Business Environment | Public and Private Sector

Running head: BUSINESS ENVIRONMENT
Business Environment
Name of the Student
Name of the University
Author Note

BUSINESS ENVIRONMENT2
Table of Contents
Background Overview.....................................................................................................................3
1. Understanding the Key Differences between Public and Private Sector Organizations..........4
2. Understanding the Impact of Fiscal and Monetary Policy on Business...................................5
3. Understanding how Resources are allocated in Different Types of Economies......................7
4. Impact of Supply and Demand on the Market.........................................................................8
5. Porter’s 5 Forces and their Impact on Business Operations.....................................................9
6. Effect of Market Decisions on Business Policy.....................................................................11
7. Impact of Culture on Business...............................................................................................12
8. Impact of Global Factors on UK Business.............................................................................13
9. Understanding the Impact of EU Policies on UK Business...................................................14
References......................................................................................................................................17

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Background Overview
The term business environment refers to the sum total of internal and external factors that are
seen to influence the operations and the performance of a business. Both factors can also
influence one another and work collectively, together in order to have a sound impact on
business performance (Prajogo 2016). There are many types of external business environments
that can influence the outcome of an enterprise such as political and social factors, economic
situation, demographics, the natural environment, legal frameworks and technological growth
and development. Internal factors which are seen to have control or influence on a business
environment are the strengths and weaknesses of a company, the opportunities that a company is
faced with for growth and expansion and the threats that a company could likely face in the
running of its business operations and which it needs to overcome in order to be able to survive
in the market over the long term (Hamilton and Webster 2018). This assignment engages in a
general analysis of a business environment that will come to the aid of a UK firm looking to
become more prominent and well-known in its industry. The assignment points out the key
differences between public and private sector organizations, showcases the role that stakeholders
have to play in a business organization through the use of a mind map, discusses the impact of
fiscal and monetary policies on businesses, shows how resources are allocated in a capitalist
economy, mixed economy and socialist economy, discusses the impact of supply and demand on
the market, the forces of Michael Porter, and the impact of market decision on business policies.
What is also discussed in this assignment are the various cultural elements that influences the

BUSINESS ENVIRONMENT4
outcome of business operations and a graph is provided of the impact that EU policies have had
on UK business in the pre- and post Brexit periods.
1. Understanding the Key Differences between Public
and Private Sector Organizations
Public Sector Organization Private Sector Organizations
The shares of a public sector organization are
traded in the stock exchange
PSO’s are able to access public money and
they are also in a position to raise new money
There are public disclosure requirements that a
PSO has to adhere to
Owing to the ready availability of information
of a public sector organization, to engage in the
valuation of the business becomes quite easy
for market analysts to do.
A privately held company does not trade its
shares in the stock market
Private sector organizations have to rely on
capital acquired through personal investment,
investment by shareholders and loans
There are no public disclosures that a private
sector organization must make in order to
operate
A private company will not be in a position to
allow market analysts to evaluate the value of
the business unless it makes available a wide
variety of internal information for this purpose.