Report: Business Environment Analysis of Waitrose and Stakeholders

This report provides an in-depth analysis of Waitrose's business environment, exploring various organizational types such as private, government, public, and non-government companies, and their respective purposes. It identifies and discusses key stakeholders including customers, suppliers, government, employees, and investors, examining their interests and influence on the firm's operations. The report further outlines Waitrose's responsibilities towards these stakeholders, encompassing aspects like customer satisfaction, supplier relationships, adherence to government regulations, employee welfare, and investor relations. The analysis highlights the significance of effective management strategies to meet stakeholder expectations and contribute to the overall growth and success of the company, emphasizing the importance of understanding the business environment within the retail sector. The report concludes by summarizing the key findings and underscoring the importance of stakeholder management for Waitrose.

BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Identification of purpose of various types of organisations................................................ .3
1.2 Describing the extent to which an organisation meets objectives of different stakeholders.4
1.3 Explanation of responsibilities of an organisation and strategies employed to meet them. .5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment can be defined as the external and internal factors which influence
company's functions. Stakeholders are the important components of business environment which
includes customers, employees, management, business regulations, competitors, suppliers,
government, etc. (What is Business Environment? Explain its types, 2016). In this project report,
discussion will be made on the types of business organisation and the way in which these firms
meet the goals of business and different stakeholders. This report is going to analyse and
determine the requirement of business of Waitrose and their responsibility regarding
stakeholders. The mentioned firm is a popular supermarket which deals in food retailing in UK
market.
TASK 1
1.1
As per the given scenario, business environment consists of forces which largely affect
organisation’s performance. There are various types of business enterprises that have different
purposes and ownership. These are defined henceforth- Private company- In this sector, businesses are owned and run by private individuals.
This type of enterprise is operated in two ways that is either in the form of sole traders
and partnership or may be as a company. Main aim of private enterprise is to earn
maximum profit and increase market share by enhancing the sale of products and
services. Examples are Cambridge satchels, Harrods group, etc. Government company- Businesses of this sector are owned and run by the government.
They perform operations through public funds. Objective of these types of businesses is
to provide essential public services and make maximum use of resources for the profit of
community (Alshamaila and Papagiannidis, 2013). Main aim of these organisations is to
provide social welfare as only profit earning is not their major objective. Public company- These firms issue securities through an initial public offering and trade
them in at least one stock exchange. Major objective of this type of business is to
maximise shareholder’s wealth by generating high profit and enhancing organisational
growth. Examples of this sector are TESCO, Sainsbury and Waitrose.

 Non-Government organisation- It is a not for profit association which usually get funds
by donations. NGOs are diverse groups of organisations that are engaged in a wide range
of activities that focuses on resolving social issues and problems. These firms take
different forms in distinct parts of the world (Goworek and et.al., 2012). They work for
fulfilling social purpose that is satisfying the society by resolving their issues. Example of
NGO is CHS Group.
1.2
Stakeholders are those people who have interest in the way in which firms are
performing. They are affected by the organisation's decisions, objectives and policies. Examples
of stakeholders are creditors, directors, owners, suppliers, government, employees and the
community. In Waitrose, there are various stakeholders who have their own purpose and power.
Some of these are as follows- Customers – They are the most significant stakeholders. Their interest is to get the right
products at reasonable prices and in good quality (Hill and et.al., 2014). Furthermore,
they consider guarantees of security and health safety. Company needs to focus on the
requirement of customers related to their products and services. Suppliers - They are those people who supply raw materials or semi-finished products to
companies. In context of Waitrose, it is the supermarket retailing business so, it has
various suppliers. They help the business by providing quality raw materials as ordered
regularly. They are paid in accordance with the terms of contract (Bartolomei and et.al.,
2012). Waitrose has to maintain an effective relationship with their suppliers. Company is
responsible to make payment on time and develop strong relation with them. Government – It plays a crucial part in Waitrose because it is involved in tax regulation
and corporate social responsibility policies. Company has fulfilled its responsibility
regarding paying regular tax and making attempt that their norms and regulations related
to business are fulfilled. Employees - They include both management and subordinate staff who are concerned
about the strengths and profitability of business. Furthermore, these stakeholders are
interested in getting prizes, bonus and salaries for their performance (Turner and Zolin,
2012).Waitrose is responsible to provide effective working environment at workplace
which has enhanced employee’s performance. Company needs to focus on employee’s

conflicts related to workplace and make efforts to resolve them. Enterprise can be
organise training and development programs for resolving their work related issues.
 Investors - In context of Waitrose, they are the people who have invested their capital
within firm for getting higher returns. Waitrose focuses on providing transparency of
information to their investors related to profit and loss of business which helps in
developing trust and loyalty among them towards firm in the minds of these stakeholders.
1.3
In context of Waitrose, firm is having a large number of employees which has created
high responsibility for managers. However, it develops an effective management system within
company. There are various responsibilities of organization towards stakeholders which are as
follows-
Illustration 1: Stakeholder analysis
(Source: García, Gómez and Molina, 2012) Manage closely - In context of Waitrose, company's responsibility is to manage top
management employees who have high power and interest in the organizational funtions.
Top management is that part of company which has the right to manage its overall
business activities and functions. Organization has provided all rights and authorities in

the hands of top management and disclose relevant information related to profit and
growth of business to them. Keep satisfied - In this context, government is included. They have high power and low
interest. Company is responsible to keep the regulatory authorities of nation satisfied in
which it operates and trade with fulfilling tax norms and other regulations of respective
country. Furthermore, firm can satisfy them by following CSR policies and providing
products and services with maintaining high quality standards. Monitors - It includes competitors or general public. They have low power and low
interest. Waitrose is responsible to monitor their activities and make effective analysis of
them. In context of general public, firm needs to analyse their demand related to
products and services (Butler and et.al., 2013).
 Keep informed - Company has the responsibility to provide information related to
changes and new product development, their price and discount to the customers. They
have high interest and low power (Beringer, Jonas and Georg Gemünden, 2012).
Therefore, Waitrose has provided standard quality products to them and meet their
demand at regular intervals.
CONCLUSION
From this project report, it has been articulated that Waitrose has effectively fulfilled
their responsibility for their stakeholders. The study developed a well-defined understanding
about different business operations and strategies adopted to manage stakeholders. Report has
shown that taking care of above mentioned aspects is significant for attaining practical
understanding about business environment of retail sector and its impact on the growth of
company.

REFERENCES
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Online
What is Business Environment? Explain its types. 2016. [Online]. Available through:
<http://www.mbaofficial.com/>.[Accessed on 29th August, 2016].