Business Environment.

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Business Environment

Introduction
 Business environment is a collection of different aspects like
individuals, entities and other factors which may or may not be
under the control of management of organization.
 But such aspects affects the profitability, performance and
growth of organization.
 There are various internal and external factors which having
large influence on company’s future perfrormance.

Types and Purpose of private, public and
voluntary organization
 Every organization have their different objectives and
legal structure as per their nature.
 It is the duty of manager of such organization's is to follow
such legal requirements while performing their functions.

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 Private company
 Public organisation
 Voluntary organisation

Nestle
Private company
 In the given case Nestle can be consider as a private frim
which operate their business in UK and other parts of the
world.
Purpose of Nestle
• Providing quality life to individuals of society
• Contributes their functions in development of healthier
future

Legal structure of private company
 There are three types of firm which having their own legal
structure. It involves:
 Partnership
 Sole proprietorship
 Limited companies

Advantages and Disadvantages of private
organization
Advantages Disadvantages
Owners have full control over business
activities
Required to set up legal agreement
Owners and shareholders have limited
liability
Raising finance is difficult

Public organisation
 It includes the such organization which provides the
following functions such as military, police, infrastructure,
public education, public transit, healthcare etc.

Voluntary organisation
 It includes all companies which provides their functions
with the help of volunteers. They work for the
development of society, not for the purpose of earning
profit.

Size and scope of different organisations
 All the three organisations Nestle, NHS and Oxfam have
their different size and scope due to having their distinct
nature. Size of the organisation includes about their
different locations where they operate their functions.

Stakeholder analysis
 It is the process of evaluation of important stakeholders of
Nestle. Such stakeholders are named as employees,
customers, investors. Government etc. It is necessary to
consider the ideas of all stakeholders before performance
of their functions.

References
Reed, O. L. and et. al., 2013. The legal and regulatory
environment of business (p. 328). McGraw-Hill/Irwin.
Reinhardt, F. L. and Stavins, R. N., 2010. Corporate social
responsibility, business strategy, and the environment. Oxford
Review of Economic Policy. 26(2). pp.164-181.
Shigang, Y., 2010. Competitive strategy and business
environment: The case of small enterprises in China. Asian Social
Science. 6(11). p.64.

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