BUSINESS ENVIRONMENT TASK 1.

BUSINESS
ENVIRONMENT
TASK 1

Covered content
• Introduction
• Various organisations and their purpose
• Size and scope of different types of organisations
• References

Introduction
Business environment is comprised of two words in
which “business” means commercial activity in which
exchange process take place and “environment” means
surrounding or place where operations taking place.

Various organisations and their purposes
Main purpose of any business is to earn profit because it
enables them to survive at market for long term. There
are various number of entities:
• Public sector
• Private sector
• Voluntary sector

Continued...
Public sector: These companies are completely or
partially run by government and consider as government
companies. These companies have right to issue and
arrange their fund directly from public and operate all
activities in a systematic manner.

Continued...
Private sector: These companies are run by some
individuals and there is lack of government interference.
There are various forms are running under this category
which are as follow:
• Sole trader
• Partnership
• Franchising

Continued...
Voluntary sector: These sectors are owned by some
number of individuals who work together for attaining a
common objective. Also, they work for betterment of
society through which many social groups can upraise
their standard.

Size and scope of different types of
organisations
Every organisation has different size and scope for
working. Some are small in nature but some are large in
nature. Along with that as per their size and operation,
their profitability tends to rise.

Continued...
Nestle: It is a Swiss transactional food and drink
company who have headquarters around all the
world. This is a public limited company and founded
in 1867.

Continued...
Thomas cook: This is a travel and tourism company
whose motive is to promote tourism sector in many
parts of the world. Management of an organisation
prepare strategies which enable them in attracting
large number of users for them.

Continued...
Stakeholders are such bodies which support an
organisation internally or externally and their actions
affect business very badly. There are mainly two types
of stakeholders internal and external. Internal
stakeholders are those which aid business internally.
Nestle have to perform some duties and responsibilities
which are associated with them.

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).
 Barnett, M. L. and Salomon, R. M., 2012. Does it pay
to be really good? Addressing the shape of the
relationship between social and financial performance.
Strategic Management Journal. 33(11). pp.1304-1320.

Thank you