ASSIGNMENT SUBMISSION FORM This sheet must be submitted with your assignment. Failure to complete, sign and submit this form will result in a mark of ‘0’ for the assignment. Student Name Student ID...

ASSIGNMENT SUBMISSION FORM
    Student Name
    
    Student ID
    
    Assessor Name
    
    Qualification
    Pearson BTEC Level 5 HND Diploma Business (Management)
    Unit Number & Unit Title
    Unit 1 BUSINESS AND BUSINESS ENVIRONMENT
    Assignment Title
    The Body Shop
    Date of Submission
    OCTOBER 27 2018
Signature: ……………… ……………………… Date: __________________
Table of Contents
Task 1    5
1.0 Introduction    5
Types of Organisations    5
1.1 Public Sectors Organisations    5
Basic Characteristic (features)    5
Goals and Objectives    5
Legal Form of Public Organisations    5
1.2 Private Sector Organisations    6
Types of Private Sectors Organisation    6
Sole Traders    6
Objectives/Purpose of Sole Traders    6
Legal Status of a Sole Trader    6
Partnerships    7
Legal Status of General and LLP    7
Objectives/Purpose of Partnerships    7
Company    7
Objectives/Purpose of companies    7
Legal Status of a Company    8
Joint Ventures    8
Objectives/Purpose of Joint Ventures    8
Legal status of a Joint Venture    8
Franchising    8
Objectives/Purpose of a Franchise    8
Legal Status of a Franchise    8
Licensing    9
Objectives/Purpose of licensing    9
Legal Status of Licensing    9
1.3 Voluntary sector organisations    9
Types of Voluntary Organisations    9
NGOs    9
NPOs    9
2.0 Factors that Determine the Size of an Organisation    10
Small and Medium Sized Enterprises    10
Scope of an Organisation    10
2.1 Scope of Different Organisations    10
Local Company    10
National Company    10
International Company    10
Multinational Company    10
Global Company    11
2.2 An analysis of how structure, size and scope of organisations affect their objectives and the products and services they offer (M1)    11
3.0 Organisational Functions    11
3.1 An explanation of the relationship between different organisational functions and how they link to organisational objectives and structure (P3)    11
3.2 An analysis of the advantages and disadvantages of inte
elationships between organisational functions and the impact that can have upon organisational structure (M2) – (Contextualize your answer with The Body Shop)    12
3.3 A critical analysis of the complexities of different types of business structures and the inte
elationships of the different organisational functions (D1)    12
Task 2    13
3.0 Macro Environment    13
Introduction    13
3.1 PESTEL Analysis (P4)    13
Political    13
Positive Impacts    13
Negative Impacts    13
Economic    13
Positive Impacts    13
Negative Impacts    13
Social    14
Positive Impacts    14
Negative Impacts    14
Technological    14
Positive Impacts    14
Negative Impacts    14
Ecological    14
Positive Impacts    14
Negative Impacts    14
Legal    15
Positive Impacts    15
Negative Impacts    15
3.2 Application of the PESTLE model on a detailed analysis of the macro environment of The Body Shop (M3)    15
4.0 Micro Environment    15
Introduction    15
4.1 SWOT Analysis (P5)    16
4.2 An Explanation of how Strengths and Weaknesses Inte
elate with External Macro Factors (P6)    16
4.3 Application of SWOT Analysis and Justification of its Influence on Decision-Making (M4)    17
4.4 A Critical Evaluation of the Impacts that both Macro and Micro Factors have upon Business Objectives and Decision-Making (D2)    17
References    18
Task 1
1.0 Introduction
An organisation is a well-constructed and manager-operated group of people who strive towards a consistent common purpose that is either profit or objective centric with group work, strategizing and planning.
Types of Organisations
Based on the ownership and purpose organisations are divided in four sections. Firstly, there are private and public organisations. The private organisations are controlled by one of a group of owners, while the public organisations are owned and operated by the government for the services provided to the public. Secondly, there are profiting and non-profiting organisations. The private organisations that work for the betterment of the society without caring for profit, as stated by Seyam and Cooper (2018) are non-profiting organisations and the ones that strive for profit are profiting organisations.
1.1 Public Sectors Organisations
Organisations that are operated by the local or national government of a country, which aims at providing general services to the citizens and the gathers its functional monitory resources from public taxes are known as public sector organisations. Public sector, as stated by Nayır et al. (2018), organisation does not aim at earning profit from the citizens for their provided services.
Basic Characteristic (features)
Individuals do not own Public Sector organisations, the organisations are governed by autonomous government departments and the political party in power makes changes, if the changes are necessary. The public organisations, as mentioned by Gutacker and Street (2018), are run by the public tax collected and the state determines the economic distribution of the allocated resources by acting as an autonomous body, independent of personal preferences.
Goals and Objectives
The goals of public organisations are the promotion of equality, justice, security, convenience and social value retention using services, which are provided free in most cases. As stated by Coutinho et al. (2018), although public organisations aim at increasing its market share, it is always aware of the democratic value it offers to its citizens.
Legal Form of Public Organisations
In general, the legal form of public organisations divides them into three sections – departmental, public and government organisations. Specific departments of government run the departmental public organisations. As mentioned by Bidet et al. (2018), public sector organisations are regulated and operated as per the norms of the constitutional and parliamentary legislation. Government organisations, as identified by Wang (2018), are mainly government owned business organisations, where the government owns majority of the shares.
1.2 Private Sector Organisations
Organisations, those are owned privately and provide services to customers, solely for money for making profit, are termed as private organisations. Private organisations, as mentioned by Alkhater et al. (2018), does contribute to the development of national economy, however, the owners of the company manage the generated profit.
