Business Environment

Ahmed Thahuseen

Business Environment

Contents
Executive Summary ......................................................................................................................................... 1
P 1.1. The purpose of different types of organisation. .................................................................................. 2
P 1.2. The extent to which an organisation meets the objectives of different stakeholders. .................. 3
P 1.3. The responsibilities of an organisation and strategies employed to meet them. .......................... 4
P 3.3.The business and cultural environments shape the behaviour of an organisation ........................ 4
Conclusion ....................................................................................................................................................... 5
Reference ......................................................................................................................................................... 5

Business Environment

Executive Summary
This report pertains to purpose of different types of organisation and their responsibilities towards stakeholder. Additionally, this report analyse the effects of business and cultural environment to organisation. This repots is based upon one the largest financial institution in the Maldives, Bank of Maldives
PLC.

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P 1.1. The purpose of different types of organisation.
An organisation can be define as number of people working to achieve common goals and standard performance. There many different types of organisation with different purpose and goals. Shapes and sizes of organisation differ from each other (Greener, 2010). Some types includes; 



Private sector: These are organisation which main aim is to maximize profits and mostly finance by shares, bank loans and overdrafts. (Greener, 2010). Some organisation in private sector are;
- Sole traders, like: corner shops in the Maldives.
- Partnerships such as FJS associates LLP, an audit and accountancy firm in
Maldives.
- Private limited companies such as Villa group, one of the largest private company in the Maldives.
- Public limited companies as Bank of Maldives, largest bank in the Maldives.
Public sector: According to Greener (2010), public sector is organisation which are usually owned and operate by public which comprises both economic and political goals.
Some example of public bodies includes most of the educational bodies in Maldives and defence sector, which is Maldives police service and Maldives National Defence Force.
Main purpose of these organisation are to serve public.



Co-operatives: Co-operatives are run by member in order to maintain power of its members in the market place. (Hall, 2015). For example Southern Farmers Co-operative
Society in Maldives, helps local farmers in southern atoll by providing training from local and abroad.



Voluntary: Voluntary organisations are independent which is set up to carry out benefits to community rather than its members. (Crossman, 2015). They are non-profit making organisations. Maldivian Red Crescent can be on example of Voluntary as they volunteer, participate and partner in delivering humanitarian service to community.

Activity level
The activity type can be vary in organisation depend on their activity and product. The three level of activities are;
1. Primary sector- consists extraction of raw materials such as fishing and mining. (Pettinger,
2014).
2. Secondary sector- produce goods from the raw materials extract in primary sector. .
(Pettinger, 2014).
3. Tertiary sector- this is service industry where all goods are distributed and includes service such as banking and tourism. . (Pettinger, 2014).

The following are activity level of some industries in the Maldives.

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Types of organisation Primary sector

Secondary sector

Tertiary sector

Private sector

Fishing and agriculture Construction and manufacturing Consultancy service and insurance

Public sector

-

-

Education and health care Co-operatives

-

-

Utility services

Voluntary

-

-

Service to the public

P 1.2. The extent to which an organisation meets the objectives of different stakeholders.
Stakeholders are those who have their interest on the way the business performs as it effects them in some way. (Fontaine, Haarman & Schmid, 2006). All the types of organisation have stakeholders, whether they are private or public sector. The following are three broad types of stakeholders. 1. Internal stakeholders (management, employees)
2. Connected stakeholders ( consumer, suppliers, shareholders)
3. External stakeholders ( government , community)
Internal stakeholders like employees are interest about the salaries, increments and other benefits provided to them. Many organisation in the Maldives provides employee benefits to their employee. As Bank of Maldives (BML) is highly committed to meet the expectations of their employees. As their priority is to attract and retain employee. Moreover, BML took a improve steps on how to recruit, develop, manage and engage with staffs. BML held programs that progress to promotion as well. (Bank of Maldives PLC, 2015).
Connected stakeholders such as shareholder are interest about the amount return on investments
(dividends) and the growth of the investments. They are also interested in safety of their investments. BML tries to meet the objectives of their shareholders and bank consider various issues to protect the interest of shareholders. Such as assess of risk management policies in order to mitigate the risks like market risk, liquidity risk and reputational risk, which might affect performs of the bank as it will affect the investment of shareholders. (Bank of Maldives PLC,
2015).
Bank also committed to meet objects of external shareholders like community. Some main concern of community will be the job opportunities available in community and the behaviour of the organisations in the community. Since, expansion of BML throughout the country, various job opportunities were available as bank prefers local employees. Accordingly bank has 99% of local employees. Moreover, took part of national level of activities and initiatives which benefits to the community as they were the official fund manager for Help Gaza Telethon and sponsored the
“Rehendhi Award” presented by the government to the most outstanding women in the county.
(Bank of Maldives PLC, 2015).

