Impact of Business Environment on Success

This solved assignment delves into the profound impact of the business environment on organizational success. It examines how social, legal, and political factors influence business activities and highlight the significance of an effective business environment for increased production, profitability, and stakeholder satisfaction. The assignment emphasizes the interplay between these factors and their collective role in shaping a thriving business landscape.

The
BUSINESS
Environment

Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1 Types of business, purpose and ownership of two contrasting businesses..........................................3
P2 Different stakeholders who influence the purpose of two contrasting businesses...............................4
P3 Describe how two businesses are organised.......................................................................................4
P4 Explain how their style of organisation helps them to fulfil their purposes........................................5
P5 Influence of two contrasting economic environments on business activities within a selected
organization.............................................................................................................................................6
P6 How political, legal and social factors are impacting upon the business activities.............................6
CONCLUSION...........................................................................................................................................7
REFERENCE..............................................................................................................................................8
Books and Journal...................................................................................................................................8

INTRODUCTION
This present report contains the all information of the business environment which
includes the type of the business, purpose and the ownership of two contrasting businesses. What
are the stakeholders and how they influence the purpose of contrasting businesses. This report
also identify that how the two businesses are organized and how they will affect to the business
environment and how their style of organization help them to fulfill their purpose. It also
describes the influence of two contrasting economic environments on business activities with the
selected organization (Welford, 2013). So, there all information is relevant to the business
environment of Tesco.
TASK 1
P1 Types of business, purpose and ownership of two contrasting businesses
The business has many types. The business may be local, national and international or
global.
● Local business: local businesses are those businesses that are not work for brand rather then
they only satisfy the needs and wants of the middle class consumers. The local businesses are
established in the all local area.
● National business: the national businesses are also the type of the businesses. The national
businesses are that business which is established at the national level. They can be in Ireland and
England etc.
● International business: The international businesses are those businesses that are established in
two or more countries. They can be global business and Primark whilst (Hamilton, and Webster,
2015).
Purpose of business: The purpose of the business is to provide the good and services to their
customer. The products and goods are the tangible items which can be touched and felt and
services are the intangible items which cannot be touched and felt. There are two purposes of the
business, profit making and non-profit making. In the profit making purpose, the businesses
provide the effective product and services to their customers and making profit from them. They
only work for earning the profit from their customers. So, it is the profit making business. In the
non-profit purpose, the businesses do work for the society welfare not for profit making. The
main aim is to provide the awareness about the product and services to their customers.
Businesses exist: The businesses provide the goods and services to the customers. The Tesco sell
their product and services to their customers and make the effective relation with them. The

production of the business is depending on the size or infrastructure of the business because
different businesses have different size of business. There is some size of the businesses. It can
be small, medium and large. There are two businesses like, Tesco and NA. These both
businesses are comparable because both are work for the purpose of the profit making
(Hamilton, and Webster, 2015).
P2 Different stakeholders who influence the purpose of two contrasting businesses
The stakeholder is the group or person who has concern about the organization. The
stakeholders take the action; determine the objectives and policies for the effective organization.
there are some stakeholders like, employees, government, directors, creditors, owner, suppliers,
trade unions etc. The stakeholders are influences by the business activities:
 Customers: Customers are that person who wants to make business effective through the
quality products and services.
 Employees: The employees are that person who want to high wages, security on
employment and also want to reward and other promotional opportunities.
 Suppliers: The suppliers are that person what to run the business by the quality product
and he also wants the value and image by the business.
 Trade unions: The trade unions are the types of groups who want to secure and high
wages and securities for the persons of the organization.
 Owners: The owners are the most important part of the organization because he is the
owner of the business. He wants to take their business at the higher level with the new
and innovative product and services.
 Governments: The governments are also important for the business. The government’s
wants to an effective and successful business for that the governments pay the tax for the
organization.
 Local and national communities: The activities and the actions of the organization can
influence the communities. The community is the one type of stake in the business as
employers.
P3 Describe how two businesses are organised
Organisational structures: Firstly, the structure of the organization is important for
organized a successful business. It is helpful for achieve the objectives of the business. The
organization is using the hierarchical structures for organized a successful business by the level
of the authority. The level of authority is the chain of command and the span of the control
(Halbert, and Ingulli, 2011).
Functional: The functions are important for the small, medium and the large businesses.
It ensures that how an organization runs. The effective function is useful for the aim and

objectives of the organization. Functions are that which complete the task of the organization and
make the organization effective and successful. The strong function provides the effective power
to the business activities. The functional structure is allowed for the certain environment to the
business (Klapper, and Parker, 2011).
Product: The product is playing an important role for organize a successful business.
Without the product, the business cannot stand in the market. The product structure has focus on
the needs and wants of the consumer for the product. The different product makes the different
value and profit for the organization. So, the product is important part of the organization.
Customer: for the successful business, there are the different customers for the different
type of the product. The customer is the king of the business because without the customer an
organization cannot survive in the market. For organized an effective business, the business need
to focus on the requirement of the organization. It provides the effective service and quality
product to the customers.
P4 Explain how their style of organisation helps them to fulfil their purposes
Strategic aims: The strategic aims are important for the business because the strategic aim
to provide the effective action to the organization. The strategic aims are also important for the
achievement of the large goals of the business. With the help of the large goals, the organization
can makes the high majority in the market place and can increase the number of production of
the product. The strategic aims are helpful for gaining the profitability and growth for the
business development.
Strategic objectives: The strategic objectives are important for achieving the strategic
aims for the development of the organization. The strategic objectives are providing the detailed
information and analyze the market the development of the effective business. The strategic
objectives are helpful for reducing the price and make the profit reasonable and provide the
effective discount to the customers.
Benefits of mission statement: It is helpful for the encouragement of the work of team for
develop the business effectively. It determines the goals of the business and makes the business
effective. The main objective of the mission statement is to provide the effective position to the
business and maintain the activities of the business (Pulver, 2012).
Benefits of aims and objectives: The effective aim and objectives are beneficial for the
development of the organization. It provides the appropriate direction to the organization and it
can set the target market for the product of the organization. The main purpose of the aims and
objectives it to maintain the performance and activities of the organization.

