Report: Business Environment and Stakeholder Objectives Analysis

This report delves into the multifaceted realm of the business environment, examining how various types of businesses, including those in the private, public, and non-profit sectors, strive to meet the objectives of their diverse stakeholders. The report provides a comprehensive overview of different business structures, such as sole proprietorships, partnerships, and companies, highlighting their unique characteristics and their roles in fulfilling stakeholder needs. It explores the significance of internal stakeholders, such as shareholders, and external stakeholders, including customers and creditors, emphasizing the importance of maintaining strong relationships to ensure business success. Furthermore, the report analyzes the learning process, including the stages of unconscious incompetence, conscious incompetence, conscious competence, unconscious competence, and flow/life mastery. The report concludes by emphasizing the critical role of stakeholder relationships for sustainable growth, and the need for adaptability and innovation in an ever-changing business landscape, while also providing actionable insights for future business operations.

Introduction to
Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
Reflect on How the Various types of businesses meet the Objectives of their Stakeholders..........3
Description..................................................................................................................................3
Interpretation...............................................................................................................................4
Outcome/Action..........................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Business Environment refers to all the sum of all factors such as the internal and external
that affects the business whether in a positive way or in a negative way. Every business has to
meet the objectives of their stakeholders. Stakeholders can be defined as a person, group or
organisation that has its interest or particular concern in the organisation (Briscoe, Tarique and
Schuler, 2012). Stakeholders can affect, or be affected by the actions, objectives or policies of
the organisation.
Reflect on How the Various types of businesses meet the Objectives of their
Stakeholders
Description
This report is based on different types of organisation and its role about how to fulfil needs
and objectives of stakeholders easily. Business in accordance to the Legal Forms can be divided
in three forms:
PRIVATE SECTOR:
According to my knowledge, private sector is that part of country's economy that is run
by some or a single individual with the Objective of making Profit. The Government has no
control over its functioning. Private Sectors can be further classified into the following
categories:
1. Sole Proprietorship: When only one individual is the owner of the business, and is solely
responsible for all the profits and losses earned by the business is Sole proprietorship. He
takes all the decisions whether financial, or managerial or any other related to the
business and is solely responsible for the consequences resulting out of it (Colombo and
et. al., 2012).
2. Partnership: It refers to that form of business in which the number of owners are more
than one. The maximum number of partners is 20 in banking business and rest all other
types of businesses it is limited only to 10 and the minimum is two. Their liability in
unlimited, which mean to say that if the company occurs heavy loss than it will be
compensated by the sale of their personal assets also.

3. Company: A company is a artificial legal person, registered under the Companies Act,
which is created by some persons or group of persons, in order to carry on a business
enterprise (DAILY, KIEFF and WILMARTH JR, 2014). Their liability can be limited or
unlimited depending upon the agreement.
PUBLIC SECTOR:
I want to tell that Public Sector includes all those companies or businesses which are
under the control of the state, local or central governments or partially includes their mix. These
are: 1. Local Government Undertakings: When a company is owned and controlled by local
government, it is called Local Government Undertakings.2. State Government Undertakings: When a company is owned and controlled by the state
government of a country is called State Government Undertakings.3. Central Government Undertakings: When a company is owned and controlled by the
central government of a country, it is said to be Central Government's Undertaking.
Non Profit Organisations:
The organisations which work without the motive of earning profit, and with the purpose
of social welfare are called Non-Profit Organisations.
1. Charitable Trust: These are those organisations which are operated for the purposes
which are beneficial to the public interest.
2. Unincorporated Association: These associations forms whenever at least two people
agree to pursue a common lawful purpose other than making profit.
3. Company Limited By Guarantee: These type of organisations does not have any share
capital or shareholders, but have some guarantors with their limited liability formed for
the purposes other than profit making (Erasmus, Strydom and Rudansky-Kloppers,
2016).
Interpretation
According to me, the most important aspect of learning is about the fulfilment of the
objectives of internal as well as the external stakeholders of a business. As the main motive of
company is to provide quality products and services to its stakeholders which will help an
enterprise to accomplish long term goals and objectives. The customer is the one who creates
demand of a product. So for increasing and maintaining the demand for a product it is must that

