Introduction To Business Environment Report

This report analyzes the business environment by examining three different types of organizations: public, private, and voluntary. It applies Porter's Five Forces Model to each organization and maps their stakeholders. The report also utilizes the GIBBS Reflective Cycle to analyze the strengths and weaknesses of each organizational type.

Introduction To Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................2
Private Company:- .....................................................................................................................2
Public Company:-........................................................................................................................2
Voluntary Company:-..................................................................................................................3
Porter's Five Forces Model:-............................................................................................................3
GIBBS Reflective Cycle..................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business Environment refers to such an atmosphere/ environment which is influenced by
the force of new entrants; suppliers; buyers and the competitors in the industry. Here, in this
project report, three different organisations have been taken that belongs from the different
sectors namely: Public and Private Organisations. The assignment further lays its focus on the
Porters Five Forces Model and the mapping of the stakeholders in all the three different
organisations (ANGELOPOULOU, 2017).
Private Company:-
Overview
The name of organisation here is Marks and Spencer. It is a private limited Company and
the headquartering of this organisation is in Westminster, London. The organisation is a major
British Multinational Retailer (Das, 2017). It is also listed on the Stock Exchange Board Of
London. The organisation is specialised in the selling of wearable; luxury items and food
products and also in the various types of domestic items that are of personal use. This
multinational; organisation was founded by two partners: Michael Marks and Thomas Spencer in
Leeds (Ephraim and Okoye, 2017). In the year, 1998 the organisation became the first retailer in
the British market to make a profit of 1 Billion $ and that also before the deduction of tax. The
company made its reputation in the British market by selling of only the domestic goods.
Objective
Marks And Spencer is trying to fulfill the needs and demands of customers.
Public Company:-
Overview
Here, the selected organisation is NHS (National Health Service). It is a Public Limited
Company, providing its services in the field of healthcare. The organisation is situated in
Scotland, Wales and England, United Kingdom. This health and social care organisation was
established altogether in the year, 1948. The principles of foundation were based on the concept
that, services given should be comprehensive; universal and free at point of delivery (Radovoi
and Bian, 2014).
Objectives

NHS is trying to meet the needs and demand sof the customers.
Voluntary Company:-
Overview
Oxfam is the one of the leading voluntary organisation in England. It is a confederation
of 20 independent charitable organisation focussing on the alleviation of global poverty which
was founded in 1942. Winnie Byaanyima is the executive director of the company.
Objectives of Oxfam
 Poverty eradication
 Disaster Relief
Objective
Oxfam is trying to fulfil the need sand demands of its customers.
Porter's Five Forces Model:-

Porter's five
forces
Supplier
Power
Power Of
Buyers
Competitive
Rivalry
Threat of
Substitution
Threat Of
New Entry
Public High
Bargaining
power.
It is basically
an assessment
in respect of
the bargaining
power of
supplier. It is
driven by the
forces like:-
the number of
supplier in
selling the
clothes and
domestic
products;
uniqueness in
the products of
the suppliers;
and finally
cost of
switching
from one
supplier to
another
(Fernando,
2017).
High
Bargaining
power.
It lays its
focus on the
fact that, in
what ways the
organisation-
Marks And
Spencer offer
its products to
the suppliers
at the
affordable
price in the
market as
compared to
the others. The
forces that
drive this
factor of the
respected
organisation
are:- number
of buyers that
are available
in the market
for purchasing
High.
It is such a
situation in
which a firm is
facing the
competition
with its rivals
in the industry.
Its quite
obvious that
the buyers of
Marks And
Spencer will
definitely
move to such a
seller in the
industry who
is offering the
same products
at a nominal
rate (Lu, and
Wang, 2016).
High
It is the case,
in which
marks and
Spencer is
having the
problem in the
respect of
substitution
products that
are available
in the market
(Lu and Wang,
2016).
Low
Here, the
organisation is
having the
threat in
respect of new
entrants in the
market. Marks
and Spencer,
is having the
threat in the
industry from
the new
entrants that
may offer the
products or
services to the
buyers at a
very
affordable
price and may
occupy the
complete
market of
Marks and
Spencer. It is
high in this
organisation

a selected
product;
costing to the
buyer of
switching on
the another
seller in the
market. If only
limited
number of
buyers would
be available
then, it drivers
the business of
the firm or the
enterprise to
some other
level.
(Fernando,
2017).
Private Low.
It is an
assessment of
the study done
by the
research and
development
team of the
organisation
that, the
number of
ways in which
High.
It shows that,
in what ways
the buyer of
the respected
products are
affecting the
price in the
market in that
industry. The
clients of NHS
will definitely
High.
It is the main
driver and the
key element in
the market that
determines the
complete
game of
whether the
existing
industry will
survive or not.
High.
Here, NHS is
having the
problem in the
respect of
substitution
products that
are available
in the market.
Low
It is the case,
in which NHS
is having the
threat of new
entrants in the
market. In
case of NHS it
is quite low
(Lu and Wang,
2016).

the supplier of
the product or
the services
are just
changing the
uniqueness of
their products.
The relative
strength and
weakness of
the suppliers
in the market
and their cost
of switching
from one
supplier to
another
(Radovoi and
Bian, 2014).
move to some
other company
where they
will be getting
treatment in
affordable
price.
The
competitive
industry will
definitely take
over the
market of
NHS.
Voluntary Low.
Oxfam is
because they
maintain the
relationship
with many
suppliers.
Low.
The buyers do
not affects the
company;s
operations.
High.
There are
many
competitors
which are
operating in
UK like Red
cross.
High. It is
because
competition is
very high
customers can
switch to
others.
Low.
Oxfam is a big
organisation, it
is not easy for
individual or
company to
come in
comparison
with the
OXFAM.

