The Business Environment

The Business Environment

TABLE OF CONTENTS
Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Types and purpose of the organisation........................................................................................1
Impact of environmental factors on the industry, organisation, market sector...........................2
Requirements of variety of stakeholders in the organisation.......................................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Business environment is the total of internal and external factors of the organisation that are
beyond the control of the business and affects the functioning of the business enterprises. These
factors are customers, suppliers, owners, innovation in technology, activities by the government,
economic changes etc (Business Environment, 2021). In this report discussed about the types of
the organisation and their purpose, impact of environmental factors of the organisation and
requirement of stakeholders in the organisations.
MAIN BODY
Types and purpose of the organisation.
Organisations are classified into 3 sectors- private, public and non profitable organisation.
These are categorised based on their ownership. Private sectors are owned by an individual’s, to
earn profit. The profit from the private sector organisation gave benefits to the owner,
shareholders and investors. It encompasses for all the profit business that are not owned by the
government. Companies or corporations which are apart from the government are known a
public sector (Johnson, Leenders, and McCue, 2017). This sector tends to make larger share of
economy in the free market, capitalist based societies. Private sector employs more workers than
the public sector, by creating jobs to tackling the poverty. Private sector business has to low the
prices of their products or services while competing for the consumers money. Private sector
play major role in improving extensively in the infrastructure projects. It develops innovations in
the infrastructure which assist to meet the needs of disadvantages groups.
Public sector organisation arte owned by the government. These organisations provide
goods or services for the benefit of community. Public sectors are run by the government and
they are operated from the money raised from the taxes (Canel, and Luoma-aho, 2018). It
involves public goods and government services include roads, bridges, public education, water
supply, law implementation etc. These sectors are not to earn profit but help people and country
to move forward by giving facilities. Public sectors help to government to impose the social
control on the trade and industry by equal distribution of goods or services.
Non profit organisation is an entity which is run with the dedication of the social cause in
the areas of religion, educational setting, research and educational setting. NPOs qualify tax
exempt status and not required to pay tax on the revenue they earned from the donations. The
purpose of the non profit organisation is to raise money but spend on the further missions. They
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