Understanding the Business Environment

UNDERSTAND THE
BUSINESS ENVIRONMENT
1

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
Assess the competitive structure of the market in which organisation operates and define
competitive forces. ......................................................................................................................3
TASK 2............................................................................................................................................4
The stakeholder theory.................................................................................................................4
Stakeholder analysis ....................................................................................................................5
TASK 3............................................................................................................................................6
A. Company.................................................................................................................................6
B. Define external environment factors that affect organisation in international market............8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10
2

INTRODUCTION
Business environment termed out as total of external forces that mainly affect the
organisation and business operations (Gaganis, Pasiouras and Voulgari 2019). Therefore,
managers and employees of the enterprise must understand that how environment is continually
changing and impact on those change on business needs to be identified.
The present report will lay focus on business activities GSK plc, it is British
pharmaceutical company that headquartered in London UK.
Furthermore, study will be based on t assess the competitive structure of the market.
Also, report will outline the stakeholders of the enterprise with use of appropriate model and
theory. Lastly, Pestle analysis will be conducted to identify the factor the factor that impact the
organisation in international market.
TASK 1
Assess the competitive structure of the market in which organisation operates and define
competitive forces.
GSK is entity that is committed to operate the highest standards of corporate
governances. This is governance structure that underpins the ability that delivers the group plan
of action to create long term value and its benefits the shareholders and stakeholders (Reçica,
Hashi and Krasniqi, 2019). Therefore, the chosen enterprise is undertaking initiatives to bring
improvement in sales, earnings and cash flow generation. In addition to this, this can be stated
that cross-functional mix of employees, inclusive marketing and sales, research and
development, quality and supply chain teams. However, competitive forces to chosen enterprise
are outlined in following context as-:
Porters five forces-:
It is pharmaceutical entity that deals with different vaccines, medicines and consumer
health care commodities. Henceforth, porter five forces analysis needs to be conducted to
analysis the future of company. These as are-:
Competitive rivalry- It is high due to high number of international giants that relays over
research and development. However, Chinese pharma company is emerged and this is fast
growing industry in the world. Therefore, this entity has capability of handling such massive
operations. Hence, pharmaceutical entity has wide range of local manufactures that intensify the
competition (Popescu and Popescu, 2019).
3