Professional Documents
Culture Documents
Re-submissionDate DateReceived2ndsubmission
Student declaration
I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that
making a false declaration is a form of malpractice.
Student’s signature
Grading grid
P1 P2 P3 M1 M2 D1
Summative Feedback:ResubmissionFeedback:
Signature&Date:
Introduction
Business is a diversified environment. Multiple business models have been developed, depending on the
goals and direction of the management to gain the attention of a specific demographic. However, in all
forms of business, there are constant competition, which requires the chairman to be ahead of the
competitors to achieve the needs of customers throughout the business’ lifespan.
Nike, Inc.
https://about.nike.com/
NGOs can be defined as an organization which does not belong to any governmental figure and making
profit is not its only goal. It can be organized in many levels from local to national or international. Some
are created to serve a specific purpose (E.g. educational, scientific, charitable, literary, religious, etc.).
An example of this would be the Red Cross Vietnam, it operates in the humanitarian field and participates
with individual organizations to carry out Red Cross activities. The purpose of this association is to build a
humane and peaceful society.
Alternatively, for profit organizations utmost important goal is to make profit because without a huge
growing capital the organization cannot operate and evolve. According to General Statistics Office of
Vietnam, 78% of businesses are categorizes as “For profit organization”.
Sole trader is the most basic form of business structure which is simple to set up, since an
individual can operate it. For example: coffee shop, hairdresser, stationary, restaurant, etc. The
benefits of being a sole trade are that it is easy to manage, requires fewer business report, and is a
relatively easy to change business structure. However, the business owner is liable for all financial
& legal responsibilities which means if anything goes wrong, all their personal assets are at risk.
Limited company is a type of business structure in which that company has its own legal identity.
In other words, the legal, finance and properties of the company are separate from its owners, if
business goes wrong, the owners and shareholders are not personally responsible for any debts.
Limited company is divided into two kinds: public limited company and private limited company.
Private limited company has its own rule on its ownership, such as, it cannot offer shares to the
general public. On the other hand, public limited company can publicly raise capital by offering
shares on a stock exchange. This business structure generally applies to large-scale companies
which have at least £50,000 in net-worth.
a. Advantages of SMEs:
It has the ability to operate flexibly in response to market changes, such as business activities. Also SMEs
has an advantage of managing business goods and changing personnel are simpler and easier. The capital
spent in the process of construction and development is not costly, therefore can recover working capital
quickly. The ability to raise capital of SMEs are quite good as they can acquire loans from large national
banks as they are the targeted demographic. Currently SMEs are now the go to business model that many
young entrepreneurs are aiming for today, not only in Vietnam but also internationally.
b. Disadvantages of SMEs:
SMEs are always in fierce competition against the bigger and wealthier enterprises, as large long-term
businesses have a huge number of loyal customers also because of the limited capital potential of SMEs,
they can never be able to compete with the business giants. In addition to the cost of operating, managing
and carrying out huge advertising activities always make SMEs encounter difficulties and hardships.
Therefore, if you want to conduct your business as an SME business model, business owners need to build
trust from their customers, build a customer support system and care centers. customer.
Large firms
Depending on the business activity, business can be defined into four sectors
1. Primary sector: a part of business related to activities of production such as extracting and
transforming natural resources into primitive and preliminary products. These products are raw
materials for other economic sectors. The main economic activities of this sector include
agriculture, fishing, forestry, mining and quarrying. In the modern era, this sector has declined
due to the introduction of technology in this sector.
2. Secondary sector: this sector generally uses the output provided by primary industries for
manufacturing and construction-related activities. Because of the demand for more goods and
services, this sector has developed dramatically, in the USA more than 20% of the workforce is
involved in this sector. Examples of this industry are building furniture, manufacturing car,
shipbuilding.
3. Tertiary sector: also known as service sector or third economic sector. This sector involves
bringing non-tangible value to its customers instead of a physical product, meaning that the
focus of this industry is how people interact with each other to fulfil customers’ needs. It
includes entertainment, banking, insurance, accounting, tourism. In today's economic world,
the tertiary sector is the most developed industry.
For all types of businesses, the most important first step is to define the mission and vision of the
company. Vision is what businesses want to achieve or become, it determines the long term for the
company. A classic example is Henry Ford (founder of Ford automobile), he predicted that every
American garage will all have cars. Mission is the reason for existence of the organization. In addition,
each business need to have a specific goal to show the purpose of the business, which is the specific
milestone developed step by step. A goal is a question that needs to be answered within a certain period of
time. The requirement is set with the intention of achieving the goal both in quantity and quality, and at
the pre-determined timeline. The goal of the business must always be close to each stage of its
development. To be able to achieve success, a business must have a clear objective and a suitable market
share because market share is the factor that directly affects business decisions. Leading brands often
occupy the largest market share. Therefore, market share is one of the first criteria used to assess the
success of a business. Although market share is not the only criterion for determining a dominant market
position, the market share and market power are closely related.
