Business environment

Submitted by: Alishba Saeed

Submitted to: Maam Sadia Zeshan
Contents
LO 1.............................................................................................................................................................2
 Explanation of different type, size and scope of the organization:..........................................................2
LO 2.............................................................................................................................................................4
Interrelationship between different functions within organization:........................................................4
Part 2...................................................................................................................................................4
LO 3.............................................................................................................................................................5
LO 4.............................................................................................................................................................6
Internal strength and weaknesses of business and their relationship with external macro factors:.......6
Reference list...............................................................................................................................................9

LO 1

Explanation of different type, size and scope of the

organization:
P1: Organizations are classified according to the kind of organisation they are and the objectives
they attempt to accomplish.
Organizations may be classified into a multitude of categories, the most common of which are as
follows:
• There is just one and only one trade organisation: the National Federation of Independent
Business. In certain circles, the notion of a sole trading organisation has been defined as any
business that is fully privately owned and operated by a single individual, with that individual
personally accountable for all of the company's losses and earnings.... The following is the
definition of a single trading organisation, according to Shetzer et al. (2014):
An organisation owned by two or more persons is known as a partnership organisation, and its
owners are equally responsible for both the organization's losses and its earnings. Consider the
abbreviation FAB, for example.
It is possible to transfer responsibility for limited association in an efficient manner; yet, the
directorate retains total responsibility for restricted association (Schiffer and Weder, 2010). For
example, McDonalds. is a British food company that manufactures and distributes food products.
In order to do this work successfully, understudies should choose one single dealer association
and one limited liability company from which to conduct their business. It is known as Zaffirson
Food by the sole proprietorship, and it is known as McDonalds by the restricted obligation
company, both of which are involved in the area of food handling.
In order to accomplish the following goals, Zaffirson Food (single exchange) has set itself the
purpose of:
• Being able to increase the advantage of your company is something to be grateful for.
A primary objective of ours is to provide our customers with freshly made meals of the highest
quality. • Increasing the quantity of money obtained via transactions is something to be grateful
for.
McDonalds, on the other hand, has established the following objectives for itself:
• Preserving a dependable and long-term administrative position on the lookout for
It is critical to provide new food products at a fair cost to all of the more probable recipients of
assistance.
• Provide customers with a variety of dinner options from which to choose.
When it comes to organisations, P2 examines the size and scope of various sorts of
organisations, as well as the contrasts between them.
McDonalds has grown to its current size via the use of around 10,000 sales associates. Their
revenues are £12,800 million, and their total working pay totals £947 million, demonstrating that
they are doing quite well in their company. Among the many services they provide to consumers
on a public and international scale is the provision of many forms of help via their few business
fields. These include food, sugar, fixes, retail, and agriculture (www.abf.co.uk, 2016). With just
10 representatives at its inception, Zaffirson Foods has grown to its current level of success. This
company has generated a total of £17000 in revenue, with a working wage of £950 being earned
by its employees. In addition to providing a diverse range of food and beverage goods to
customers all across the nation, their job responsibilities include generating a substantial profit
from the sales of their products.
The purpose of this investigation is to better comprehend the relationship between the design,
size, and extension of distinct types of organisations, as well as how these connections relate to
their commercial destinations and the products and services they provide to their customers.
It is critical to remember that the design, size, and scope of any association are all influenced by
the ultimate goal of the corporate association that it serves. A strong hierarchical design has been
shown to cause an association to create a goal-oriented aim for itself, as has been discovered in
the previous research findings. If a partnership has just a handful of workers in its hierarchical
structure, and no one understands what their job and subordinates are, they will be unable to
achieve their goals due to a lack of clarity in the situation in which they find themselves. The
destinations available to each business organisation, on the other hand, will be proportional to the
size of the association. Regarding large-scale associations that provide a significant amount of
assets, the tremendous aim serves as the association's commercial objective. The key point serves
as the organization's primary business aim, particularly in the case of smaller organisations
(Wardet al.2011). Each organisation, on the other hand, has a fundamental purpose for being,
which is to provide assistance to customers while also generating a profit; in any event, the
amount of profit generated varies depending on the size of the organisation. There are several
examples, such as Zaffirson Foods establishing a little goal as their aim and McDonalds.
declaring a massive goal as their objective, among many other things.
The association completes its business purpose by evaluating the scope of its activities as well as
the resources that are available to it. If the scope of an organization's activities involves
providing various sorts of help to the general public, the organisation will pursue business goals
that are commensurate with the scope of its responsibilities. As soon as they realise that they are
providing services to customers all over the world, they will adjust their company goals to reflect
this realisation, and vice versa. It is determined by the things and administrations that are
provided that the structure, size, and scope of an organisation are determined. When a business
organisation determines that the progress of a massive hierarchical design is not required for the
development of their product, they do not create one. Thus, if the scope of business for a given
item or administration is extensive, an association may be able to develop a large association size
and extension; otherwise, as previously said, they will be able to develop just a small association
size and extension.

LO 2

Interrelationship between different functions within

organization:
This study examines the link between different organisational positions and how those roles
relate to the organization's structure and objectives.