the product must be of good quality and according to the customer's need. Their interest is to get
the good quality products at reasonable prices. The consumer is interested in getting the goods
quickly and must be healthy for the customers. If these points are not taken into consideration by
the company than it will result in falling demand of their product which a company never wants
to happen. The demand for the product will fall and may even be the reason for the dissolution of
that firm. So it is necessary to fulfil this objective at the first preference by the company ( Galí,
2015). About internal stakeholders, my own point of view is that the most important goal of a
company is increasing the business value in the market i.e., maximising the shareholder's wealth.
It can be done in the following ways: Growth in the sales, Reduction in the working capital
investment, Reduction in the fixed asset investments, Increase in the operating profit margin.
From these points, I want to say that by improving these values a company can maximise
the value of its shareholders. Also, Michael C. Jensen argued that“a firm's value cannot be
maximised if the company ignores the interests of its stakeholders”. I agree with the argument
that the main goal of the firm is to maximise its shareholder’s wealth. It is because the
shareholders are the real owners of the firm and they desire that the company's operations will
create the return on their investment as much as possible. If the company does not fulfil this
objective than the shareholders will lose their trust in the company and losing their interest will
result in the fall in the goodwill of the company. The shareholders will not feel safe their money
invested in the company. So according to me, when we talk about the internal stakeholders the
shareholders is the most important part which must be taken into consideration.
I learned that a company's main focus must be on increasing its value. This is because the
value of a company affects most of the stakeholders. It affects the customers, shareholders,
creditors. If the company is having high value than there will be more customers, people will
believe in investing more in the company and the creditors' trust on the company will increase.
The customers will get good quality products, and the wealth of the shareholders will be
maximised. This is a positive point for the company and companies having such plus points will
develop faster as compared to other companies (Hair Jr and et. al., 2015). I also learned that the
value of a company is created by the decisions taken by its management. The management must
take into consideration the internal as well as the external factors while taking any decision
because everything depends upon it. Building up the image of a company or destroying it all lies
in the hands of the management. Learning the about the risk point of view is very important and

was very helpful. The decisions must be taken keeping in mind the risk factors or the
consequences of the decision taken that how it will affect the organisation? How much risk is
related with this decision? What will happen if the result will be unfavourable? So these
questions must be kept in mind so that the risk factor related to the decision can be avoided
(Hilton and Platt, 2013).
A lot of things I learnt while preparing this report. On this basis, Learning can be defined
as the acquisition of knowledge or skills through study, experience or taught. There are Five
Stages in the Learning process. They are
Source: (The stages of learning, 2018)
1. Unconscious Incompetence: I came across this stage when I was first provided with the
topic because everything was out of my knowledge. My information about the business
environment and the objectives of businesses in relation with their stakeholders was not
sufficient to complete the report.
Illustration 1: The stages of learning, 2018

2. Conscious Incompetence: In this stage, curiosity plays an important role. I also came
across this stage when I increased my knowledge about business environment and
stakeholders but was unable to express in my words. The curiosity to learn and practising
again and again helped me in passing from this stage to the next one (Savrul, Incekara
and Sener, 2014).
3. Conscious Competence: I came to this stage when I shared my views regarding the topic
and getting feedback for the same. Some things were done right and some were wrong.
The feedback helped me a lot and told me the proper way of doing things. I enhanced my
knowledge by collecting more and more information and tried to express them more
clearly so that everyone must get the point that I want to say.
4. Unconsciously Competent: By practising more and more, made me now to do things
efficiently. I do not think much about what I am doing but on behalf of my knowledge
that I gathered from different sources made me to do the things in a right and correct way.
5. Flow/ Life Mastery: My practise and efforts to learn things increased my efficiency
related to the topic to the level that now I can easily explain and make others to
understand about the topic.
Outcome/Action
From the above topic, I learnt about the various objectives of the organisations in relation
with their internal and external stakeholders. I came to know how important are the stakeholders
for an organisation. Expressing my views on the topic, I want to clear that stakeholders are an
indivisible part of an organisation. Stakeholders includes the government, customers, creditors,
employees, shareholders, project managers. There must be a good relation between the company
and its stakeholders for the smooth running. Every stakeholder affects the company differently.
Customers can create an increase or decrease in the demand of the product. Proper taxation will
make less government intervention in the working of the company. Creditors will believe in
giving the material to the company on credit (Tayur, Ganeshan and Magazine, 2012).
Shareholders will have their faith in the company as they feel safe about their investment made
in the company. Employees will shift to other companies if they not found the wages to be
sufficient for their living. So the basic motive of explaining these is that if the relation with only
one them is not maintained properly than it will severely affect the working of the company.

