Business Environment
Introduction
Every
business organization is different from the other business organization based
on some factors those are organizational structure, vision and the mission.
Most of time, an organization can be differentiated from other organization
considering an organizations structure. The structure is different from
non-profitable organization to profitable organization. The operation also
varies from profitable organization to non-profitable organization. The
economic condition boom and recession affect a business organization.
Technology also affects both the profitable and non-profitable organization.
Report on contrasting business
Contrasting
business develop on the basis of different objects applied by the different
organizations. Here in the report, Marks and Spencer PLC is a profitable
organization and on the other hand Sue Ryder is a non-profitable organization (Blair, 2001) .
Marks and Spencer:
Marks
and Spencer laid their foundation as a partnership business in 1885. The
organization has expanded their business in many countries. Their main target
to set up the organization is to create own job. Now the organization turn into
public limited company from the partnership business (Cherunilam, 2010) .
Aim, Objective and purposes:
Prove
themselves as a multi-channel retailer cross the national border through
increasing product range.
Industrial sector
Marks
and Spencer works in secondary industrial sector and they supply inventories to
the suppliers by producing product.
Range:
Marks
and Spencer doing their business cross the national border like UK, Canada,
France and many other countries.
Business sector
Marks
and Spencer offer their share in the capital market and this share is listed in
the share market.
Ownership of Mark and Spencer
The
founder Michael Marks and Thomas Spencer is the owner of the Marks &
Spencer Company. They laid foundation the business as a public limited company
in 1884.
Marks and Spencer business purpose
Expansion
of business throughout the world and maximization of profit is the main purpose
of Marks and Spencer Company.
Liability status
The
shareholders has limited liability. Here in the business prospectus, there are
said that the personal property will not be liable for loss of business. Till
2015, current liability is defined 2,111.6 million (Dew, 2008) .
Sue Ryder:
Sue
Ryder launched their activities as a nursing home in 1953, in Suffolk, UK.
Aim, objective and purpose:
Consulting
service considering patience’s necessary and diagnosis the diseases for support
is the objective of the Sue Ryder.
Industrial Sector:
Sue
Ryder is non-profit organization. The income is cost for the welfare of
patients. Sue Ryder mainly operate service business
Range:
Sue
Ryder provide services in UK and some other countries.
Ownership of Sue Ryder
Margaret
Susan Ryder, is the founder of Sue Ryder organization and is a sole
proprietorship business.
Sue Ryder Business Purpose
Supporting
patients through providing services is Sue Ryder’s business purpose.
Liability Status:
Sue
Ryder is run by the donation of the money. If the organization is closed then
the property will be transferred in the other charitable organization.
Shareholder Presentation
Task 3- Shareholders report
The aim of the shareholders is to maximize
profit by influencing the object. Different shareholders search for their own
interest.
The shareholders of Marks and Spencer:
Owner:
Owner are those who invest in a business
organization. The owner has an objective behind the investment that objective
is wealth maximization or profit maximization. They always try to increase the
value of the organization for getting more share price.
Creditors:
Creditors are those who provide finance to the
organization. They are considered external financers. They finance to an
organization in return of interest.
Management:
Management most of time give the decisions in
making a task successfully accomplished. They always try to increase a
Company’s incentives. They works on company’s goal.
Government:
Governments are the law maker who impose
different rules and regulations on the business organization and impose tax.
Government also look for financial matter like performance evaluation.
The
shareholders of the Sue Ryder:
Margaret
Susan Ryder, is the founder and also considered as an owner. But non-profit
organization like Sue Ryder is public property. The main objective of the
organization is to provide maximum quality service.
Management:
The
main objective of management is to gain reward. In the business organization,
management undertakes policy to maximize the incentives.
Government:
Government
do not impose tax on non-profit organization on the contrary provide donation
to the organization.
Task 4: The evaluation of
shareholders of Marks and Spencer
The
owner, creditors, management and the government has greatly impact on Marks and
Spencer Company. The owner invest their money to the organization and want
feedback from the investment that is called interest. The owner also observe
the invested money. Creditors are the financial s supporter of the Marks &
Spencer Company. Creditors do not support to invest money to the risky project
and also they lessen the dividend of total profit share. Management draw plan
how to achieve goal of the organization. The M&S share base payment and
other incentive to the management. Government impose taxes on the business
organization and also generate some new rules and regulations for the business
organization (Greener, 2010) .
P3-Task1-
Leaflet
Leaflet Presentation:
The
purpose of Marks and Spencer and Sue Ryder is totally different and the both
organization operate their activities on the basis of their purpose. Organization
can be divided by the division, structure and function.
How Marks & Spencer organized
Objective:
From
the establishment of the organization in 1884, the Marks and Spencer trying
their hard to become leading business organization throughout the world, though
they already operate the business not only UK but also Canada, France. From the
starting point of the business organization, Marks & Spencer organization
was partnership business organization. After increasing the demand of the product
of the Marks & Spencer, the Organization launch the share to the market
being registered as a public limited Company (Henson, 2009) .
Organization
structure:
In
the line structure, every division or department is responsible for its own
activity.
The functional areas:
The
functional areas shown below are conducted the functions by the Marks &
Spencer.
Sales
and marketing:
Different
initiatives are to take for increasing sales volume and to motivate the
consumers for buying products.
Finance
& accounting:
The
activity of the finance & accounting department is to distribute the money
and record the transactions of the monetary activity.
