Describe the Type of Business Purpose and Ownership of Two Contrasting Businesses

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Type of business, ownership and purpose of two contrasting businesses............................1
P2 Different stakeholders who impacts on the purpose of two contrasting businesses..............3
TASK 2............................................................................................................................................4
P3 The way in which two businesses are organised...................................................................4
P4 The way strategic planning and organisational structure assists businesses to fulfil their
purposes.......................................................................................................................................5
TASK 3............................................................................................................................................6
P5 Influence of two contrasting economic environments on activities of business within firm.6
P6 The way legal, political and social factors are impacting on business activities of firm and
its Stakeholders...........................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment involves the combination of external and internal forces that
impacts on operating situation to company. It consist of factors like suppliers, customers,
competitors, owners, government activities, laws, improvement in technology, market, economic
and social trends. Managers of an organisation needs to keep in mind all those factors that can
influence operations and functioning of business. Consideration of these assists in formulating
effective strategies and policies that leads the firm towards growth & success (Cantwell,
Dunning and Lundan, 2010). In the present report, given organisation is Lidl which is a grocery
store of Germany and Save the Children which is an independent NGO. The report covers types
of business, ownership of two contrasting firms and its purpose. It also includes different
stakeholders who impact purpose of businesses and how these are organised. Apart from this, the
way in which style of organisation assist to fulfil its purposes and influence of 2 contrasting
economic environments on activities of business are defined. At last, the manner in which
political, social and legal factors influence activities of firm and its stakeholders are discussed in
this report.

TASK 1
P1 Type of business, ownership and purpose of two contrasting businesses
In current scenario, different types of businesses are there and each one have its distinct
ownership and purposes. Two firms which is selected are Lidl and Save for Children & both of
these are working in distinct areas. One is a leading grocery store of Germany and the another
one is an NGO which works for saving lives of children. Ownership, types and purposes of 2
different organisation are defined below:
Lidl
Lidl is the largest grocery retailer of Germany which was established in 1973. During
1990's, firm started to open its stores outside the country and today, its stores can be found in
every country in Europe (Cavalcante, Kesting and Ulhøi, 2011). Currently, the company has
around 10,000 outlets all across the Europe as well as United states. Lidl was established by
Dieter Schwarz who owns hyper market and Handelshof Kaufland stores chain. There are
approximately 3,15,000 employees are working with firm and offer high quality goods and
services to its customers. Today, the firm found in every country and is well established as major
European food retailer. The company takes pride in administering superior quality goods at
lowest possible prices to its potential customers across Europe. Their sales outlet are operated
through network of dedicated staff which helps in development and success of firm. Lidl will
constantly play main role in expedition of new markets place in Europe and beyond.
Purpose of Lidl:
 One of the major purpose of company is to earn high profits by offering high quality of
goods and services to its potential customers.
 To develop strong market position and acquire large portion of market share. To create large consumer base by maintaining good relation with them and retain them.
Ownership of Lidl:
Lidl is one of privately owned firm as it falls in category of private organisation. Dieter
Schwarz is the founder of company. It provides products to its target audience on reasonable
rates so that they can keep them for longer term (Chesbrough, 2010).
Save the Children
The company perform its activities and operations in around 120 countries. Its main objective is
to save lives of children and fight for their rights. It is a non profit organisation which was