Understanding the Business Environment - Desklib

Business Environment

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Identifying the legal structure (public company, private company, voluntary, charity, public
sector, etc.) along with an outline of the operations / purpose of your organisation and its main
objectives.....................................................................................................................................1
Identify and explain the market structure under which the organisation operates, including a
discussion of how the market structure affects the behaviour of the organisation in looking to
achieve competitive advantage....................................................................................................1
TASK 2............................................................................................................................................1
Define the following terms: ‘stakeholder’; ‘shareholder’ and ‘stakeholder analysis’. Using a
named real company of your choice, demonstrate how you would apply the stakeholder
analysis process to identify the company’s stakeholder groups and evaluate their needs and
influence......................................................................................................................................1
TASK 3............................................................................................................................................1
a. Discuss three reasons why it is imperative for your selected organisation to analyse the
business environment it faces. Using the PESTEL framework, identify and explain at least five
(5) important macro environmental influences currently affecting your chosen organisation....1
b. Explain the importance of Porter’s Five (initio5)-Forces model. Using the Five-Forces
model, examine the current behaviour of the selected organisation and explain what you
believe to be the five (5) most critical influences arising from the competitive market
environments, both nationally and internationally......................................................................1
TASK 4............................................................................................................................................2
Evaluate the development of the business with reference to short-term and long-term
performance. In your own assessment, do you believe current growth reporting practice is

balanced in terms financial and non-financial measures of performance? Justify your answer
and provide recommendations for improvement.........................................................................2
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
Business environment is undertaken as the overall surroundings that have direct or indirect
bearing upon functioning of ventures. Moreover, this can be also explained as the set of external
factors like economical, social, poitical, technical and others that are uncontrollable into nature
as well as impacts the business decision of entity. In addition to this, it is undertaken as
accumulation of all individuals, firms and many more factors that may or may not be under
control of entity, but can impacts their profit, performance, development and even survival. Fro
this report, the choosen company is HBSC which is a British multinational investment bank as
well as financial services holding firm. Moreover, this is one of the second largest bank within
Europe along with total assets of US$2.984 trillion. Its headquarters is in London, United
Kingdom. The topics which are going to be covered in this report are public, private and
voluntary sector’s legal structure, objectives and purpose. Additionally, market structure,
stakeholder analysis, PESTLE analysis and porters five force analysis are also describe. Apart
from this, evaluation related to development of the business with reference to short-term and
long-term performance are also discussed in this report.
TASK 1
Identifying the legal structure (public company, private company, voluntary, charity, public
sector, etc.) along with an outline of the operations / purpose of your organisation and its
main objectives.
Privately owned business: These are the organization that is begun by utilizing the individuals
and the explanation of this sort of firm is to procure profit. Private offices ought to notice rules
and rules set up by utilizing the public authority related to that they've individual principles and
plan to conduct the business with adequacy.
Public firm: These endeavors are claimed and perform through the specialists and public our
bodies. The intention is to offer contributions to the resident of the country. Public Healthcare
Services (NHS) is a public association in UK which objectives to work of art for social
government assistance by means of bestowing particular contributions as modest expenses and
acquires pay simultaneously. Reason: The motivation behind NHS is to differentiate medical
care organization for the strength of individuals having a place with unimaginable greatness or
income bunch with no separation among rich and appalling.
1

Understanding
the Business
Environment

Table of Contents
Table of Contents.............................................................................................................................3
INTRODUCTON............................................................................................................................4
TASK 1............................................................................................................................................4
Business organisations can be classified according to many types of criteria............................4
TASK 2............................................................................................................................................6
Stakeholder, shareholder analysis................................................................................................6
TASK 3............................................................................................................................................8
This Task requires you to research the organisation highlighted (HSBC) and then undertake a
business environment analysis using appropriate business analysis tools...................................8
TASK 4..........................................................................................................................................11
Referring to the Key Performance Indicators in the annual report of the organisation.............11
CONCUSION................................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTON
Business environment is the sum and collection of internal and external factors such as
employees, customers, political stability, supply and demand, management, and suppliers that are
important part of business organization. In other words, business environment determines
longevity, profitability, and growth by managing and operating the organizational functions. This
is important for management to analysis the environment that which factor might be affected the
organizational performance and productivity (Adamseged and Grundmann, 2020). The report is
based on Sainsbury that is larger supermarket in UK, providing different types of products and
services at the workplace. The management of such organization is playing the important role as
it analysis the environment and identify which factor can impacts on their performance. The
report covers types of organization, key shareholders, nature of the environment, national and
international working environment, and range of economic tools used to determining business
decision and economic tools that used to state business decision.
TASK 1
Business organisations can be classified according to many types of criteria.
Business organizations are of different types which are running by organising and
managing the all functions and activities. This is important for each organization to understand
the requirement and make efforts to provide the optimum solution which can help to develop the
business productivity. In the business environment there are different types of organization
which are running as per their nature such as:
Public Company – This can be explained as an organization whose control and
management is having in the hands of government and it manage the all functions effectively. In
this, shareholders have claim to part of the organization’s profits. This also generate the money
by issuing share in public. For example, National Probation Service (NPS) that provides
statutory criminal justice service to the offenders.
Purpose: The purpose of public company is to fill the customer’s requirement and
managing the all functions. The main purpose of NPS is to provide the justice and reduce the
crime (Al-Matari, Aziz and Amiruddin, 2021).
Objectives: To offers the best possible services and not to generate the profits.