Understanding the Organisational Purposes of Businesses Essay

1560 Words7 Pages
Course Name: Level 4 HNC Business

UNIT TITLE NO. AND TITLE: Unit 1 Business Environment

Assignment No. and title:
Assignment 1- Understanding the organisational purposes of businesses (DRAFT)

Date Submitted 21st May 2012

Understanding the organisational purposes of business
In this day and age all individuals will have some affiliation with a business organisation. Whether it be the company they work for, the retail store they purchase their groceries or the NHS dentist they attend individuals of society are all affiliated, controlled and in control of business organisation. Organisations may be established for a number of reasons and serve various purposes, their activities can be affected by a range of different
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All stakeholders will have their own objectives which will ultimately suit their own interests, meeting the objectives of all parties can often be a difficult task occasionally impossible. Internal stakeholders operating from within an organisation could come in the form of employees, managers, trade union members or different departments within a company. External stakeholders are groups and individuals outside the organisation like customers, suppliers or other competitors. They can essentially be split into two main groups. • Primary stakeholders
• Secondary stakeholders
Primary stakeholders are seen as what define the organisation and who are vital to its existence, managers, employees, customers or suppliers. Secondary stakeholders or those who may effect relations with primary stakeholders so competitors, government bodies, pressure groups or community groups could all affect relations. An example of this could be bad publicity from the media on a company’s product, which would then affect customer purchases. Through stakeholder analysis organisations will aim to identify the objectives of their various stakeholders. By doing this they will hope to gain a better knowledge of factors that may affect them. Once objectives are identified stakeholders can be prioritised with level of interest to the level of power or influence they may have. An example of this can be seen within the Book People, as it is a
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