Gulraiz Sabir
Business Environment
Task 1:
Carrefour operates as a public limited company also stated as an anonymous company. Carrefour as a
public limited company is available to the general public as being registered in the public stock
exchange. It offers its shares which means its ownership is divided accordingly as per decided in the
form of shares. The ownership of Carrefour is not limited to a single entity but is divided among its
shareholders. And therefore voting power with the shares so the higher number of shares an entity
owns the higher voting power it gets and another point is that if an entity owns more than 50% of shares
it gets final decision making power or sometimes is also stated as the owner. While the ownership being
divided there is a board of directors who are responsible for the actions that the company takes.
Carrefour`s board of directors work towards the same purpose that the company is moving towards
which in case of Carrefour is to make gain higher profit and a long term growth. Carrefour operates as a
retailer/store which takes its items from the local or international suppliers and sells them at a cheaper
rate to get higher sales and to grow to stay competitive for a longer period of time.
The organizational structure that Carrefour follows is hierarchical which means that the organization is
divided in layers with the highest authority at the top and decreasing on its way down. It works in a way
that the orders are passed down the structure while the information is passed towards the higher
authority which can also be stated as the chain of command between superior and subordinate level.
The decision at the top will be made according to the information received from the department and
the supervisor below. This type of structure will help Carrefour in a way that as it is widespread in many
countries so the risk of confusion and overlapping responsibilities will be less so in result it works
efficiently for Carrefour. It helps the function of the large corporation especially in the implementation
of action and to better convey all the responsibilities to their specific department or even to a specific
individual. The actions will be carried out much quicker to which Carrefour will benefit extremely as it
will also help in the maximization of profit.
Utility Store Corporation is a public corporation which works under the government of Pakistan and is
located in the public sector. Public corporation is similar to a private limited company as it has a board
of directors or in simple words we can say that it is structured like a private limited company while the
sole difference is that USC is owned by the government. In this type of organization, the president
selects the high level candidates which are approved by the senate, these approved candidates will be
the directors of the organization while the sole ownership of that organization is held by the
government. They work towards the sole purpose that is to facilitate the people of the country, this can
be seen that USC is doing that through their purpose which is providing the people specifically aimed for
the poor segment with food and non-food items at cheaper rates than the market offers.
USC follows the hierarchical structure which is the structure of higher authority at the top while coming
down with less authoritative people. USC having this structure will work in a way that board of directors
1|Page
, which are the higher authority will pass orders to its managing director and this goes on down the
vertical line. This works in a way that the information is passed above the vertical line and the orders are
passed down the vertical line to their specific department. Every department gets its orders according to
their function. This limits the risk of confusion and also eliminate overlapping responsibilities. This is
beneficial for the USC as the corporation is designed in a certain way for example the directors who are
higher authority, they don’t do any physical work so they need a stuff to carry out the actions. This
structure will help USC in a way that the dealing and important task like giving a tender will be done by
the directors and the funds given by government will be managed by GM finance and to organize all the
stores they have GM of zones in this case everyone will do their specific task which will keep it running
smoothly and will help to accomplish their mission to help people by giving them items at cheaper rate
and making them available to everyone.
Task 2:
There are multiple types of shareholders who influence a business. These stakeholders can be
categorized into internal and external stakeholders. Internal stakeholders are those which influence the
company directly from their actions as they are directly linked to the business where as external
stakeholders are indirectly liked to the business so their actions also influence the business`s actions.
There are four main stakeholders which are employees and shareholders being internal and supplier,
customer and being external stakeholders.
Carrefour gets influenced by its stakeholders for example employees being highly skilled will produce
high quality and quick services and products which will affect the business in a good way and
shareholders also have a major influence on the business as almost no action can be taken without their
consent like any kind of decision taken in favor of Carrefour by its directors should be approved by the
major shareholders as they are the owners of the company.
While externally customers have a major influence as the buy the services and goods from Carrefour and
they are the reason behind the company’s profit accumulated, for example if they buy more from
Carrefour they will have more sales which will result in more profit. Suppliers influence Carrefour in a
way that they supply all the goods sold by Carrefour so by keeping good relations for example being
loyal to a specific supplier and paying them on time will make them assured of the company so in result
they might give discounts which will help cut the spending costs also increasing profit. In the end
government however considering government, it has influence in single way like an example of it is the
tax it imposes having a direct effect so its increase and decrease in tax will make the cost less or high
which will in result effect the sales that is directly linked to the profit made by Carrefour.
USC (Utility store corporation) gets influenced by its stakeholders differently than Carrefour because of
the difference in purpose of the business. Like USC`s purpose is to help the populace especially the one`s
earning low income.
Employees can have both positive and negative as it all depends on their action like being hard working
and quick in managing their products the products will be available to more people which supports the
purpose of USC. While this company doesn’t have influences of shareholders as there are none present.
