Acknowledgement
In completing this assignment I was required to get the help of several respective individuals, first of all I would like to thank the almighty Allah who has given me knowledge to accomplish this assignment in a successful way. I would like to thank my lecturer who taught this module and helped me to understand the assignment.
Besides I would like to thank my parents for their huge support they have given me and also my beloved friends who encouraged me to complete my assignment.

Executive Summary
Organizations can be divided into private and public sector, and all the type of organizations in both sectors have different features though some features may be the same for different organizations. Next plc is a multinational firm which is operating in UK and it has several stakeholders which can be categorized into two groups, internal stakeholders and external stakeholders and also Next plc as an organization has it aims, objectives and goals which they target to achieve in future though they have achieved some in present too.
Economic system is an organized way on how allocation of resources in an economy is done, how goods required by the consumers have been produced and how it is distributed, basically there are three types of economic systems where in all three economic system allocation of resources is done by different parties. Economic policies are implemented by the government the economy, both policies that the government use have a direct impact on country’s economy. Next plc as an organization also can affected when the government implements economic policies to the country’s economy.
Next plc exports products to other countries and by doing this it enables international trade to take place. International trade brings several advantages to Next plc but it also must face certain issues due to international trade. Certain countries over the globe have the features of developed market but it is said as not a developed market and those countries are known as emerging markets and when UK business enters emerging market they have many opportunities in favor of them but they also have barriers which created a negative impact on the business while entering the emerging market. Economic policies that has been implemented by the government of European countries has direct impact on that country’s economy and the ongoing crisis in Europe has effected many countries in Europe.

Table of contents
List of diagrams 06
Introduction07
1) Organizations08 1.1) Private Organizations08
1.2) Public Organizations10
2) Stakeholders of Next PLC 11
2.1) Internal Stakeholders 11
2.2) External Stakeholders 12
3) Purpose of Next PLC 13
4) Economic system 15
4.1) Market Economy 15
4.2) Command Economy 15
4.3) Mixed Economy 16
5) Fiscal policy and monetary policy 17
5.1) Expansion and contraction of fiscal policy 17
5.2) Expansion and contraction of monetary policy 17
6) Effects of fiscal and monetary policy towards Next PLC 19

7) International Trade 20
7.1) Benefits and drawbacks for Next PLC in international trade 20
8) Emerging market 20
8.1) Barriers and opportunities for UK businesses 21
9) Economic policies of European countries and situation of EU 21
Conclusion 23
References 24
Appendices 25

List of Diagrams
Diagram 1 – Expansionary monetary policy 17
Diagram 2 – Contraction of monetary policy 18

Introduction
Business Environment is the mixture of factors and elements inside and outside the business which will have a direct impact in an organization. There are many factors that will have an affect towards the development of the organization and the factors may include owner of the organization, employees, managers, government, laws passed by government, supplier, technological development and the competitors.
Business environment is important to be analyzed because as an organization it can identify its strength, weakness, opportunities and threats which is necessary for the survival and the growth of the organization.There is a handy and nonstop interaction between the business and its environment. This interaction helps in strengthening the business firm and using its resources more effectively. A business is influenced by the environment in which it functions and the success of any business is dependent on its ability to adapt to its environment. Internal and the external factors of business environment can affect the growth of an organization. Stakeholders have a direct impact on the growth of an organization towards the contribution they provide for the organization.
Next plc is a multinational retailer established in UK market selling variety of products like clothing, footwear and home appliances. It has about 700 stores where 500 stores are located in UK. There are many familiar retailers established in UK market where Next plc faces heavy competition from them but still Next plcremains one of the top retailers in UK market.
Next PLC has progressed well as a clothing retailer over the past few years because it has been able to adopt the changes in taste and fashion of the consumers and used its resources efficiently to increase its productivity.

