Business Environment: Types, Stakeholders, and Trends Report

This report provides a comprehensive analysis of the business environment, examining various types of business units, including examples like University Hospital Bristol, Thorpe Park, and Primark, and their respective objectives. It delves into the concept of stakeholders, differentiating between internal stakeholders (employees, top management) and external stakeholders (suppliers, shareholders, consumers) and their impact on business operations. The report further explores the legal and regulatory frameworks influencing business practices, such as anti-discriminatory, health and safety, employment, and consumer legislation. Finally, it discusses different economic systems, including command and free economies, and their implications for business decision-making and resource allocation. The report uses Primark as a case study to illustrate the practical application of these concepts, analyzing its stakeholder relationships and compliance with relevant legislation.

BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1................................................................................................................................................1
1.2................................................................................................................................................3
1.3................................................................................................................................................5
TASK 2............................................................................................................................................6
2.1................................................................................................................................................6
2.2................................................................................................................................................8
2.3................................................................................................................................................9
TASK 3..........................................................................................................................................10
3.1..............................................................................................................................................10
3.2..............................................................................................................................................11
3.3..............................................................................................................................................11
TASK 4..........................................................................................................................................12
4.1..............................................................................................................................................12
4.2..............................................................................................................................................13
4.3..............................................................................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Global business practices has designed unique measures to operate organizational
functions within the economy. The environment which encompasses all commercial activities in
order to create an effective impact on the organizational growth is termed as business
environment (Kang, Lee and Kim, 2010). It encompasses the internal and external environment
which creates a valid and effective impact on the organization growth. Business environment
develops a foundation to analyse the factors and issues which has direct and influence on the
profitability of the company.
TASK 1
1.1
There are different types of business units which exists within the economy and carries
out their operations in order to meet the set objectives. The purpose and objectives of business
operations vary highly on the basis of internal business policies and predetermined business
objectives (Cronan and et. al., 2011). There exists sole trading units, partnership firms, public
and private companies, franchises etc. which operate at different levels and with different
organizational requirements. The following examples will develop a clear and effective overview
about types and purposes of business units:
 University Hospital Bristol: It is a larger organizational chain operated under government
aided foundations. It is the part of NHS trust. University hospital of Bristol is a
government business units operating in UK from considerable time period. The aim of
the business is to enhance healthcare services for the people of the country. This business
unit has a considerable impact on the health care industry of the economy. As per the
organizational websites the mission of the company is to deliver quality and advanced
health care services to the people of UK at considerable rate in order to minimize health
inequalities within the market (Flynn, Valikoski and Grau, 2008). The purpose of the
business operation of the company is to enhance social welfare and harmony within the
society. This government aided unit provides free services or services at a very nominal
prices. The aim of the company is to stabilize society rather than earning profit.

 Thorpe Park: This is a business unit which operates within UK in the entertainment
industry. The company has developed theme parks and temporary hotel chain in England.
This is a private organization operated by Merlin Group. The company focuses on
providing unique and memorable entertainment experience to its consumers. The major
aim of the business is to enhance profitability of the business by providing quality
services to its consumers (Grayson, Johnson and Chen, 2008). The organization operates
for 9 months in the year with the sole purpose of enhancing sales through providing
innovative entertainment services. The organizational slogan 'An Island Like No other'
provides a unique identity to the business and helps in creating wide market demand.
 Primark: This is a multinational fashion retail operating effectively within the global
world. Primark is a subsidiary company of ABF and has established more than 238 stores
in across the globe. This public sector organization has established a well developed
brand image within the market (Harris and Rae, 2009). This fashion retail units provides
a wide range of products and services for its consumers. The company is operating
globally with the mission of becoming the market leader of fashion industry by meeting
consumers needed efficiently and providing quality products and services to its buyers.
The aim of the company is to enhance market share and focus of the society well being.
The objective of the business operation are to ensure the growth and development of the
business in order to make shareholder grow along with the organization.
1.2
Stakeholders are the significant part of the business unit. These are the people who are
directly affected by all the decisions taken by the company for growth, development or other
related decisions as well. Stakeholders affect the business operations and are affected by the
same. Primark is a globally established fashion retail unit operating efficiently around the world.
This public sector unit has different stakeholders who directly or indirectly impact the business
operations. The major groups of stakeholders of the company who directly impact the business
decisions are discussed henceforth.
Internal stakeholders: These are the people who are the part of the business units and the
company has a control over their actions. Company can directly approach internal stakeholders
and develop effective measures of communication with them.