Every type of stakeholder has its own importance in an organisation and it is necessary to
maintain all the relations because they are the key to the success of the organisation.
For future inference, I want to say that these objectives will help a lot in the successful
running of an organisation. The objectives which are discussed above may be accurate in the
near future but cannot be treated as good in the long run also. This is because the future is
uncertain and nothing can be said about the future. There may be change in technology or change
in the taste and preferences of the people which may make it compulsory for the company to
change its policies. Same policies which are followed now may not work in the future. So
innovation according to the time will make the business to run properly. Also company can
organise timely meetings for the proper communication between the stakeholders so that there
may not be any kind of conflicts between them. Also it will help in making the vision or the
purpose of the project clear to the stakeholders and also will come to know about the profits
which the company will have after completing the project. They can also put their viewpoints in
front of the company which will drive more innovative thinking across the business. This will
encourage the team work in the company and will also ensure a long-term sustainable growth for
the company (Groff and Jones, 2012). The company must work upon the interest of all the
stakeholders, so that everyone will be happy and wish to work that will help in achieving and
developing the company faster. The company has to change its strategy of working according to
the changing time that will remove the negative consequences and costs will be replaced by an
approach more suited to the needs of the future of the corporation.
CONCLUSION
From the above given information, it can be concluded that fulfilment of the objectives of
the stakeholders by the organisation is the key to success to a company. Stakeholders in the
organisation play vital role for the growth and development of company within predetermined
time period. Grips reflective model is more beneficial for an individual to describing their
perception about the topic.

REFERENCES
Books and Journals
Briscoe, D., Tarique, I. and Schuler, R., 2012. International human resource management:
Policies and practices for multinational enterprises. Routledge.
Colombo, M.G. And .et .al., 2012. Introduction: Small business and networked innovation:
Organizational and managerial challenges. Journal of Small Business Management.50(2).
pp.181-190.
DAILY, J. E., KIEFF, F. S. and WILMARTH JR, A. E., 2014. Introduction. In Perspectives on
Financing Innovation (pp. 13-16). Routledge.
Erasmus, B., Strydom, J. W. and Rudansky-Kloppers, S. eds., 2016. Introduction to business
management. Oxford University Press Southern Africa.
Galí, J., 2015. Monetary policy, inflation, and the business cycle: an introduction to the new
Keynesian framework and its applications. Princeton University Press.
Groff, T. and Jones, T., 2012. Introduction to knowledge management. Routledge.
Hair Jr, J. F. and et. al., 2015. Essentials of business research methods. Routledge.
Hilton, R. W. and Platt, D. E., 2013. Managerial accounting: creating value in a dynamic
business environment. McGraw-Hill Education.
Savrul, M., Incekara, A. and Sener, S., 2014. The potential of e-commerce for SMEs in a
globalizing business environment. Procedia-Social and Behavioral Sciences.150. pp.35-
45.
Tayur, S., Ganeshan, R. and Magazine, M. eds., 2012. Quantitative models for supply chain
management(Vol. 17). Springer Science & Business Media.
Online
The stages of learning. 2018. [Online]. Available
through<https://www.habitsforwellbeing.com/stages-of-learning/>.