1) Organizations
An organization is a group of individuals working together and contributing their efforts and maintaining relationships to achieve a common goal. All organizations has an organizational structure which describes how individuals are grouped and tasks are performed.
1.1)Private Organizations
These types of organizations are owned privately by an individual or a group of members and there are several types of private organizations:
Sole Trader – Sole trader is also known as sole proprietor who starts, runs and owns the business himself he is the person who decides to employ others or not.
Characteristics of a sole trader * The business is owned by one single individual and he is responsible for everything that happens in the business * The liability is unlimited and when the owner faces a loss he must be ready to sell his own belongings to overcome the loss * Decision making is done by the owner himself and he don’t need to consult anyone * Owner of the business can shut down the business at any time if he thinks he is going to face a loss and his decision will be the final
Though there are some downfalls for a sole trader like unlimited liability and limited capital many people yet prefer this type of organizations because it only needs few amount of capital to start and the business can be shut down at any moment when the owner thinks he is going to face a loss
Partnership – Partnership is a type of an organization owned by a group of members who contributes their money for the capital. Members of the business may share their profits and losses equally or according to the percentage mentioned in partnership agreement.

Characteristics of partnership * A legal agreement should be formed which states the responsibilities of the members and percentages of profit and losses to be shared. * Partnership also has an issue of unlimited liability. * Decision making is done by the members of the business and each member should be consulted when a decision is to be made. * In partnership there should be minimum of two partners and a maximum limit of partners should not be exceeded by twenty. * Transfer of ownership cannot be done without consulting other partners.
Partnership has a great advantage of raising more capital but there might be disagreements between partners while making a decision which may end up in the breakup of partnership.
Limited companies – The word limited indicates that in this type of organizations the liability is strictly limited. Limited companies are also known as joint stock companies because the number of individuals contributes to a common stock of capital, and it has been divided into shares and people who buy those shares are known as shareholders. There are two types of limited companies private limited company and public limited company.
Characteristics of limited companies * Liability is limited, so it is easy to raise capital because many of them buy shares. * The life of the company is not in the hands of the shareholders, even if the shareholders die or sell the shares it won’t affect the company. * The management of the business is in the hands of the board of directors and the directors are elected by the shareholders.
Despite the fact that the limited companies have few shortcomings like restriction on raising capital by selling shares it has many advantages like limited liability, separate legal entity and many more.

1.2) Public organizations
Public organizations are owned and controlled by the government to provide services to people. Some services are provided to people directly by government authorities directly like police and sometimes the services are provided but the government agencies like hospitals and building roads
Government Departments –These types of organizations are in charge for public administration under the control of authoritiesin charge of many departments like health, education and other departments.
Characteristics of government department * Departments are under control of any politician in charge or by any higher authorities. * Each departments are in charge for the money spent on the development of the country. * Decision making is done by the authorities in charge of each department.
The main aim of government departments is to increase the development of the country in future and each department in a country is responsible for the government for the decision taken inside each department.
Government Corporation - This is an authorized body created by government to provide commercial services to public and a charge has been paid by public for using the services. Services provided may include electricity, telecommunication and other services provided by the government.
Characteristics of Government Corporation * Non-profit making. * Providing welfare for the public on behalf of the government. * Charges for the services is decided by the government. * Corporation has a separate legal entity.
Government corporations provides services to public and public requires to pay for the services the use.
Government Companies –Any companies that has more than fifty percentage of paid up share capital for government is called a government company. In this type of companies private individuals can also hold shares.
Characteristics of Government Companies * The company has a separate legal entity * The management of the company is under the board of directors * Government elects the board of directors * Most number of shares are held by the government

2) Stakeholders of Next Plc
Stakeholders are folks who have interest in business organization and Next Plc has stakeholders who can be affected or can have an effect on Next Plc. Stakeholders can be divided into two groups internal and external stakeholders:

1.1) Internal Stakeholders
Internal stakeholders are individuals who has an interest in the business and people who exist inside an organization.
Owners or Shareholders - Owners and shareholders are individuals who owns the organization.
Responsibilities of an owner * Pay legal taxes for the government on time * Owner should be able know what is happening inside the organization even if he have some others in charge of * Must provide employees with reasonable wages and salaries * Providing workers with safety environment to work
Managers – Managers are individuals who manages and have a control of business

