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Different types of the organization purpose

Discuss about a Case Study on Influence From the Business Environment on Environmental Purchasing?

Different types of the organization purpose:-

The organization is based on some basic concepts. Before it was thought that in an organization there is a group of people who usually share the same purpose. There are variety organizations, and several types of organizations have a variety of purposes. These kinds of organizations are mainly divided into three types of sectors like public, private sector and third sector organizations which have their own mission, vision, and the goal (Eaton, 2011). These are the primary purposes of the firm. Hence before starting a business the organization should decide what to produce, how to produce and for whom to produce. Hence, different types of organizations have their own objectives and purposes to extend their activities in future. The objectives and targets of a company develop with the help of it vision articulation that describe that how a company can be benefitted in future by achieving its long-term goals. The mission is recognized as a part of the organization or the future target of it whereas the vision is recognized as a thing that could be transformed into the future manageability by the organization.

There are several types of business goals of an organization such as holding a great proportion of market share, satisfying the customers [and the employees, decreasing the amount of waste, cutting the contamination, attracting the shareholders etc. To attain the objectives and to empower those successfully, while making the strategies the business objective document holders should keep it in mind to fulfill the stake and the stockholders. The partner has the impact on the organization and also can be affected by the activities of the organization. It is the fact that no stake holders are share holders while all the shareholders are stakeholders (Manova, 2013). There is a wide variety of stakeholders in an organization, depending on whom the targets of the organization are created. There are different organizations that deal with the different types of goals such as to build the customers’ satisfaction, reducing the grumblings of the purchaser, etc. These goals must be reasonable can easily be imparted. If there is large number of customers then there will be more business. The organization needs the needs of the customer it needs to have the upbeat employees.

Business Stakeholders

Figure: Business Stakeholders

To achieve the goals it is necessary for the organizer to provide bonuses, premium, to raise and maintain the regularity of wages, to provide the training to the employees (to introduce the employees with the new legislation). The organizer should also make the payment on time for the suppliers beside the tax return. There are mainly two types of stakeholders, such as:-

Key benefits of continuous improvement

Financial Stakeholders: - Shareholders, Partners, Employees, Customers and suppliers all are under the financial stakeholders.

 Social Stakeholders: - Local Communities, friends or family, government, and the civil society, etc. are under the social stakeholders (Thakore, 2013).

Key benefits:-

•    By improving the capability of the organization, this helps to increase the advantage of competitiveness.

•    With the organizational strategy set it properly align the improvement activities at all the level of the business.

•    This facilitates the quick and flexible reaction to the opportunities.

The principle of this improvement can be implemented through the following process:-

For the continuous improvement in the performance, a consistent approach should be implemented throughout the organization, such as:-

For this continuous improvement, it should provide the training methods or tools for the staffs of the organization.

As an objective for each person within the organization, continuous improvement of the services, processes and systems should be made by the organizer (Manova, 2013).

To guide the continuous improvement and to control it there is a need for establishing the objectives.

The organizer should also recognize and support the improvements.

To decrease conflict in circumstances, to secure the enthusiasm of the investors, to meet the legal, natural and ethical responsibilities and to satisfy the different stakeholders are the essential responsibilities of an organization. To evaluate the qualities and the shortcomings of an organization, there is a need for internal evaluation of the organization. There is also a need for assessing the administration process and its adequate uses in the approach of the quality chain management system. To become an effective competitor in the business sector, there is a need for vision, mission, and the competitive focal point (Eaton, 2011).The competitive focal point is treated as a critical procedure that helps the organization to achieve its short-term as well as long-term market goals and makes the organization different from the other existing rivals in the market.

Allocation of resources:-

The allocation of resources which is considered as the central theme of the economy means the proper distribution of resources among the producers and the consumers. There are many researches which have conducted to describe how a proper allocation of human resources can be made among the producers and how the scarce goods and services can be reallocated among the consumers.

Economic System:-

By economic system, we mean a well-organized plan, by which the allocation of resources and apportions of commodities in its own community, is done by the state or the nation. In an economic system, there is a need for organizing, motivating and producing the human labor, goods and services and machines. Attention should also be paid on the technology that is used in the production process. The economic system can be divided into three systems like centrally planned, the free market and the mixed market economic system.

