BUSINESS ENVIRONMENT

Table of Contents
Introduction2
Task 13
Task 25
Task 36
Task 48
References10

BUSINESS ENVIRONMENT
Introduction:
This assignment gives a description of business environment and its purposes, nature etc. Business environment is the sum of two environments that is micro environment or internal environment and macro environment or external environment. This micro environment is the immediate environment of the organization because it affects the company performance. Micro environment comprises suppliers, marketing intermediates and customer. Supplier occupies a main role of the micro environment because they provide a reliable source of supply to the business. Macro environment or external environment that describes the outside of the organization. The macro environment consists of economic, demographic, natural, cultural and political forces. The detailed business environment in various factors are explained below

Task 1 Businesses Organizational Purposes 1.1 Identify the purposes of different types of organisation in England: * The different types of organization in business environment they are sole trader, partnership, companies, franchises. * The sole trader mainly occupies on construction industry it is based on different activities like plumbing, electrical work, carpenter, window cleaning etc. The sole trader is closely contact with the customer so it is easy for decision making about the activities. The sole trader hold all the profit for his work. * The partnership shares the workload and skills with the partners and executes a best result. The partnership can make between two or more people. The most important one on the partnership is shares the profit or it is loss equally. * The companies is occupied by the share holders he only have a rights to appoint the directors. The chief executive will be appointed for making major decision and he is a senior officer on the organization. The specialist manager could be appointed on different department for run the organization. The share holders put the fund to the company for buying a new share and have rights to sell the old share. The every companies must register and have a unique name for the company. * The Franchising means sell a product under the brand name like mc Donald, Kfc. The product could trade under the brand by using this idea. The seller must have license for the required brand name for sell is product. To buy a products from the franchiser to make a profit on that product. 1.2 Describe the extent to which the organization will meet the objectives of different stakeholders * In order to meet the objectives the organisation must need to identify the stake holders by the people or group affected the work. * If you identify your stake holder it will help you to determine the effects for your activities whether it expected or unexpected. * To identify the effects and giving response for that concern. * The main stake holders in the organisation are share holder, government, employees, creditors. * Share holders have their ownership of the organization. he only have the risk of the organisation, under the control of the organisation move over to reach the objectives. * Employees are the workers employed for the organisation. They have an direct contact for the profit of the organisation. They are also giving interest for the company growth. * The government occupies a major role for any organization they act as a supervisor and ensure the organisation under the legal constraints. * Customer is the important player for the companies, they keep their companies by purchasing the product, and customer chooses the product through quality, services and price. 1.3 Explain the responsibilities of the organisation and strategies employed to meet them: * Strategies means defined as the long term decision for the way to achieve the objectives. Strategies give the responsibility of the organisation and the strategies updated frequently and without changing the long term decision * The Organisation must follow under the law and government polices because it gives the responsibility of the organization. * The organisation must be strict on adequate finance control because the inadequate finance to loss the investors. * The organisation have a responsibility for providing health service to the employees and make an environment clean to free from pollution

Task 2
2.1 Explain generally how economic systems attempt to allocate resources effectively: * The economic problems encompass scares resources for production and unlimited wants of consumers.(ukessays.com) * There are three different types of economics. They are free market economy, command economy, mixed economy. * On the free market economy system is used to determine the supply and demand of the goods and services. Among this economic system the government distorted the price and supply. * The command economy is also known as a control economy. In this economy the government control the supply and price. * The mixed economy is controlled by both the government and the private. The government has motive to provide service as free or low amount. The private sector has motive to provide service for earn profit.

2.2 Access the impact of fiscal and monetary policy on business organizations and their activities: * Fiscal policy is the policy taken by the government for spending and taxing. If a government plans to increase the economical growth. To increase in spending this will increase the demand for goods and services. If the production increases the companies hire more people for employee. * Monetary policy is the policy taken by the government for money supply and interest rate. The main tool on monetary policy is increasing or decreasing the money supply in economy. To increase the supply of money by buying government securities and money supply could be decreased by selling the government securities and this is called as a open market operation.