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P 1.3. The responsibilities of an organisation and strategies employed to meet them.
The responsibilities of an organisation are countless. Every organisation will try to meet its responsibilities. Bank of Maldives (BML) is highly dedicated with responsibilities as it is one largest bank in the
Maldives. One of the most important responsibilities of BML as financial institution is the integrity and customer satisfaction. Bank should be loyal to its customers, as BML staff adhere strictly to a high standard of conduct, ethics and honesty. BML also try to meet customer satisfaction by dedicating a team to monitor and address the customer concerns. (Bank of Maldives
PLC, 2015).
Providing benefits and related training to the employees are responsibilities of organisation. BML strategies focuses on developing competent, motivated and customer-oriented employees. As staff engagement and motivation are key priorities to the bank.
Investment in the community is responsible for each and every organisation as community is the place where organisation belong. BML engaged in numerous activities for well-being of the community. As BML staff took part of various volunteer activities such as prominent in assisting
Maldives Red Crescent and Ministry National Defence Force with the distribution of water during the Male’ Water Crisis. (Bank of Maldives PLC, 2015).

P 3.3.The business and cultural environments shape the behaviour of an organisation
An organisation can be impact by politically, economically, socially, environmental and technologically which might change the functioning of business. The following is judgement for
Bank of Maldives (BML);
As BML is one of the biggest service industry and central bank of the Maldives, political factors may affect the organisation. Major shares are owned by the government, so their decision might be political. Such as government has power to nominated board of director for some extent and in this political decision might be made rather than economical. (Bank of Maldives PLC, 2015).
However, government might also help to BML to expand its highest level as major shares owned by government. (UK essays, 2013).
Economically, interest rates might affect the BML in several ways as low interest rates will increase customer borrowing from the bank which might be profitable to the bank. On the other hand, borrowing increases consumer spending which leads to increase in inflation rapidly. (UK essays, 2013). As result, employees of BML might demand for higher salaries in order meet their standard of living. This affect BML adversely as labour cost might increase.
According to Annual report of Bank of Maldives PLC (2015), over 99% of local staffs has been working for BML. Most of the employees might have same cultural and social conventions which might be difficult or take much time to change according to the needs of the organisation due to the number of staffs. BML provides several types of loan such as student loan for those who want study abroad and locally. In future, BML might get benefit of this as their aim is to give employee opportunities to local which might be available easily with higher qualification.

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BML might not face much environmental issues as it is a service industry. However, disasters like tsunami might affect the organisation and economy. As might increase in customer spending on infrastructure and they might want borrow more.
Technological changes has impact BML rapidly in recent years. During 2014, bank has invested their one of largest technological program which was introduction of a new state-of-the-art core banking system called Temenos T24. Moreover, bank has introduced new self-service banking
ATMs. With introduction new technologies bank been famous than before throughout country. As a result, this might attract more customers than before and bank might more efficient in the market.
(Bank of Maldives PLC, 2015).

Conclusion
Bank of Maldives, one largest financial institution in the Maldives with greater objectives, numerous responsibilities and improve measures to meet its stakeholders. Furthermore, bank keeps on getting benefits from effects of business and cultural environment of the Maldives.

Reference
Greener, T. (2010). Understanding organisation. Retrieved from http://bookboon.com/en/organization-ebooks-zip Hall, A.D. (2015). Types of business organisation. Retrieved from http://thompsonhall.com/special-types-of-business-organizations-cooperatives/ Crossman, A. (2015). Voluntary association. Retrieved from http://sociology.about.com/od/V_Index/g/Voluntary-Association.htm Pettinger, T. (2014). Sectors in economy. Retrieved from http://www.economicshelp.org/blog/12436/concepts/sectors-economy/ Bank of Maldives PLC. (2015). BML annual report 2014. Male’, Republic of Maldives.
Fontaine, C., Haarman, A., & Schmid, S. (2006). Stakeholder theory. Retrieved from http://www.martonomily.com/sites/default/files/attach/Stakeholders%20theory.pdf Essays, UK. (2013). Overview of the Bank of Maldives Business Essay. Retrieved from http://www.ukessays.com/essays/business/overview-of-the-bank-of-maldives-businessessay.php?cref=1 PAGE 5