An Introduction to the Business Environment

BM301: An Introduction to the Business Environment
QUALIFI Level 3 Diploma in
Business Management

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Assignment
Title
An Introduction to the Business Environment
Task 1 (350 Words)
There are 2 types of business mentioned as below
Public Companies- It consists of the companies that are owned and operated by the
government of that country. Companies in the public sector does not seek to generate profits.
Purpose of public sector is to provide public service which is the best service at any cost. It
helps the government to enforce social control over trade and industry for ensuring that there
is equitable distribution of goods/ services (Abdolmohammadi,2017).
Business sectors of public sectors include sectors such as military, infrastructure which can
be public transports, bridges, telecommunication and various others. They are run by the
government which operate with the money raised from taxes collected from the public
(Abdullah,Ardiansah, Hamidah, 2017). Stakeholders of the public companies are
government which can be at local, regional and central level.
Example of public company in UK is National health service which is publicly funded
healthcare service in England which provide healthcare service to people of UK where its
purpose is to improve care quality which helps to create the safest, highest quality of health
and care services.
Private Companies- These companies are the part of economy which are run by individuals
and companies for profit making and are not under the control of any government. It
encompasses all businesses run for profit that are not owned and operated by the
government. Companies run for the purpose of making Profits (Ceustermans, Breesch,2017).
Ownership is defined by share capital where the shares are equal part of companies capital.
Stakeholders in private companies include founders and owners of the company, employees,
competitors, investors, creditors and many others. Private companies can be found
everywhere in every sector of business as their main motive is to money from public.
Example of private company in UK is JCB where the business activity of the company is to
manufacture equipments for agriculture, construction, waste handling and other. Purpose of
the company is to grow its business by delighting its customer by delivering first class
customer care.
Stakeholders Influence- Business have different internal and external stakeholders who
influence purpose of both the organizations. These are owners of both the company who
influences how the aims to be achieved and decisions to be made.
These are the customers of both the company as businesses can't ignore them as they will
find loosing them to rivals which affect the companies purpose.
Employees of both the company influence the purpose for which it exists as they are the one
who are directed to achieve business objectives of company.
Suppliers/Vendors& Distributors are external shareholders that influences the purpose of the
company as they can sometime provide best prices with large customer base that in turn
meets business purpose.