Types of Private Sectors Organisation
The most common types of private organisations are sole traders, franchising, partnership and joint ventures and licensing. As private individuals regulate private organisations, the changes for betterments are done as required, unlike government organisations where the process takes considerable amount of time and lacks proper management of resources. As mentioned by Briere et al. (2018), legal forms of private organisation have focused on the ownership of the company and included the prioritisation of taxation policies of the owners.
Sole Traders
An individual, owning and managing an entire business, its finance, profit share, legal aspects and rules-regulations are known as sole traders. As opined by Kraljic and Drnovsek (2018), although a sole trader owns the rights of individual business can hire employees while remaining responsible for business outcomes.
Objectives/Purpose of Sole Traders
The purpose of the sole traders is to assess the potential market risks that can affect the business and consider the additional risk associated with the utility and nature of the product or service. As mentioned by Alyeksyeyev and Mazur (2018), sole traders’ business depend on the market condition and the changes occu
ing in it, therefore, the purpose of the sole traders are understanding the market condition for better profit earning and risk-free investment.
Legal Status of a Sole Trade
As sole traders are the only owner of an entire company or business, legal contracts are not necessary, however, licensing, paying of income tax and proper documentation of business is necessary as legal status. It is worth the mention that the legal status of sole traders are comparatively less expensive than the other forms of private organisations such as partnering of franchising.
Partnerships
When two or more organisation i
espective of public or privately owned, jointly manage business ventures and distributes the total profit, the process is termed as partnership. As identified by Bance et al. (2018), there are two types of partnership, in one the liability of partnering organisations are unlimited and the use of organisational assets are fully allowed, named general partnership. While in case of limited liability partnership, each of the partnering organisations has limited liabilities in terms of allowing the use of organisational assets and monitory investments.
Legal Status of General and LLP
In general, partnerships, the partnering companies get the right to use each other’s assets for the purpose of the business objectives. As stated by Everhart (2018), in case of limited liability partnership (LLP), partnering companies have limited access tasks and have specific areas of power exercising. In LLP, a company can use the asset of another company if both sides mutually agree on a written contract basis.
Objectives/Purpose of Partnerships
The main purpose of partnership is to distribute the workload between two of more organisations and the use their combined resources to perform smoothly for fulfilling a specific business targets. As opined by Gray et al. (2018), partnerships are formed when large projects are undertaken, making it evident that the project cannot be fulfilled by one organisation at any circumstances.
Company
Companies are organisations, the primary aim of which is to conduct business for earning profit. As noted by Matiin et al. (2018), companies have unique legal frames, can transfer its shares, possess a common seal and have limited liabilities. Apart from the fact that private and public companies are owned by different type of owners, public company shares are used for trading on the stock exchange, while the private organisations do not have that authority.
Objectives/Purpose of companies
The main purpose a company is to generate profit with invested capitals in the market. All companies take monetary resources from their shareholders and investors against the written commitment of offering healthy returns after a certain period. As mentioned by Hallin and Mantel (2018), companies ask the investors to agree on the terms of potential risks of markets before investing.
Legal Status of a Company
A company, i
espective of its owners have its exclusive and separated identity, where the financial section is not determined by the financial status of its owners and lastly, have a dedicated team who managers the business for the best outcomes.
Joint Ventures
Similar to that of partnership, in joint ventures two or more organisations use their resources in joint manner to accomplice particular goal. However, as argued by Bilotkach (2018), in case of joint ventures the goals are limited in numbers and the timeframes tend to be shorter than that of partnerships.
Objectives/Purpose of Joint Ventures
Joint ventures make the fulfilment of a task by the combined efforts of two or more companies without legally merging and acquisitions. Joint ventures also improves market proper use of opportunity as big tasks are undertaken and completed under the joint efforts of two or more organisations and benefit mutually.
Legal status of a Joint Venture
Joint ventures are not consistent; they are task oriented and expire after the completion of a certain undertaking. Taking cue from the view, Ngai et al. (2018) opined that joint ventures do not need proper contract signing or legal tax recalculations, instead both have to maintain their legal frames and responsibilities.
Franchising
Aiming at quick market traction as well as the benefits of a tried and tested marketing channel, new organisations start their business under the
and name of established companies, the process of which is known as franchising. As mentioned by Kruesi et al. (2018), the new organisation that seeks to use the benefit of the established company is franchisee and the established company is franchiser.
Objectives/Purpose of a Franchise
Franchise makes small organisations or newly entered organisations easily get the attention of customers, as they use a part of a wider and well established marketing network. Another purpose of franchising is to give the benefit of association with a renowned
and that customers trust.
Legal Status of a Franchise
As franchise uses the network chain of franchisor, the legal bindings are deemed essential. As mentioned by Crawford (2018), franchises before starting their usage of franchisor’s network, agreements must be...