Business environment is composed of two words ‘Business’ and ‘Environment’. In economic sense ‘Business’ means human activities like production, purchase or extraction or sales of products or services that are performed to earn money. Meanwhile ‘Environment’ means the aspect of surroundings. Business environment is the set of conditions institutional, political, economical, legal or social that is uncontrollable and affects the functions of the organization. Business environment consists of two components: external environment and internal environment. Internal environment includes of 5 M’s like management, money, machinery, material and man. On the other hand, External environment consists of demo-graphical factors, socio-cultural factors, political factors, geo-physical factors, government and legal factors.
5. Understand the organizational purpose of business
1.1 Identify ...view middle of the document...
Private sector businesses are owned and run by private individuals. Examples of private sector businesses are franchises, companies (private and public), partnership and sole traders. Purposes of private sector organizations are making profit, growing their business, increasing market share and maximize sales. Voluntary groups are not owned by any individual people. However, some will be responsible for ensuring that it sets targets and budgets and does what it is set up to do. In most instances they try to help particular types of people like guide dogs for the blind or Oxfam etc. In order to survive they normally must at least break-even (for an example spend no more than they take in through fundraising, grants and donations etc)
1.2 Describe the extent to which an organization meet the objectives of different organizations
There are many fast food restaurants and among them some are famous and they are operating in most of the countries of the world like McDonald’s, Burger King, Pizza Hut, KFC, and Subway and so on. Normally there are three kinds of organizations like Public, Private and Voluntary organizations. The objectives of those organizations are different. For example, public organizations are more likely to serve people with low cost while private organizations want to do more profit, extend their business, and increase their sales and so on. McDonald’s is a private company and their objectives are: to become the world’s largest ad best quick service restaurant. They want to provide outstanding quality, service, cleanliness and value, so that they can make every customer in every restaurant smile. The objectives of McDonald’s are:
· We place the customer experience at the core of all we do
· We are committed to our people
· We believe in the McDonald’s system
· We operate our business ethically
· We give back to our communities
· We grow our business profitably
· We strive continually to improve
Most of the fast food restaurants are following the above objectives. All of them have same objectives but they have different products and services.