 Employees: Primark is a fashion retail and employees are the key assets for the company.
They make the company resourceful by infusing creativity, adopting innovative
measures of working, achieving organizational goals etc. The key requirement of
employees is that company link the organizational growth with their individual growth
through processes such as career development, monetary incentives, bonuses, non
monetary benefits etc. Primark has developed an effective system for analysing the needs
and requirement of the employees (Carroll and Shabana, 2010.). It has designed two way
communication system to analyse the needs and requirements of the employees.
Moreover, organizational structure and culture is well designed to enhance their
individual growth measures within the company.
 Top Management: This segment deals with the decisions making functions of the
company. The key requirement of these stakeholders is the growth and development of
the business. They demand wide participation in organisational decisions and planning
(Correia, Nicolini and Teles, 2008). Primark has developed a measure whereby top
management of the company Is kept regularly informed about all business activities and
operations. The major organizational decisions are taken by taking their advice and
recommendations.
External Stakeholders: These stakeholders are the ones who are not the part of business directly
but has direct and influential impact on the growth and development of the businesses. External
stakeholders for Primark are:
 Suppliers: They help in the day to day operations of the business. Suppliers make the raw
material and products available within the company of required quality and in the
effective cost this helps in managing business operations of the company. The suppliers
demand high credibility and timely information about the requirements. The company has
adopted ethical measures of working within the business. Primark has developed well
managed supplier relations in order to adopt ethical and effective means of working
within the company (Aruoba and Chugh, 2010). The company makes timely payment and
provides them with all benefits of costs and resources as well.
 Shareholders: The shareholders of the demands high growth prospects for the business in
order to enhance their individual development. The company has developed effective

strategies for growth and development in the global market. The portability and brand
image of the organization is increasing regularly which has helped in the growth of share
prices and dividends. Moreover, the company has adopted effective measures of
communication through annual meetings, CSR reports, Annual reports etc. These
elements help in managing transparency about organizational activities.
 Consumers: Costumers of Primark demand quality products and services as per the
current trends and needs of the market. The consumers focus on cost and benefit
relationship with the business. The company has developed well defined measures to
analyse consumer expectations and produce products and services accordingly (Leigh and
Stehn, 2009). The company has developed strategies whereby direct consumer surveys
are carried out in order to enhance consumer relationship. The company has adopted a
unique measure of cost saving through avoid high investment in marketing activities. The
company rather focuses on offering products at affordable price.
1.3
The current business trends has been developed and adopted effectively to meet the
organizational, environmental and society needs and requirements efficiently. Primark has
adopted well defined measures to minimize the gap between exceptions and actaual actions taken
towards the same. The policies and regulatory framework that the company has adopted for the
same are discussed henceforth.
 Anti discriminatory legislation: This legal regulation policy demands that the
organizational functions and procedures must be effectively carried and defined. The
companies must focus on minimizing discrimination with employees, consumers or any
stakeholders. Primark has adopted Equality act 2010 which enables the company to
practice minimum discriminatory actions within the business. The recruitment and
selection policy of the business is highly influenced by this policy the company provide
equal opportunities of employment irrespective of the factors such as age, gender,
religion, nationality etc (Christelis, Georgarakos and Haliassos, 2013). The company has
also developed well developed facilities and measures for consumers who are physically
challenged. This has helped Primark to attain effective brand image within the market.

