Influence of Economic Environments on Business Activities

Businesses
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Description about the types of business ................................................................................1
P2 Description about the different stakeholders.........................................................................2
TASK 2............................................................................................................................................2
P3 Describe how two businesses are organised in terms of their structures and functioning.....2
P4 Explain how the style of organisation of your chosen businesses helps them to fulfil their
purposes. ....................................................................................................................................3
TASK 3............................................................................................................................................3
P5 Influence Of Two Contrasting Economic Environments.......................................................3
M2 Challenges Faced In Two Economic Environments.............................................................4
TASK 4............................................................................................................................................4
P6 Political, Social And Legal Factors Impact On Business Activities......................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
In this modern world of technology there is always a question arises of livelihood,
survival and assistance and for that purpose one needs to do different activities. One of the main
ways of earning or to exchange certain things is business. Business is an activity performed by
an individual or by an organization to commercialize certain goods or services of to achieve a
definite purpose. The focus point of this report is to explain the various aspects of businesses and
their environment (Aguilar, 2017). Workplace and the conditions of business bears a lot of
importance in a business organization as it helps their employees to do their work assigned to
them peacefully and in safe premise. Now a day’s approximately every organization wants to set
up a healthy business environment in their office to protect their interests and helps in to increase
their moral for efficient working.
TASK 1
P1 Description
Private company-This type of organisation are owned and run by the private individuals. This
can be operated by two ways that is either in the form of sole proprietor or with partnership.
Hilton is a private organisation which aim is to deliver effective quality of services and earn
maximum profitability and market share. This types of organisation rules and regulation can be
govern by the manger of company who is liable to develop working practices, policies and
norms of business (Davis and Blomstrom, 2016). It can be said that private organisation's aim is
only to earn the highest profitability in the competitive market and deliver effective customer
satisfaction. For this purpose the develop effective marketing strategy and tactics so as more
customers can attract towards business organisation.
A) Public company- This types of organisation issues securities through an initial public
offering and trade them in at least one stock exchange. Main objective of this type of
organisation is to maximise shareholder's wealth by generating high profit and enhancing
organisational growth. Primark is the example of Public company which have major
objective is to earn the maximum profitability by delivering effective product and
services. Further it want to develop such brand image in the market so as it can acquire
large numbers of customers.
 Other organization: Other than above mentioned entities there are several other firms also
which are made to achieve their definite goals and have their different kinds of objectives
1

such as voluntary organization, government entities, charitable trusts, co-operative firms
etc. Charity is a non profit organisation which have main function for the welfare of the
company. Its main objective to deliver the help of the society (Kennerley and Neely,
2013).
B) Voluntary organisation- Such kind of organisation have ownership is with the voluntary
people. Voluntary group is a group of people who decides to work together to bring out
task and decides there part of responsibility and obligations mutually and therefore, legal
form is being an issue when the rules and regulations are written
P2 Description about the different stakeholders
Owners: These are the investors of the company and provide huge capital to run operations
of the business. Management of the corporation provides details of financial performance of the
business at the end of each year. They report and present financial statements of the entity in the
annual meetings. All the other needs will be fulfilled by the managers of Primark. They make
effective dividend policy for the shareholders. Statutory and compulsory meetings are also an
effective way for providing valuable information to the shareholders of the company.
Customers: Pricing policy of the business is prepared by Primark to provide important
information regarding products and services to their consumers. They set the quality standards to
provide equal and best quality goods and services to buyers of the company (Buchholz, 2016).
Suppliers: These are the individuals or business unit which provide raw material to
Primark. They also require payment on time and other important financial information of the
company to become more secure regarding regular supply. Company has an effective payment
system and sets the time limit for the payment to suppliers to fulfil their objectives.
Employees: Workforce of the business needs sufficient wages and salaries on time and
also expects some increments. To fulfil this kind of requirements of the employees, company can
make special policy for employees in which rules and regulations regarding workers are cleared.
They also require managing and motivating their employees for doing smart work.
TASK 2
P3 Describe how two businesses are organised
Matrix –
2