very vast because they are working to remove poverty from the world (Osterwalder and Pigneur, 2010).
• Vision and mission - Oxfam is a voluntary sector organisation so for them it is required to make clear objectives and vision on the basis of their services criteria. Mission statement of this organisation is to remove poverty from the country. For this, they provide educational and healthcare services for individual development and growth.

P3 Interrelation between different organisational departments and their link to objectives

In a business organisation, several employees are working who provide their effective contribution to achieving target goals and objectives easily. For this management of the firm distinguishes them in different departments on the basis of their skills and abilities. Functional approaches of these divisions are interrelated to each other as -

• Marketing- This is the most important department of an organisation that helps to introduce products and services to the target market. For this they used different techniques and tools in order to maximise the number of customers within their organisation. The main objective of employees of this division is to maximise sales and growth of the organisation in an effective manner. Marketing and promotional tools of organisations are advertising, e-marketing, door-to-door promotion and B2B activities (Pulver, 2012).
• Human resources- This department of the organisation helps to manage operational and functional activities in an effective manner. For this, they hire new candidates who help to accomplish organisational goals and objectives in an effective manner. Recruitment and selection is one most important working approach of HR managers. They also conduct different training programs for their employees to enhance their skills and working abilities.
• Operation and production -Zara is a well-known clothing brand that provides quality services to their customers on the basis of their requirements and needs. In this procedure, employees of the production department help to provide their quality services to customers on the basis of their needs. In this procedure, the research and marketing division helps to provide proper information related to the target market and customers. Production is the most important division of an organisation that helps to maximise income and profitability.
• Finance- This department of the firm plays a most important role in order to maximise funds and investment of the firm in a proper way. This firm needs to hire a skilled and talented candidate who manages all cash, expenses, income and investment-related transactions of the firm. Through this organisations can easily get higher probability and effectiveness as well (Avramenko, 2012).

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CONCLUSION

As per the above report, it has been summarised that the business environment is the most important factor that has a direct impact on the operational and functional activities of an organisation. For this management of the firm needs to make an impactful strategy to reduce the negative impact of such factors. The business environment is classified into two different factors internal and external. Both factors have a direct impact on business procedures and activities. External environmental factors are beyond the control and have a direct impact on the decision-making procedure of the firm. These factors have become more complex for different in order to expand their structure in new geographical regions.

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REFERENCES

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