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An Analysis of the Impact of the Business Environment on Two Organizations

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Submitted By Zahuwa
Words 1997
Pages 8
Introduction (P1)
STO
State Trading Organization (STO) was established in early 1960’s. When they first start the organization the only resource available was tuna. At that time the development of the country was slow so there is no banking system, no available funds for major investments and no commercial industries as well. After some days in 1994 a fully-funded business was set-up by the government which is named “Athireemaafannu Trading Agency (ATA)”. Their main aim was to provide essential food items to the nation. 9th June 1979 is the day which ATA became STO with so much improvements. After that they kept growing and growing. Now the organization is a highly appreciated company which almost sells all the items. STO can be considered as the best organization in the retail industry in Maldives.
STO is a very huge organizations which all the board of directors are set by the government. This is a partnership business. They have 6 subsidiaries in Maldives. At first this organization was a fully government organization but now this organization is partly government and partly managed by an individual. Their main purpose is to enriching lives through expansion and accessibility. Which means letting people purchase their goods freely and openly. They have a very huge shop in male’. And the customer service of the organization is very good. Which is why most of the people select STO as their best place to buy their goods.
The organization give a very special focus on achieving their objectives. To achieve their objectives they conduct promotions like ‘Eid promotion and Ramadan promotions. In that promotions they sell their product in a very low cost. Also they advertise their products to the customers through different sources. This will help to achieve their targets. Moreover, they deliver their products wherever the customers want, but only furniture type products. The internal departments work as a team work. This will also will help to achieve their internal objectives.
MPL
Maldives Ports Limited (MPL) was built up in September 1986 under the name of "authority". The motivation behind the organization was to oversee and work all ports in the Maldives. It is completely possessed and controlled by the administration under the service of transport and communication. After that the organization was changed to a company named Maldives Ports Limited. Yet, all the administrative functions was controlled by the service of transport and correspondence. Along these lines, the organization is administrated and oversaw by the exhausted which the individuals are contracted by the president of the Maldives. The day operations are controlled by the managing director. This can considered as transport industry.
The main reason for this organization is to deal with all the port and port related exercises in Maldives. They deal with all the import and export related activities from sea and air. Be that as it may, particularly they concentrate on sea, as the air transports are overseen by different airplane terminals like Maldivian and GMR. MPL is a partnership business. Also, the MPL connections with the government, as they have to follow the rules and regulations of the government. They have been serving to the Maldives for a long time. They have been directing such a large number of exercises to make their employees like the organization. MPL give some online services like bill landing points of interest and holder development subtle elements including the release rate. What's more, the clients can get such a variety of data from their site moreover. Also, they make a decent attempt to accomplish their goals by directing competitions to persuade their representatives so that the workers will give their best execution at their work. Also their internal departments work together as a team.

