The business environment is the composite of a business’s surroundings
and factors, that affect an organization’s decisions, its purposes, and its
goals. These factors are economic. All the stakeholder influence in operating a
business. Therefore, a business-friendly environment is tried to create by
every organization which will lead the organization to meet its mission and
vision. The whole business environment is sorted into three types. a) Micro, b) Macro and c) Market. Internal forces
that directly affect the business such as- shareholders, employees, customers,
suppliers, and competitors; are the components of micro-environments.
Uncontrollable external factors build up macro-environment such as- culture,
society, politics, geography, and demography. Components of the industry in
which a business is operated comprise the market environment.So, in nowadays
companies around the globe want to make such environment that assists the
entity to sustain and accelerate further. However,
in this assignment, I will work with the
business environment of two contrasting companies.
Businesses P1 Describing The Business, Purpose, And Ownership Of Two Contrasting
is an economic entity where products and services are exchanged with a view to
earning a profit. Investment and
customers are required in this financial activity to sustain in the market.
Several types of business organizations are seen in the market:
I will choose two organizations. These are beverage company Coca-cola and
e-commerce company Alibaba. Coca-cola is the world’s largest beverage company,
based in the USA. It is one of the most valuable
brands which provides the world with over 1.9 billion servings in more than 200
countries each day. However, Coca-cola is a publicly owned profit organization
and ultimately it is an environment-friendly, a sustainable company, lead by
diversity and innovation.
The purposes of the Coca-cola are:
To refresh the world.
To inspire moments of optimism and
To create value and make a difference.
Whereas Alibaba is the largest e-commerce
company in the world, with more than $500.78 billion USD market capitalization.
It is a marketplace, a search engine, and a bank all in one. The company is
based in China and serving mostly the microbusiness community with all of its
operational activity. Although it is a publicly owned profit organization, it
provides services to the various interest groups, unlike the Coca-cola company.
purposes of the Alibaba group are:
To enable small
enterprises to leverage innovation and technology
To assist SMEs,
to grow and compete more effectively
To make it easy
doing business anywhere
P2 Describing the different stakeholders who influence
the purpose of two contrasting companies
A stakeholder is an individual, group or
organization which influence or is influenced by the company in any way. In the business world, there are several types of stakeholders
of the Coca-cola and the Alibaba group. The stakeholders are:
Shareholders are the owners of the Coca-cola as well as Alibaba group which gave the power to make a direct impact on
the overall activities of these companies. Although top executives of Alibaba
own 9% of the shares, they hold over half of the dominance in the decision making of the company.
Employees stand second on Alibaba’s priority
list after the customers. They operate the company by implementing the plans
which its higher authority have set up earlier. The same thing can also be said
‘Beverages for life’ is the slogan of Coca-cola in North America, which is
helping them to achieve their purpose of refreshing
the world and consequently making moments enjoyable with happiness. While
‘Global trade starts here is the motto of Alibaba. And more than 450 million customers
help to achieve this by trading through alibaba.com around the globe.
Investors donate and raise fund when it is necessary to meet mission objectives
of Coca-cola and Alibaba. Individuals,
organizations and even the governments of different countries came
forward to fund the Alibaba group and the Coca-cola company.
Governments of the home country and abroad shape the business activities of the
Alibaba group and the Coca-cola company and regulate their practice of doing
business locally and at the same time globally.
The business environment around the
globe is profoundly changing day by day at a quick pace. Where innovation and
information technology is leading the development in every aspect of the modern business world, the decision makers must come forward and cope
with the change in environment and business. The importance of adapting to the new business environment to sustain and survive for the business leaders cannot be described in few words. All the stakeholders are continuously trying to make an
impact in business. And the businesses like Coca-cola and Alibaba are
monitoring the changes and protecting themselves from being bankrupted by
research and application of their monitored information. Their interest along with other stakeholders are achieved
through vigilance and strategies applied in the various critical conditions of
Coca-cola and Alibaba, such as- revenue reduction, marketing failure, updated government
policies, uncontrollable growth and so on. Therefore, business organizations like Alibaba
and Coca-cola need to create target oriented and business-friendly internal
environment as well as a compatible strategy to tackle external environmental hazard.