Business environment Essay Example | Topics and Well Written Essays - 2500 words

Business environment - Essay Example Organizational Mission Organizations are formed to pursue diverse aims depending on the values of the founders and the needs of the stakeholders. Hence, certain organizations may be formed to produce goods while others may be formed to provide services. Some organizations may also be formed with the explicit purpose of earning profits for their owners while others may not have the profit motive as their primary aim (Gaspar et al., 2005, p. 40). Charities such as The Asia Foundation and CARE International define the donations they receive as receipts rather than revenues; hence, their surplus is different from profit. Organizations such as the police force or fire department are public-sector organizations as opposed to private-sector organizations. These organizations are not formed with the intent of earning profits; rather, their purpose is to provide an essential service to citizens of the community (Gaspar et al., 2005, p. 40). The fact that they are owned by the state as opposed to private interests increases their credibility to provide essential goods or services without discrimination or bias to all citizens. Business organizations clearly exist to earn profits. At the same time, they address the needs of stakeholders who help them earn those profits. Therefore, their purpose is to identify a target market and develop goods and services to satisfy specific needs of the target segment. Organizations whose business activities extend the national boundaries are called international business organizations. Their purpose is to earn profits through efficiencies in supply chain and logistics while exploring new markets. However they may be described or categorized, organizations are influenced by their purpose or mission which defines the scope of their activities. The Influence of Stakeholders Due to the rapidly globalizing business environment, organizations have adopted a ‘stakeholder approach’ instead of the ‘shareholder approach’ (Hamilton and Webster, 2012, p. 100). The stakeholder approach encourages organizations to address the needs of those segments other than the owners whose interests are affected by the activities of the organization (Hamilton and Webster, 2012, p. 100). The stakeholders include such varied groups as customers, suppliers, competitors, media personnel, government authorities, regulators, the natural environment and the community. The manner in which the organization conducts its activities affects the interests of these segments. As organizations expand to international business, the number of stakeholders and their obligations increases substantially. Addressing the needs and interests of these stakeholders creates social capital and a positive reputation for the organization (Hamilton and Webster, 2012, p. 100). Some scholars argue that it is also economically sensible for organizations to pursue the stakeholder approach. With limited resources, organizations try to meet the needs of different stakeholders. Through its charitable causes, the Bill Gates Foundation established by the Microsoft founder helps the software giant develop a positive reputation marred by concerns about the competitive strategies pursued by the company. Another organization, British Petroleum (BP) regularly invests in green technology to protect the natural environment from pollution and destruction (BP, 2013). Nestle follows the stakeholder approach through its supply chain. The company supports sustainable