Business Enviornment

1. Introduction Today world has the globalizes economic system. With this system all of individual countries are linking with others with purpose benefiting each of them. Business is main linkage factor for countries to link with each other. Then it will grow up to political, cultural and in too many more sectors. With all this condition environment of business is getting complicated but it is very helpful function of business and it will benefited too. Business Environment can identify as “All of the factors, both internal and external, which influence the function of a business.

Internal factors include items such as the company’s products or services, employees, assets, and marketing. External factors include competitors, stockholders, customers, and economic conditions. ” (Investigators. Com, 2013) Auks’ business environment – Despite is the current global economic turmoil and unique economic challenges currently faced by Europe, the I-J business environment remains positive, forward-looking and open for business. The I-J government is committed to creating the supportive business environment that will encourage a private-sector-led economic recovery.

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Today, the I-J is the world’s sixth-largest economy and one of the world’s top ten manufacturers (six of the world’s top ten vehicle makers are based in the I-J). It is also the world’s second-largest services exporter (after the U. S. ) and the world’s sixth- largest trading nation. It also remains the most attractive place in Europe for a European headquarters: more overseas companies have their European headquarters in the UK than in France and Germany put together. Milliner UK- In 1885 launched the first packaged and branded laundry soap by Mr.. William and Mr..

James Lever as the start of Milliner. London is home to one of our woo global headquarters, the other being in Rotterdam in the Netherlands. Milliner has two global research facilities at Port Sunlight and Collector, as well as manufacturing sites and distribution depots dotted around the I-J. Milliner is not only focusing about their profit earnings. Milliner is involving many CARS project among community to build up their goodwill. Business environment of Milliner is very broad, complexes and structured clearly for easy function. (Milliner, 2103) 2. Task 01 2. Explaining Different types of Organization Group of people are working to achieve for common objective, can be identify as Organization. There are five main common responsibilities to any kind of organization. Social, environment, management, ethics and business, public relation and corporate image are the five responsibilities of an organization. . Type of Organization 2. 1 . 1. Private Organization Organization operates with purpose of earning profit and is running, by individual with non state control. Sole Trades Sole trade is a business which owning by one person.

This is the common business model that operates most of countries. Advantages Sole trade is owned by one person. So it is very easy to take decision. All control a power has with the single person is most valuable advantages of this business type. Profit is total earning by one person and this type of business can start and end very easily with low cost. Legal requirements are less and confidential of business transaction high than other business types. Customer service of this business is easy and gathering feedback of them also easy. Accounting and auditing is not compulsory.

Disadvantages Business is liability is unlimited. One person investing for this business so capital is inadequacy. Business losses also should bear individually. Decision takes individually so decision may be incorrect and less ability to develop business. This type has lack of management skills, due to one person controlling. Partnership Partners Dustless Is organization Tanat Is operating Day group AT Uninominal. More than of two partners will be there and maximum of twenty. Partnership should have intention to earn profits, collective responsibility and a common responsibility.

There are many rules and regulations apply to type of business. Most of partnership businesses have agreement, with include name of the partnership, partners details, objective, nature of business, duties and rights of partners, manner of dissolution and method of profit sharing. In this model of business there are many partners. So investment is dividing among all partners. They can invest the amount according to their capacities. Finally collectively investment amount will be big amount. As well as investment, liabilities of the business also divide among partners.

Partner has to responsible for liabilities according ratio that they invested to the business. Sole trades has only one decision maker, but here have more than it. So decision power of this business is higher than he sole trades. With many partners in the business credibility with potential customers and suppliers will be increased, who may see dealing with the business as less risky than trading with Just a sole trader. Disadvantages As sole traders this business model also liabilities not limited. If any liability available after windup business, it is not limited only for the business asset.

There are many partners so profits also divide among partners as there invested ratio. When they make decision regarding business it may be complicated, due to partners with different opinions and also implementing decision may face difficulties. If a partner wants to transfer his business share to other person there should be concern from other partners also. *More details in the Appendices Note -01 2. 1. 2. Public Sector Organization Government organization are controlling by state. The main purpose of them is to provide services to public.

