Understanding the Business Environment

UNDERSTANDING THE
BUSINESS ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2............................................................................................................................................2
Marks and Spencer’s key internal and external stakeholders and their interests, with
recommended strategies for managing relationships with the various key stakeholders............2
TASK 3............................................................................................................................................4
Porter’s Five Force Model of M&S.............................................................................................4
TASK 4............................................................................................................................................6
Role of the World Bank and concluding how effective it has been in its mission......................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment is define the collection of external as well as internal factors, which
are beyond the control of enterprise and always affecting the functionality of organisation. This
report will describe about the different kind of organisations such as public, private, voluntary,
charity and public. This will help for identifying the entire legal structure of enterprise. Different
kinds of organizations have different stakeholders and interest of all of these stakeholders are
completely different depending upon type of organization and its functions. This assignment will
describe about the key internal and external stakeholders which plays important role in the
organisation to implement suitable strategies. Furthermore, it will focus on the Porter’s five force
model in order to examine the behaviour of enterprise and identify where how will influence
competitive market environment in both national and international level. However, it will explain
the role of work bank, conclusion that will draw on how effective it will achieve suitable
mission, vision.
TASK 1
Public company
Public company is an organisation in which shares are available to public from buying. In
this government control activities of a company and in UK company is denoted by plc. In this
there are no shareholder who is individually liable. The public limited company is a separate
legal entity and they are not having any link with its shareholders or members. In this managers
handles all the issues and there is interference of government because it is for the benefit of
public and shares are provided to people so that they can buy (Fabuš, 2017). Marks and Spenser
is a public limited company which is providing good services to customers and they make plans
so that needs of customers can be satisfied and it will help in generating more profit. It is one of
the well known company in UK and provides good service to customers (Ledley and et. al .,
2020).
Private company
A private company can be defined as organisation which is formed by a small number of
employees and it is for the purpose of social cause. The motive of private company is to earn
profit and they will and this will help in growth of company. The shares of private company are
not provided to public and they are not traded. It is provided to employee and they are given
training so that they can perform well. John Lewis is a private company in UK. The main ai of
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organisation is to earn more profit and they try to satisfy need and wants of consumers. In this
employees and company is different and employees are not having any liability. Members are
having separate legal entity and they work for company so that more profit can be generated.
Voluntary company
Voluntary organisation can be refer to as company which is being formed like, trust , a
company which is limited by guarantee. In this people are coming together for a special purpose
and their aim is to help society by providing them good services. Their aim is not to earn profit
but they want that society can be developed and take necessary actions for benefit of company
(Ledley and et. al ., 2020). They are helping people by helping them. Some features of voluntary
organisation is that assets and liabilities are protected, making plans or strategies according to
requirement of people and satisfy needs of consumers. National trust is an voluntary company in
UK which is providing good services to customers and they are helping people (Gavurova and
et.al., 2017).
Charitable company
Charitable company can be defined as organisation which is made to help people who are
needy. A group of people come together to help persons living in society. The aim is to help
people and provide them good services so that society can develop. They do not want to earn
profit but help people. Cancer trust is a charitable company in UK which is made for helping
cancer people and provide services to them at low prices because they are getting money from
government (Khan, Çera and Nétek, 2019).
TASK 2
Marks and Spencer’s key internal and external stakeholders and their interests, with
recommended strategies for managing relationships with the various key stakeholders
Stakeholders are one of the most important part of an organization they can directly impact
overall business operations of an organization (Cardwell, Williams and Pyle, 2017). All
stakeholders have different influence and interest in business operations of organizations. Some
of the main stakeholders of company with their interest and influence in company have been
explained below
High
Influence
Customers, Government Owner, shareholders
System administrator, Competitors Management, Employees
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