401MANSC - Business Environment Report: Organizations and Stakeholders

This report examines the business environment, focusing on the British Broadcasting Company (BBC) as a public sector organization. It explores different types of business organizations, including private, public, and voluntary entities, along with their respective purposes. The report delves into the...Read More

The Business Environment

Table of Contents
INTRODUCTION ..........................................................................................................................4
MAIN BODY .................................................................................................................................4
Types of business organisation along with its purpose...............................................................4
Impacts of environmental factors in context of stakeholders at company..................................5
Requirements of variety of stakeholders.....................................................................................5
CONCLUSION ..............................................................................................................................6
REFERENCE..................................................................................................................................7

INTRODUCTION
Business environment comprises of internal and external factors such as employees,
consumers needs & expectation, supply & demand, management, clients, suppliers, owners,
innovation in technologies, social trends etc. these poses power in order to influences the
operation & function of company (Akhtar and Sushil, 2018). Following report is based on a
British Broadcasting company, in order to explore all these components of business environment
with relevance to stakeholders. This is a public sector organisation. In this report discussion
about types of organisation along with their purpose. Additionally, impacts of environmental
factors at company, market sector or industry level. Lastly, requirements of stakeholders to
chosen company is demonstrated.
MAIN BODY
Types of business organisation along with its purpose.
There are various types of business organisation in business environment such as private,
public & voluntary with different purpose. Some of business organisation are as follows:
Private company- Such type of business organisation held under private ownership, they
may issues shareholders and issues stocks but their shares do not trade on public exchanges and
not issues by initial public offerings (Hamilton and Webster, 2018). Tesco, Walmart, Waitrose
are the example of private organisation.
Legal structure of private company-
Private limited company is a legal entity in their own rights and the finance of company
are separates from finances of their owners. For example, Airdri.
Public limited companies are those which freely sell their shares at marketplace to gain
huge amount of capital. For examples, Sainsbury and Tesco.
Partnership: Such type of private company required less funds and that is operates with
the assistance of two partners. John lewis is an example of partnership private company.
Sole traders- they are those who run & handle their operation on his own. All
consequences of loss & profit will managed by single owners. Owners have responsibility to
carry out function which are associated with operation, legal and finance aspects.
Public organisation: It means those companies which are given by government and meant
for not profit economic development company. It involves those individual who wants to support

community or tourism attraction and activities. For examples fire services, healthcare, police
services, waste management, gas & oil, education (school & libraries). Their main aim is
providing a public services rather than making profit. BBC ( British broadcasting is an example
of such types of company (Fernandes, 2017).
Voluntary organisation- Primary objective of such types of business organisation to help
society and provide them welfare along with development. Example of voluntary organisation
are NHS, Wellcomes. Such types of organisation are operated by operated by trustee, royal
charter bodies, and un-incorportaed association.
Impacts of environmental factors in context of stakeholders at company.
According to the given situation, there are various internal and external factors that
affects the function and operation of company with relevance to stakeholders. Few of are
explained as follow:
Influences of internal factors in context of stakeholders are as follows :
Employees of company affects company in various ways as if they are not performing
well in company then overall performance of company ultimately goes down. As well as they
have limited amount of influence on business decision. Where as mangers have huge influence
of performance of company as they are the makes of recommendation, decision, strategies of
company and that affects the function of organisation.
Influence of external stakeholders on business operation of company-
Consumers- Consumers purchase goods and services and then give feedback to business
on how they can improves their services or offerings. Consumers are also able to influence
others by suggesting the business to their friends or warning them against a company. By this the
operation of company got affects.
Suppliers- They have a significant impact on business such as if any changes occur in
quality of services or gods then they supply or reliability of their deliveries (Chasdi, 2017).
Government – Government can passes new laws, changes the tax policies or amend any
law etc. affects the function of company. For example increment in grands or funding.
Pressure group- They can improve the workforces environment and help them for getting
fair payment. They could try to influence the opinion of consumers of a business unit.

Requirements of variety of stakeholders.
Stakeholders are those who have interest in business. They are either individuals, group
or companies that can affects the function or operation of company. In context of BBC their
internal stakeholders are the group within a business unit such as owners, employees. Where as
external are group of outside such as community, consumers, banks, society and governments.
Consumers are those who wants business to produce qualitative services at affordable cost.
Shareholders have interest in business function since they are counting on business to stay
profitable and provide a return on their investments within business. Creditors are those who
supply the financial capital, raw material and other services to company in exchanges of paid on
time and full. Local governments needs to thrive for paying taxes so that they will able to
support government services like education, police and fire protection.
In order to carry out all business operation company needs to some human resources and
that refers to stakeholders within company. Employees are the pillars of company as they are the
one by which company operates their functions (Cherunilam, 2020). Mangers and owners of
company wishes to make more profit so that they will able to help public by offering them
services and high wages by keeping their jobs so that they will able to vested interest in financial
health and success of business. Owners of company wish to maximizes the profit of company as
compensation for risk which they took in order to run their operation or business unit. So
employees, owner and mangers all are important for a company in order to run functions of
company.
CONCLUSION
From above discussed report it has been analysed that it become vital for any company to
analyse all factors of environmental that can affects the function and operation of company. So
that they will able to run their company smoothly and will able to attain goal within stipulated
time frame.

REFERENCE
Books & Journal
Akhtar, M. and Sushil, S., 2018. Strategic performance management system in uncertain
business environment. Business Process Management Journal.
Chasdi, R. J., 2017. Corporate Security Crossroads: Responding To Terrorism, Cyberthreats,
and Other Hazards in the Global Business Environment. ABC-CLIO.
Cherunilam, F., 2020. International business. PHI Learning Pvt. Ltd..
Fernandes, A. A. R., 2017. Moderating effects orientation and innovation strategy on the effect
of uncertainty on the performance of business environment. International Journal of Law
and Management.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.