Stakeholders Mapping:
Employees:
Marks and Spencer ensures that the organisation is providing necessary provisions for its
stakeholders and employees (Ephraim and Okoye, 2017). Employees of any organisation leave
the team if they are not taken care of. It is essentials that the leader and managers take effective
measures to solve the issues related to the employees and fulfil their expectations time to time.
Also, taking necessary feedback is also important from the employees to understand what are
their needs and wants. These needs and wants can provide satisfaction to the overall
organisational environment and operations can run smoothly. Employee needs such as rewards in
which they ask for a compensation for the work they have done. Loyalty in the leadership that is
responsible and efficient, Having the necessary resources such as the right tools and training
programmes for employee growth. A vision in which the employees are aware of where the
company is heading. Also, employees need connection in which the organisations leaders and
managers are supportive towards them and their growth. A good teamwork is also their need in
which they ask for a culture that supports and encourages their team work. Marks and Spencer
also take care of its employees values, strengths and purposes. All the organisations are meeting
the neesds of their stakeholders (Lu and Wang, 2016).
Suppliers:
Marks And Spencer, is trying its best to meet out the demands of the suppliers in the best
way:-
 Pay On Time:- An organisation should pay its suppliers in a timely manner. The
wholesale distributors and other product manufacturers should work on less margin basis.
Even a small retailer, that is paying timely to its suppliers with the motive of maintaining
a good relationship (Onik and Fielt, 2016). Marks And Spencer is paying its suppliers in
a timely manner. Not only this, the suppliers also offers the best price to the Marks And
Spencer.
 Changes In Policy:- The organisation should also inform its suppliers about the changes
in the policy. Marks and Spencer also informs its suppliers about the changes in its policy
that its making with the motive of surviving in the competitive world. Marks And

Spencer, should always keep it's suppliers update in the respect of whatever is going on
in the organisation. Marks And Spencer should always update its suppliers in the respect
of new products; special promotions and etc (Lu and Wang, 2016).
Not only Marks and Spencer but, NHS and Oxfam are also satisfying the same
conditions.
Government:
In every business there is an interference of the government in regulation of the business
operations. By following ways' government interferers:-
 Environmental Regulation:- By the regulating the environment, the government tries to
interfere in the regulation of the business activities. There are various regulations and
laws that an organisation has to perform by being in the limits (Fernando, 2017).
 Taxes:- The government, impose various taxes on Marks And Spencer. The organisation
has to pay various type of taxes to the government (Fernando, 2017).
Customer:
Marks And Spencer, is fulfilling the following needs of customer.
 Convenience:- The customer only want convenience from the company in respect of the
usage of product and the services that the customer is getting.
 Experience:- Marks And Spencer is focusing on the products with the motive of leaving a
good experience with the customer.
 Design:- The organisation is designing such products for the customer tat gives him
satisfaction. The organisation is completely providing innovative products to the
customers (Radovoi and Bian, 2014).
 Reliability:- Consumers should have trust on the company and for this it is very essential
that, organisation works in such a manner that, it wins the trust of its customers (Ephraim
and Okoye, 2017).

GIBBS Reflective Cycle
It is very popular among the experts from various fields. The process of this cycle is as
follows:-
 Description: - In this report, I had overviewed the working of the two organisation:
Public and Private. I had used the porters five forces model and have discussed its
impacts in the respect of these two sectors. I have also done mapping of the stakeholders
in this project report.
 Feelings: - In this report I had felt that, the public organisations are doing good in the
market in providing the healthcare services to the people. Although, both the
organisations are completely of a different field and are fulfilling different objectives of
the organisation (Radulescu, 2016).
 Evaluation:- In this report, what I found wrong is, the private sector organisation is,
focusing completely on the money making and not on the serving of society. On the other
hand the public sector organisation is focusing more and more on the social service and it
is the main aim of the government sector organisations.
 Analysis: - What, I analysed here is, the private sector organisation is focusing on the
maximisation of sales and profit in the market. On the other hand the public sector are
focusing on the serving the society and earning profit.
 Conclusion: - Here, I concluded that, the organisations are working on the fulfilment of
the objectives of the stakeholders (Das, 2017).
 Action Plan: - The organisations serve the society.
CONCLUSION
The project focuses on the two organisations: - NHS and Marks and Spencer and also on
their, Porters Five Forces Model and also on the mapping of the stakeholders. Further it has been
concluded from the assignment that, how, the GIBBS model is helpful.

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