Allocation of resources

The centrally planned economic system:-

The economic systems, where the decisions are made by the government rather than by the producers or the consumers, are known as the centrally planned economic system.

The free market economic system:-

In the free market economic system, there is a minimum intervention of the government. In case of free market economy, the allocation of resources can be determined with the free mechanism of demand and supply forces (Manova, 2013).

The mixed economic system:-

In case of the mixed economic system, there exists both the government regulation and the private economic freedom.

Gross domestic product or GDP, deflation, the balance of payment, inflation are the some concepts of economics.

Government intervention or regulation is needed for the provision of the social priorities which generally formed as an expression of the will of dominant political forces. In a free market economy, there are some natural competitive factors or the invisible hand of the market that provide the cyclic, automatic, inertial and the self-regulation of the business. There are some subjective regulatory factors which are determined by the desire of the people and the social groups.

Fiscal Policy:-

Fiscal policy is a type of government policy that deals with the taxation, government borrowings, government expenditure, operations and financial status of a financial institutions and autonomous bodies. In this case, the combination of government consumption and the government investment is treated as the government expenditure. To cope up with the amount of the planned investment and to acquire the additional resources through the internal and the external debt, the fundamental purpose of this fiscal policy is to create the sufficient amount of public savings. For the provision of the public services income is necessary. To create the investment and generate the savings for the economic development and also to create sufficient incentives for the private sector; the tax instruments, currency, price level, spending, tariffs should be handled under this policy.

Monetary Policy:-

To influence the economic growth, the monetary variables, a set of actions that are taken by the Central Bank of the country is known as the monetary policy. The monetary policy deals with the issues of inflation, interest rate, credit control policy, etc (Thakore, 2013).

Competition policy of an organization is treated as the common cornerstone of the operations of this company.  An agreement between France and Germany caused the competition policy. According to this policy, first of all, there is a need for the establishment of common financial services policy and secondly, the competition rules are very strict. Hence, it can be seen as the opposite of the free mobility of the goods that generate from the implementation of the common market (Manova, 2013). Within this system, the goods circulate freely, and the member states have adopted some common rules of the competition such that, the interests of businesses and consumers are seemed to be secured. There are two components of these two policies such as the rules vis-à-vis companies and those who are against the state intervention.

Economic System

Different types of market structures:-

There are four types of market structures, such as:-

Perfect competition:-

There are many buyers and sellers, and no one is able to influence prices.


There are few large sellers who have some control over the prices.


There is a single seller who has the considerable control over the supply and prices.


There is a single buyer who has the considerable control over the demand and prices.

When there is no demand of the product of the suppliers, the product and services are not going well exceptionally. That means the demand and the supply of a product in a firm. At the high rate of demand, the price will be automatically high. However, if the supply is higher than demand then the price will fall, and if there is no business of product and service of the supplier, then it is called that the business gone bankrupt. In a distinctive economics, there are various types of markets. Hence, there will be different types of choices. In a perfectly competitive market, an individual firm cannot influence the market (Eaton, 2011). Other things remain constant; it acts as a price taker and at this given price level it chooses what amount of product should be supplied. In this business, the price is equal to the negligible expenses of the production. In case of an imposing business model, there are diverse things. As the monopolist is the sole supplier of the product and has the market power, the monopolist can easily change the price. At the rising price, the demand is falling. Hence, there is both positive and negative thought behind the increment of prices that a monopolist should take into consideration. However, in case of oligopoly the estimation of the price level depends on the corporation among the firms.

3.2 Utilizing the Porter’s five powers the market forces can be dissected which include powers of customers and suppliers likelihood of new entry and the degree of rivalry and the substitute threat. In the long run with the adjustment of the market condition, this powers change. The cost and accessibility of an item in a free market are influenced by the economic components. The supply and the power of interest mean the total impact of interested purchasers and the dealers on the given cost and the volume of products and administration in a market. If the supply is higher than the abundance supply, then the prices will fall.