Responsibilities of a Manager * Get the tasks and jobs completed by the employees on time * To plan how an organization is going to perform * Raise wealth for their owners * Motivating the employees and make them interested in their job
Employees – Employees are individuals engaged in work inside an organization under the managers and receive wages or salaries in return for the work they do.
Responsibilities of Employees * To do and complete the task given to them on time. * Be punctual to the work. * Perform their work in working hours without wasting time. * Keep the work place clean.
2.2. External Stakeholders
External stakeholders are individuals who are not part of an organization but can effect or have an effect on an organization
Customers – Customers are people who buy goods or services from a business and they are people who can give feedbacks and complaints to an organization
Responsibilities of Customers * Leave good or bad feedback for the products they buy or services they use. * To obtain proper information about the products or services provided by an organization. * To check the quality of the product they buy.
Suppliers – Suppliers are people who supplies different commodities for an organization, it can be in form of raw materials or finished products.

Responsibilities of Suppliers * Supply organizations with quality materials. * Not to reveal the price paid by organizations to other suppliers. * Deliver commodities in time when organizations require them.
Government – Government are grouping of individuals who rule a country and they can have a direct impact on organizations in a country.
Responsibilities of Government * To pass proper laws to create pleasant environment for a business organization. * Pass laws to prevent monopolies and encourage healthy business competition. * Building infrastructure required by organizations.

3) Purpose of Next Plc
Mission and vision statement of Next Plc – Next doesn’t operate with a mission/vision statement. (Refer appendix 1)
Aims of Next Plc * To meet or exceed our customers’ expectations of Next as a company. * To bring value to all our stakeholders, including our shareholders.
Goals of Next plc * Continue to work with our supply base to help them understand and develop improved traceability and visibility of the entire supply chain across a number of product categories. * Continue to identify products within our ranges to determine the opportunity to develop reduced packaging methods

Objectives of Next plc

* Improving and developing NEXT product ranges, success in which is measured by sales performance. * Profitably increasing retail selling space. New store appraisals must meet demanding financial criteria before the investment is made and success is measured by achieved sales and profit contribution against appraised targets. The store portfolio is actively managed with openings and closures based on store profitability and cash payback. * Increasing the number of NEXT Directory customers and their spend, both in the UK and through international online sales. * Managing gross and net margins through efficient product sourcing, stock management and cost control. * Maintaining the Group's financial strength through an efficient balance sheet and secure financing structure. * Generating cash to increase dividends and purchase NEXT shares, when it is earnings enhancing and in the interests of shareholders generally. (http://www.nextplc.co.uk/)
Market Share of Next plc
Market share of Next plc has be 10.04B (Refer appendix 2).

4. Economic Systems
Economic systems are structure of allocating resources in order to produce goods and services to the public. Basically there are three fundamental questions arise in all economies which is What to produce, How to produce and whom should receive the products and all the answers for these three questions differ from the different types of economic system. There are essentially three types of economic system:
4.1.Market Economy
Market economy is also known as capitalist economy or laissez faire economy and in this type of economy there is a concept of consumers are sovereign because what to produce is decided by the consumers by price mechanismwhich means how the price of a product affect the demand and supply of a product. When there is more demand for products producers produce more in order to get more profits.In market economy intervention of government is minimum and the factors of production like land and capital are privately owned.
Characteristics of Market Economy * Price is determined by the market forces of demand and supply. * Minimum Intervention of government. * Land and labor are privately owned by individuals. * Firms decides what and how they should produce.
In market economy consumers have a freedom to spend their income as they wish but producers will produce goods that makes profit to them only if they demand of a product is high then produces tend to produce that due to profit motive.
4.2. Command Economy
Command economy is also known as planned economy, and in this type of economy government makes the decision of what and how the goods will be produced and who will receive. Most of the factors of production like land, labor and capital are owned by government. Prices of goods are determined by the government and basic services like health, education and transport are provided government for free of charge.

