Introduction To Business Environment (Doc)

INTRODUCTION TO
BUSINESS ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Main Body.......................................................................................................................................1
Description.............................................................................................................................1
Personal Feeling.....................................................................................................................1
Interpretation..........................................................................................................................1
Analysis..................................................................................................................................3
Conclusion..............................................................................................................................7
Action/Outcome.....................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment refers to external and internal factors that affect the organisational
operations and decisions directly or indirectly. It is responsible for effective operations of
company. Study will reflect the way in which different types of businesses meet objectives of
their stakeholders by differentiating them on the basis of purpose and objectives. The report will
be based on Gibbs reflective cycle and accordingly, it will analyse porter's five forces of private,
public and voluntary sector by doing comparison. Lastly, the report will end up with taking
action for future practices of personal analysis and research on possible options that might be
more effective rather than porter's five forces model.
MAIN BODY
(Sources: The reflective cycle, 2018)
Description
I was given with the task with some instructions to analyse how different type of
businesses i.e. private, public and non-profit or voluntary sectors meet the objective of their
stakeholders. I am selecting IKEA in private company, BP PLC in public company and
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Illustration 1: The reflective cycle

American Red Cross as voluntary sector. For that I will classify these three organisation and their
purpose in the term of legal form (Prajogo, 2016). According to the given task, I will apply
various methods and strategies to examine the impact of business environment on the
organisational activities. Business environment can be categorised into two types; Micro
environment that is interrelated to companies and exists within the organisation and firm can
overcome this by improving its effectiveness and capabilities (The reflective cycle, 2018). Macro
environment refers to the factor which exist outside the business that include political,
environmental, economic, social, etc. I will also use various models like Gibbs and will analyse
Porter's five forces that affect those business.
Personal Feeling
When I was given with the assignment, it was complicated but I was looking forward to it
and very excited as during the process, things were started becoming clear to me and I got to
know by some research and analysis that every organisation has different purpose and way by
which they operate their functions.
Interpretation
Difference between various types of businesses and their purposes
Organisations have different objectives and goals they willing to achieve while
establishing in market. I analysed that some businesses mainly operates to earn maximum profit
where some organisation are customer-oriented and mainly run to meet expectation of their
consumers. There are various businesses exist in the market; Private Company, Public Company
and Non-profit or voluntary organisation (Johnson, Leenders and McCue, 2017). I had analysed
that there are different purpose of different organisations:
IKEA is a private limited company that mainly sells kitchen appliances, ready-to-
assemble furniture and home accessories. As this organisation is private and for-profit company
they aim to earn the maximum profit and increase market value of company. IKEA has separate
legal identity and each shareholder of the organisation is part of it. It operates as a subsidiary of
inter IKEA system and owned by INGKA foundation. In private limited company, each
shareholder has limited liability and it is registered as Limited in Registrar of Companies.
The British Petroleum Company is public limited company and it is one of the largest oil
and gas companies in the world. The main industry areas of BP is production and exploration of
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