Fiscal Policy

The market is a place where the demand and supply forces can freely work and where the dealers and the purchasers can easily communicate with or without the help of the mediators to exchange the goods and the services. Demand is the amount of products that the households and the organization want to buy in a given period at a particular price. The combination of individual demand for a product at a specific price in the market is known as the market demand. If a large number of purchasers who can pay for the things marked down, enter into the market, then at every price level the market demand will rise (Manova, 2013). At the different level of prices, the level of market demand can be indicated through the graphical representation of demand curve. For example, the amount of demand may not always meet the solid capacity of its price. Now assuming a list of demand at different prices holding the other things constant, it can be observed that at higher level of price, the demand is smaller and also at the lower level of prices the demand. If there is a change in other factors of demand rather than the price, then the demand for the production will change, and there will be a shift of the entire demand curve. This flexibility of demand in an economic condition represents the dependency of demand on other factors rather than the price. Hence for a firm’s decision-making, this versatility of demand is essential as from this the firm can demonstrate how the demand of a product changes in response to changes in its prices, changes in prices of its related products, change in consumers’ income and tests and preferences and also respect to change in different critical market components.

3.3 In an environment of uncertainty, to reduce the risk, the planning is done. It is impossible to know about the internal and the external environment in future. Hence, either some assumptions are developed, or some forecasts are made for the expected condition. To meet the current demand there is a need for the organizations to develop their practice pattern of behavior respect to the changes in internal and external environment, changes in human behavior and the emergence of new kinds of organizations. As a result, the idea of teamwork, partnership, self-control, involvement emerges among these organizations. The organizations always focus on the higher order fulfillment of the needs.

The organization’s external environment is referred to the market place that has the high level of uncertainty, complexity and turbulence. It has the great influence on the behavior of the organization. As a result, with the change in this external environment, there will be a permanent change in the organizational behavior. This helps to develop the approaches how the organization can adopt the changes (Breinlich, 2011).

The international aspect of the business cannot influence the business of an organization in a great extent. However, the implementation of these international projects was tougher in a wider range than the implementation of any other internal projects. The human factors associated with the differences in the behavior of people in different cultures are not included in this international policy. Hence, the organizations should study the characteristics of the national cultures and their impacts (Jolly, 2012). This helps to develop the behavior of multinational organizations which operates with the intercultural communication, motivation, adaptation, decision-making and the leadership. In modern industry, the combination of theoretical knowledge and the practical skill is needed and to improve the effectiveness of the organization, there is also a need for implementation of modern methods.

The global business is benefitted by the cross-national business operation i.e.  selling the product in other country or  establishing the firm in another country or  providing the services jointly with the firm of another country (Eaton, 2011). This leads to a greater advantage for the firms that they can get by operating only in their own countries.

If the government wants to control the prices, by setting the extreme prices of the specific organization, the government can control the swelling. The government can also help the suppliers by setting the minimum prices. In this case, the equilibrium cost can be determined with the interaction of demand and supply forces. The regulation of value can be prompt with the abundance supply (Manova, 2013). While determining the pricing strategy, some components like rival’s conduct, client’s reorganization and the expenses of the firm should be considered by the organization. The factor choices of an organization can be seen in both in short-run and in long-run. Where in the short run, the few factors can be changed, in the long-run all the factors can be changed.

Along this line the justification of the government bolster, lays on the three fundamental columns, such as:-

From the expanded worldwide trade and venture, confirming the potential advantages to U.K. thriving.

Proof of obstruction to the universal trade.

Emerging of speculation from the business sector disappointments.

Hence, to address these business disappointments, the government can intercede the cost successfully and also to create the sufficient expansion of the global forces set up bodies i.e. IMF and World Bank and to expand the global trade the government should also empowering the business (Thakore, 2013).These global authorities are also controlled by their part governments but not by the one vote or one nation. The voting power depends on the amount of cash paid by the government to their association. In the financial prices of the government, the IMF provides the loan to the countries where the bank gives trusts to the long haul improvement projects.

The political, legal, social, economic and the technological factors influenced the business. The external environment and the competitors also affect the business. Both in the firm level and in the aggregate reciprocal level there are significant obstructions to the international trade and the investment. These are attributable to the market, and the institutional disappointments left unaddressed. To attain the maximum capacity from the global trend or to speculate the liberalization to acquired new opportunities in international trade and business, the capacity of U.K. will fundamentally diminished by these boundaries.