Characteristics of Command Economy * Allocation of resources is done by government. * Government decides and fixes the price for all the goods and services. * Land, labor and capital are owned by the government. * Directives are given by the government to state-owned enterprises on what and how to produce.
In command economy there are less or no private firms and all the allocation of resources are done by government and they decide what to produce which will reduce the choice of goods available in market for consumers.
4.3. Mixed Economy
Mixed economy is the mishmash of market and command economy when some organizations are owned by the government and some are owned privately. In this type of economy what to produce is persuaded by the government and also by the consumers
Characteristics of Mixed Economy * There are combination of firs owned privately and by government * Prices of products are sometimes fixed by the market forces of demand and supply or by government * Allocation of resources are done by government as well as by private firms * Some of the factors of production are owned by government and some by private firms
As mixed economy is the combination of market and planned economy it has both firms privately owned and firms owned by the government most of the countries have this type of economy because there will be an even distribution of income where government tax more from rich

5. Fiscal policy and Monetary Policy
Fiscal policy is used by the government to influence the income and the expenditure of the government. The tools which government manipulates fiscal policy are taxation and government spending.
Monetary policy is the control of money supply and rate of interest by government and government uses open market operations, reserve ratio and discount rates as the tools of monetary policy.
5.1. Expansion and contraction of fiscal policy
Expansionary fiscal policy is when government decrease tax rate and increase government spending and this is used to boost the economy which will lead to economic growth. Economic growth means to an increase in in annual output of goods and services produced by the country which is measure by GDP (Gross domestic product) and when government uses expansionary fiscal policy it reduces taxation and there will be more disposable income in people’s hand so it can increase consumption. Government increases it’s spending on health and education because when people are healthy and educated it increase the productivity of the country.
Contraction of fiscal policy is when government increase tax and decrease government spending and this used by government to reduce inflation in a country and when government increase taxation the disposable income in people’s hand and it will reduce consumption.
5.2. Expansion and contraction of monetary policy
Expansionary monetary policy is when government decrease interest rate and increase money supply to encourage borrowings and investments. Main cause why government use expansion of the monetary policy is due to recession and unemployment in the economy. The value of the domestic currency depreciates. Central bank lowers the discount rate which encourages commercial bank to borrow more reserves. When the rate of interest is people are tend to borrow more and invest more.
Diagram 1 – Expansionary monetary policy

In diagram 1 shows the demand and supply of money, money supply is shown in the vertical line at a point controlled by the central bank and when central band uses open market operations there will be increase in money supply where the money supply curve shifts right from M1 to M2.
In contraction of monetary policy government increase rate of interest and decrease money supply to control inflation. Inflation is a situation where price of goods are rising persistently, when rate of interest are high people’s borrowings and investments decreases but they have an alternative option to save money due to increase in interest rate.Contraction of the monetary policy is used by the central bank to deal with situations of either high inflation or an anticipated rise in future inflation. By raising interest rates, the central bank will either reduce the growth of aggregate demand.
Diagram 2- Contraction of monetary policy

Central bank reduces money supply by open market operations, money supply is reduced which makes the money supply curve to shift left from M to M1.

6. Effects of fiscal and monetary policy towards Next plc
Next’s development is affected by fiscal policy and monetary policy in following ways which is discussed:
When government uses expansionary fiscal policy, tax rates will be reduced. Corporate taxes are tax that has been placed on company’s profit and when corporate taxes are reduced profit of the company increases and when profits increase Next plc will be able to pay more dividends to shareholders and due to the increase in profits and dividend payments made for shareholders Next’s share price will also tend to increase.
However when government uses contraction of fiscal policy which will tend to increase tax rates which will result in the reduction of Next’s profit gained and when profits of Next decreases the dividend paid to shareholders also will be reduced.
If government implements expansionary monetary policy there will be a cut in interest rate and increase in money supply which will encourage borrowing and also people will tend to spend more which will increase the sales of Next but on the other hand when government implements contraction of monetary policy there will be increase in interest rates and money supply of the country will be reduced and people may not have enough money to spend which will end up in reduction of sales for Next.
Next can benefit from some policies used by government and it also can have issues when government uses the policies which will create problems for Next so both fiscal and monetary policy can have direct impact on Next Plc.

