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    Various Function Of An Organization ASDA

    University: Regent College London

    • Unit No: 1
    • Level: Undergraduate/College
    • Pages: 14 / Words 3605
    • Paper Type: Assignment
    • Course Code:
    • Downloads: 800


    The business environment is known as a collection of all entities, individuals, and other factors which may or may not be in the control of enterprise but can affect growth, performance, profitability, and survival of enterprise (Chavis, Klapper, and Love, 2011). Every enterprise executes its operations and operates in a different environment. Actions and decisions of enterprises get affected by the environment and also affect the environment. One of the main features of the business environment is that it is dynamic, complex, and uncertain. Internal and external are the two major components of business environment. ASDA, a chain of supermarkets based in the UK is considered in this report for study. Various type of organization with their legal structure, scope, and size is all given in this. Further, the relationship between the various function of an organization and its link with organizational objectives is all mentioned in this report. In addition to this, internal analysis of the firm and interrelationship between strengths of enterprise and macro elements of the environment is all included in this report.

    TASK 1

    P1 Various types and purpose of organisation with legal structures

    Private enterprise:These are one of the most popular type of firm exist in business environment. These firms can issue stock and have shareholders but shares of these firms can not be trade on public exchanges. ASDA a British Supermarket retailer based in UK is an example of this.

    Purpose: Purpose of firm is to manufacture and offer featured goods to its customers and increase its market share.

    Legal structure of private enterprise:

    • Partnership: Under this, two or more than two firms start working together to achieve set mutual goals. To work in an effective manner and to attain set objectives, all partners sign on a written paper known as partnership deed which consists information about the percentage of profit, roles and responsibility of every partner (Chow and et. al., 2012). One of the main advantage of this is that it help in reduce the grounds of conflict.
    • Sole proprietorship: Under this, a single individual carry out a business process with the aim of generate large profits. Owner is the one which take all decisions and also bear all profits and loss.
    • Limited companies:This is another type of private organization which is classifies into two parts known as limited by guarantee or limited by shares.

    Public organisation:These are the firms whose main aim remains to raise the standard of individuals living in society and are mainly control by the government which reduce the chances of malpractices and improve ethics (Commander and Svejnar, 2011). Crown prosecution services is an example of public enterprise based in United Kingdom. Company work criminal indictment in England. Today more that 6000 representatives of firms are there. Various functions are performed by entities to reduce the crime offense exist in community in order to create a supporting environment in which every individual can live happily.

    Purpose: Main purpose of firm is to develop and provide a legal structure to all criminal agencies who do investigation. This support them in find an effective solution so better environment can be created and promoted.

    Legal structure of Public enterprise:

    • Central government: This is the apex body which formulates rules and regulations for local and state government and at the same time examine their activities.
    • State government: This government provide its basic support to central government to implement its various activities.
    • Local government: This handles the day to day activities of public firms.

    Voluntary organization: These types of organizations work with the profit of social development. It also known as not for profit organisation. One of the main objective of this enterprise is to raise standard of living of companies. British Heart Foundation is an example of this (Cuervo‐Cazurra, 2011). It is charity based organisation which work to solve the heart problems that help in provide care to various individuals.

    Purpose: Only purpose of this firm is to resolve and provide an effective solution of heart problem present in society. Different type of research is carry out by enterprise to provide healthy and effective solution of the problem.

    P2 Scope and size of various types of enterprises

    Various type of firms operate in a business environment and it is very essential for them to first understand their purpose so they can work accordingly and can attain its set objectives. Every firm has its own size and scope of operations which can be understood by the following points:

    Crown prosecution services:

    • Products and services: The firm give suggestion related with criminal offense. Company present the cases of clients in court.
    • Mission and vision: Crown prosecution work with the vision of provide prosecution by Witness.
    • Size and objectives: This firm is not big in size and the company is situated in England.

    British Heart Foundation:

    • Products and services: Various research are carry out by entity in order to complete all business activities in an effective manner.
    • Mission and vision: Mission Statement of enterprise highlight to deal with heart related issues.
    • Objectives: Company operate and provide its various services in various areas of UK.


    • Products and services:Different type of products such as grocery products, home products and financial services are offer by entity to generate large amount of profit.
    • Mission and vision:Mission of firm is to provide quality products to its customers at affordable prices in order to capture a larger market share.
    • Objectives: Sustain in market for a long time period is long term objective of company.

