Business And Business Environment (Solved)

BUSINESS AND THE BUSINESS ENVIRONMENT
INTRODUCTION
The term "business environment" refers to the surroundings as well as the internal and external
elements that affect the firm. The business environment is made up of different variables that
influence and give changes to the business. The business environment includes a variety of
external and internal factors that influence business choices and operations. Employees,
consumers, stakeholders, the government, supply, demand, legislation, and other factors all have
an impact on business outcomes.
Public Sector
The public sector firms are government-owned organizations that aim to provide public goods
and government services such as military, police, public infrastructure, public transportation, and
so on for the benefit of society.
Company purpose: Public sector organizations are founded to increase the economy of the nation
by boosting employment levels and to promote to the country's development.
The following are the purposes of the Crown Prosecution Service:
The primary goal of this organization is to provide assistance to the police regarding
investigations and to assist them in finding the true criminal in order to determine his
punishments.
Another goal is to help the victim realize his condition and to punish the true culprit.
Private Sector
They include for-profit organizations owned from both the government and other private entities
such as groups and individuals.
The private sector is in contrast to the public sector, which would be normally controlled by the
government. Non-profits and charity are frequently separated into a third category known as the
volunteer or third sector. Therefore, these organizations are usually regarded to be part of the
private sector.
They are an integral aspect of the nation economic structure which is held by private persons and
groups consequently performing operations for creating profit. They are indeed a major source of
growth and development for the nation, as well as a source of per capita income, consequently
broadening the GDP.
The private sector contributes significantly to the economy. Businesses in free enterprise
economies face little government regulations. Such economies are diametrically opposed to
countries with a dominant public sector and dominant governmental control over the economy.

Businesses in the private sector are formed by starting a new firm or privatizing a former
governmental organization. A significant private-sector corporation may also be listed on the
stock exchange. Private-sector enterprises fight for customer dollars, lowering prices for goods
and services.
The private sector has a wide range of organizational types, ranging from small family firms to
international conglomerates.
private sector examples:
Sole proprietorships,
Partnership
Small and medium-sized enterprises
International conglomerates
Professional organizations
Trade unions
Employees in the private sector are often compensated from the company's profits. They enjoy
more regular wage rises, a wider range of professional options, and more prospects for
advancement, but they have lower job security and fewer comprehensive benefit programs.
Extended working hours and a more challenging work environment are frequently the result of a
more competing private market.
The private and public sectors may collaborate to advance mutual interests. For financing,
holding, managing, and promote effective services and facilities, private companies frequently
use governmental assets and resources.
The following are the objectives of the IKEA group:
Its primary focus is on supplying clients with economical, high-quality products in order
to meet organizational goals.
Another goal of this group is to increase profits by growing their business globally.
Voluntary Sector
The voluntary sector is mostly made up of nonprofit organizations founded for social objectives.
There are many different types of institutional frameworks, vary from large local societies to big
professional organizations. The phrase can relate to religious organizations, social clubs,
including arts organizations, and also financial organizations, campaign organizations, and
public service organizations.
The phrase "voluntary sector" refers mostly to independent nongovernmental groups that may
engage in economic activity; while, in other nations, the guiding premise is the utilization of
volunteer or unpaid employment. This does not exclude the participation of paid employees a
voluntary organization may be distinguished by the presence of a voluntary committees or by the
activities of volunteers directed by paid workers, and voluntary activity can be performed under

the supervision of governmental organizations. Unpaid work performed outside of a formal
organizational structure, on the other hand, is regarded to be part of the "informal sector."
The position of the voluntary sector is decided by the attitudes and engagement of all those who
volunteer instead of the needs of the community served. It has led to accusations that
volunteerism is sometimes misguided, is often related to historical causes rather than present
concerns, and is frequently unavailable where it is really needed.
These are bodies that carry out social activities, specifically those carried out by particular not-
for-profit organizations that seem to be nongovernmental in nature.
Being made up of diverse organizations, their main goal is to provide advantages and improve
society as a whole without regard for profit. They contribute to the creation of social prosperity
and the advancement of civilization.
Legal Structure
The legal framework used to construct and define business organization and ownership from its
commencement in a certain nation is referred to as the business structure. below are the business
structure kinds:
Sole proprietorship
The sole proprietorship is the most basic business structure with which to run a business. A sole
proprietorship is not a legal entity in and of itself. It basically refers to the individual who owns
the company and is personally liable for its debts. A sole proprietorship can do business under its
owner's identity or under a fictional name.
Limited Liability Company
The LLC originated from the desire of business owners to embrace a corporate structure that
would allow them to operate like a traditional partnership. Their purpose was to transfer money
to the members, who declared it on their personal tax returns, but also to shield oneself from
personal culpability for the debts of the business, as the corporate business form does. Except if
the business owner forms a separate company, the owner and partners are personally liable for all
of the company's debts.
General and Limited Partnership
A general partnership's partners operate the business and are personally liable for the
partnership's debts and other responsibilities. There are both general and limited partners in a
limited partnership. The general partners own and operate the firm and are personally liable for
the partnership, whereas the limited partners are merely investors with no influence over the
business and are therefore not subjected to the same obligations as the general partners.
Every organization must adhere to a variety of legal regulations.

The central government- is in charge of all of the government's government personnel.
For the country's development, the central government creates many laws and regulations
for state and local government.
State government- This is a separate thing of government in the United Kingdom that is
overseen by the central government. furthermore, it has control over educational
organizations in order to boost the national growth.
Local government- entails public administration that encompasses the local economic
area. The main goal of this government is to strengthen policies and procedures for
economic growth.
COMPANY PROFILE – IKEA
IKEA has been chosen as the organization for this assignment. IKEA is a British firm and a
home furnishings trademark in the United Kingdom. The company is well-known for its elevated
products and services. In order to provide customers with enticing items, the company offers
high-quality furnishings, such as house and work furniture, to original and imaginative designs.
The head office are in Delft, the Netherlands.
According to the firm's vision and purpose statement, the business is engaged in the
manufacturing of a vast range of furniture that is accessible to clients at a reasonable cost. The
company's objectives describe the goals for which the company was formed.
Brief history of IKEA
Ingvar Kamprad founded IKEA in 1943.
The first advertising issued in the local press in 1945.
Furniture sales begin in 1947. Local craftspeople create the furnishings.
The first exhibition hall opens in 1953.
IKEA begins selling furniture in 1955.
IKEA Stockholm opens in 1965.
in 1981 IKEA opened its shop in France.
The first IKEA store in China opens in 1998.