HND Business: Examining Business Environment, Organisation Types

This report provides an overview of the business environment, focusing on the different types of organisations, including private, public, and voluntary sectors. It explains the size and scope of various organisations, such as Virgin Atlantic and British Airways, comparing their employee numbers, consumer base, net income, and areas served. The report also includes a stakeholder analysis using Mendelow's matrix, categorising stakeholders based on their power and interest in the organisation's strategies, highlighting the importance of managing stakeholders effectively. The analysis covers minimum effort stakeholders, those who need to be kept informed and satisfied, and key players who can significantly influence the organisation's direction. The report concludes with references to relevant academic sources.

Business and business
environment
TASK 1

TABLE OF CONTENT
1
 Introduction
 Different size and purpose of organisation
 Size and scope of a range of different types of organisations
 Stake holder analysis
 References

Introduction
The presentation is based on the business and business environment
whereby size, scope and purpose of different sectors of organisation
are described. There are commonly three types of sectors namely
private, public and voluntary sectors. Such sectors are explained
here. It also highlights the stake holder analysis of corporation.
2

Different size and purpose of
organisation..
There are different sectors under which any corporation falls that are
private, public and voluntary sectors. All of them have different
functionalities. The private sector businesses are headed or run by an
individual who take care of all the risks whether it is financial or
technical. The goals of such enterprises is to earn more and more
profits and spread their business all over the globe.
3

Cont..
Public sector firms are operated as well as financed by the government.
They are not having the purpose to earn profits. They gain money by
the taxes paid by civilians of the country and this revenue is used in
running the business. They commonly works for the upliftment of
the society and provide various public services to the people. British
Airways can be such organisation that is run by the UK government.
4

Cont..
International business involves all commercial transactions (private,
sales, logistics, governmental, investments and transportation) that is
taking place among two or more regions , nations beyond the
political boundaries. It also refers to all such business activities that
involve cross border transactions of products, services and resources
among more than two or more countries. Growth of international
business is affected by the different factors.
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Size and scope of a range of different
types of organisations
Virgin Atlantic British Airways
Employees 8,875 ( in the year of
2016)
42,000 (in the year
of 2015)
Consumers 5.4 million
passengers
42.1 million (2016)
Net income 2,689 million Pound
(2016)
1,473 million Pound
(2016)
Areas served North America,
Caribbean, Africa,
the Middle East and
Asia, UK
New york, London ,
UK, (has 160 more
destinations)
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Stake holder analysis
Stakeholder are those persons that can affect or may be affected by the
objectives, policies and actions of the corporation. Some of the
example of stakeholders includes employees, customers,
government, creditors, suppliers, directors, unions, etc. They are the
essential part of a firm. So, it is important to do stakeholder analysis.
This can be done by using the Mendelow's matrix.
7

Cont..
The stakeholder analysis of Virgin Atlantic are listed described below:
Box A – Minimum effort : Such type of people are not interested in
the strategies of the firm and have low power and this makes them
vulnerable to influence. They generally accepts or follow the
instructions of others as they have no idea regarding that .
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Cont..
Box B - Keep informed : Such type of stakeholders shows their
interest in the strategies but they have no power do anything.
Manager of the firm requires to persuade the hostile people by
explaining that their schemes are justified. If they will not do so
then those stakeholder attempts to join the other parties who are
lying in the boxes of C and D having the intention to gain more
power.
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Cont..
 Box C – Keep satisfied : The main task is to keep the
stakeholders satisfied of this group so that they would not gain
interest in tries to move in box D. This can be done by reassuring
them by telling the results of strategies in advance.
 Box D – Key Players : Such type of people are main drivers who
bring the revolution. They can also stop the schemes made by
management if they don't think it is effective.
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References
Welford, R., 2013. Hijacking environmentalism: Corporate responses
to sustainable development. Routledge.
Anandarajan, M., Anandarajan, A. and Srinivasan, C. A. eds., 2012.
Business intelligence techniques: a perspective from accounting and
finance. Springer Science & Business Media.
Botha, A., Kourie, D. and Snyman, R., 2014. Coping with continuous
change in the business environment: Knowledge management and
knowledge management technology. Elsevier.
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