Business is considered as movement embrace by the social individuals. The performances of the individuals in the business are differing from each other to some extent. The quality and the mentality of the business can be conveying from the society as the society act as representatives of customers. The socio, political, economic and the technological factors act as worldwide components that influence the business strategy.

Social factors:-

The social factors include the lifestyle, tastes and behavior of the nation. The changes in the structure of the population and the lifestyle of the consumers influence the habits of the consumers. For the successful business information, the lifestyle, religion and language of the consumer are considered.

Legal factors:-

Businesses are influenced by the legal factors that are related to government rules and regulations. Considering the legal issues is very important for a successful and the long-term business operation. With the changes in law, the business also changes (Eaton, 2011).

Economic factors:-

The changes in the economy are considered as the economic factors that affect the business strategy. The change in the living standard tends to an automatic change in the demand for goods and services and open more opportunities for the business. In case of increase in demand, there will be a rise in price that leads to an increase in the economic activities. On the other hand, with the fall in the price the economic activities will go down.

Political factors:-

The stability in the political environment is essential for the success in business. With the change in government policy and political factor, there business strategy also changes.

Technological factors:-

The business strategies are highly affected by the technological changes that lead to innovations and inventions to reduce the production cost and to increase the production.

The Economic Union is an economic and political union that includes twenty-seven European member states. In 1951, the EEC or the European Economic Community was formed including the six inner countries. Throughout a standardized law system, the European Union has developed a common market system.

Benefits of European Union to the organization:-

The expansion of exports among the member countries will increase the sales and profits of the organization.

International trade helps to organize the domestic market structure.

To attract more customers, new options will be provided to the organization (Manova, 2013).

The business activities within the European Union is influenced by the taxation, subsidization and the spending policies of European Union and the U.K. government, which support the business activities by providing advices and generating suitable laws and regulations.


Bjorklund, M. (2011). Influence from the business environment on environmental purchasing—Drivers and hinders of purchasing green transportation services. Journal of Purchasing and Supply Management, 17(1), 11-22.

Breinlich, H., & Criscuolo, C. (2011). International trade in services: A portrait of importers and exporters. Journal of International Economics, 84(2), 188-206.

Eaton, J., Kortum, S., & Kramarz, F. (2011). An anatomy of international trade: Evidence from French firms. Econometrica, 79(5), 1453-1498.

Jolly, A. (2012). The Growing Business Handbook: Inspiration and Advice from Successful Entrepreneurs and Fast Growing UK Companies. Kogan Page Publishers.

Jones, R., & Souranta, M. (2015). Entrepreneurial Marketing in Small Firms: A Comparative Study of Small Software Technology Firms in Central Finland, Wales, UK and Silicon Valley, US. In The Sustainable Global Marketplace (pp. 319-319). Springer International Publishing.

Klapper, L. F., & Parker, S. C. (2011). Gender and the business environment for new firm creation. The World Bank Research Observer, 26(2), 237-257.

Manova, K. (2013). Credit constraints, heterogeneous firms, and international trade. The Review of Economic Studies, 80(2), 711-744.

Sun, Y., Guo, P., Ma, Z., Li, T., & Dang, S. (2014, November). UK-based external business environment analysis of outdoor adventure clothing using the PESTEL tool and its future outlook. In Information Technology Systems and Innovation (ICITSI), 2014 International Conference on (pp. 306-309). IEEE.

Thakore, R. B., Lowe, C. N., & Nicholls, T. (2013). Financial impact of certified ISO 14001 Environment Management Systems in UK and Ireland. In ICSDEC 2012@ sDeveloping the Frontier of Sustainable Design, Engineering, and Construction (pp. 894-902). ASCE.

Wagner, J. (2012). International trade and firm performance: a survey of empirical studies since 2006. Review of World Economics, 148(2), 235-267.

Welford, R. (Ed.). (2013). Hijacking environmentalism: Corporate responses to sustainable development. Routledge.

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