Business Environment

This presentation provides an overview of the business environment, including the factors that affect business activities. It explores the types and purpose of organizations, their legal structures, and the scope and size of different types of enterprises. The presentation also includes a stakeholder analysis and concludes with the importance of understanding the business environment for increasing profitability.

Business Environment
(P1 and P2)

INTRODUCTION
Business environment is a combination of external and
internal factors which affect the whole business activities.
These factors affect the company process in negative and
positive way. It is very important responsibility of a
manager to identify the all factors which assist in achieving
the success in business operations.

Purpose of various types of enterprise
 Public sector organization
 Private sector organization
 Voluntary sectors

Types and purpose of organization and their
legal structure
Every business organization have their purpose and legal
structure which helps them in enhancing their profitability
level at marker place. Various companies operate their
business market in order to attain their specific goals and
objectives. For expand their business activities companies
perform their activities as per their purpose.

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Basis of
comparison
Profit organisation Non-profit
organisation
NGO
Meaning This type of
business operate
their activities for
attaining profit and
competitive
advantage.
The main purpose of
this type of business
organization is to
deliver quality
services to
customers in order
to get their
satisfaction level.
These type of
business operate
their activities for
providing better
social welfare in
order to enhance
the economic
condition in positive
way.

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Motive The main motive of
this type of business
is to earn larger
marker share and
profitability.
Non profit
organization focus
on offering service
and products to its
customers.
The main purpose of
this type of business
organization is to
increase social
welfare by providing
better services.
Are of operations Area of this
organization is
limited as well as
larger.
In this the area of
this business is
limited.
This type of
business having
larger area.

Public Company
 Legal structure
 Central government
 State government
 Local government

Private company
 Sole trader
 Partnership
 Limited companies
 Cooperatives

Voluntary sector
In this type of business organization, there are some individuals
are come together and start a business in order to solve social
problems of public.
Some time it is based on the social public and they and non
profit organization.

Scope and size of various type of enterprise
 Public Sector organization
 Private sector organization
 Voluntary sector organization

Stakeholder analysis

Conclusion
In above mentioned report can be concluded that business
environment is very essential tom identify the factors and
manage the business activities in effective manner. It will
assist in increasing the profitability of the company at
marketplace.

REFERENCES
Ahmed, I., Aamir, M. and Ijaz, H. A., 2011. External factors and
entrepreneurial career intentions; moderating role of personality
traits. International Journal of Academic Research. 3(5).
Auzair, S., 2011. The effect of business strategy and external
environment on management control systems: a study of Malaysian
hotels. International Journal of Business and Social Science. 2(13)

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