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Business environment refers to the surroundings and the business internal and external factors which affects the business. The business environment consists of the various factors which affects and provides the business alterations accordingly. The business environment includes the various external and internal factors which affects the business decisions and the operations of the business. These factors involve the employees, customers, stakeholders, government, supply, demand, laws and other which affect the decisions of the business.
In this assignment the organizational structure of the different companies and the impacts are described. The business environment sample assignment – IKEA assignment aims to provide the understanding of the different business environments and the impact of these business environment on the business decisions and operations.
b) The chosen organization for this assignment is the IKEA. The IKEA is the UK Company and is the furniture retail brand of the UK. The company is the popular brand and very well known about its quality products and services. The company provides the quality of furniture and the accessories including the office furniture, home furniture with unique and innovative designs to provide the attractive products to the customers. The company has its headquarters in Delft, Netherlands. IKEA dose not only deals in the furniture but also expanded its business in the houses and apartments and also owns mega stores.
The organizational structure of the company is divided into two main heads namely owning shops and factories and the franchising operations. The structure of the organization is complicated and not easily understandable. The objective of the company is to increase the profits of the company by providing the quality products to the customers and to gain the maximum customer satisfaction as well as gain the ranking position in the corporate world.The organizational functions of the company includes the different functions described below including the explanation of their connection with the company’s objectives and the structure Information technology, Communication, Purchasing, Distribution, Product development and Sales. The organizational structure includes the franchising and the owned stores which includes these functions of the organization (Jonsson, et.al, 2013).
Interrelationship refers to the dependency and the relying upon the other functions. The interrelationship provides the dependent organizational functions and operations to achieve the organizational goals and objectives of the company. These operations have the interdependency on each other for better achievement of the organization goals and objectives. The organizations functions have the relationship between each other and also provide the chain of responsibility and chain of command.
As it is mentioned above that the IKEA is the retail company for and the unique designer furniture. The organization has different functions of human resource, finance, marketing, sales, and IT. These different functions are to be managed in a manner to achieve the maximum results and maximum benefit. Here are some of the advantages of the interrelationships of the organizational functions:
IKEA is the furniture retail company dealing in the world class furniture with unique and the classic designs of the furniture and attracting the customers from all over the world. There are many external factors which affects the functions of the business. The macro environmental factors are the uncontrollable factors which impact the organizational functions of the organization. These macro environmental factors impact the functions of the organization positively and negatively. The various macro environmental factors of the company are described below:
The internal analysis of the organization are that which are examined and the analysis of the internal factors which affect the business. The internal factors are those which are controllable and internal factors of the organization includes the element of strength, weakness, opportunities and threats of the organization to improve the business operation. The internal analysis are done to improve and focus on the weakness and the strengths of the companies. In this further the SWOT analysis of the company IKEA are discussed.
The IKEA is the company which is growing its business to the different countries and the markets which is improving the stability level of the company and increasing the company position in the markets. The IKEA has some of the positive aspects or the strengths which helps the company to move forward in the competitive world and grab the customers as well as increasing the sale. The company provides the class and the quality products which increases its ability to attract the maximum customers. The innovation strategy of the company also increases the ability of the company to meet the maximum satisfaction among the customers. The company deals in diversified product range which helps the company to gain the competitive advantage and to improve the brand image of the company. The company also uses the integrated supply chain which helps the company to meet the customer’s requirement on time with increasing efficiency in the operations of the company.
On the other hand company also has some weaknesses or the weak aspects which provides the companies the area to improve its business functions and operations. The company is providing the low quality of products than before which is leading in decreasing the customer satisfaction and the customers of the company are not showing the loyalty (Noh, et.al, 2011). The company also providing the products and services on higher prices which are providing the company less demand for the products and the competitors are gaining the advantage of this aspect. For increasing the profitability and the continuity of the business the organization needs to focus on the weaknesses and try to improve the ability of the company to increase profits of the company.
The effective organization maintains the balance of profits as well as the customer satisfaction with the help of providing the varieties of products and services of the companies to the customers on time. The IKEA is the company which is leading in providing the customers satisfaction by its products and in offering the quality products to the customers. The innovation and the uniqueness of the company’s products are the features of the company which grab the maximum customers. But every organization and its operations and functions are affected by the company by the internal and the external factors of the company. The company IKEA has also affected by the internal and the external factors and the operation and the functions of the business also gets influenced by these factors of the company. These impacts of the organization also affects the decision of the organization. The IKEA is the company having the great market value but the decisions of the company are also affected with the internal and the external factors of the company. The political issues affects the company and provides the restrictions on the operations of the company which provides the organization with the decisions of the organization. The economic factors of the company provides the company with the changes of the economics and the demand and supply of the company are also affected (Arnold, et.al, 2013). The inflation and deflation affects the decisions of the company. The social factors of the company also affects the decisions in a manner to consider the religion and the culture of the society and promotion and marketing activities are considered according to these factors. The impact of the technology makes the decision changing strategy for the company as new technology needs to be learnt and provided assistance to the employees are to be given to the employees so as to achieve the efficiency of the company. The environmental changes affects the organizational decisions as the continuous changes and the unexpected disaster of the organization also have the uncertainty which the organization consider and take preventive decisions accordingly. Legal environment of the organization provides the decision to the company so as to change the operations and the activities of the organization according to the legal obligations of the company (Arnold, et.al, 2013).
From the above report conclusion can be drawn that the organizational or business environment affects the functioning of the organization and the organization also needs to consider the external and the internal factors of the environment to increase the capability and the profitability of the organization. The IKEA is the company dealing in the world class furniture and in increasing the customer satisfaction by providing the quality services and the products to its customers. There are certain strengths and the weaknesses of the company which can affect the business. The strength of the company if focused properly than it can become the opportunities for the company and get the maximum results out of it. The weakness of the company should be improved and if not improved than can provide the threat to the company and can be a huge loss to the organization.
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