 Health and safety legislation: Health and safety regulation helps the business in
delivering well defined measures of business operations. Primark adopted health and
safety work regulation act 1999 which has helped the company in assessing the risk
within the organization efficiently and developing the processes to minimize the risks.
The company has also focused on developing every retail unit complying to workplace
regulation act 1992 which helps the employees in assessing the basic health aids, the
organizational building is designed and developed to meet the safety regulations (El
Mahdi and Rashed, 2009). Moreover provisions such manual handling act 1992, work
equipment act 1999, Control of Substances Hazardous to Health Regulations 2002 etc.
has helped the company in regulating the business activities efficiently to enhance health
and safety of employees and consumers as well.
 Employment legislation: Primark has designed and developed its employee legislation
effectively which has helped the business in developing policies with compliance to legal
framework. The company has adopted legal actions such as minimum wage act, equal
pay act 1970 etc. This has helped the business in providing well defined measures of
employment opportunities (Mangena, Tauringana and Chamisa, 2012). Employment
legislation helps the business in assuring regulatory framework for the business unit and
developing equal opportunity to every employees with subsequent discrimination within
the economy.
 Consumer legislation: The company has adopted consumer legislation in order to protect
the rights of the consumers. Primark focuses on producing high quality products and
services for the byers. The company ensures that its commercial activities are ethical and
as per regulatory framework of the company. The company ensures that the employees
do not carry out unfair practices or exploitation of law for personal benefits. Moreover
organizational practices such as data protection act minimizes the risk of safety
exploitations for the employees (Wright, Marston and McDonald, 2011). The well
developed feedback system f the company assures that the consumer complaints and
issues are properly adhered and resolved.

TASK 2
2.1
The economic system f the company is defined as a system of producing and distributing
products and services within the market throughout the country with effective allocation of
resources. There are different types of economic systems within the market the major types are
defined below:
 Command economy: This is the economic system whereby the central authority of the
country has the overall control over the decision making processes. All decisions
regarding production and distribution are taken by the central authority and the business
unit creates a well defined measure to enhance organizational operations (Prasad, 2010).
The resource allocation is identified and carried out by the government bodies. Under this
system government bodies analyses the organizational needs and requirements and
carries out effective measures to attain those needs. Countries such as China, Japan,
Korea, UAE etc. follows these measures of practices. Individual business unit has no
control over resource operations and decisions as well.
 Free economy: This economic system has a paradox situation as compared to command
economy. Here the central authority has minimum control over production and
distribution decisions of the company. The government has minimum interference in the
decision making process of the company. Individual business owners has the sole control
over all the decisions regarding resource allocation and distribution (Sergeyev and
Moscardini, 2006). Such type of economic system is practices in countries like
Hongkong, USA, Singapore Newzeland has adopted the practices where government has
minimum control over the production and distribution and resource allocation functions.
The individual business owners has the sole control over these decisions. Market forces
such as demand and supply helps in allocation of resources.
 Mixed economy: These economies are those where the existence of both Individual
market players and business intuits plays a significant role in the business operations.
These companies focuses on developing a mixed impact on decisions making (Islam,
2010). The decisions regarding resource allocation are taken by both the parties. The

business units have limited control over the resources. Government bodies makes rules
and regulations as per the requirements and organization operates accordingly. The major
focus of this system is on earning profit which ensuring optimum utilization of resources.
Countries such as UK, India etc are effective examples for the same.
2.2
The economic policies of the government are developed in order to create an effective
control over flow of funds within the country and ensure economic stability and growth within
the business. The major policies developed by the government for the same are Fiscal and
Monetary policies.
Fiscal policy
These policies are developed to ensure economic growth and stability within the
organization. The economic tools used for the same are corporate tax rates, government spending
etc. These policies affect the growth of the economy by creating aggregate demand within the
country and meet it with effective output level and employment rate as well (Jelušic and
Blaževic, 2006). These policies have different impact on different types of organizations.
 University Hospital of Bristol: This is a government funded organization which focuses
on providing quality services to the people in order to minimize health inequalities. As
per the organizational information the company demands an annual budget of abound
GBP 550 Million in order to ensure effective services within the market. Fiscal policies
helps the companies in effectively meeting these requirements of the company. Higher
tax rates will increase government funds which could be utilised effectively for public
services.
 Primark: This private sector firm however will have different impact of fiscal policy.
High corporate tax will reduce the profitability of the business and may result in
increasing prise of the products. The company may result in reducing the demand as well
due to increase in tax rates.
Monetary policy
These policies are developed by the government in order to control the flow of funds
within the market. The tool used to control these policies are interest rates, inflation rate etc. the

