BUSINESS ENVIRONMENMT

Business Environment

Introduction1

Business Organization1

Types of Business Organizations1

Sole Proprietorship1

Corporations2

Partnerships2

Trusts2

Nonprofits2

Importance of a PLC in UK2

Task 1 (a)3

ASDA - History, Mission, Goals and Objectives3

Overview of the organization3

Mission and Strategic Objectives3

Sainsbury's - History, Mission, Goals and Objectives4

Overview of the organization4

Mission and Strategic Objectives4

Task 1(b)5

ASDA - Stakeholders5

Customers5

Employees5

Suppliers5

Sainsbury's- Stakeholders6

Customers6

Employees6

Shareholders6

Competitors6

ASDA - Meeting Stakeholder expectations6

Sainsbury's - Meeting Stakeholder expectations7

Task 2 (a)8

UK's economic system and its affect on business organizations8

Features of the globalization of the economy10

Challenges posed by globalization10

Different aspects of the internationalization of companies11

Economic Environment of the internationalization of the company12

Task 2 (b)13

Impact of fiscal and monetary policy on the organization and government's efforts to manage it13

Task 2 (c)14

Competition Policy and Regulatory Mechanism14

Task 3 (a)15

Market structure determining pricing and production decisions15

Market Orientation15

Task 3 (b)16

Market forces influencing the organization16

Porter's Five Market Forces16

Threat of Substitutes16

Buyer Power16

Supplier Power17

Threat of new entrants17

Task 3 (c)17

Business and cultural environments17

Task 4 (a)18

International Trade affecting businesses in UK18

Task 4 (b)19

Impact of EU policies on UK businesses19

Conclusion19

References20

Business Environment - ASDA vs. Sainsbury's

Introduction

Organization works under a large environment where it is surrounded by many factors. Organization takes input like resources and labor from the environment and gives the output in the form of products and services. Here, it is important to know that environment is the vital aspect in the operations of the organization. By analyzing the aspects of the environment, organization can keep track of the potential changes in the environment and achieve its goals satisfactorily. The following paper compares and analyses the two organizations that have retail operations i.e. ASDA and Sainsbury's.

Business Organization

A business organization is a commercial or an industrial entity that is created for the purpose of providing goods and services to the people.

Types of Business Organizations

There are apparently five designs of business organizations described as follows:

Sole Proprietorship

It is an unincorporated business with independent contractors. For starting this business, no formalities are required whereas income and expenses must be reported yearly. This is the easiest form of business organization and can be easily dissolved.

Corporations

These are incorporated business organizations where the shareholders have limited liability protection. A part of the net income is also given to the shareholder and these organizations are hard to dissolve because of many owners and shareholders.

Partnerships

Partnership is formed of two partners and the net income is imputed and given to both the partners.

Trusts

Trusts are built when an individual dies and this is envisioned to provide investments in the name of the deceased.

Nonprofits

These are corporations that are created for serving the community and are exempted from taxation.

Importance of a PLC in UK

A PLC (Public Limited Company) offers its shares to the general public and the stocks of a PLC can be acquired by any of the shareholders. This form of an organization is legally applied in UK. PLC's are considered to be important as the shareholders are liable to pay in a limited amount and shall lose that amount only if the corporation has to shut down or dissolve. Also, a PLC can sell its shares to the investors for increasing its ...