But they are charging for their some of services. There are departments, corporations are some government organization types. 2 2 stakeholders AT an organization Stakeholders can be defining people, group or other organizations that interest on business activity of organization such as performance, operations, current status. Stakeholders are making some contribution to the organization in purpose of more return from organization. Expecting return can calls as inducements. Inducement includes rewards, money, quality, service etc.

Inducement is motivation factor for stakeholders to stay with business and providing inducement is responsibility of organization. There are two types of stakeholders in any business I. E. Internal stakeholders and external stakeholders. 2. 2. 1 . Internal stakeholders Internal stakeholders are the party which involves directly to activities of the organization with the purpose inducement. Shareholders Shareholders can be identifying as owner of the organization. They are investing capital with purpose receiving profits against their investments. It is the main objective of them.

If they not receive enough return for their investments they will withdraw from business. Shareholders are investing to the business through buying shares or stock. If they want withdraw from business they can sell their shares to other one. Organization objective is to retain their investors with business for getting more investments to the business. Organization responsible is to provide good return for investors’ investments. If organization able to earn good profit shareholders will be encourage to stay in the business. Managers Managers are the decision maker of the organization.

Their responsibility is to utilize available resource to gain the maximum benefit to organization. Mangers are the stakeholders that planning and make action to the successfully achieve the organization goals and objectives. Senior managers are responsibility to invest money AT Investors. So managers are ten responsibility party to stalest Investors. Managers are contributing their skills to the organization’s response to pressures room within and outside the organization. Managers are expecting high salary, bonuses, other extra benefits, psychological satisfaction etc.

Managers are the people that responsibility to stakeholders behalf of organization. Employees Employees are the do the action plans create by managers. Organization is expecting performance of employees in their duties. Mangers are measuring their performance and mangers are providing benefits to them according to performance. An employee’s motivation to perform well relates to the rewards and punishments that the organization uses to influence Job performance. Objective of employees’ are good earning and other motivation factors and responsibility of company is to provide it to them. 2. . 2 External stakeholders External stakeholders are people, group or other organization that not involve in directly to the internal activities of organization. But they are analyzing the activity of organization by staying outside of organization. Customers Customer is the main factor of starting business and continues it. When consider with other stakeholders, customer is the largest group that involve with an organization. Customer is expecting good and quality products and services from organization. They are always measuring the worth of the product/services with they paid amount.

Customers are always considering about stability of company and history of the company before they get product/service from them. This is most applying on financial companies. Customer is pay money for product/services as their contribution and quality product/service expecting as inducement. That is customers’ objective and company responsibility is to provide quality products and services to them. Suppliers Suppliers contribute their product and services to the organization on requirement of organization. Suppliers are expecting on time payments as inducement.

Suppliers always consider about financial stability of the organization. If there good financial stability suppliers not fear to supply goods and services to organization on credit also. Organization responsibility is to pay on time and reasonably to the suppliers. Suppliers can make direct effect on business by demand and supply. *More details in the Appendices Note -02 3 Purpose AT ten organization Milliner is one of major multinational company that operating all over the world. Milliner is based on fast moving goods which consumers required essentially.

Milliner says that “No matter who you are, or where in the world you are, the chances are that our products are a familiar part of your daily routine. Every day, around the world, people reach for Milliner products”. (Milliner, 2013) 2. 3. 1 Vision is a motivating summary of what an organization hopes to achieve. It links the objectives with the core values of the business. “A Vision Statement defines what your business will do and why it will exist tomorrow and it has defined goals to be accomplished by a set date.

A Vision Statement takes into account the current status f the organization, and serves to point the direction of where the organization wishes to go. “(bikini. Com, 2013) Vision of Milliner Milliner products touch the lives of over 2 billion people every day. 2. 3. 2 Mission A sentence describing a company’s function, markets and competitive advantages; a short written statement of your business goals and philosophies (Entrepreneur, 2013) Nelson careless ten organization’s DSSSL Tunnel In collects, In terms AT ten products and services it producers for it clients. Metering, 1997) Advantages of mission Give employees a sense of purpose and something to aim for. Can be used as a promotional tool – lets external stakeholders know the company’s purpose Mission of Milliner Our mission is to meet everyday needs for nutrition; home hygiene and personal care with brands that help people feel good, look good and get more out of life. 2. 3. 3 Tit-ins Aims are the long term goals of an organization. Aims of Milliner As many organizations, Milliner also has a aim to achieve in specific time bound. Unlived is aiming to maximize market share which is distributed among other competitors.

