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Diploma in Business
Unit Number and Title
Unit 1 – Business Environment
Business environment refers to the business surroundings and include the factors which affects the business. The business environment is the internal as well as the external factors of the companies which affects the functions and the operations of the business. These factors include the employees, customers, managers, supply and demand. Some of the government decisions affect the business.
In this Unit 1 Assignment on Business environment the different organizational environment and the different organizational structure and their impact are discussed. The aim of this assignment is to understand the organizational structures of different organizations and the environment implications and influence of these on the business functions and the structure.
The various advantages and disadvantages of the interrelationships of the organizational functions of the above mentioned organization are discussed below.
Interrelationships of the organizational functions: Interrelationship means the relationship of the functions of the organization and their dependency on achieving the different aims of the organization. The organizations have different departments and these departments have different functions. The functions of the organization together complete the targets and achieve the organizational objectives. The functions and the operations of the organization are interdependent on each other and the chain of command and the chain of responsibility provides the relationship of the organizational functions (Cai, et.al, 2011).
The Arcadia group is the retail clothing company which includes the different activities or the functions of the business organizations. The organization has the marketing, sales, finance and human resource activity which are to be maintained in accordance to achieve the maximum objectives of the organizations. The various advantages of the relationship between the organizational functions are:
The various disadvantages of the relationship between the organizational functions are:
Impact of the organizational functions on the organizational functions:
The organizational structure is the design of the organizational departments and the organizational functions. The organizational structure gets affected by the organizational functions (Song & Singh, 2013).
The organizational structure includes of the different departments of the organization and the different departments of the organization are allotted with the different functions which are motivated towards the achievement of the organizational objectives. The different departments have the various different goals or the aims to achieve. If the one task and the objective are not achieved by the organization department it will affect the whole organization. The structure of the business is designed in a manner to interact within the organizational structure and if any one department fails in the accomplishment of the objectives than the whole organization suffers as they rely on each other. The dependency of the different functions on the organization has the various effects on the organizational structure (Song & Singh, 2013).
(a)The organization chosen is the Arcadia Group which is the retail business of the clothing and the profit organization of UK. The different macro environmental factors impact the organization and the organizational operations or the functions. The various factors affects the organizations are:
SWOT analysis is the examination and the assessment of the strength, weakness, opportunities and threats. The SWOT analysis is the assessment of the internal and external factors of the organization which have the influence on the organization and can affect the organization. The SWOT analysis is the factors which plays the positive role if analysed or assessed by the organization. The organizational strength, its weakness, the upcoming opportunities it has and the treats which can affect the organization in future is the SWOT analysis of the organization. The SWOT helps the organization to identify the factors which affect the organization and to find out the strength, weaknesses and the opportunities as well as threats of the organization (OANA & MARIOARA, 2014). The Arcadia group had the SWOT analysis and resulted in:
Strength- The strength refers to the advantageous factor of the organization which can affect the organization in a way that the positive aspects of the organization can be identified. The Arcadia group produces clothes for the women, men and the kids. The strength for the Arcadia group is that it can provide the epic own designs of the products to attract more and more customers. The designs and the quality of the company products are the strength for the company.
Weakness- Weakness is the negative aspect of the company which can affect the company operations and profits adversely. The weakness of the Arcadia group is that it has less no of employees or the staff in compare with the stores which affects the company’s achievement level of the objectives. The prices are also the factors which affect the company (OANA & MARIOARA, 2014).
The external macro factors are the political, economical, social, environmental, technological and legal. The company’s strengths get affected by these factors as these factors are considered non controllable and the political implications or the legal factor or the technological changes affects the organization and its operations and the strengths such as its quality and variety gets affected by this as well as the weakness of the organization such as the employees and others get affected by such implications (OANA & MARIOARA, 2014).
In my opinion the macro environment of the organization which is uncontrollable has the huge impact on the organization decisions. The macro factors such as the political as well as the legal implications, the economical and the technological are such factors which cannot be controlled by the organization. The decision making of the organization gets affected by the factors affecting the business. The organization should consider all the factors and the aspects which influence the business operations and the functions while making decision to have the proper analysis of the threats and the risks the organization can face in the coming future.
As the above report has depicted the impact on the organization of these factors are very drastic and has a huge influence on the business. The political factors include political implications or the party’s conflicts which affects the organization in managing the operations of the business and the objective of the organization. The legal implications are the different laws such as international trade law, taxation policies, monetary policies, business laws of the country which affects the organization decisions related to the international business etc. The technological factor is the aspect which is uncontrollable and has the influence on the organization (Campbell, et.al, 2014). The organization decisions get affected by the change in technology as the organization has to be upgraded to be in the first position in the market. The other factors such as the social, economical, environmental factors are also the factors affecting the business operations and the decision making of the organization. The business has to keep into consideration the values and the beliefs to serve the country and to respects such beliefs to gain the competitive advantage of the organization. The customers should be taken into confidence and should decide the strategies to grab the attention of the customers. The organization should also take care of the internals factors such as the strengths and the weaknesses as well as the opportunities and the threats of the country to gain the maximum benefit (Campbell, et.al, 2014).
By this report we can draw a conclusion that the business environment are consist of different factors which affects the organization and they are the political, economical, social, technological, legal and the environmental factors which affects the business operation as well as the decisions of the organization. The organizational factors such as the strength, weakness, opportunities and threats of the organization affects the business in a manner to provide the adverse impact on the organization and its efforts.
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