Exploring the Key Factors that Shape Business Operations/Environment Assignment Sample

Understanding Business Environment: Local, National, Global, and Sectors

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The business environment is the process of a combined total number of internal forces and other external forces that impact production. The paper will demonstrate the meaning of local, national, and global business with examples and an overview. Moreover, it will explain the meaning of public, private, and third sectors along with examples and an overview of the sectors. Different types of e-commerce marketplace and market structures will be demonstrated in the paper with examples.

Definition of local, national, and global business

Local business:

A business that functions in a definite area and has a physical presence is said to be a local business. The local businesses have many characteristics and traits and sell their product and services to their pressing surrounding society. A local business understands the needs of the people in a better way, and thus serves the community at a better price (Gupta, 2022).

National business:

A company that has headquarters in one region and functions in multiple countries is known as a national business. The national business requires having the ability to function on a global scale as they require access to diverse cultures and markets (Ladrière et al., 2022).

Global Business

Global business refers to international trade, and it is a form of business that is operating around the world, known as a global business. Global businesses faced numerous challenges due to diverse cultures and legislation changes. Moreover, the business also gets the opportunity to generate more profit and revenue as they serve more customers located in different countries (Gupta, 2022).

Definition of public, private, and third sectors

Private sector:

The private sector is part of the national economy that is owned, restricted, and managed by private enterprises and individuals. The sector plays a great role in the economy of the country by providing goods and services, creating jobs, increasing living standards, maximising production opportunities, and stimulating growth in the GDP of the country. Moreover, it is a valuable source of tax income for the government (Østergaard et al., 2022).

Public sector:

The public sector provides governmental services and is that portion of the economic system that is forbidden by the state, national or provincial, and local government. Moreover, it supports employment and the development of infrastructure. The benefits of working in the public sector are high staff training, job security, work-life balance, and so on.

Third Sector:

The third sector is also known as the voluntary sector which covers a variance of different businesses with diverse purposes and structures. Moreover, it helps to form effective relationships within the working environment. It is a non-profit organisation that focuses to bring changes in society and for welfare (Cherunilam, 2021)

Overview of local, national, and global business with example

Overview of local business:

• Micro businesses operate in the same community and have less than ten employees.
• Generally, small businesses always operate in the same location and the employee number ranges from 10 to 100 (Ladrière et al., 2022).
• Typically the business is a small-scale business and requires innovative features to survive in the competitive market.
• Some examples of local businesses are office spaces, independent stores, or a restaurant. The Cafepod coffee house is a small business with a turnover of up to £10m in the UK (Cvetkovich, 2018).

Overview of National Business:

• Function within the boundary of the company
• Understand the culture of the operating country
• Lower operating cost (Ladrière et al., 2022).
• Access to large market suitable to multiple locations and scale
• The business can have its legal jurisdictions
• May have offices and human resources located in different countries
• The BBC is the national business as it functions in the United Kingdom and has great knowledge about the culture of the region (Kattel and Mazzucato, 2019).

Overview of Global Business:

• Helps the Company to have a connection and link the business with other business parties.
• Assist in the enlargement of the economy of the country (Ladrière et al., 2022).
• Support in the development of international trade and technology
• Unilever is a global business headquartered in London. The company operates in more than 190 countries and has over 400 brand names.

Overview of a business in the public, private and third sectors with example

Overview of the Private sector:

• The Source of the capital comes from owners, through loans, debenture, and issuing shares
• The motive is to earn a profit (Ladrière et al., 2022).
• Promotion is based on job performance and merits
• Some examples of private sectors are technology and software developers, hospitality and catering business, food business, and so on.
• Iceland Foods Ltd is a supermarket chain headquartered in Deeside, Wales, UK (Mazzucato and Robinson, 2018).

Overview of the Public Sector:

• Engage in activities that improvise the life of the general public
• The capital source comes from tax collection, bonds, etc
• Promotion is based on the seniority of the employees (Kuziemski and Misuraca, 2020).
• Some examples of Public sectors are education, social care, health care, and many more.
• The Public Sector companies of the UK are BBC, Network Rail, British Business Bank, and many more (Steenkamp, 2019).

Overview of the third sector

• The non-governmental sector works alongside governmental agencies and gets governmental commissions and funding, independent from the government (Ladrière et al., 2022).
• Value-driven, as they pursue specific goals
• Associated with particulate political and social perspectives
• Further, the sector plays a great role in supporting society at the local levels
• The sector includes charities, voluntary groups, and social enterprises (Kuziemski and Misuraca, 2020).

Type of e-commerce marketplaces

An E-commerce marketplace unites the buyers and sellers on a particular policy for profit-making activity.