Milliner is also aiming to increase the profit and turnover of the many. Not only that CARS activities also ,main part of aim in the Milliner. *More details in the Appendices Note -03 3. 1 Market economics system The government of a country is using a process to utilize of available resources to full fill the needs and wants of the people of country. This process can be defined as economic system. “What is produced”, “how it is produced” and to “whom produced” are the three main key issues that government should identify in this process or economic system. An economic system in which economic decisions and the pricing of goods and revise are guided solely by the aggregate interactions of a country’s citizens and businesses and there is little government intervention or central planning. ” (INVESTIGATED, 2013) There are three types of economic system in the world that are implementing in various countries. Economic system will be change time to time with reason of internal and external of country. But economic system is no change in short time period. 3. 1. Planned economic system (command) Planned economy/command economy the system of more economical decision authority has government. Producers only can work according to the instruction of government. Government is making decision on selling price too. In this economic system, not highly concern about developments and less investments. Government is always funding to the defense than other infrastructures developments. People of this country are working under similar benefits and their living styles also similar basic life style.

In the current world North Korea, Cuba and Iran can bring as examples for Command economic system. Above characterizes are highly available in these countries. 3. 1. 2 Free economic system (Market economic) This economic process system is completely free or with little control of government. Government is only providing essential services such as defense and ensures the country’s money supply is stable. Entrepreneurs mostly focus on profit, so quality may not consider much. Customers are expecting low level product and continues supply goods.

So demand will be create on price, not on the quality of good. There is no government intervention. So business possibility to fail and customer will not be protecting. Fail of business will be badly effect to the country. But in current world here is no country which applying pure free market concept. 3. 1. 3 Mixed economic system “The economy of a nation is based upon a certain ideology. A mixed economy is primarily a combination of a capitalist and socialist ideology, but may include other ideologies and influences too. (Puzzle, 2013) *More details in the Appendices Note -04 unlived UK company’s- economic system United Kingdom is operating a mixed economic system. So it is an advantage to Milliner to do their business activity in the I-J. However Milliner highly concern about the market system before they enter in to a country. In command economy there is no Milliner products. Milliner’s business model is market-orientated and customer focused. Milliner always do researches to identify customer needs and wants and then introduce products to cater it.

Business Enviornment

Internal Factors Business External Factors The External environment Includes all the factors outside the organization, which provide opportunities or pose threats to the organization. The internal environment refers to all the factors within an organization which imparts strengths or cause weaknesses of a strategic nature. The environment in which an organization exists can, therefore, be described in terms of the opportunities and threats operating in the external environment apart from the strength and weaknesses existing in the Internal environment.

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There are a number of internal factors which influence the tragedy and other decisions. An outline of the important internal factors is given below: Value system: The value system of the founders and those at the helm of affairs has important bearing on the choice of business, the mission and objectives of the organization, business policies and practices. It is a widely acknowledges fact that the extent to which the value system is shared by all in the organization is an important factor contributing to success.

Mission and Objectives: The business domain of the company, priorities, direction of development, business philosophy, business policy etc. Is guided by the mission and objectives of the company. Management Structure and Nature: the organizational structure, the composition of the bard of directors, business decisions. Internal Power Relationship: Factors like the amount of support the top management enjoys from lower levels and workers, share holders and board of directors have important influence on the decisions and their implementation.

The relationship between the members of the Board of directors is also a critical factor. Human Resources: The characteristics of the human resources like skill, quality, morale, commitment, attitudes, etc. Old contribute to the strength or weakness of an organization. Sometimes, organizations find it difficulties to carry out restructuring or modernization because of resistance by employees whereas they are smoothly one in some others. The involvement, initiative etc. Of people at different levels may vary from organization to organization.

The organizational culture and overall environment have bearing on them. John Towers, MD, Rover group, observes that a Japanese company of 30,000 employees is 30,000 process improves. In a western company, it is 2,000 process improves and 28,000 workers. And in an Indian company? Company Image and Brand Equity: The image of the company matters while raising finance, forming Joint ventures or other alliances, soliciting marketing intermediaries, entering purchase or sale contracts, launching new products etc.