Suppliers can influence the business like they provide USC with all the products and they should be of
2|Page
Business Environment
Task 1:
Carrefour operates as a public limited company also stated as an anonymous company. Carrefour as a
public limited company is available to the general public as being registered in the public stock
exchange. It offers its shares which means its ownership is divided accordingly as per decided in the
form of shares. The ownership of Carrefour is not limited to a single entity but is divided among its
shareholders. And therefore voting power with the shares so the higher number of shares an entity
owns the higher voting power it gets and another point is that if an entity owns more than 50% of shares
it gets final decision making power or sometimes is also stated as the owner. While the ownership being
divided there is a board of directors who are responsible for the actions that the company takes.
Carrefour`s board of directors work towards the same purpose that the company is moving towards
which in case of Carrefour is to make gain higher profit and a long term growth. Carrefour operates as a
retailer/store which takes its items from the local or international suppliers and sells them at a cheaper
rate to get higher sales and to grow to stay competitive for a longer period of time.
The organizational structure that Carrefour follows is hierarchical which means that the organization is
divided in layers with the highest authority at the top and decreasing on its way down. It works in a way
that the orders are passed down the structure while the information is passed towards the higher
authority which can also be stated as the chain of command between superior and subordinate level.
The decision at the top will be made according to the information received from the department and
the supervisor below. This type of structure will help Carrefour in a way that as it is widespread in many
countries so the risk of confusion and overlapping responsibilities will be less so in result it works
efficiently for Carrefour. It helps the function of the large corporation especially in the implementation
of action and to better convey all the responsibilities to their specific department or even to a specific
individual. The actions will be carried out much quicker to which Carrefour will benefit extremely as it
will also help in the maximization of profit.
Utility Store Corporation is a public corporation which works under the government of Pakistan and is
located in the public sector. Public corporation is similar to a private limited company as it has a board
of directors or in simple words we can say that it is structured like a private limited company while the
sole difference is that USC is owned by the government. In this type of organization, the president
selects the high level candidates which are approved by the senate, these approved candidates will be
the directors of the organization while the sole ownership of that organization is held by the
government. They work towards the sole purpose that is to facilitate the people of the country, this can
be seen that USC is doing that through their purpose which is providing the people specifically aimed for
the poor segment with food and non-food items at cheaper rates than the market offers.
USC follows the hierarchical structure which is the structure of higher authority at the top while coming
down with less authoritative people. USC having this structure will work in a way that board of directors
1|Page
, which are the higher authority will pass orders to its managing director and this goes on down the
vertical line. This works in a way that the information is passed above the vertical line and the orders are
passed down the vertical line to their specific department. Every department gets its orders according to
their function. This limits the risk of confusion and also eliminate overlapping responsibilities. This is
beneficial for the USC as the corporation is designed in a certain way for example the directors who are
higher authority, they don’t do any physical work so they need a stuff to carry out the actions. This
structure will help USC in a way that the dealing and important task like giving a tender will be done by
the directors and the funds given by government will be managed by GM finance and to organize all the
stores they have GM of zones in this case everyone will do their specific task which will keep it running
smoothly and will help to accomplish their mission to help people by giving them items at cheaper rate
and making them available to everyone.
Task 2:
There are multiple types of shareholders who influence a business. These stakeholders can be
categorized into internal and external stakeholders. Internal stakeholders are those which influence the
company directly from their actions as they are directly linked to the business where as external
stakeholders are indirectly liked to the business so their actions also influence the business`s actions.
There are four main stakeholders which are employees and shareholders being internal and supplier,
customer and being external stakeholders.
Carrefour gets influenced by its stakeholders for example employees being highly skilled will produce
high quality and quick services and products which will affect the business in a good way and
shareholders also have a major influence on the business as almost no action can be taken without their
consent like any kind of decision taken in favor of Carrefour by its directors should be approved by the
major shareholders as they are the owners of the company.
While externally customers have a major influence as the buy the services and goods from Carrefour and
they are the reason behind the company’s profit accumulated, for example if they buy more from
Carrefour they will have more sales which will result in more profit. Suppliers influence Carrefour in a
way that they supply all the goods sold by Carrefour so by keeping good relations for example being
loyal to a specific supplier and paying them on time will make them assured of the company so in result
they might give discounts which will help cut the spending costs also increasing profit. In the end
government however considering government, it has influence in single way like an example of it is the
tax it imposes having a direct effect so its increase and decrease in tax will make the cost less or high
which will in result effect the sales that is directly linked to the profit made by Carrefour.
USC (Utility store corporation) gets influenced by its stakeholders differently than Carrefour because of
the difference in purpose of the business. Like USC`s purpose is to help the populace especially the one`s
earning low income.
Employees can have both positive and negative as it all depends on their action like being hard working
and quick in managing their products the products will be available to more people which supports the
purpose of USC. While this company doesn’t have influences of shareholders as there are none present.
Suppliers can influence the business like they provide USC with all the products and they should be of
2|Page