impact of these policies on the different organizations vary according to the operations (Chavis,
Klapper and Love, 2011).
 University Hospital of Bristol: monetary policies helps the organization in making
effective regulation for funds allocation. High rates of interest will enhance investment
within the banks which may enhance funds for government spendings. However, lower
rates of interests will result in vaccuming funds with the market in forms of loans thus the
organization will have low fund availability.
 Primark:This private sector unit will have a significant impact of monetary policy. High
rates of interests will enhance investment measures for the company which may results in
investment prospects for the business. In contrary to this low rates of interest will help the
company in availing funds at lower rates which could be effectively utilised for business
expansion or growth measures.
2.3
The regulatory policies are developed by the government focuses on regulating
organizational activities and enhancing economic stability for the business.
Competition Policy 1998
This regulatory action has been designed and developed in order to ensure the growth and
development f the economy effectively. This regulatory mechanism has helped business
enterprises in ensuring fair competitive operations within the economy (Adkisson, 2009). Pimark
has designed and developed its business operations significantly as per the stated policy it has
helped the business unit avoiding practices of anti-competitive agreements and abuse of
dominant position. As per the regulation Primark does not develop agreements with a growing
firm in oredr to develop monopoly situation within the market. It helps in avoiding "preventing,
restricting or distorting competition in the UK (Why is competition policy important for
consumers, 2012). The company also focuses on exploiting small business units using its
dominant position within the market. The overall impact of the same has helped the company in
developing a well recognised brand identity in the market. Moreover, competition policies has
helped Primark in developing high competitiveness in the economy as well. At the same time it
inhibits the fast pace growth such as it has to undergo range of evaluation process conducted by
the concerned authorities that monitors the legitimacy of operations conducted by it. Moreover,

Primark can not consider the quality of things which their competitors are using to excel their
revenue and productivity. For example, cited firm cannot use the name of M&S or Zara to
promote their brand because it will increase the competitive rivalry and firm will not be able to
perform well in the dynamic environment.
The Enterprise Act 2002
This act ensures fair trading practices within the economy. It encourages organizational
productivity and smooth functioning within the market. Primark as per the given act acts
efficiently and effectively within the market. The law protected collective interest of the
consumer by keeping an eye on price-fixing actions of the company. These policies developed an
effective system of working whereby the businesses developed a well defined measure of
working within the market and reduced the possibility of disclosure of information for enhancing
organizational growth. It helps the company in developing an effective brand image in front of
the stakeholders as well. Adopting the sated policy has helped the business in effectively
analysing the government support in the economy. It also helped the business unit in enhancing
consumer trust and loyalty for the business unit. Along with benefiting the organisational
efficiency and productivity in some aspects it affects the development. Such as hampers the
profitability earned by it and decreases the pace of revenue generation. If the price policy so
fixed by government is not adopted by the Primark then their operation will get shattered and
venture will not be able to perform well in order to achieve their goals and objectives. Moreover,
venture will use the customers trust as well and they will not be able to well execute their
operation in the dynamic environment.

TASK 3
3.1
Illustration 1: Market structure
(Source: Snyman, Kourie and Botha, 2014)
Perfect competition: These are the markets where there are many buyers ad sellers. The products
offered by the buyers are identical in terms of quality and material factors and key aim of the
company is to attain high market sales in order to enhance profitability. These types of market
condition are commonly observed in Retail segment. The pricing and output decisions for this
segment is based on demand and supply forces (Snyman, Kourie and Botha, 2014). Companies
such as Tesco, M&S, Sainsbury etc are the effective examples for the same. These companies
have perfect substitutes for the organisation.
Oligopoly: This market types is characterised as the one where there are many buyers but few
sellers within the market. The products offered by the companies are not identical. The entry and
exit in the market is restricted. Aviation industry of UK is an effective example for the same.
Companies such as Easy jet, British Airways, Virgin Atlantic etc. are the key market player
however the services are not perfect substitutes. The Pricing and output decisions are controlled
and regulated as per the industry norms and demands. Few market players makes the prices thus
the output decisions are taken by the company.
Monopoly: This is the market where there are large number of buyers but only one seller. The
entry is restricted within the market. The products are developed and designed as per the sellers'
convenience and requirements. The seller is the price maker in the market and not the price taker.