2.3 Evaluate the Impact of Competition Policy and Other Regulatory Mechanisms on the Activities of Organisation In England : * The office of fair trading OFT was called as a non-profit organization as a non ministerial government department of the united kingdom established by the fair trading act 1973 which requires both consumer protection and competition law in UK. * The department for business innovation and skills declare further reforms to the UK consumer and competition regimes. In accordance with the provisions of the enterprise and regulatory reform act 2013,the competition and market authority CMA was established on April 2014 * The competition commission monopolies and mergers commission replaced on 1 April 1999.It was created by competition act 1998 although most of its powers were governed by the enterprise act 2002.

Task 3
3.1 Explain generally how market structures determine the pricing and output decisions of businesses: * The market structure could be varied among the economies, sectors and goods. the price could be fix according to the market structure. * The quantity of the product could be sold quickly among the product price rate so give importance to price rating. The pricing decision is to make the organization output as maximize the profit or minimize the loss. * In this monopoly market structure only one firm or owner produce a particular product, then price determination and output decision is taken by the firm itself * The Duopoly means the situation where only two producers attain great position even though there are small scale producers in the same field. Depending on the competition and demand price is determined and output decision is made.

3.2 Illustrate the way in which market forces shape organizational responses using a range of examples:

* The globalization of production is the best range of examples, the customer demand the product around the world, organization fulfil the needs of customer through increase the production. * The relationship between market force and organizational response is demand and supply, for example the price of properties could be increased on the last two years because there are many persons wanting to live in UK , so the demand on the properties will be increased accordingly the supply decreased. * Customers are important one on the market force which induce the organisation response. Organization must be considered about on the customer satisfaction and to change the product trends periodically. * To make a fund transaction with other countries by increasing the exports it is used to strengthen the economy.

3.3 Judge how the business and cultural environments in England shape the behavior of a selected organization:

* The organization giving importance on the cultural environment like behaviour and activity of an employee and other different factors like customer satisfaction, government legislation and objectives of the business shape the behaviour of the organisation. * Tyrrells is the UK based organization is producing snack foods like potato crisps are founded in 2002. * The Tyrrells is the organisation will be formed under the political law which refers to the government polices and legislation, those policies are used to shape the behaviour of the organization. * Tyrrells operation is the cultivation of potatoes in farms and finally produced a 100% packed foods and this organization is economically strong and its giving more aware on interest rate, share rate and economic growth depending on these the organization avoid the loss. * Tyrrells giving importance on social factors to attracting the customers on obvious packing, tastes etc and fulfil the customer satisfaction. * The organization technologically improved his performance by giving different taste among the crisps like lightly sea salted, sea salt, cider vinegar, mature cheddar, cracked black pepper etc
Task 4

4.1 Discuss the Significance of International Trade to UK Business Organizations * International trade means export the product to other nation to develop the selling area and earn more profit on them. * The UK can improve the economy through only increasing the international trade market because the area of the country is small and the domestic market is small. * The international trade is used to increase the business area and develop the economy over the country. * UK purchases a raw material at cheap rates from colonies and sold the finished product in colonies. * The international trade increase more choices to the people for buy the product.

4.2 Analyze the impact of current global factors on UK business organizations: * The business organization affected by the global factors. They are political, social, technological, legal and economic. * Social factor: These factors related to changes in behaviour, tastes, and life style pattern of the population. * Legal factor: This factor related to changes in government laws and regulations. the organization follow the laws to make a successful business. * Economic factor: These factors related to changes in global economy. If the population increase the demand will be increased suddenly and hence price also increased. So the organization must be considered on the economic fluctuation because it affect the interest rate, wage rate etc * Technological factor: These factors related to changes in technology and giving opportunities for new invention. The technology among the product could changes periodically so planned to introduce the new invention, new technology on every period.

4.3 Evaluate the Impact of Policies of the European Union on UK Business Organization: * Employment policy:
This policy is used to increase the employment opportunities among the people. Under this policy EU provide a training and make a employment for the unemployed people. * Taxation policy: This policy is discussing about the tax payment on the organization. The payment of tax is used to develop the nation. * Regional policy:
This policy will leads to funds development to balance unemployment in certain areas. This policy covers an area on Italy, France etc. * Inflation policy:
This policy is used to reduce the sudden rise of price. To rising the interest rate makes more expensive to borrow the money. This method is used to reduce the sudden rise of price. * International policy:
This policy is used to promote the international trade, encourage the export and discourage the imports.

Reference: 1. educational-portal.com 2. www.termpaperwarehouse.com 3. europa.eu 4. www.studymode.com 5. businesscasestudies.co.uk