Table of Contents

Business organizations have different purposes and business structure with which they do market and business operations and fulfill the set of objectives by stakeholders in the business. Business organization must consider the significance and affects of national environment and market environment so that on the basis of the environment faced the organization can develop and plan suitable business strategies so as to attain the business goals (Heizer and Render, 2003). The aim of present task is to understand and highlight the purpose and responsibility of different organizations towards the business. In the present paper, the national environment of UK will be shown to find out how different national factors affect the activities of the business organizations. Also, the national factors and the global factors that affect the business strategies of the organizations will be analyzed. Below learning outcomes would be served to give learners the knowledge and understanding about the present study.
LO1 Understand the organizational purposes of businesses
LO2 Understand the nature of national environment in which business operates.
LO3 Understand the behavior of organizations in their market environment
LO4. Be able to assess the significance of the global factors that shape national business activities
These learning objectives would be obtained in the present research context so that successful analysis of business environment can be done in the different organizations.

LO1 Understand the organizational purposes of businesses
Describe the extent to which an organization meets the objectives of different stakeholders.
Stakeholders can be best described as those individuals who have direct or indirect interest and impact from any of the actions of the organization. These stakeholders can include employees, customers, suppliers, shareholders, government and society. Each of the listed group has different objectives and expectations from the business. The stakeholders have certain expectations as per their priorities and interest and based on the level to which the business organization meets their expectations. The extent to which an organization meets the objectives of the various stakeholders is described below:
Ø  Customers: Customers are the people who buy and utilize the goods and services of the business. Thus being the end user in a retail industry, customers can be considered as the vital stakeholders as they expect high levels of customer service, quality products at fair prices, value for the money paid by them and proper after sale services from the business organization (Nordhaus, 2009). Due to their importance in the business, customers’ expectations are preferred by the business organizations over the expectations of other stakeholders. The reason behind giving priority to customer expectations would be that unsatisfied consumers may lead to failure of business.   
Ø  Shareholders: Shareholders are those stakeholders who invest their capital in the business for getting suitable profits from the business. They can be considered as the owners of the business and management works considering the interest of the shareholders in the company. Shareholders expect the business to make higher profits and to grow with a high rate for enhancing their wealth through dividend gained from the business. Shareholders would expect increase in share prices of the company along with a suitable and rational return on the investment they made in the business.
Ø  Employees: Employees mange the business operations and affairs by giving their time and efforts in the business and in return they also has some expectations from the business. They work efficiently and effectively in the organization for the attainment of the organizational goals. Since they work for the purpose of running the business their main objective is the high growth and status of the company they are working in as this would provide them with more growth opportunities and higher remuneration for fulfilling their needs (Broady-Preston & Steel, 2012). Employees expect a sense of job security from the business to work more efficiently. They become the part of the overall information flow in the business for assessing the prospect of the organization to consider the fulfillment of their expectations.
Ø  Government: As the whole economy is managed by the government, it has full autonomy to make changes in the tax regulations for the companies by monitoring the working of businesses in the country. Government set the rules and regulations accordingly for the businesses related to taxation, law, consumer welfare protection and business licensing etc.  Government expects high employments creation from the businesses with proper follow up of all the laws and payment of the taxes. Thus, the business organizations have the liability to attain the business goals and objectives by abiding from the government rules and regulations.
Ø  Suppliers: Suppliers are responsible for supplying the raw material or the business items to the businesses. In return of their services they expect flexible credit terms and good payment system from the business organizations. The behavior of the organization toward them also affects their services for the business.
Explain the responsibilities of an organization and strategies employed to meet their stakeholder’s expectations.

Figure 1: Showing the responisbilities of business organization towards society
M 1: In the study related to above task in order to find appropriate solutions for the expectations of the different stakeholders of a business organization, suitable strategies have been applied for evaluating the responsibilities of the business organizations. With the use of the findings, effective judgement for meeting the objectives has been done in the present context.
D 1: As the study shows that organizations need to fulfill many responsiblities fo maintaining cordial and healthy realtionship with the several stakeholders, it can be concluded for the organizations to implement the required changes and duties so as to face the business challenges together with the stakeholders.
LO2 Understand the nature of national environment in which business operates
Evaluate the impact of competition policy and other regulatory mechanisms on the activities of a selected organization. 
LO3 Understand the behavior of organizations in their market environment.
Under this task, all the internal factors of a business organization like Sainsbury Plc would be examined to develop understanding their affects in shaping the business behavior. These business and cultural factors can include political factors, socio- cultural factors and educational factors which will be discussed in this task.
Judge how the business and cultural environments shape the behavior of a selected organization.
LO4. Be able to assess the significance of the global factors that shape national business activities.
This task would evaluate the importance of the global parameters that affect and help in shaping the business activities on a national level. For the purpose of globalization of business structure, the global factors are needed to be considered first. In this task, impact of EU policies in UK on the business organizations would also be studied. 
Analyze the impact of global factors on UK business organizations.
Evaluate the impact of policies of the European Union on UK business organizations. 
In UK the European Union has laid various business policies and regulations which are abided by the business organizations operating there. The major key elements of the policies developed by EU would be discussed as:
·         Employment policies
·         International trade policy
·         Training and development policy
·         Rules of game policy
·         Regional policy
·         Taxation Policies
·         Inflation Policy
These policies are established by the European Union and the business organizations of UK need to understand the impact of each of these policies on their business depending upon the significance and impact of these policies on the business activities. The organizations have to consider the EU policies before setting the business policy and must ensure that they are abiding these laws stated by EU (Joshi, 2009). The business organizations operating in UK are highly under the influence of European Union and thus it would be very necessary on their part to abide by the EU’s laws so that they don’t violate any law and face consequences of violation which will have a negative impact on the business operations of the company. Proper follow up of these rules by the business organizations of UK would avoid any adverse legal implications for violating rules on the business. These laws are of high importance for the companies which are functioning globally as several countries are member of European Union and these member countries would definitely support the business operations of the business organizations if they abide the rules of European Union of United Kingdom.
M 2 The policies mentioned in the above analysis which are framed by the European Union are derived from the general reports of EU’s notifications and official gazettes. These policies are analyzed suitably for developing understanding about their impact on the business organizations of United Kingdom.
M3 The study in the present report has been formulated after using suitable approach to collect the information. Appropriate measures have been used to analyze the different scenarios of all the issues related to the present study. All the information shared above is reliable and appropriately analyzed for deriving conclusions. 
In the present paper, the study shows that the business organizations operating in UK must consider various internal and external factors that have a direct or indirect impact on their business operations. The study regarding the stakeholder’s viewpoint for the business organizations showed that organizations need to fulfill their responsibilities for satisfying their stakeholder’s needs. For judging the impact of competition policy, example of Sainsbury Plc was taken for better understanding. The overall analysis revealed that business organizations need to adjust its business priorities and business policies considering the impact of global, political, social and internal factors. The business organizations in UK must follow the rules laid by European Union for avoiding any harmful legal effects on their business operations. All these factors are to be followed properly for gaining competitive advantage in the market.
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