BUSINESS ENVIRONMENT

Business Environment in United Kingdom

Business Environment in United Kingdom

Introduction

This assignment is focused on understanding the purposes of the business organizations and the nature of the national environment where the businesses operate. It is focused on increasing the understanding of the UK economy and the impact that the monetary and fiscal policy have on the activities of business.

Discussion

Task 1

Purpose of Various Forms of Organizations

The main forms of business organizations which are present in the UK are:

Sole Trader

It is one of the most common types of business which is present in a broad range of activities. Almost 20 percent of these sole traders are operating in the construction industry, 20 percent in retailing, almost 10 percent in the field of finance and 10 percent in the catering business. This form of business does not require a complicated framework and the decisions can be made by keeping a close contact with the employees and the customers.

Partnership

The normal partnership can be present between 2 to 20 people. However, in the Partnership Act, it was made legal for some type of partnerships to include more partners who will also have the benefit of limited liability. These people can share their workload and knowledge along with being able to raise the capital. It is more common in the different professional services which include solicitors and accountants.

Companies

The companies are regarded as legal bodies that have an existence which is distinct from the owners. These companies can either be public or private. The private companies are smaller than the public companies and the shareholders have the limited liability. In the case of public company, they can sell the shares to the financial institutions and public along with having them traded on the stock exchange.

Franchising

It refers to the use or hiring out of the good ideas to other business organizations. It gives the permission to trade and sell the product in a specific area under a certain name the franchisee takes the advantage of trading under a name which is well known along with enjoying the monopoly (businesscasestudies.co.uk).

Objectives of Different Stakeholders

The stakeholders in the organization are the people that have an interest or can influence the decisions and actions of the organizations. Each of these stakeholders has different goals and objectives on the basis of the different interest in the business.

Shareholders

They have a stake in the business due to their share partnership. Their objectives include growth in the share value, growth in dividends, and the growth in the price of share. These objectives need to be met by the managers who are the custodians of the business on the shareholder's behalf.

Employees

They can directly affect the profits of the business as they are involved in the daily operations. Their goals include self-actualization, remuneration, job satisfaction and the growth and survival of the company because their jobs are based on it.

Government

It is a very important player in the business environment as it has the supervisory and regulatory role. The main focus of the government is to make ...