7. International Trade
International trade is exchange of goods and services between countries which will create more competition in the market. International trade helps to increase the choice of goods for consumers and one of the main reason for international trade is some countries cannot produce certain goods so from international trade countries import goods they required.
7.1) Benefits for Next in International trade * Exporting goods for other countries will help to increase the sales of Next * Next can be recognized worldwide when their products are available in many countries * Next gains a global market share through international trade * Next brings foreign currencies to UK through international trade
Drawbacks for Next in International trade * If government places tariffs which is a tax on imported or exported goods the price of Next’s products will be increased in international market * Next has to face more competition from domestic firms while exporting products to other countries * Government may restrict goods imported to the country to help domestic firms in their country
Though Next faces certain issues in international trade its benefits are more than the issues they face so international trade helps the growth of Next by increasing their revenue by increase in their sales and helping to gain market share in other countries too.
8. Emerging Market
Some countries where living standards of people are low and have few development in technology has been said as developing countries and these types of countries people live below poverty, and unemployment rate will be high. Emerging markets are known for countries which have certain features of developed country but it is not called so. Developing countries are said as emerging markets because they have few features of developed countries though they have few technology, low standard of living but they have young people with good skills so the economy is still underdeveloped.

8.1)Opportunities for UK business * Government provides tax holidays to encourage business when the business enter emerging market. * Business can get use of cheap labors available in the country. * Get use of the raw materials available in the country. * Reducing cost of production can increase the profit of the business.
Barriers for UK business * Business can subject to many rules and regulation by the government than the domestic business. * Government may impose tax to protect the local business that is operating currently. * Labors available may not be skilled to use the technology that UK is using to provide the quality products.
When UK business face many opportunities while entering emerging markets and also they have to overcome the barriers to while they enter emerging markets and UK business can reduce it cost of production which is a great advantage for them but they also must pay taxes charged by government which may have an effect on their profit that they earn. 9) Economic policies of European countries and situation of EU
European Union is a unique economic and political corporation between 28 European countries that together cover much of the continent, a huge single market has been created and continues to develop towards its full potential. EU has delivered peace, stability and prosperity, helped raise living standards, and launched a single European currency, the euro.Countries in European Union manage their economic policies to overcome the economic and financial crisis. Economic and monetary union means greater organization of the Member States’ economic policies at European level and an assurance to avoid excessive budgetary deficits.Comeback to the crisis the member states, the euro area and the European Union as a whole have taken a broad range of measures to guarantee financial stability, support growth and employment and recover economic governance. The financial crisis had an impact on countries in Europe and toward its economies and the public debt crisis that followed exposed structural faintness in some European economies, such as unmaintainable levels of public or private debt or declining competitiveness.

Since 2009, the euro has been engrossed in the European sovereign-debt crisis which has led to the creation of the European Financial Stability Facility as well as other reforms aimed at stabilizing the currency. In July 2012, the euro fell for the first time in two years, following concerns raised over Greek debt and Spain's troubled banking sector. More than 50% of the UK's total trade is done with the European Union. Recession in the rest of the EU will be a straight hit to the demand for goods and services in the UK.
Many UK companies are acting to get rid of short and long term barriers and opportunities created by the crisis. In addition businesses are responding to the impact of severity, looking to manage margins, cut cost and focus on cash flows, mainly on consumer goods.

Conclusion Organizations are sorted into private and public sector, organizations in private sector involves sole trader, partnership and limited companies and organization in public sector involves government departments, government corporations and government companies. Organizations in private sector is owned by the private individuals for profit motive whereas organizations in public sectors are mostly owned by the government. Stakeholders are people with common interest in business and the stakeholders of Next plc which has sorted into two groups internal and external stakeholders and stakeholders in both groups has their responsibilities towards Next plc. Next plc doesn’t operate with mission and a vision statement but they have aims, objectives and goals that they have targeted to be achieved and they do also have a good market share in clothing industry in UK. Economic system which organizes the allocation of resources, how goods are produced and distributed must answers three basic question of economies and the answer for these question varies in all three economic systems which is market economy, command economy and mixed economy and the basic questions that the economic system must answer is what to produce, how to produce and who should receive the products. Government uses economic policies such as fiscal and monetary policy to steady the country’s economy. Government uses expansion and contraction of both policies and these concept are used when country is in inflation and recession and they use different tools in different concept to overcome the inflation and recession. Tax rate and share price of Next plc is effected by the use of economic policies, tax rate of the company is affected by fiscal policy and share price through monetary policy. When Next plc enables international trade it has more advantages compared to the disadvantages it faces in international trade. UK business which enters emerging market due to the opportunities it gain but business must also be aware of the barriers it faces. Ongoing crisis in European countries has been a great threat for European Union and EU and UK business has been effected due to the ongoing crisis in Europe.

