Unit 1 The Business Environment Assignment with M&S and NHS (GC01251)
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 suggest 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.
Main aims and objectives:
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.
Types of ownership
Marks & Spencer Group plc (also known as M&S) is a major British multinational retailer headquartered in Westminster, London that specializes in selling high-quality clothing, home products and food products. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index. The general public can buy and sale the share so the liability status of the organization is limited liability.
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.
Main aims and objectives
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).
Ownership
The National Health Service (NHS) is the publicly funded national healthcare system for England and one of the four National Health Services for each constituent country of the United Kingdom. It is the largest single-payer healthcare system in the world. Primarily funded through government funding and overseen by the Department of Health and Social Care, NHS England provides healthcare to all legal English residents, with most services free at the point of use. Some services, such as emergency treatment and treatment of infectious diseases, are free for everyone, including visitors
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 organization (Chavis, Klapper and Love, 2011).
Stakeholders of Marks & Spencer:
- Customers – They are part of external stakeholders and effect 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.
- 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 (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 than the company will require time to find the new suppliers for their business………..
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