The Business Environment
Stevie Neal
BUS100284VA016-1124-001
January 22, 2013
Professor Carlotta Burnette

Abstract
During the course of this paper it will describe the role of business in the economy, compare and contrast the roles of for-profit and nonprofit organizations in the economy. This paper will also discuss the impact of current fiscal and monetary policy on the economy as well as outline a strategy for accessing global markets. By the time you the reader are done reading this paper you will have some knowledge on the impact of certain organization’s level of social responsibility on a stakeholder group.

Describe the role of business in the economy.
To understand fully the role that business plays in today’s economy we first have to understand the word business. Business according to Business Dictionary, (2011): Business is
An economic system in which goods and services are exchanged for one another or money on the basis of their perceived worth. Every business requires some form of investment and a sufficient number of customers are to whom its output can be sold at profit on a consistent basis. The foundation of a healthy community is a sustainable and diverse economy that is able to generate wealth for community members, businesses, and all those who interact within the community. That wealth provides income-earning opportunities for members, contributes to the quality of life, makes the community an attractive place to live and reduces poverty and crime - thereby achieving the vision of a healthy community. Economic drivers are "new wealth generators" or businesses that bring new and sustainable wealth into the community by providing goods and services to customers outside of the local area. Examples of economic drivers include tourism and export-oriented businesses that sell regionally or internationally. According to Edmiston, (2011): The wealth from these economic drivers increases the money available in the community and is shared with: * Other businesses (through local purchasing and the strengthened spending capacity of residents) * Residents (through wages and job creation and their associated positive social impacts) * Organizations responsible for providing local services and amenities
These are some of the roles that businesses play in our economy today and how businesses contribute to our communities and the well being of our economy.
Compare and contrast the roles of for-profit and nonprofit organizations in the economy. When starting a business its main objective or primary goal is to be financially beneficial to its owners and/or shareholders. Profit is paramount and the business is required to pay taxes on the profit that it makes. According to Kylander & Stone, 2012: When a business is started for profit and it goes out of business, its assets can and must be liquidated and the proceeds distributed to the owners or to the shareholders. On the other hand nonprofit organizations are just the opposite of the for-profit organization. Most people believe that the nonprofit organizations don’t make any money, but this is totally a misconception; in fact nonprofit organizations must make a profit and try to make surplus profit to pay the bills and help other charitable organizations. Contrary to what people may believe nonprofit organizations are not owned by any one individual, nor are they controlled by any one individual they are owned by the public for the good of all that are in need. Nonprofit organizations are exempt from taxes, but are required to file annual information returns for the federal and state government. Should a nonprofit organization go out of business their assets are to be liquidated after debts and liabilities have been satisfied and the remainder must be given to another nonprofit organizations.
Discuss the impact of current fiscal and monetary policy on the economy.
Fiscal and monetary policy both play a very important part of how our economy fluctuates up or down by the decisions that the government makes. Fiscal policy according to Investopedia, (2009): Fiscal policy is the means by which a government adjusts its levels of spending in order to monitor and influence a nation's economy. Kelly & McGowan, (2012) further state that fiscal policy does the following to boost the economy: * Lower taxes to boost economy by leaving money in peoples pocket for them to spend or invest. * Government spending EX: on road repair or building schools helps creates jobs. * Long term effects by investing in critical public assets EX: national renewable energy grid.
These are some of the ways that the government uses fiscal policy to alleviate pressure on our economy. Monetary Policy according to Investopedia, (2011) The actions of a central bank, currency board or other regulatory committee that determine the size and rate of growth of the money supply, which in turn affects interest rates. Monetary policy is maintained through actions such as increasing the interest rate, or changing the amount of money banks need to keep in the vault (bank reserves). The Federal Government has taken on several actions this time to try and boost the economy back to health. According to Kelly & McGowan, (2012) the government was responsible for several major acts such as: * For the first time in its history, the Federal government took an activist role with the bail out and propping up of staggering financial firms. * Banking services for member banks and the Federal Government * The monetary policy core purpose is to influence the size of the money supply.
These are some of the ways that monetary policy affects our economy to get it up and running.
Select a product or service with which you are familiar and outline a strategy for accessing global markets. Hospitality is the service I chose, because hospitality is need all over the world. People have to go to different countries whether it’s for school, business or pleasure hospitality is something that’s much needed. Take for instance Bill Marriott; he has hotels all over the world. Building his own hotels and employing people from where ever he decides to build. Outsourcing to foreign contractors and suppliers to supply the building materials, the supplies needed to run the hotel as well as the labor are a definite way to cut cost, but still give premium service.
One other thing that I feel like is very much needed is being able to speak to the people from other countries and communicate on a level that will be beneficial to us all. These are the things that I believe will be beneficial in getting a product or service to be successful globally. Alone with continuous good customer service hospitality will always be number one.
Select an organization with which you are familiar and discuss the impact of that organization’s level of social responsibility on a stakeholder group of your choice. Wal-Mart would have to be my choice of organization for several reasons: * Wal Mart is globally conscious of saving the environment * Wal-Mart made a conscious effort to become green * Wall Mart gives back to the community by donating to toys for tots annually. * Wal mart sponsors United way charitable organization * Wal-Mart contributes to St Jude Hospital annually * Wal mart gives scholarships to deserving students going off to college * Walmart fully supports the back to school drive.
As far as the responsibility to the stakeholder Wal-Mart offers 401K, stocks and bonds .Wal-Mart does a lot to support the community and charitable organizations. Wal-Mart is definitely one of the better companies to work for, get support from and a real team player.

References
Business Dictionary, (2011) Definition of Business retrieved on January 20, 2013 from www.businessdictionary.com/definition/business.html
Edmiston, K. (2004) Building a better economy: The role of business in creating wealth... www.rbc.com/newsroom/20040304coffey.html Kylander, N. & Stone, C., (2012). Retrieved on January 20, 2013. Retrieved from The Role of Brand in the Nonprofit Sector | Stanford Social... www.ssireview.org/.../the_role_of_brand_in_the_nonprofit_sector Investopedia, (2009) Definition of Fiscal Policy retrieved on January 20, 2013 from http:/www.investopedia.com/articles/04/051904.asp#ixzz1tdEEhbK6p:/
Investopedia, (2009) Definition of Monetary Policy retrieved on January 20, 2013 from http://www.investopedia.com/terms/m/monetarypolicy.asp#ixzz1tdM1b9s7 Kelly & McGowan, (2012) BUSN4 Chapter Two p.19-21