Stakeholders and their influences in STO (p2)
Speaking of stakeholders, there are so many stakeholders to the organization. Below I will be explaining about the stakeholders and their influences to the organization.
Manager
Manager will help to manage the financial and human resource management of the organization. They try to improve the business day by day.
Employees
If the employees are working properly that will help to increase their sales. But if they don’t the sales will be decreasing. This is how the employees influence the organization
Suppliers
STO is not a manufacturing company so they have to supply all the goods from the outside of the country. So if the supply is low they can’t sell all the demanded products to their customers. And vice versa. This is a very big influence to the organization.
Customers
They are the most critical stakeholders. As if they change their mind they will go and purchase the products from other retailers. Company must work to increase efficiency and effectiveness in order to create loyal customers and attract new ones.
How recession and growth influence on STO and MPL (p3)
Recession is a breakdown of all the economic activities in the country longer than few months. The time of the recession varies from country to country. Mostly, it will take 18 months. A recession is typically accompanied by a drop in the stock market, an increase in unemployment, and a decline in the housing market. This creates a mess in the entire economy. The recession which hit the globe in 2008 is the most recent example of a recession.
Economic growth is increasing of the amount of products produces every day. Decrease of unemployment, advances of technology, and increase in capital stock will happen in the growth stage. Basically when all the economic activities will become great in the growth stage.
Around the time when STO established the Maldivian economy was growing at a high speed. Especially in fisheries, agriculture, tourism and also in construction. Also retail sector was growing in a high speed. At that time STO try to expand their organization by taking up alternative enterprises to earn foreign exchange and expand the nation’s revenue sources. Besides, the organization group with its subsidiaries, joint ventures and associates, is a national leader in business. Also they focused on cooking gas, construction materials, medicals and bringing some other new goods to the organization. The company is geographically diverse with operations and developments throughout Maldives and operations in Singapore as well. Moreover, they set an eye on tourism. Hence, STO become a big player in hospitality and start earning its foreign currency in the near future. This is how they grew their organization.
Additionally, they didn’t face a recession period yet. If they face a recession period, we all know that all the economic activities will fall. STO is operating so many economic activities. When all those activities falls this will cause so many problems to their customers like they will lose their shareholders. Also, if they are not willing to pay to the suppliers they will not be willing to sell demanded products to the customers. Likewise, they will be losing their customers. This might happen if they face to the recession period.
How political, legal factors effects basically in different organizations (p4)
Legal
Dissatisfied the customer
If the customers is dissatisfied to the services given by the organization the customer might file a lawsuit against the organization in which they gather in large customer groups and assault your organization over defective items, services or guarantees. With enough disappointed employees, legal claims can accomplish more harm than any individual or corporation and hopelessly discolor your brands picture.
Political
The government gives the central base of the economy. It manufactures and keeps up motorways and other real transport joins. Local government is in charge of nearby streets. The legislature additionally possesses and keeps up the railroad lines and rail route stations.
Social
Attitude to work is a very main influence to every organization. If the employees are not giving their best attitude towards their work the production will be lower than expected. Due to that the employer might fire the employee also. And recruiting another employee is not an easy task to do. It will take so many time.
How political, legal factors effected (m1)
STO
Legal
There is a very recent law which effected all the businesses in the Maldives. That law says all the shops should be closed down by 10 PM. Most of the people do their shopping at night, they will start their shopping at 8.30 or 9.00. Which means they have only one hour to do their shopping which is not enough. And as for the business if they have to close the shop early they will lose some of their customers which leads to decrease their sales. This is the most recent legal factor which influenced to STO.
Political
As I mentioned earlier STO’s very big role is playing by the government. So, the people against the government is against to buy goods from STO. Moreover, when there are strikes the road in which STO is in will normally be blocked because two courts are in that road. Due to this also they will lose some of their customers.
Social
Social factor which influences to STO includes, when there are improvements in technology they have to train all the employees. It will consume too many time. On the other hand, if they didn’t give the training the services given to the customers will be slow. That’s why they have to train the employees. This is the main social factor which influences to STO.
MPL
Legal
Taxation is one of the main legal factor which is influencing to MPL. When the tax rate increases the amount they have to pay to the government will increase. Due to this they are not able to provide their best equipment to the employees. This is a very big legal influence to the company.

Political
When government changes so many things in the society will change. Likewise, some MPL employees changed their jobs to other organizations as the MPL is partly a government organization. The people who support to the government may wait in the organization but those who don’t support the government choose to leave the organization.
Social
When GPS is installed in the ships, some people doesn’t know how to work with the GPS. For this reason some employees were lost for some days as they will have to learn how to work with the GPS. The MPL had to recruit some new employees. Which wastes so many time.

How political, legal factors may effect in future(d1)
Legal
There might be so many lawsuits against the organization due to their bad service or some other problem also. If the organization did not give any attention to those kind of things they might have to pay a high fine to the government. This might also lead to a bankrupt.
Political
Taxation is one of the main political Factor which might influence to the organization as the tax rate is increasing year by year. For small businesses it’s a burden because they have to fill so many paper works. But in huge businesses there will be more departments so this filling the paper work will not be a burden to them.
Social
The birth rate is now increasing so the pollination will be increasing the demand for the goods and services will be increasing. The organization might not be able to supply enough goods. Also they might also not get enough employees to give the services to the customers. Or there will be so many people willing to work. And the organization will not know who to recruit. This might be a social factor which influences the organizations.

Conclusion
To conclude I would like to say I have gathered so many information and included those information about STO and MPL. These two companies are very old two companies and so many people love those two companies. In my opinion if they are working the way they are working now, the companies will be highly reputed two companies. From here I will wind up the report.

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