• Product online marketplace: An e-commerce platform is a marketplace where people sell and buy products. Here, all types of sellers come together into a one-stop shop that is convenient for customers to check product, quality, and price to fulfill their desire. The marketplace is owned by an operator who supports third-party sellers to sell their products to make a profit. For instance, eBay, Amazon, and Flipkart are some of the companies using product online marketplace (Gobikas and ?ingien?, 2021).
• Online service marketplace: The online marketplace where one can sell products and services with minimum input is best for start-ups and the example includes Freelance UK limited. The platform is reliable to connect service givers and service providers at an affordable cost (Kuziemski and Misuraca, 2020).
• Online rental marketplace: It is an online platform where customers can rent various types of properties to form a platform itself. P2P is the platform that works best with this marketplace which includes mediators. For instance, Taskrabbit is a UK-based company that uses an online rental marketplace that matches freelance labor with demand and supports customers to find help with their regular tasks.
• Hyper-local Marketplace: An online business model where the demand of the customer is met through local offline stores using digital platforms. Pure is a local shop in the UK that provides fast breakfast, lunch, and coffee dinners and also facilitates home delivery using digital platforms (Gobikas and ?ingien?, 2021).
• The hybrid model in e-commerce: The marketplace provides businesses a sole dash with digital transportation with shared product information, data, and design layout. Moreover, this allows businesses to arrange sales. The Salesforce is a UK-based company that supports CRM software for sales professionals (Ladrière et al., 2022).

Different types of market structure

Market structure is the classification of different industries and their economy based on nature and degree of opposition to foods and services.

• Perfect Market Structure: There is a huge quantity of sellers and buyers and all are small sellers in opposition to each other. The product is homogenous i.e completely identical and the motive of the firm is to make a profit. Further, there is no barrier to entering and exit from the market. For instance, the foreign currency market is the perfect completion structure as the entire currency is homogeneous (Gobikas and ?ingien?, 2021).
• Monopoly Market structure: Monopoly is the business construction where one business has the leading position in the sector which helps them to prohibit all other feasible competitors. . Here, one supplier provides particular goods and services to a large number of consumers and has control over the market. The best monopoly companies are UK Apple, Microsoft, Google, and Facebook.
• Oligopoly market structure: The business structure where market players are limited and dominate a large number of suppliers is referred to as an oligopoly market. The competition in the structure is limited which allows firms to function effectively. The four supermarkets in UK i.e. ASDA, Morrisons, Tesco, and Sainsbury's are the best examples of oligopoly market structure.
• Monopolistic Market Structure: It is an imperfect market fight with the traits of a competitive market and monopoly. Here, sellers have great competition among themselves and differentiate their goods and services in terms of branding and quality to look different. The best examples of monopolistic competition are sports Brand Companies like Nike, Adidas, and so on (Ladrière et al., 2022).

Conclusion

The paper demonstrated the meaning of local, national, and global business along with examples. Further, the meaning of the public, private and third sectors has been justified in the paper. Examples and overview cover the local, national, and global business; and public, private, and third sectors. Moreover, different type of e-commerce marketplace and market structure has been justified in the paper with example. Hence, it can be said that every form of business sector plays a great role in the business environment.

Reference list

• Cherunilam, F., (2021). Business environment. Himalaya Publishing House Pvt. Ltd.
• Cvetkovich, A., (2018). Articulating the global and the local: Globalization and cultural studies. Routledge.
• Gobikas, M. and ?ingien?, V., (2021). Public-private partnership in youth sport delivery: local government perspective.
• Gupta, C.B., (2022). Business Environment. Sultan Chand & Sons.
• Kattel, R. and Mazzucato, M., (2018). Mission-oriented innovation policy and dynamic capabilities in the public sector. Industrial and Corporate Change, 27(5), pp.787-801.
• Kuziemski, M. and Misuraca, G., (2020). AI governance in the public sector: Three tales from the frontiers of automated decision-making in democratic settings. Telecommunications Policy, 44(6), p.101976.
• Ladrière, M., Lundquist, K. and Ye, Q., (2022). B2B e-commerce marketplaces and MSMES: Evidence of global value chain facilitation? (No. ERSD-2022-7). WTO Staff Working Paper.
• Mazzucato, M. and Robinson, D.K., (2018). Co-creating and directing Innovation Ecosystems? NASA's changing approach to public-private partnerships in low-earth orbit. Technological Forecasting and Social Change, 136, pp.166-177.
• Østergaard, P.A., Andersen, A.N. and Sorknæs, P., (2022). The business-economic energy system modelling tool energyPRO. Energy, 257, p.124792.
• Steenkamp, J.B.E., (2019). Global versus local consumer culture: Theory, measurement, and future research directions. Journal of International Marketing, 27(1), pp.1-19.