    TASK 2

    P3 Relationship between various organisational function and link with organisational objectives

    A business organisation is know as a mix of various departments that perform different functions to serve its customers. It is very important for firm to use effective communication channels as this help in bring cooperation among various department and increase effectiveness of business activity (Deasy and et. al., 2016). Functions perform by business is get affected by the main objective of company and the structure follow by it. Mainly all functions perform by a business enterprise get affected by each other so it very important that effective communication should be there among manager of all department. Relationship between different organisation function can be understood by the following points:

    • Human resource department:This is known as one of the most significant department of a business enterprise because functions such as recruitment and selection of employees is carry out by this department. Manager identify and examine the skills of applicants before take a final decision of recruitment (Drucker, 2017). It is very important that there should be proper communication between manager of marketing and human resource department as with this marketing manager can make manager of HR department aware about the skills require to be in an individual to perform a specific job. With this, organisation can recruit best candidate and at the same time can perform all job role in an effective manner.
    • Research and development department:This department of enterprise carry out different type of research to collect information about the needs and wants of customers. One of the main benefit of carry out research is that it make the manager aware about the trends exist in market and this provide guidance to manager to take decision (Hair and et. al., 2015). It is very important for manager of research and development department to make the managers of other department aware about the tastes and preferences of customers so firm can manufacture products as per their requirements and company can retain customers for a long time period.
    • Finance department: This is another most significant department of enterprise in which manager prepare budgets and allocate funds to other department as per their needs and requirements. It is very important that the manager of this department should be aware of the funds require by other department as this help in allocate funds. Lack of funds create delays and issues in attain end objective so an adequate amount of funds should be allocated to every department so entity can get desired outcome.

    Various type of organizational structures can be understood by the following points:

    • Functional structure: This type of structure is set up in a way that each portion of enterprise is grouped as per its purpose (Hamilton and Webster, 2015). This type of organisation structure is well for small business under which every department depend on the talent, skills and knowledge of staff members.
    • Divisional structure: This structure is used in big firms that operate on an large level and have separate small companies within the umbrella group in order to cover the various type of market and products. As each division can operate independently so this structure help in achieve expertise (Hillary, 2017). Sometimes this type of organisation structure become cumbersome because workers do work together. This structure is costly due to its scope and size.
    • Matrix structure: This type of organizational structure is mainly used in multinational companies. It create power struggles because various areas of enterprise will have a dual management due to working of managers on the same level and covering the same managerial territory.

    TASK 3

    P4 Positive and negative impact of macro environment upon business operations

    The business environment is dynamic and complex one, in order to operate in market in an effective manner and attain set goal and objectives, it is very essential for manager of ASDA to carry out analysis of this (Hilton and Platt, 2013). One of the main benefit of this is that it help enterprise in respond to the changes that take place in external environment and all this help firm in maintain its market share. With help of this company can offer featured products to its customers and can retain them for a long time period. Changes that take place in business environment affect business and its operation in both positive and negative manner so it is very essential for manager to examine this. Political, economic, social, technological, legal and environmental all are the major external factors and its positive and negative impact is all given in following points:

    • Political factors:This consists policies and strategies develop by government to control actions and decision taken by businesses, this help in maintain economic growth of nation. Excise duty, import and export policy taxation rate all come under this.

    Positive impact: In order to positive impact of this factor, it is very essential for ASDA to first identify and examine the political stability in nation in which company wants to expand its operations.

    Negative impact:In a situation of government instability where all policies and rate of taxes change on a fast speed it become difficult for firm to attain its set objective.

    • Legal factors:This is known as one of the most significant factor of PESTLE analysis as this indicate the laws, rules and regulations that is very important for a business enterprise to follow.

    Positive impact:When firm make policies after examine the policies given by legal bodies then it help in attain set goal and objectives in an effective manner (Klapper, Lewin and Delgado, 2011). It also help in create and maintain a positive image in society.

    Negative impact:When company does not follow the legal rules and policies then it give rise to a legal action and at the same time hamper the image of company.

    • Technological factors: This aspect indicate the technology utilise by firm to carry out its business activities.

    Positive impact:In order to get positive results, it is very essential ASDA to use updated technology as this not only decrease business cost but at the same time provide various positive benefits.

    Negative impact:When changes take place in technology on frequent basis then it become costly for firm to replace it with old one.

    • Economic factor:This element of macro environment indicate the rate of inflation and deflation exist in market (Prajogo, 2016). Other factors such as exchange rate, GDP and purchasing power of customers is also come in this.

    Positive impact: When company expand its business operations in developed countries then it help help firm in achieve growth.

    Negative impact: When changes take place in all these rates then it become difficult for firm to generate more number of profits.

    • Social factors:This factor cover the elements such as tastes, preferences, culture and religion of individuals.

    Positive impact:It is very essential for enterprise to consider the needs of customers in order to offer them featured products.

    Negative impact:When changes arise in needs of customers on frequent basis then it become difficult for firm to survive in market.

    TASK 4

    P5 Internal and external analysis of organisation to determine strengths and weakness

    SWOT analysis

    SWOT analysis is a strategic planning tool used to evaluate Strengths, Weaknesses, Opportunities and Threats of an company. It help ASDA in determining factors that assists firm in accomplishing its objectives and obstacles that may arise during operations that need attention to achieve desire results.