Based on the findings of Alan and colleagues (2013a), organizationalways determines its
association design and objectives in accordance with the work they accomplish for the clients
they serve. Hierarchical structures are thus reliant on the business capability of the association.
McDonalds. establishes targets in order to improve efficiency within the company, and they
convene a viable authoritative gathering in order to maintain a reasonable growth of order within
the organisation. The primary business responsibility of McDonalds. is to provide customers
with their products and services while also maintaining uniformity and control across the
organisation. McDonalds can maintain consistency via the use of legitimate methods of control,
and the organisation may monitor their organisational actions through the use of a formal
authoritative structure (Ayyagariet al.2012). Assuming that everyone involved in a project is
aware of the responsibilities delegated to the individual in question, McDonalds may be able to
complete more significant work. As a result, viability in the manufacture of actual destinations
and authoritative construction may aid McDonalds. in the achievement of authoritative
capabilities since it allows employees to understand their specific roles and responsibilities.

Parts of the interrelationships between certain hierarchical exercises and their influence on the
authoritative design that are studied in M2: benefits and drawbacks are examined in M2:
advantages and downsides.

As a result, any association may stay up with cooperation by establishing representational links
between distinct hierarchical capabilities inside the organisation. It also contributes to the
expansion of relationships among employees, which helps to ensure the success of the company.
It also contributes to the expansion of advantages due to the fact that each employee from
various functional divisions exchanges information with one another.

Disadvantages: • Every employee from each branch is aware of the work obligations and
activities of the other branches, and they may take use of this information to harm the other
branches' operations.

• It encourages competitiveness between various functional divisions of the organisation.

Part 2

LO 3
Several researchers, like Child and Möllering (2013), have shown that new risks emerge on a
regular basis in the large-scale climate, making it more difficult for any organisation to detect
and monitor them. For the sake of argument, assume you are in the retail industry. It is
unimaginable for any company to reject change as it occurs, and you should be prepared to adapt
to those changes. All of the factors that influence the overall climate are influenced by financial,
social, specialised, and administrative forces. When it comes to the functioning of companies,
innovation has a variety of both beneficial and negative consequences. When McDonalds.
recognises and embraces new developments, they will seek to capitalise on a wide range of
commercial opportunities, according to analysts. Creating home shopping organisations, new
retail advertisements, electronic merchants, and other internet-based company sectors are all
examples of innovation. The establishment of an association's web-based market is another
example of innovation (Craigand Campbell, 2012). Therefore, it enhances transactions at retail
locations by enabling any organisation to accept money, charge, and Mastercard swaps.
Consequently, This advancement in technology, on the other hand, has one unintended effect,
which is that internet-based customers will only choose those businesses who have actual
specialised capacity. When McDonalds. is unable to execute profitable specialised turns of
events, the business runs the risk of losing its competitive advantage in the marketplace. Laws,
regulations, and various degrees of government control all have an influence on the enterprise,
both positively and negatively. Assuming that states assist any association, such as McDonalds.,
by providing various types of government assistance, advances, and auxiliaries, as well as by
assisting them in the formation of their organisation, then any association will benefit from such
assistance by the state. Charge rates imposed on any company material, on the other hand, may
have an unfavourable impact on any organisation.
A strong economy has the potential to increase customers' disposable income, which in turn may
increase their sales and enable them to provide more products and services to customers
(Demirguc-Kuntet al.2011). On the other hand, a sluggish economy may result in a reduction in
removal pay as well as a reduction in the quantity of money spent in the commercial area.
Following that, it causes a decrease in the amount of transactions, which causes shippers to
reduce their value systems. The retail industry is always under pressure to transform into a
socially responsible organisation, as if they were required to sell products that are not harmful to
the environment, remove disputed items from the market, provide certificates to customers, and
so on and so forth. In any event, there are several instances in which social components and the
government come together in a variety of settings and may cause damage to a variety of
organisations.
LO 4

