Introduction The business environment is the composite of

Published by admin on


The business environment is the composite of a business’s
surroundings and factors, which affect an organization’s decisions, its
purposes, and its goals. These factors are economic. All the stakeholder
influence in operating a business. Therefore, a business-friendly environment
is tried to create by every organization which will lead the organization to
meet its mission and vision. The whole business environment is sorted into three types. a) Micro, b) Macro and c)
Market. Internal forces that directly affect the business such as-
shareholders, employees, customers, suppliers, and competitors; are the
components of micro-environments. Uncontrollable external factors build up
macro-environment such as- culture, society, politics, geography, and
demography. Components of the industry in which a business is operated comprise
the market environment. So, nowadays companies around the globe want to make
such environment that assists the entity to sustain and accelerate further. However, in this assignment, I will work with the business environment of two
contrasting companies. (Swabera, 2012)













Describing the Business, Purpose, And Ownership
of Two Contrasting Businesses

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now


is an economic entity where products and services are exchanged with a view to
earning a profit. Investment and
customers are required in this financial activity to sustain in the market (Griffin and Ebert, 1996). Several types of
business organizations are seen in the market:

1.      Public

2.      Private

3.      Sole

4.      Profit

5.      Non-profit

I will choose two organizations which are- beverage company Coca-Cola and
e-commerce company Alibaba. These are mixed business organizations having profitability
and public ownership. Coca-Cola is the world’s largest beverage company, based
in the USA. It is one of the most valuable
brands in the world providing physical products. And, at the same time, it serves
the world population with over 1.9 billion drink servings in more than 200
countries each day. However, Coca-cola is a publicly owned profit organization
and ultimately it is an environment-friendly, a sustainable company, lead by
diversity and innovation.

The purposes of the Coca-cola are:

To refresh the world.

To inspire moments of optimism and

To create value and make a difference.

Whereas Alibaba is the largest e-commerce
company in the world, with more than $500.78 billion USD market capitalization.
It is a marketplace, a search engine, and a bank all in one. The company is
based in China and serving mostly the micro-business community with all of its
operational activity. Although it is a publicly owned profit organization unlike the Coca-Cola Company, it provides
finance and internet-based services to their different interest groups. Where 1.48
billion transactions were made in the singles’ day by using data-driven uni-marketing technique.


The purposes of
the Alibaba group are:

To enable small
enterprises to leverage innovation and technology

To assist SMEs,
to grow and compete more effectively

To make it easy
doing business anywhere

P2 Describing
the different stakeholders who influence the purpose of two contrasting


A stakeholder is an individual, group or
organization which influence or is influenced by the achievements of the company
(Freeman, 1984). In the business world, there
are several types of stakeholders of the Coca-Cola and the Alibaba group. The
stakeholders are:

Shareholders are the owners of the Coca-Cola as well as Alibaba group which gave the power to make a direct impact on
the overall activities of these companies. Although top executives of Alibaba
own 9% of the shares, they hold over half of the dominance in the decision-making of the company.

Employees: Employees stand
second on Alibaba’s priority list after the customers. They operate the company
by implementing the plans which its higher authority have set up earlier. The
same thing can also be said for Coca-cola. (Morris Altman, 2006)

Customers: Regular visits,
dedicated account teams, joint business planning, joint value creation
initiatives, customer care centers, social media engagement, surveys helps Coca-Cola to work according to customers
interest. ‘Beverages for life’ is the slogan of Coca-Cola in North
America, which is helping them to achieve their purpose of refreshing the world and consequently making moments
enjoyable with happiness (J. D. Williams, ?K. E. Pasch, ?C. A. Collins, 2013). While
‘Global trade starts here is the motto of Alibaba,  more than 450 million customers help to achieve
the purpose by trading through around the globe (F. F. Nah, C.H. Tan, 2016).

4.      Investors:
Investors donate and raise fund when it is necessary to meet mission objectives
of Coca-Cola and Alibaba. Individuals,
organizations and even the governments of different countries came
forward to fund the Alibaba group and the Coca-Cola Company. (L. Shiying, ?M. Avery, 2009).

Governments of the home country and abroad shape the business activities of the
Alibaba group and the Coca-Cola company and regulate their practice of doing
business locally and at the same time globally.

The ever-changing business environment is also
changing profoundly at Alibaba and Coca-Cola Company. The means and modes of
foreign exchange for SMEs and other business entities. (John D. Daniels – 2001)




The business environment around the globe is
profoundly changing day by day at a quick pace. Where innovation and
information technology is leading the development in every aspect of the modern business world, the decision makers must come forward and cope
with the change in environment and business. The importance of adapting to the new business environment to sustain and survive for the business leaders cannot be described in few words. All the stakeholders are continuously trying to make an
impact in business. And the businesses like Alibaba are applying their research
information which is monitoring the changes and protecting themselves from
being failed. Their interest along with other
stakeholders are achieved through vigilance and strategies applied in the various
critical conditions of Coca-cola, such as- revenue reduction, marketing failure,
updated government policies, uncontrollable growth and so on (Andrew Harrison – 2009).  Therefore, business
organizations like Alibaba and Coca-cola need to create target oriented and
business-friendly internal environment as well as a compatible strategy to
tackle external environmental hazard. (Hilton, 2010) 

Categories: E-Commerce


I'm Iren!

Would you like to get a custom essay? How about receiving a customized one?

Check it out