The Business Environment : Shell

The Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Nature of the environment that organisations operate in............................................................1
Impact of environmental forces on organisations at a micro and macro level............................2
Significance of impact of environmental forces at an organisation, market, sector or industry
level.............................................................................................................................................3
Requirements of a variety of stakeholders to organisation.........................................................4
Measure and appraise the effectiveness of the responses of organisations to policy actions
taken by key stakeholders...........................................................................................................5
CONCLUSION................................................................................................................................5
REFRENCES ..................................................................................................................................7

INTRODUCTION
Business environment is sum of all the external as well as internal factors which play
important role (Prajogo, 2016). These are need and expectation of customers, employees,
management, demand and supply, technology innovation, social trends, economic changes and
so on. Sum up of all these factors influence organisation environment and situation directly or
indirectly. This assignment is based on Shell which is oil and gas industry sector organisation
founded in 1907 by Marcus and Samuel Samuel. They are serving at worldwide level and
product offering by them are Petroleum, natural gas, LNG, Lubricants and petrochemicals.
Respective report will going to discuss nature of environment in which organisation operates and
impact of micro & macro level factors on company. Along with this, significance of
environmental focreces on company and requirement of several stakeholders.
MAIN BODY
Nature of the environment that organisations operate in.
Business environment simply means sum of individuals, institutions as well as other
forces which are not in the control of companies but they directly or indirectly impact on the
performance of company (Hamilton and Webster, 2018). Shell an oil and gas industry
organisation as well as operating at international level. Although, there are several nature of
business environment in which company is operating explanation of these are as follows :- Uncertainty – Nature of environment in which Shell operates is uncertain because several
changes take place like innovation in technology, modification in present rules and
regulation etc.. Thus, respective organisation is operating in uncertain business
environment.
 Totality of external forces – Business environment is full of external forces and on Shell
company they play important roles. These are competitors, legal factors, technology and
many more. Thus, it simply means that respective organisation is operating in such nature
where external forces totally impact.