Internal strength and weaknesses of business and their

relationship with external macro factors:
Examination of the specific association's inside and outside conditions to recognize its qualities
and shortcomings (P5):
According to Mohamedand Lashine (2012), an association's internal and external research
discloses a variety of factors that have an influence on the organisation. According to the
findings of the association's external and internal investigations, one of the organization's most
distinguishing characteristics is the vast variety of products and services that they provide to their
customers. It is possible that internal and external inquiry will assist McDonalds. in discovering
their strengths and weaknesses, allowing them to alleviate their insufficiencies via the
development of alternative productive methods.
The following are some of the organization's characteristics: • They are the dominant market
player with a diverse product line; • They have geographic expansion; • The organisation has a
positive corporate culture, which increases the loyalty of both clients and representatives towards
the organisation; and • They have a large and loyal customer base.
Aspects of their business: • They have significant interests in their one organisation, related
bread shops, but they may be forced to close their doors because of a lack of interest in their
other businesses. • They are experiencing difficulties as a result of a lack of readily available
cash. • They are experiencing difficulties in executing specific normal standards and principles as
a result they do not adhere to the public culture of their country.
6. The relationship between individual characteristics and weaknesses, as well as external
macroeconomic factors:
The characteristics and deficiencies of McDonalds. have a direct relationship with the
organisation and may have a direct impact on their operations. On the other hand,
macroenvironmental elements have an impact on an organization's exhibition, independent
direction, procedure, and day-to-day operations. Qualities and weaknesses influence the
immediate environment in which an organisation operates, while large-scale elements influence
the whole topographical area in which an organisation operates, and vice versa (Montazemi,
2010). As a result, any firm that does not perform well in its home country and that is confronted
with a variety of obstacles may encounter a variety of difficulties when attempting to expand into
the international market. The company should thus support its internationalisation strategy by
examining their own strengths and shortcomings.
Because of its strong market position, McDonalds management .'s will seek to make an
immediate decision on the organization's future based on that position when it is appropriate to
do so. Then then, if McDonalds has a number of flaws, it may have difficulty performing its
functions efficiently and successfully. As a result, the organization's management should be on
the lookout for opportunities to use discretion in conducting business operations (Schiffer. also
Weder, 2010).
In this subject, you will learn about the use of the SWOT/TOWS analysis and how to validate it
in an independent direction situation. McDonalds was subjected to a SWOT analysis.

In the course of attempting to reach a given goal, one of the emotional systems that is used is the
SWOT analysis. An important part of the SWOT analysis is delving into the significance of a
point as well as the identification of external as well as internal components that are favourable
and detrimental to the achievement of the aim by McDonalds. It is possible that McDonalds will
benefit from including SWOT analysis as one of their business tools, as it will aid them in
maximising the potential of their innovative arrangement of capabilities, abilities, and
opportunities (Montazemi, 2010). A SWOT analysis may assist a company such as McDonalds.
in summarising and outlining the most significant obstacles and opportunities that the firm is
facing at the time. It also assists the organisation in making choices that will allow them to
establish new objectives and develop new methods of accomplishing them. SWOT analysis
assists any firm or association in enhancing their strengths and minimising their weaknesses so
that they may take advantage of market opportunities while minimising risks.
The topic of full scale and tiny aspects as they relate to organisational aims and navigation will
be discussed in this part.
I believe that McDonalds. has a solid key position and an incredible array of loyal clients, which
will allow them to enter the new market with moderate ease. In addition, they have a sturdy staff,
and the teacher turnover rate is quite low, which has allowed them to expand their organisation
into new topographical areas. According to what I've seen, they have five organisations on the
lookout for basic food items, sugar, fixes, retail, and horticultural products. The basic food item
category includes sugar, fixings, retail, and horticultural products. As a result, it is evident that
they have a fantastic item separation technique, which they combine with a value separation
methodology, in order to easily capture clients not only from the United Kingdom, but also from
other organisations. In any case, I have observed that, while performing their duties in various
countries, they have encountered a wide range of competition from various associations, and
that, in turn, the various political and administrative variables of those countries have a
significant impact on their business activities to a significant degree.
The fact that McDonalds. has a large number of organisations has made it clear that they have a
powerful sort of income. However, they have endured exceptionally throughout its growth as a
result of expenditure rates and unfamiliar direct venture from various places. The fact that duty
rates vary from one nation to another is not lost on me; in any event, I am also cognizant of the
fact that corporate assessment in certain countries has a positive impact on any company and
provides them with desirable possibilities to conduct their business. The fact is that the public
authority imposes significant financial obligations in many nations, and as a result, the economy
of that country may be harmed or even destroyed. The response of various countries to the
growth and financial crisis differed; some countries were able to recover from the crisis, while
others were unable to do so due to a variety of factors. As a result, I have been informed that the
monthly removal pay is distributed beginning with one nation and then moving on to the next, as
well as the reverse. According to our agreement, McDonalds. should allocate resources to
another country based on the month to month removal pay of the organization's customers in that
country in order to generate a profit for the company. On the basis of what I've observed,
McDonalds. has an investment opportunity in a number of emerging market segments, which
allows them to invest money in those segments to grow their company. They should, however,
consider the way of life and society of those business sectors before embarking on new
endeavours, since different countries have a diverse range of cultures, and different people
choose a diverse range of products and evaluation processes. Citizens from particular developed
countries want a high-quality product, but individuals from other countries desire a low-cost
commodity and a low-cost method of obtaining the product. A small number of customers, on
the other hand, are interested in obtaining a high-quality product at a reasonable price. According
to the findings, the McDonalds. has not adequately addressed themselves on the internet, nor
have they successfully implemented specific modifications. As a result, in order to attract e-
customers, it is essential, in my opinion, for companies to support innovative improvements
inside their own organisations.
According to the findings of the investigation, McDonalds. is a moral and socially conscious
firm; yet, in order to attract the attention of ethical shoppers, the organisation must improve its
ecological affectability. As previously said, every institution, regardless of whether or not it
suffers a monetary setback, should adhere to all of the laws enacted by the appropriate
government authorities and authorities. In this case, it is necessary for McDonalds. to adhere to
every applicable legal requirement.

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