Business Environment Analysis: Types of Organizations and Stakeholders

This report provides an in-depth analysis of the business environment, examining various organization types and their purposes. It explores the franchise model, exemplified by Next plc, highlighting its focus on revenue generation and brand building. The report also delves into partnerships, using Newham Hospital as an example of a public limited organization, and charities, like Oxfam, emphasizing their social impact and funding models. Furthermore, it identifies and analyzes the key stakeholders associated with a business, including employees, customers, shareholders, suppliers, and the government, detailing their roles and influence on the company's operations. The report concludes by summarizing the importance of understanding the business environment and its stakeholders for organizational success.

BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAINBODY...................................................................................................................................3
Organization types and purpose of businesses............................................................................3
5. Requirement of a variety of stakeholder..................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Business environment can be defined as the collection of all macro and micro
environment factors i.e. political, demographical changes, customers, technology, legal factors
etc. directly impact on organization’s performance, productivity and operations. To understand
role of business environment has an example of Next plc. The brief study provides understanding
about different types of firms and purpose of the businesses from a wide range of sectors.
MAINBODY
Organization types and purpose of businesses
There are three types organization public, private and charity organizations which possess
different purposes and operates their business in different sectors.
Franchise: It is private limited type company that is already established in the market
and operates by franchisor but manage by franchises. In other word, franchise is a type of licence
which a party gains to permits others to their products or services under the business name. The
main purpose of the organization to generate high revenue and build good brand image in the
business market. so, such kind business mainly focuses on the customer’s needs, expectation and
preference which helps to meet their objectives and in return generate high revenue in the
business market. There has an example of Next plc which is British multinational clothing,
footwear and home products retailer company. It is headquartered in Enderby, England, UK
(Adlerand Heckscher, 2018). It operates in multiple countries across through it’s 500 franchises.
It has listed on the London Stock Exchange and has overtaken Marks and Spencer in 2012 and
2014. It has aim to give high quality service to the customer so that they get value of their money
and maintains their wellbeing.
Partnership: It is similar to sole traders but different in their purpose because here two or
more people involves and puts their expertise to conduct own business effectively. In the

partnership business often involves professional services providers i.e. doctors, solicitor and
dentists who has purpose to give high quality service to the public and in return gets less profit.
There has an example of Newham Hospital that is public limited type of organization which
offers all services such as emergency care, surgery, children’s health, women’s health and
maternity etc. through it’s hospital. This organization works in partnership with NHS trust. NHS
trust provides medical education to the staff whereas Newham’s staff provides different type
services to the patient in UK.
Charity: It is classifiedas social enterprise that is operated by a group of people but in
return, they do not get any salary. It is different in term of income because it is acquired through
grants and donation as compared trade. Such kind organization does not have to pay any taxes
but receives tax breaks and benefits from trustees (Miller-Stevens and et.al., 2018). It gets funds
through donation campaign, private and public limited company. The main purpose of the
organization to eradicate poverty and improves wellbeing of public in the world. There has an
example of Oxfam organization that is charitable organization. it is international non-
governmental organization which has focus to eradicate poverty, disaster relief and others and
offers it’s service worldwide.
5. Requirement of a variety of stakeholder
Stakeholders are defined as different entities associated with the company. Stakeholder is
further defining as various forces influence business of company. Nxt Plc is associated with the
following stakeholders in order to conduct its business operations.
Employees: Employees are among the key stakeholder part of the organisation. Employees play
a huge role in meeting different functional needs of the company. Employees drives company’s
operations in such a way that all objectives of the company can meet. Human resources are
among the most significant resources part of the organisation (Solodukhin, 2019). Nxt Plc
company’s organisation hierarchy associates with human resource department that overlook the
company’s requirements in respect to the human resources. Company also channelizes growth
and development programs for its employees with the support of human resource department of
company to improve the capabilities of human resources part of the organisation.

Customers: Customers are among the primary stakeholder part of the organisation. Customers
of company play huge role in sustainability and growth of the organisation. Nxt Plc Company
frame different operation policies as per the target customer base of company. Company also
engage with its product development policies on the basis of its potential customer base of
company. Nxt Plc Company gives huge priorities to its potential customers in order to channelize
various operational strategies of company. Customer satisfaction plays a huge role in improving
the growth potential of the company. Product quality is among the key requirements associated
with the customers of company. Organisation always makes product development strategies to
meet this need of customers of company.
Shareholders: Shareholders are among the primary stakeholders part of the company. Share
holders are considered as the owner of the company. They have invested in the business of
company by acquiring shares of the Nxt Plc Company. Company conduct all its operations in
order to cope up with the expectations of company’s shareholders. All requirements of the
shareholder of company are based on the profitability of company.
Suppliers: Suppliers are also among the important stakeholder part of the company. Suppliers
are the individuals involves in ensuring proper availability of all products of company in all
stores. Suppliers carry a huge role in the operations of company (Kituku, O. and Ngugi, 2016).
Suppliers are immensely influenced with the profits out of its functional activity. Company try to
give maximum benefits to its suppliers in against to the services they offer in the operation
management of company.
Government: Government is the external stakeholder’s part of the organisation. Government
frame different policies that can support the operations of the company. Nxt Plc Company
operates all its functional activity by coping up with the regulations issued by the government.
Tax policies of government also put a huge influence over the business of company. All prices of
the company are influenced with the taxation policy of the government.
The above mentioned stakeholders are among the key stakeholders part of the
organisation. Company try to meet up all expectations of these stakeholders as a part of the
business operations.

CONCLUSION
This report has projected about the business environment part of the organisation.
Various stakeholders like government, customers, shareholders and other key stakeholder’s part
of the organisation.

REFERENCES
Books and Journals
Adler, P.S. and Heckscher, C., 2018. Collaboration as an Organization Design for Shared
Purpose', Toward Permeable Boundaries of Organizations. Research in the Sociology of
Organizations. 57. pp.81-111.
Kituku, O. and Ngugi, K., 2016. Stakeholder Management and Performance of Nairobi Water
and Sewerage Company Projects. International Journal of Human Resource and
Procurement. 5(5). pp.123-139.
Miller-Stevens, K and et.al., 2018. Assessing value differences between leaders of two social
venture types: Benefit corporations and nonprofit organizations. VOLUNTAS:
International Journal of Voluntary and Nonprofit Organizations. 29(5). pp.938-950.
Solodukhin, K., 2019, June. Modified Fuzzy Model for Selecting Stakeholder Engagement
Strategies of the Company Using Generalized Criterion. In IOP Conference Series:
Earth and Environmental Science (Vol. 272, No. 3, p. 032125). IOP Publishing.