Internal and External Components of Business Environment
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Added on 2020-02-05
Internal and External Components of Business Environment
Added on 2020-02-05
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BUSINESS ENVIRONMENT1
TABLE OF CONTENTS2
INTRODUCTION Every business organisation is largely influenced the business environment which ismixture of internal and external components.. In order to survive in the competitive and changingenvironment, corporation is required to analyse the surrounding business environment and itsimpact on the business operation. The following project report is going to provide in-depthunderstanding and knowledge about business environment and its impact on the organisation.Furthermore, various stakeholders and company's responsibility towards these stakeholders has alsobeen addressed in this report (Lee, and Saez, 2012). There are various kinds of stakeholders that arecustomer, employees, government, suppliers, investors etc. In addition to this, impact of fiscal andmonetary policy on housing and farming business has been discussed. Moreover, various kinds ofbusinesses like public, charity and cooperative and their objective has been explained in the report.In addition to this, the criteria through which business and cultural environment shape the behaviourof Primark has also effectively defined. It is a subsidiary company of ABF which have more than238 branches across UK. The major objective of this report is to understand global factors and theirimpact on the cited venture. TASK 11.1 Explanation about purposes of various kinds of organisationsBusiness environment can hugely affect business activities and function of the organisationto survive in the market corporation have to conduct effective analysis of environment. Thisenvironment consists of two parts i.e. macro and micro environment. Following are various kinds oforganisation and their purposes-Private limited company- Private sector company is the part of country's economic systemthat is run by the individuals rather than government. This kind of organisation generatesprofit by making the customer satisfied with various effective commodities and providingservices to them. Primark is a private limited company which was established in the year1969 Dublin, Ireland and recently this organisation has expanded its business operation inEurope, UK and other part of Britain. The main products of Primark are clothes, shoe, homeware, women products, accessories etc (Novy, 2013). Cited venture vision is to become themost popular organisation in the country by delivering excellent quality of customerproducts in a reasonable price. In addition to this, Primark mission is to develop innovativeand creative product along with high quality. In addition to this, it wants to become theworld largest retail outlet corporation and earn maximum market revenue and market share.3
For this objective, cited venture have developed innovative marketing strategy and adoptedlatest technology.The public sector- Public limited company is that portion of an economic system that iscontrolled by national, state and local government. The major objective of the public sectororganisation is to gain maximum profitability by executing their business function in aproper manner (Grigor'ev and Suslova, 2014) Mission of this organisation is to ensuremacroeconomic stability and regulate flow of fund. This kind of organisation maximise theirprofitability in a socially standard way. Ministry of finance is a public sector organisationwhich executes its function by the funds provided by government.Charity organisation- Charity organisation is a non profit company which carries out itsactivities and function for the welfare of society or any community rather than makingprofit. For example, American Red Cross is an organisation in UK which supplies blood toneedy people at the time of juncture.Cooperative- This organisation have objective is to provide effective services to people.Some people use to make association on voluntary basis to achieve a common goal. Thecooperative wholesale society is the best example of cooperative organisation.1.2 Describe the extent to which Primark meets the objective of various stakeholderFor every business organisation, stakeholder play crucial role through which corporation canperform its operation in the market effectively. They are those people who are directly andindirectly connected with the organisation and are largely influenced by the decision of business.They are most interested to know about the business decision and actual condition of theorganisation. Company have essential responsibility to meet their expectation and always maintainhealthy relationship with them. In the context of Primark, there are various stakeholders likecustomer, supplier, employees, government, investors etc.Employees- Employees are essential part of Primark who works for attaining determinedobjective. If company make some changes in the business activities and practices thenpersonnel are highly influenced. So the company is required to participate in the businessdecision making because they are interested to know organization’s policies, practices,financial statements etc (What is Business Environment? Explain its types .2016) In additionto this, employee’s wants effective salary package, incentive, effective working condition,motivation rewards etc. So in order to maintain healthy relationship with human resource,Primark should fulfil their requirement and define the objective in front of them so that theycan effectively attain desired objective in an appropriate manner.4
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