P5 Influence of two contrasting economic environments on business activities within a selected
organization
There are some influences of the contrasting economic environments on the activities of
the business. They are followings:
 Boom: The boom describes the high wages and high economic growth. It identity the
positive view of the economic environment and it is very effective for the success of the
business. It increases the demand of the consumers for the product and services of the
business. In the modern time, the boom plays an important role in the effective business.
With the help of the boom, the organization can make more money and can increase the
more customers for the product and services (Klapper, Lewin, and Delgado, 2011).
 Recession: In the case of the recession, there has no money in the economy for the
development of the effective business. If the economy has no money in that case, the
economy cannot increase and supply of the effective resources. The recession reduces the
number of the production for the business activities. In the case of the recession, if the
demand of he product will decrease in that case, the consumers purchase more product.
The recession will be bad for the successful business because it in this case, the
customers save their make instead of buying the product of the company.
 Inflation: The inflation is based on the changes in the price. In the case of the recession,
the medium price of the product is increasing. This depends on the price of the product. If
the price of the product is high then there will be no inflation in the price and if the price
of the product will be medium in that case, there will be changes in the price of the
goods.
P6 How political, legal and social factors are impacting upon the business activities
The political, legal and social these are three factors which impacting upon the business
activities. They are followings:
 Political impacts: The political factor is that factor which influences the business
activities. Basically, the political factor is based on the government.thw government is
able to make the decision for the business activities. The government is also able to the
change the rate of the tax in the economy. Government provides finance investment
(shares) to the business of investor. With the help of these shares, the investor can make
more money from the market. In the case of international economic fund, it provides the
high employment, high economic growth and also useful for reducing the poverty from
the world (Gecevska, Chiabert, Anisic, Lombardi, and Cus, 2010).
 Legal impacts: It is also a factor which influencing the activities of the business. The
legal factor is based on the law of the economy. It is helpful for the protection of the

consumers. Health and safety is very important for any kind of business. It provides the
effective health and strong safety to the workers of the business who are working for the
business activities. It provides the legal policies and legal work for the growth of the
business. So, the environment of the business should be based to the policies.
 Social impacts: The social factor is the last factor which influencing the business
activities. In case of the social impact. The Tesco Company is not able to the recruitment
of the job to the right people and it is the main reason for any kind of the company. The
social impact is based on the population of the country and it may influence the all
activities of the business. In this case, it provides the high quality product to their
customers and makes more profit from the quality product (Aula, 2010).
CONCLUSION
In this report it has been concluded that the effective environment of the business is
important for the entire world. In the modern time, the all activities of the business is
based on the social, legal and political factors of the economy which influencing the
activities of the business. If the environment of the business will effective in that case, the
business can increase the more production for the customers and can make the more
money with the help of their product and services. The stakeholders also can influence
the activities of the business. So, the business environment is important for the activities
of the business.


REFERENCE
Books and Journal
Welford, R., 2013. Hijacking environmentalism: Corporate responses to sustainable
development. Routledge.
Moutinho, L. ed., 2011. Strategic management in tourism. Cabi.
Hamilton, L. and Webster, P., 2015. The international business environment. Oxford University
Press, USA.
Halbert, T. and Ingulli, E., 2011. Law and ethics in the business environment. Cengage Learning.
Klapper, L.F. and Parker, S.C., 2011. Gender and the business environment for new firm
creation. World Bank Research Observer, 26(2).
Pulver, S., 2012. Business and the Environment.
Klapper, L., Lewin, A. and Delgado, J.M.Q., 2011. The impact of the business environment on
the business creation process. In Entrepreneurship and Economic Development (pp. 108-123).
Palgrave Macmillan UK.
Kubasek, N.K., Brennan, B.A. and Browne, M.N., 2016. The legal environment of business: A
critical thinking approach. Pearson.
Chavis, L.W., Klapper, L.F. and Love, I., 2011. The impact of the business environment on
young firm financing. The world bank economic review, 25(3), pp.486-507.
Laumer, S., Eckhardt, A. and Weitzel, T., 2010. Electronic human resources management in an
e-business environment. Journal of Electronic Commerce Research, 11(4), p.240.
Gecevska, V., Chiabert, P., Anisic, Z., Lombardi, F. and Cus, F., 2010. Product lifecycle
management through innovative and competitive business environment. Journal of Industrial
Engineering and Management, 3(2), pp.323-336.
Siewiorek, A., Saarinen, E., Lainema, T. and Lehtinen, E., 2012. Learning leadership skills in a
simulated business environment. Computers & Education, 58(1), pp.121-135.
Blanchard, T.C., Tolbert, C. and Mencken, C., 2011. The health and wealth of US counties: how
the small business environment impacts alternative measures of development. Cambridge
Journal of Regions, Economy and Society, p.rsr034.
Aula, P., 2010. Social media, reputation risk and ambient publicity management. Strategy &
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