Human
resource:
The
activity of the human resource is to drive the people to gain the actual goal
through motivating them.
R
& D
R
& D works for innovation the new product and also involved in the
development of existing product.
Product
& operation:
The
department works for the operation of the goods and raw materials as well as
increasing quality of the products
IT
& Support:
Technical
tools are used by the IT department if necessary in an organization.
How Sue Ryder organized
Objective:
As
a non-profit organization, Sue Ryder provide voluntary service to the patient.
Nowadays, they are serving in different countries. They started their service
in 1953 in Suffolk, UK. They basically provide consultative service to the
patient (Hunt, 2011) .
Organization
structure:
Board
of directors are the policy maker of the Sue Ryder organization. All activities
of the organization manipulated by executive director.
Board:
The
representative of the Sue Ryder are the members of the board. They made the
policies and directions for the organization.
Board Chairman:
The
activities of the committee members, boars and executive directors are observed
the board of chairman.
Executive Chairman:
Executive
chairman is the person who look for the total activities of the board members
and also has responsibility of his job.
Committee:
There
are many committees are established for the betterment of the organization
those committees are budget committee, fund committee and so on.
Staff:
Staff
are those who run their activities through a systematic way and help the
organization doing their work.
The functional area:
Governance:
The
governance function gives the direction and control the govern body of the Sue
Ryder. In the Governance section, the board of director give the decision and
control the govern functions.
Programs:
Sue
Ryder takes different initiatives for the betterment of the organization and
also provide service to the patient. Different programs like training program
are run by the Sue Ryder so that the employee can provide better service to the
patient
Central administrations:
Central
administration is consists of the staff, the executive members as well as the
office personal of the organization.
Essay
How style of organization helps them
to fulfil their purposes
An
organizations structure can be divided into some level those are top level,
middle level and supervisor. Normally top level management are the decision
maker of the organization and also plan for attaining organizational goal. The
structure is drawn for the divide of the responsibilities.
Line structure:
In
the line structure, the responsibilities is distributed from top level to
bottom level and decisions also carry top level to bottom level
Matrix structure:
In
the matrix structure, the members of the organization work together for
finishing a certain job so that they can gain certain goal.
Marks
& Spencer follow line structure. The decision is flowed from top level to
bottom level in the line structure. In the structure, the lower lever employee
cannot participate in the decision making.
The
matrix or team structure is maintained by Sue Ryder and it is also supportive
to the employees. Here in this structure, all level employees can participate
in the decision making.
Marks
and Spencer follow two ways to lead the organization, one is cost leadership
another is product differentiate leadership. The matrix structure helps to get
advantage from the cost leadership and the product differentiate leadership.
Sue Ryder provide voluntary service to the patient and they support team
structure. From using the team structure, Sue Ryder get supportive help from
the employee (Jolly, 2008) .
Report
How boom affect the Marks and Spencer
In
the boom economy, Marks & Spencer get high profit from the market. The
consumption by the consumer is high when demand for the product is high. The
consumers buy product more and more on the contrary the organization get more
profit than earlier. This time is called boom economy. The employee of the
Marks and Spencer get rewards in the golden time for the organization. The UK
economy enjoyed boom period in 2006 and also Marks & Spencer (Jones, 2013) .
Recession affect in Marks and Spencer
Recession
refers that the fall down of the economy. It can be said clearly that when cost
of the product even is not collected from the market. In the UK economy, the
recession was occurred in 2008. Because of the recession of the UK economy,
Marks & Spencer has to shut down almost 27 stores as a result approximately
1,230 employee quit the job. Then the recession period, the demand for the
product is simultaneously reduced (Kaplan, 2001) .
Report
Political, Legal, and Social factors
affect the both Organization
Political factors:
Political
factors affect both the Sue Ryder and Marks and Spencer strongly. Marks & Spencer
and Sue Ryder have to think of political factors when both the organization
runs business organization. Sometimes they face problem, when political unrest
is ongoing. The activity of the newly
established branches may hamper for political turmoil. When political unrest
occur then the sales volume decrease than the expectation (Mallor, 2004) .
Legal factors:
The law enforcers
apply newly developed law for the business sectors that’s why sometimes an
organization like Marks & Spencer has to follow the rules which create
problem. The new government policies also hamper the activity of an
organization. The non-profit organization like Sue Ryder does not face the
legal problem because the law enforcers normally impose strict law against
them.
Social factors:
The social factors
like inside culture, norms, and beliefs of an organization greatly affect both
the profitable and non-profitable organization. Consumers buying behavior can
also be changed by the social factors. The sales volume may be increased or may
not be increased, it sometimes depend on social factors.
Business planning changes and how the coping with the changes
Business planning
can change by the change of the law enforcers newly changed law and also be
changed considering the factor buying behavior. The newly established policies
can change the business planning. Different laws have to be considered, when an
organization Marks & Spencer wants to spread their business organization in
abroad. Being obeying foreign laws, every organization has to run their
business. People from the different nations can enjoy the other countries
product and services (McCrum, 2008) .
Conclusion:
Business
organization has to go through long term activities not the short term activities.
Business organization faces some obstacle like social, political and legal when
the organization runs their activity. The organization has to take challenges
to overcome it. To overcome the obstacle, the organization has to plan for. To
gain actual goal, appropriate plan should be taken. Business growth is
depending on accurate plan and also performance of the actual plan. The
operation taken by the non-profitable and profitable organization should be
succeeded by taking proper plan.
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