Introduction to Business
Introduction to Business course focuses on developing students’ grasp of business basics through a learning method that is timed.
Introduction to Business
Small-scale industries have a significant impact on the country’s economic stability.
The new generation of shareholders is putting a lot of money into a successful start-up
business strategy that can outperform the existing big companies.
In this regard, it’s worth noting that the architectural sector in the United Kingdom is steadily developing.
The report has selected Assail Architecture as a small scale organization while analyzing its external and internal environment
so that organization can put forward effective decision making to maintain systematic growth.
Overview of the Report
Small scale industries tend to play a major role in shaping the economic stability of the country.
The new age shareholders are investing enormously in the successful business model of a start-up
business that can put forward more return than the established blue-chip organizations.
It is important to mention in this context the architecture industry is evolving systematically in the domain of the UK.
It is estimated that this developing industry generated around seven billion British pounds in 2017.
The European region has witnessed unprecedented growth in the start-up sector and
the rise is enormously influencing their economic pull at the same time.
The report is taking Assail Architecture as the start-up organization in the domain of the U.K.
This report is going to effectively evaluate different kinds of business while analyzing its macro
and microenvironment to comprehend a better understanding of the scenario.
Background of the Company
The organization was established in the year 1994.
It effectively put forward services regarding master planning, architecture service and many other services.
The headquarter of the organization is based in London (assael.co.uk, 2021).
The organization also started their initiative in the domain of Australia and Bahrain.
The organization is known for their environmentally friendly business operation and other policy such as “No lunch at desk”.
The organization is also known for its services such as putting forward effective work in the
domain of rightsized in meridian water, Garratt mills, Leaside lock and many other projects.
Main Body (Business Plan)
Different Types Of Business
It is essential to identify how the initiative must be compartmentalized in the business scenario. It is not a hidden fact that all the business compartmentalization must go through a legal structure that comments on the liabilities and responsibilities of the participants in ownership and authority over the initiative. There are four main types of business initiatives in this particular domain. They are sole traders, partnerships, corporations and limited liability organizations
Sole traders
It is important to mention that all the small scale organization begins as sole proprietorship, These type of initiative tend to be owned by a single individual. That person tends to bear all the responsibility for maneuvering the business. He is in the possession of all the assets and resources generated in the organization. At the same time, he bears all the liability when the organization suffers a loss.
Partnership
In this particular scenario, two or more individuals share the ownership of a particular business. It is important to put forward a legal agreement in this particular context to share the profit as well the liability. This legal procedure also includes how the future partnership would be manoeuvred and at the same same time what measures must be incorporated while dissolving the partnership.
Corporations
A corporation is generally administered by the states in which the headquarter of the organization is established. It is considered a unique entity and it is completely a separate entity apart from the person associated with it. These types of organizations can be taxed and at the same time, they can be prosecuted. It can be said the owner of this initiative is considered to be their shareholder. As it has a unique structure, it does not get dissolved when there is a hierarchical change.
Limited Liability Organisation (LlC)
It is considered a new type of hybrid business formation. It put forward limited liability attributes in a corporation while incorporating operational flexibility inside a partnership (Aspan, 2017, p 45). This kind of business formation is more general in nature and the complexity of the formation is far superior to that of partnership.
Your Business Structure
The Assail architecture follows the partnership initiative while doing the business operation.
It is important to mention in this particular domain that the owners of the organization
tend to opt for limited partnership initiatives in this particular domain and at the same time,
it can be said that this start-up company has often opted for limited liability initiatives to put
forward their activity efficiently.
Macro Environment
PESTLE analysis of Assael architecture
A PESTLE framework effectively puts forward a fact identification method while analyzing the macro environment.
It assists the organization to analyze its external elements influencing the business operation of the organization.
Effective PESTLE analysis of the organization assists the organization to employ better planning and decision making.