    SWOT analysis of ASDA:-


    Positive Factor

    Negative Factors

    Internal Factors


    • ASDA has built a culture among distributor and dealers where they provide training to sales team to explain customer so that they can extract maximum benefit out of product (Savrul, Incekara and Sener, 2014.).
    • It has 140,000 employees working at over 500 stores.
    • ASDA maintain relation with customer as it keep in touch with them via social media, ask them for feedback and solve their issues.
    • It has developed high skilled workforce by providing training and learning programs to its employees.
    • ASDA integrated complimentary firm through mergers and acquisitions that help in improving its operations and to build an reliable supply chain.
    • It maintain quality of product with lower prices.
    • ASDA has an successful track record in entering in new market and in developing new products- product innovation.


    • Lack of technological advancement, company need to invest more in new technologies to expand its operation in different geographies .
    • The profitability ratio and Net contribution of ASDA are below the industry average.
    • It has limited global presence as compare to other competitors.
    • ASDA is not generating much revenue as it uses lowest price campaign.
    • It does not have smaller supermarkets such as TESCO.
    • There are gaps in the product range sold by company which provides an opportunity to new competitors to enter in the market.
    • Beside claiming to be on 2ndposition in UK, its operating profit is depreciating year by year.

    External Factors


    • Stable free cash flow provides opportunities to invest in new technologies as well as in new product segments.
    • Changing demand of consumer open up new market for ASDA to build new revenue stream by diversifying into new product category.
    • With the increase in customer spending and economical growth after years of recession provides an opportunity for ASDA to increase its share in market.
    • ASDA has positive impact on customer because it provide different quality item at low price which provide opportunity to expand its business by increasing number of stores.


    • Rise in price of raw material affect the profitability of company.
    • As ASDA is operating in numerous countries it is exposed to risk of currency rate fluctuation.
    • ASDA may exposed to various liability claims that require changes in policies in those marketplace as different countries have different liability laws.
    • Unskilled workforce in certain global market represent a threat to steady growth of profit for ASDA in those markets.
    • Price war with other competitor retail chain brand.
    • ASDA has the greater competitors like Sainsbury's as market share of Sainsbury's is 16.5% which is not far from ASDA's market share which is 16.8%.

    P6 Interrelationship of strengths and weakness with macro factor

    Internal and external factors are to be considered by the company so that company can easily attract many users. Strengths and weakness can be relate to the external macro factors so that they can easily capture many users (Siewiorek and et. al., 2012). Through this firm, can easily earn more revenues and thus it can maintain good image. Relationship of strengths and weakness with strengths of Asda are:

    Political: This is the factor which involves creating of many rulers and regulations so that they can easily survive in market. Asda tries to maintain good relationship and it is the biggest strength for the company. This helps the firm in company in earning of more profits and hence it can easily survive in the market. Through this they can easily reduce the weakness.

    Economic: In this company can easily create various policies and plans so that it can easily attract many users. It can create various policies and plans so that such as creating plans and selling product at lower cost of there is inflation. Hence Asda can earn their revenues.

    Social: In this company can directly earns more revenues through fulfilling of all needs and wants of all people. Thus it can deliver superior quality of products at a lower costs and thus it can easily maintain good position in the market. Thus it is the biggest strength which can directly increase the revenues of firm.

    Technological: In this company can use advanced techniques so that it can maintain good position in the market. Due to heavy competition company can easily adopt various techniques and hence it can easily capture minds of all people (Zott, Amit and Massa, 2011). The company can generate more revenues and hence it can maintain good image in market and thus it can give strong competition to other firms.

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    From the above-given project report, it can be summarised that to attain set goals and to increase the number of its profits, it is very essential for a business enterprise to identify and examine the factors of the business environment. This helps managers in formulating better policies and at the same time help respond to the changes that take place in the environment. PESTLE and SWOT analysis are the tools that can be utilized by the manager of Sainsbury to carry out an internal and external analysis. Changes that take place in the business environment affect the firm and its actions both in a positive and negative manner so it is very important for a business enterprise to carry out environment analysis.


    • Chavis, L. W., Klapper, L. F. and Love, I., 2011. The impact of the business environment on young firm financing. The world bank economic review.25(3). pp.486-507.
    • Chow, A. T and et. al., 2012. Computer-readable medium with embedded instructions for providing communication services between a broadband network and an enterprise wireless communication platform within a residential or business environment. U.S. Patent 8,155,155.
    • Commander, S. and Svejnar, J., 2011. Business environment, exports, ownership, and firm performance. The Review of Economics and Statistics. 93(1). pp.309-337.
    • Cuervo‐Cazurra, A., 2011. Global strategy and global business environment: the direct and indirect influences of the home country on a firm's global strategy. Global Strategy Journal.1(3‐4). pp.382-386.
    • Deasy, S and et. al., 2016. Controlling use of a business environment on a mobile device. U.S. Patent 9,247,042.
    • Drucker, P. F., 2017. The Theory of the Business (Harvard Business Review Classics). Harvard Business Press.

    You may also like to read: Roles of Marketing Other Functional Units : Barclays

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