Business Environment

Understanding the Business Environment

Understanding the Business Environment

Q 1.1

The five types of business Organizations include

Sole proprietorship that is owned solely by one person where the owner can operate on his own or hire other employs.

Franchises is the authorization given by the government or any firm to any individual or group allowing them to conduct and engage in various specific commercial activities.

Partnership is two or more individuals operate for a common aim of earning profit where each partner has unlimited and total personal liability of debts that are acquired by the partnership.

Private companies are usually business that are owned by the non-governmental organizations

Public companies can be described as famous international and national companies and its shares are freely traded on the stock exchange (Harris, 2000).

British Gas plc was is a private limited company. It was established on the privatization of British Gas Corporation in 1986. The advantages of such a private company include the continuity of its existence as the business will not be affected by the owner's status and offers more information privacy as compared to a public company. The disadvantages include Greater admin costs and the fact that the shares in the company cannot be transferred or sold to anyone unless all the shareholders mutual consent and agreement.

1.2

Stakeholders

General Expectation

Possible solution /Actions taken

Shareholders

The expectation of the shareholders includes a higher Return on Investment and consideration of their opinions regarding problems which need shareholder approval (Scott & Lane, 2000).

This can be achieved by Optimizing the profitability and conduct a vote before decision-making.

Managers

Feasibility and independence while managing the resources including market access, time, people, capital and expertise

Minimum intervention and meddling in the decisions taken by them in Strategic management aspects.

Employees

Improved lifestyle. A constructive, competitive and unbiased working environment.

Good salary packages, bonuses, allowances and other benefits granted to the employees. Promotions and bonuses can be used for motivation of the employees and also for the purpose of acknowledging, recognizing and rewarding their hard work (Scott & Lane, 2000). Recruitment, promotions and other activities must be conducted only on the basis of merit.

Trade unions

The freedom to arrange their own affairs. Recognition of the critique of union representatives on issues faced by the labor force (Scott & Lane, 2000).

Allowing the union to conduct their own elections and voting system. Responding to the complaints reported by the Union regarding the labor force.

Customers

High quality products

Introducing and maintaining an effective product manufacturing system and equipments

Suppliers

Good and effective vendors management

Maintain vendor quality audits and vendor compliance checklist.

Government

Acts as a responsible Organization

Paying taxes and complying other legal requirements set by the British Government

1.3

As a responsible company, British Gas must fulfill its social responsibilities towards three of its most important stakeholders. These includes,

Customers: The end product offered to the customer must be high quality, sufficient in demand and reasonably priced. In addition, the organization must not lie to the customers and must respect and acknowledge the feedbacks by the customers (Garriga & Melé, ...