The role of business environment in organisation's activities

BUSINESS ENVIRONMENT
Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1................................................................................................................................................1
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1.2................................................................................................................................................2
1.3................................................................................................................................................3
TASK 2............................................................................................................................................4
2.1................................................................................................................................................4
2.2................................................................................................................................................5
2.3................................................................................................................................................6
TASK 3............................................................................................................................................6
3.1................................................................................................................................................6
3.2................................................................................................................................................7
3.3................................................................................................................................................7
TASK 4............................................................................................................................................8
4.1................................................................................................................................................8
4.2................................................................................................................................................8
4.3..............................................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................13
INTRODUCTION
The business environment is composed of all internal and external factors which has an
impact on organisation's activities. The business environment includes various stakeholders as
well like customers, employees, government and different forces that shapes the demand and
supply. It is also evident that both intrinsic and extrinsic elements use to work together so that
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they can affect business. In this sense, there are assorted components that come together to make
a complete environment. In the present report, the business environment will be discussed in
context of Primark, which is a cloth retail firm based in Ireland with most of the operation in UK.
This company is a subsidiary of Associated British Foods and has its manufacturing sources
from different countries. The report will be focussed on organisation's stakeholders and the way
in which it meets their objectives. Besides this, various fiscal and monetary measures will be
discussed in context of farming and housing sectors along with forces which create demand and
supply. Further, the economic systems of different countries have also been focussed. Finally,
the report will be discussing the competition policies and Brexit with all its effects on UK.
TASK 1
1.1
Primark is a private limited company. The Primark was launched in 1969 from
Dublin, Ireland and now it has its expanded business operations in Europe, UK and many other
parts of Britain. The major success behind company is to be innovative in all its processes along
with providing products at very reasonable price thereby maintaining economies of scale in all
operations. The leading products of this cloth retail firm are clothes, shoes, home wares, women
accessories, men's and kids wear and wide range of beauty products. (Chor and Manova, 2012).
Private sector organisation's major purposes: its generate profits by making customers
satisfied with various services delivered to them. Besides this, they work for maximising their
profits so that they can provide good returns to shareholders and investors so that company's
financial assistance can be fulfilled in better way (García, Gómez and Molina, 2012).
Public sector organisation’s objectives: its are referred to those companies who use to be
controlled by government. The major purpose of these organisations is to work for common
welfare of all people of society. Thus, public sector firms use to offer services to society
disregarding their ability to pay. NHS or National Health Service is the best example for such
public sector company that is administered by government authority and use to offer medical and
health services to the general public. Many of its health services are provided free of cost to the
citizens of UK (Caiazza and Audretsch, 2015).
Charity organisation’s objectives: its are basically non profit companies who use to work for
welfare of society or any community rather than making profits (Butler and et.al., 2013).
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The American red cross is an example of such organisation in UK who user to provide blood to
various needy persons at the time of crisis.
Cooperative organisation’ objective: this type of organisation, some people use to make an
association on voluntary basis to achieve a common goal. The Cooperative wholesale society
is an example of such organisation where it use to supply various products to cooperative stores.
1.2
The Stakeholders are those individuals who have an interest in the organisation in any
respect. These stakeholders have a major role in business as they can affect the company as well
as be affected by the policies, objectives and norms of the firm. Therefore, it can be said that the
stakeholders can directly or indirectly affect the organisation. The main stakeholders for
Primark are employees, customers, shareholders, suppliers and government. The way in
which said firm use to fulfil its obligation towards stakeholders are described below:
 Employees: The employees are an important stakeholders of business towards which the
company is responsible to fulfil various obligations. It is important in present days that
employees feel their job secure and satisfying failing to which results in increased rate of
employee turnover. Primark use to provide employment for 700000 people by ensuring
that workers are provided with better working conditions, good and timely pay of wages,
job security and better welfare schemes for them in the form of pension. To satisfy the
employees company have responsibility to provide the effective incentives and
salary.Company should take their participation in the decision making process so as they
can motivated and aware about the business activity and function.
 Customers: They are the significant stakeholders as their decision makes the fate of a
business (Manova, 2013). The major objective of mentioned firm is to retain and make
more customers by providing them high quality products and services which can prove to
be value for money. Besides this, it also takes care that products made available are
reasonable in terms of cost. Moreover, for fashion conscious consumers it makes
innovations in clothes with latest trends.
 Shareholders: They are the persons who use to make investments in the company so that
it can run in smoother way fulfilling all its major operations. Primark is responsible to
give timely returns to investors on their invested amount. Further, entity is also
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