Introduction to Business Environment
According to the business dictionary, the business environment is the combination of all factors that influence a company's operating situation.
The business environment can include large factors such as stakeholders: customers, clients, suppliers, distributors, owners, shareholders, employees, competitors, government bodies, media, action groups and others factors as market, economy, social and industry trends, demographics and cultural factors, referred as operating business.
So business environment is the set of external and internal factors which affects the activities of the organisation, the decisions of the business. Each organisation has ...view middle of the document...
This report intends to highlight the organisational purposes of Anglo American Company, by defining the type of organisation, describing the objectives of his stakeholders and the responsibilities provide towards his stakeholders with the strategies used for. In resume, this report emphasizes why different organisations do what they do and how that affects the way they operate their business and their stakeholders.
1.1 Purpose of different type of organization in the business, e.g. Anglo American business
Organisations have a variety of purposes that depend on why they were established. Some operate for profit, whilst others do not. Organisations structure themselves and operate in ways that allow their objectives to be met.
This point highlights different type of organisation, we have to consider whether similar organisations may also have different purposes, e.g. do commercial businesses just want to make a nice profit or do they have their own aims and ideals. The purpose is why a business exists.
By different type of organisation in the business, we refer to the categories of organisation.
There is a different class of business:
- the local business operates within the area
- the national business operates within one country
- the international business operates in different countries
There are different forms of legal structures as sole traders, partnerships, limited companies, public limited company (PLC), franchise, co-operative.
There is different type of sector: primary, secondary and tertiary.
An organisation can be structure in different type of company:
- private company
- public company
- voluntary organisation
- charitable company
By purposes, we refer to mission, vision, aims, objectives, goals, values, profits, markets, share, growth, return on capital employed, sales, services level, customer satisfaction, corporate responsibility, ethnical issues.
In Business Environment, we have to demark private and public companies. It is important to understand the difference between private company and public limited company.
Unlike sole traders and partnerships, a limited company is an incorporated business. As a result:
- the company has a separate legal existence from that of its owners (shareholders)
- legal action will be taken in the name of the shareholders
- shareholders (and the other people) can sue the company
- this separate legal existence also means the company has greater continuity, because its existence is not ended by the death or retirement of its shareholders
- the owner have limited liability for their business debts
- The owners cannot be made to use their own wealth to settle any business debts.
(Business studies, Floyds, 2001)
An important benefit from limited liability is that the shareholders know exactly how much money they risk losing. This encourages people to invest, knowing there is...