Political | Political factors put forward an enormous influence on the long term sustainability of a start-up organization like Assael Architecture. The architecture sector is a developing sector and political stability put forward an enormous significance in this particular domain. Additionally, the start-up organization is very unpredictable in nature and it tends to struggle in the face of unwanted political scenarios. The recent Brexit incident has influenced the basic function of the start organization such as Assael Architecture. It effectively refers to the incident of withdrawal of the UK from the EU. Moreover, the UK government has put forward the “Coronavirus act 2020” due to covid protocol and the rules and regulations associated with it which hampered the functioning of the organization (Christodoulou and Cullinane, 2019, P 56). |
Economical | The macro-environment determinants such as inflation rate, savings ratio, foreign exchange ratio can systematically influence the business operation of a start-up organization. The economic cycle also plays a major role to determine the aggregate investment and demand of a particular economy. More it is important to note that Assael Architecture has been severely hit by the pandemic alongside other industries. Therefore, all the macro-environmental determinants posed a great influence on the start-up business during the Brexit incident and pandemic. |
Social | Demographics play a systematic role that tends to influence the basic business operation of the organization. Assael Architecture is a start-up initiative and at the same time, the domain it is operating in is still developing. Therefore, technical education level, entrepreneurial spirit, and class structure can systematically influence the functioning of the organization (Christodoulou and Cullinane, 2019, P 56). |
Technological | As it is a very technology-heavy sector, all the advancements put forward by the competitors of the selected company can systematically influence the business operation of the organization. The influence of cost compartmentalization can also be witnessed in the small scale technical service industry (Shtal et al. 2018, p 10). |
Legal | Due to the Brexit problem and the pandemic, a slew of antitrust laws have been proposed, all of which have the potential to systemically alter an organization’s operations. There are copyright and patent restrictions that might have a significant impact on the organization’s operations.
|
Environmental | Weather, Climate change, laws and regulation associated with environmental pollution can systematically influence the business operation of small scale companies such as Assael architecture. |
Micro Environment
Porter’s five forces framework assist to identify where the authorities indulge in a business scenario.
It plays a major role in comprehending the strength of that particular organization in a competitive scenario.
Industry Competition
It is essential to comprehend that small scale organization such as Assael Architecture,
has to face enormous competition in the domain they have to operate.
The Foster partner organization has a huge consumer base in the domain of UK
and it posed a systematic difficulty for the selected company to strive in this domain.
Therefore, the company needs to point out the number of effective competitors while identifying its own USP.
The organization must identify the subsector associated with the industry
where the competition is slim. It is also important to put forward diverse pricing to attract the consumer
Supplier Power
It is essential for a small scale company like Assael Architecture must possess decent knowledge regarding pricing,
the number of suppliers to put forward the sustainability of the organization.
It is important for the organization to also assess whether it requires multiple suppliers to meet the demand of the organization.
Buyer Power
One can not deny the importance of buyer power of the authority of the consumer.
The buying authority of the consumer effectively comments on the credibility of the product of Assael architecture.
Substitution Threat
It is one of the most important elements of this framework.
All the small scale organizations such as Assael Architecture can be considered as the threat,
Therefore, the organization must work with its USP to generate fewer substitutes in the market to maximize its profitability.
New Entrants Threat
Due to the ever-increasing competitive scenario,
new small scale architecture organizations are entering the domain of Assael Architecture.
Therefore, the organization needs to sustain the competition.
Assael Architecture can effectively bypass these hurdles through effective manipulation of technology,
pricing and administration of resources to put forward competitive advantage.
Impacts on your Business
After the effective analysis through PESTLE and Porter’s five forces framework,
it can be effectively identified the key factors that can influence the business decision of the organizations are –
- Brexit incident
- Covid situation
- Technological advancements were made by competitors of Assael Architecture such as Foster partner.
Conclusion
Overall Argument Summary:
The report has effectively selected Assael Architecture as the small scale enterprise in the domain of the UK. The report has effectively examined different types of business while identifying the nature of the business operation of the selected company. At the same time, the report has put forward PESTLE and Porter’s five forces framework to analyse the better comprehension of the broad perspective associated with the discussion.
Recommendation:
Outcome:
After the effective analysis, the organisation must show adaptability in the face of Brexit incidents and covid protocol. Additionally, it is also important to mention in this particular scenario that organisation must find their USP to put forward a competitive advantage in the business scenario.
Limitation:
The organisation suffers from multiple shortcomings such as
- Poor employment of rendering software
- Inefficient marketing strategy
- Inefficient hierarchy
Rational:
Short-term goals (Next 1 year) |
To run efficiently and methodically, the organization must lay a strong foundation and assemble a strong team. To properly implement its marketing plan, the company must create a hierarchical structure. Organizations must focus on using new technology and software to function methodically at the same time. |
Medium-term goals (next 2 years) |
Following the deliberate adoption of a structured hierarchy, the organization must concentrate on developing an appropriate organizational culture. It would make it possible for the organization to run smoothly. |
Long term goals (following 3 years) |
To maximize its brand value while establishing itself as the dominant player in its relevant area, the company needs to partner with a well-known figure. |
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