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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