References 1) The Times 100. 1995. Public and private sectors. [ONLINE] Available at: http://businesscasestudies.co.uk/business-theory/strategy/public-and-private-sectors.html#axzz2xCE5pQkF. [Accessed 10 March 2014]. 2) Next Plc. 1982. Business overview. [ONLINE] Available at: http://www.nextplc.co.uk/about-next/business-overview.aspx. [Accessed 02 March 2014]. 3) Chris Joseph. 2009. Features of the Market Economic System. [ONLINE] Available at: http://smallbusiness.chron.com/features-market-economic-system-3887.html. [Accessed 05 March 2014]. 4) Boundless. 2011. Mixed Economies. [ONLINE] Available at: https://www.boundless.com/business/economics-and-business/businesses-under-mixed-economic-systems/mixed-economies/. [Accessed 06 March 2014]. 5) Library of Economics and Liberty. 1999. Fiscal Policy. [ONLINE] Available at:http://www.econlib.org/library/Topics/College/fiscalpolicy.htm [Accessed 06 March 2014]. 6) Nicole Long. 2009. How to Distinguish Between Tight & Loose Monetary Policy. [ONLINE] Available at: http://smallbusiness.chron.com/distinguish-between-tight-loose-monetary-policy-3872.html. [Accessed 08 March 2014]. 7) StudyMode. 1999. Advantages & disadvantages of International trade. [ONLINE] Available at: http://www.studymode.com/essays/Advantages-Disadvantages-Of-International-Trade-162044.html. [Accessed 11 March 2014].

Appendices
Appendix 1 corporate responsibility
To 'MSDMAZOOD@YAHOO.COM'
Feb 5
Dear Shafraz Thank you for your email. Next doesn’t operate with a mission/vision statement. Further information on Next which you may find useful, can be found on our website at http://www.nextplc.co.uk/ With Regards
Corporate Responsibility Team From: investors
Sent: 02 February 2014 10:29
To: corporate_responsibility
Subject: Enquiry form - Next Plc Name: SHAFRAZ
Email address: MSDMAZOOD@YAHOO.COM
Subject: PURPOSE
Message: I am doing a report on Next PLC and i need to know the mission and the vision statement of Next plc and also i need to know about the market share of the company and this information will help me to compete my report about your company in a good manner

Appendix 2

Impact on the environment
The use of resources to manufacture and supply our products utilizes finite global resources. The source of the raw materials and the manufacture of the finished products is spread globally and provides employment, income and personal security at many different points in the process. We recognize, however, that our products utilize global resources some of which are limited in their nature.
Some of the initiatives we have implemented include: * In the UK, the business meets its responsibilities under the packaging waste regulations through membership of Valpak; * * Wooden hangers are sourced from sustainable sources and we do not give them away with the products; * * Reduction in packaging materials for finished goods i.e. no plastic banding, no inner cartons; * * Plastic returnable tote bins for shipping to our own UK stores to reduce cardboard; * * Plastic and cardboard waste is collected from our UK stores for recycling; * * At Toast packaging is recyclable, and catalogues are printed on FSC paper with vegetable based inks; * * In our US operations, corrugated cartons are re-used whenever possible and ultimately recycled using a band machine so they are crushed into bails for collection; and * * In Canada we are participants in ‘Stewardship Ontario’, paying a fee for all point of sale materials to be recycled. All lighting has been replaced with LED’s.