BUSINESS ENVIRONMENT

Business Environment



Business Environment

Introduction

Business environment is composed of two words, business and environment. Business refers to an organization engaged in commercial, industrial or professional activities. Environment refers to the surroundings around any object. So, business environment can be defined as a set of political, social, legal and economical conditions that could affect the functioning of an organization (Cherunilam, 2010). There are basically two components of business environment.

Internal Environment - These include the factors within an organization which are under control of the organization. A business can make changes in the internal environment according to the changes in the functioning of the enterprise.

External Environment - These include the factors which are beyond the control of the organization and these include socio-economic factors, political factors, government and legal factors, etc.

It is very important to understand the business environment in order to continue successful business according to the prevailing environment.

Organizational Purposes of Businesses

It is very important for an organization to know about its purpose of existence. An organization should have a clear set of goals and targets which they have to achieve. Often, organizations have their mission and vision to go through a clear path to achieve their targets. Overall, it is very important for organizations to understand their purpose of existence to successfully operate their business.

1.1 Answer

The first company that I study is 'Nestle'. By going through the vision, mission, aims and objectives of Nestle, it is studied that the basic purpose of Nestle is to manufacture and market the company's products in a sustainable way over a long term to create value for stakeholders, employees, customers and business partners. The company also believes that good food is the source for maintaining health so they continue their research work to provide nutrition, health and wellness to their customers through their quality products.

The second company that I studied is 'KFC'. By going through the vision, mission, aims and objectives of KFC, it is studied that the purpose of KFC is to provide its customers with tantalizing food in almost every part of the world. They also believe in providing their customers with the best service leaving a smile on their customer's face along with the delicious food at their every restaurant.

1.2 Answer

The organization which I chose out of the two given above is 'Nestle'. Nestle meets the objectives of its stakeholders efficiently and benefits them with the quality service and products. The company meets the objectives of its stakeholders by providing them with safe and healthy products, strategy the prices which are quite affordable and making the company products available easily. Nestle meets the objectives of its stakeholders to a great extent at every level. The company keeps in view what is required from them by their stakeholders at all levels and provides them and fulfil their needs. Nestlé's broad based globalization and focus on customization minimized the rate of product failure and the reputation of the company grew higher in the market. So the company fulfils the objectives of its stakeholders ...