About Nike.inc
Nike is public limited company under the symbol NKE. It is also a large firm with 700 shops all around
the world and has offices situated in 45 countries outside the United States. Most of its factories are placed
in Southeast Asia including China, Indonesia, Taiwan, India, Vietnam, Thailand, Philippines, Pakistan,
and Malaysia.
Target markets
Nike’s targets customers between the age of 11-45 years old, with mainstream focus is on teenagers in
order to build long-term loyal consumers. For example, before the 2014 World Cup, Nike promoted a
campaign that honor iconic football athletes playing football with teenagers inspiring them to become like
their idols.
LO2 Demonstrate the interrelationship of the various functions within an organisation and
how they link to organisational structure
Organizational structure
Business organizations are identifying by a distribution of labor which allows employees to focus in
particular roles and to occupy designated positions to achieve the organization's goals. The structure is
important because it shows the needs of the organization within its existing context and taking into
account of its future requirement
Main organizational structures are functional, multidivisional, matrix, project based etc.
An organizational structure built on specific demands of products, markets or customers in their specific
business environment. Therefore, each division often has all the necessary resources and functions within
it to satisfy the demands based on the working of an organization.
Advantages:
Disadvantages:
- Incompatibilities
2. Hierarchical:
Organization chart of hierarchical is split into different levels where the line of command follows
downwards from the top level to the bottom or the lower level. The hierarchical organizations chart work
best in solid environments that do not require rapid change of strategy or in organizations that provide
multiple services or products
.
Advantages:
- Clear communication channel, which means members know to whom they report and who reports
to them
- Advancement path is clear
- Make the company work efficiency by distribute human resources into various specialize
department.
Disadvantages:
This structure is built by combine both the product of the project and the function of the management
producing it. There will be a management for each organization's activities (scientific research, survey,
design, production, supply ...) and they are divided in accordance with the business structure - objectives.
In this structure, the managers according to functions and products are equally positioned. They are
responsible for reporting to the same level of leadership and having the authority to make decisions in
their area of responsibility.
\
Advantages:
- It helps to exchange information in businesses more effectively. The problems are easily solved
because of the close communication and working between the departments. At the same time,
effective communication helps increase productivity and enable quick decision making.
- It encourages leadership according to democratic trends, in which members' opinions are heard
before management decides. This helps improve employee satisfaction and improve work
motivation.
Disadvantages:
- Intricate internal, employees may be confused about who is their direct manager. Dual authority
can cause disruption between employees and managers. It is possible that there is a major conflict
between management levels from different departments when assigning jobs to employees.
- Costly because overall cost of the company increased due to double management needs. The extra
wage that an organization must pay is quite significant with the company's resources
References
- Mindcoral.com. (2019). Nike: An Analysis of the Mission, Vision, Values, and Goals. [online]
Available at: https://www.mindcoral.com/questionlibrary/view/1526 [Accessed 14 Feb. 2019].
- Condor.depaul.edu. (2019). Strategic Analysis of Nike, Inc. [online] Available at:
http://condor.depaul.edu/aalmaney/StrategicAnalysisofNike.htm [Accessed 14 Feb. 2019].
- Statista. (2019). Nike: employees worldwide 2018 | Statista. [online] Available at:
https://www.statista.com/statistics/243199/number-of-employees-of-nike-worldwide/ [Accessed
14 Feb. 2019].
- Ngo.org. (2019). DEFINITION OF NGOS. [online] Available at:
http://www.ngo.org/ngoinfo/define.html [Accessed 14 Feb. 2019].
- Debitoor.com. (2019). Limited company - What is a limited company? [online] Available at:
https://debitoor.com/dictionary/limited-companies [Accessed 14 Feb. 2019].
- Slideshare.net. (2019). Organization structure and relationship. [online] Available at:
https://www.slideshare.net/swtnspicyaqua/organisation-structure-and-
relationship?from_action=save [Accessed 14 Feb. 2019].
- Nike News. (2019). Read Nike's Mission Statement and find information about NIKE, Inc.
innovation, sustainability, community impact and more. [online] Available at:
https://about.nike.com/ [Accessed 14 Feb. 2019].