Unit 1 The Business Environment Assignment with Mark and Spencer (GC01237)

Table of Contents

INTRODUCTION

TASK 1

P.1 Describe type purpose and ownership of two contrasting business

P.2 Different stakeholders who influence the purpose of two contrasting businesses

TASK 2

P.3 Describe how two businesses are organized

P.4 Explain how the style of organization helps to fulfil their purpose

TASK 3

P.5Influence of two contrasting economic environments on business activities

P.6 Impact of political social and legal factors n business

CONCLUSION

INTRODUCTION

A business environment is the surroundings in which any enterprise operates. There is a different concern which is carried out with distinct motives. In the following report study of one private and one public sector company is done that how they operate and what is the core difference between both (Wild, Wild, and Han, 2014). Their functions are discussing in detail along with the structure of each so that it could be understood that how they perform the different functions.

TASK 1

P.1 Describe type purpose and ownership of two contrasting business

There is a various business set up which operates with different motives and goals. Businesses can be broadly classified into public-private and government organizations. Each operates with their different objectives of earning a profit, providing services, and helping people who need. To understand the difference two companies are selected which fall under two distinct categories.

Mark and Spencer

It is a global brand that is dealing in the fashion industry. It has stores all around the world which are providing the customers with the latest trend in fashion clothes and earning good profit. It is a public limited company. As the name suggests the shares can be sold to the public and against which the liability remains limited (Colfax, Rivera and Perez, 2010). Having limited liability is an advantage to the different shareholders as they are safe at the time when the company is declared to be bankrupt or insolvent. Shareholders will be responsible only to the level to which they have invested in the shares and for the rest amount which is the of making the company bankrupt they are not responsible.

The main objective of the cited company is to provide service to the customer and supply the demanded product at the right time at right place. The motive behind providing the different products and services is to cover the running cost of the company and maximization of the profit. Initially when the company was started the motive was to sell the good which was made by British as they were of high quality. It is a privately owned company in which different stakeholders invest and becomes part of its management team (Klapper and Parker, 2010). They buy the shares of the company and enjoy the dividend against it which varies from person to person depending upon the number of shares they have.

National Health Service

It is a part of the non-profit organization business and was set up in 1948. It is a public organization which was set by the working-class government. The main source of income for this business is through taxation. Their main aim is to provide services to the general public for their welfare. NHS provides good quality facilities to the public sop that the overall level of health care can be developed. Employees in the sited sector are medical practitioners, health care providers who give their services for free as they are not paid for the work done by them. They volunteer to do the work with their own will. Therefore, the amount raised through taxations is used to pay the running expenses like rent, medicine equipment’s, etc (Becker, 2017).

P.2 Different stakeholders who influence the purpose of two contrasting businesses

Stakeholders are those which have an interest in the concerned business and get affected and can affect the operations of the businesses. They can be internal or external to the business. Inside stakeholders for both the business are those who are present within the boundaries of the organization and external which are there present outside the organisation (Chavis, Klapper and Love, 2011). Different stakeholder has a distinct objective with the business as their motive behind the investment is not the same. Key stakeholders for the given two companies are as follows:

• Customers – They are part of external stakeholders and affect the business to a great effect. For Mark and Spenser’s consumers are of vital importance as they are the main source of income and all the goods and services are produced for them only. On the other hand, for National Health Service the customers are the patients. Services are provided to them so that their health can be improved in order to develop health standards.
• Employees – It consists of the people working in the organization. For M&S employees want that they are provided with equality in the business. Their aim is to get maximum satisfaction from their workplace in terms of wages and salaries, on the other hand, the employees of National Health Service employees work with an objective of giving the best quality service to the customers with the provided resources. Clients are treated with a friendly environment so that they are motivated to use the services of this sector. They do not expect much in return but client satisfaction (Aterido Hallward and Pagés, 2011).
• Suppliers – For M&S the supplier’s duty is to provide the company with the required products and raw material on time. They have a major effect on the business of M&S as if they discontinue their supply than it will have an adverse effect on its functions as then the company will require time to find the new suppliers for their business. Suppliers are the main source of income for NHS and therefore they play an important role as if they discontinue to give their supply the operations will be affected very much………………….

Full Documents Click Download Button

Free – Download Checkout Added to cart