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Dubai Car Market

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GLOBAL ENVIRONMENT
LO2: Understand the nature of the national environment in which businesses operate
LO3: Understand the behaviour of organisations in their market environment
LO4: Be able to assess the significance of the global factors that shape national business activities

Scenario:
Understanding the environment within which the business has to operate is very important for running a business unit successfully. The environmental factors influence almost every aspect of business; be it its nature, its location, the price of products, the distribution system, and the personnel policies. Hence, it is important to learn about the various components of the business environment, which consists of the economic aspect, the socio-cultural aspects, the political framework, the legal aspects and the technological aspects.
Evaluating the external environmental factors is as crucial as analysing the internal environment to all organisations. Working as an assistant to the Business Development Manager you need to conduct research on various aspects of the business environment.
Task 1: understand the nature of the national environment in which businesses operate: INDIVIDUAL REPORT DATED DECEMBER 3, 2012

P4: Explain how economic systems attempt to allocate resources effectively
P5: Assess the impact of fiscal and monetary policy on business organisations and their activities
P6: Evaluate the impact of competition policy and other regulatory mechanisms on the activities of a selected organisation.
P7: Explain how market structures determine the pricing and output decisions of businesses

Guidelines to achieve P4, P5, P6 and P7: • Discuss different types of economic systems like socialism, state economy, and other economic systems
• Assess how each economic system attempts to allocate resources effectively;
• Explain all the UK government policies

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