Introduction to Business Environment

Introduction to Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
A) Variation between individual types of business and their goals.......................................1
LO2..................................................................................................................................................3
B) Organization meets the objectives of different stakeholders......................................................3
LO3..................................................................................................................................................5
C) Pestle analysis method ......................................................................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment refers To the collection of external and internal elements which
affect organization ability to establish and hold up relation with customer successfully. External
elements are economical, social, political, customers and their expectation, weather, competitors
which can enhance business performance while internal factors are staff, clients, company
cultures and diversity at workplace, finance. These all factors assist to meet organization
objectives. Tesco is British multinational grocery's. It is also known as general merchandise
retailer. England, UK and Welwyn garden are headquarters of this company. In this report will
cover types of business and their purpose. This report will explain an organization assists to
accomplish different stakeholders objectives. This report will cover external factor impact on
activities of business environment.
LO1
A) Variation between individual types of business and their goals
There are many ways to form out new business process. Mainly there are three business
which are public organization, volunteer organization and private organization which provides
different services to customers.
Public organization: Organization which operates by government to provide services to
peoples. Such kind organizations are specially designed for public services. In this type
organizations anyone can come and can get services. Government organizes public organizations
and promotes them by investing money on them. This type business or organization founds in
world which is organized by different government around the world (Carey, Simnett. and
Tanewski, 2015). Thus, government supports in funding for public services. Main goal of this
business is to provide public services like goods and political services such as public healthcare
hospitals, military services, police services and government hospital etc. public goods are fresh
air, knowledge, lighthouses, political defence, street lighting and flood control system etc. while
Public services are air force, electricity, emergency services, public transportation, military,
education, courts and environmental protection etc. where government takes care of these goods
and provides services through government employees or worker. These type organization
establishes by government itself (Babatunde and Adebisi,2017). Government also supports those
people who provide their services in public sector. Those people who provide government
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services to public, they support to raise reputation of organization by establishing good relation
with customers. Public sector play crucial to enhance sales and establishes good relation with
customers. For example- British petroleum is a multinational oil and gas company. It is a public
sector who provides oil and gas services to public (Dahan, Doh and Raelin, 2015). London and
UK are headquarters of British petroleum company.
Volunteer organization: In these organization services provides to public altruistic way where
an individual person or group of people provide their services for social gain not private gain.
This organization is specially organized to give their volunteer services to public, so they live
their life happily without any problem. This organization doesn't work for financial gain. In this
organization, volunteers provides their services to society (Grigore and Drăgan, 2015). Main
purpose of this organization is to accomplish their objectives to provide wide range of services
like financial in orphan centres. To give the direct supports to women shelters and suggestion to
the group members for the help in running old age shelters. Thus volunteer organization keeps
away a vital role to promote centres and provide services selflessly. This type organizations gets
fund from government, contractor, grants, donation from celebrities, other volunteer and earn
money from their own business activities or investments. Through these sources organizations
enables to fulfil their mission. Volunteer organization is important because they give great effort
to support the public sector to save money and provides the best services. These organizations
enable to establish good relation with public and government, and they promoted in wide scale
around the world. Volunteer organization enables to meet public needs. For example Oxfam is an
independent charitable organization. It includes non-profit group in organization. It is specially
organized to access on the decreasing the poverty.
Private organization: This organization which operates independently to meets customer
satisfaction. It is a part of economic system which runs by individual or any partnership,
corporation or agency. Such kind organization is basically organized for economic profit which
is not operated by government agencies (Jaakkola and et.al.,2016). Main goal of private sector is
made money and provides job to worker, so they support to achieve business objectives. Owner
of private sector gets profit individually by providing best services to customer, so they achieve
sales goal of product through customers. Private sector supports their employees to enhance
performance at workplace by providing good training. Private sector builds good relation with
customer, so they enable to achieve sales goal. Private sector also establishes good relation with
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