...Global Economic Environment Generally, global economic environment is influenced by various factors such as technological, environment, political, socio-cultural, and demographic that directly affects businesses. Economic environment refers to the nature of economic systems and policies, distribution of income and wealth, and level of income. Indeed, economic environment has a complex and very dynamic nature; it is continually changing along with the changes in political situations and government policies. Global Economic Environment Mainly, global economic environment is comprised of several components including the economic systems, conditions, policies, legislations, and environment. Indeed, the economic policies being imposed in every business unit are significantly influences by the overall condition of economy. This includes the improvements that occurred in economic conditions such as the purchasing power of the public, standard of living, distribution of income, and supply and demand. Mainly, these factors reflect the size of the market. Another factor reflecting the economic condition is the business cycle, which is critical to every business unit. It refers to the different stages such as prosperity, boom, decline, depression, and recovery. The economic condition of a country can be understood through its national income, per capita income, and distribution of income, demand and supply trends, inflation rate, industrial growth rate, trends in industrial sickness...
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...Global Economic Environment In: Business and Management Global Economic Environment Global Economic Environment Generally, global economic environment is influenced by various factors such as technological, environment, political, socio-cultural, and demographic that directly affects businesses. Economic environment refers to the nature of economic systems and policies, distribution of income and wealth, and level of income. Indeed, economic environment has a complex and very dynamic nature; it is continually changing along with the changes in political situations and government policies. Global Economic Environment Mainly, global economic environment is comprised of several components including the economic systems, conditions, policies, legislations, and environment. Indeed, the economic policies being imposed in every business unit are significantly influences by the overall condition of economy. This includes the improvements that occurred in economic conditions such as the purchasing power of the public, standard of living, distribution of income, and supply and demand. Mainly, these factors reflect the size of the market. Another factor reflecting the economic condition is the business cycle, which is critical to every business unit. It refers to the different stages such as prosperity, boom, decline, depression, and recovery. The economic condition of a country can be understood through its national income, per capita income, and distribution of income, demand and...
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...Assignment on Business Environment Introduction: Business environment is composed of two words ‘Business’ and ‘Environment’. In economic sense ‘Business’ means human activities like production, purchase or extraction or sales of products or services that are performed to earn money. Meanwhile ‘Environment’ means the aspect of surroundings. Business environment is the set of conditions institutional, political, economical, legal or social that is uncontrollable and affects the functions of the organization. Business environment consists of two components: external environment and internal environment. Internal environment includes of 5 M’s like management, money, machinery, material and man. On the other hand, External environment consists of demo-graphical factors, socio-cultural factors, political factors, geo-physical factors, government and legal factors. 5. Understand the organizational purpose of business 1.1 Identify the purpose of different types of organizations There are different types of organizations and mainly all kinds of organizations are divided in three sectors: public sectors, private sectors and voluntary sector organizations. The purposes of those organizations are not same. Public sector is owned and run by the government for the people. People pay taxes to the government and this money is used to finance most of the public sectors. The main purposes of public sectors organizations are to provide essential public services and to use resources...
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...MACRO FACTORS AFFECTING BUSINESS ENVIRONMENT SUBMITTED BY: AAYUSH VERMA INTRODUCTION A business firm is an open system. It gets resources from the environment and supplies its goods and services to the environment. There are different levels of environmental forces. Some are close and internal forces whereas others are external forces. External forces may be related to national level, regional level or international level. These environmental forces provide opportunities or threats to the business community. Every business organization tries to grasp the available opportunities and face the threats that emerge from the business environment. The term business ‘typically’ refers to the development and processing of economic values in society. Normally, the term is applied to portion of economic activities whose primary purpose is to provide goods and services for society in an effective manner. It is also applied to economics and commercial activities of institutions which having other purposes. Business may be defined as “the organised effort by individuals to produce goods and services to sell these goods and services in a market place and to reap some reward for this effort.” Functionally, we may define business as “those human activities which involves production or purchase of goods with the object of selling them at a profit margin”. Business organizations cannot change the external environment but they just react. They change their internal business components...
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...cities 2025: 17 of the world’s 25 largest cities will be in coastal regions in Asia 1925:25% of the world population will live in cities Greta Nasi Bocconi University p. 3 Global economy and international cities World is changing fast. Different trends are affecting cities and fostering a new age of urbanizations and metropolitanization To succeed cities must adjust (and need to be): open, integrated, diverse, connected, skilful, innovative, investable, attractive, sustainable, stable and safe This requires investments, strong coordination of programs and policies, effective tools for intervention: cities need partnerships with global corporations and small businesses to achieve this in order to create opportunities for business growth Greta Nasi Bocconi University p. 4 What are international cities? A close look An international city is a city deemed to be an important node point in the global economic system. They are also known as global cities, world cities or alpha cities It is routed in the principle of globalization according to a hierarchy of importance to the operation of the global system of finance and trade The most complex of these entities is the "global city", whereby the linkages binding a city have a direct and tangible effect on global affairs through socio-economic means Greta Nasi Bocconi University p. 5 Characteristics of...
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...MACRO FACTORS AFFECTING BUSINESS ENVIRONMENT SUBMITTED BY: AAYUSH VERMA INTRODUCTION A business firm is an open system. It gets resources from the environment and supplies its goods and services to the environment. There are different levels of environmental forces. Some are close and internal forces whereas others are external forces. External forces may be related to national level, regional level or international level. These environmental forces provide opportunities or threats to the business community. Every business organization tries to grasp the available opportunities and face the threats that emerge from the business environment. The term business ‘typically’ refers to the development and processing of economic values in society. Normally, the term is applied to portion of economic activities whose primary purpose is to provide goods and services for society in an effective manner. It is also applied to economics and commercial activities of institutions which having other purposes. Business may be defined as “the organised effort by individuals to produce goods and services to sell these goods and services in a market place and to reap some reward for this effort.” Functionally, we may define business as “those human activities which involves production or purchase of goods with the object of selling them at a profit margin”. Business organizations cannot change the external environment but they just react. They change their internal business components...
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...sheet Qualification | Unit number and title | BTEC Higher National Diploma – Business Management | Unit 1 – The Business Environment | Student name | Assessor name | Mohammed Arif | Mary EC Zafra | Date issued | Completion date | Submitted on | 19/11/2015 | 17/12/2015 | 17/12/2015 | | | Assignment title | BE1: Assignment 2/2 The Business in an Economic, Cultural and Global Environment. (LO3 & LO4) | ------------------------------------------------- Learning Outcome | Assessment Criteria | In this assessment you will have the opportunity to present evidence that shows you are able to: | Task no. | Evidence(Page no) | LO 3 Understand the behaviour of organisations in their market environment | 3.1 | Explain how market structures determine the pricingand output decisions of businesses | | | | 3.2 | Illustrate the way in which market forces shapeorganisational responses using a range of examples | | | | 3.3 | Judge how the business and cultural environmentsshape the behaviour of a selected organisation | | | LO4 Be able to assess the significance of the global factors that shape national business activities. | 4.1 | Discuss the significance of international trade to UK business organisations | | | | 4.2 | Analyse the impact of global factors on UK business organisations | | | | 4.3 | Evaluate the impact of policies of the European Union on UK business organisations. | | | Learner declaration | I certify that the work submitted for this...
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...superseded individual societies. Resultantly, there have been countless efforts of working towards pragmatic solutions to environmental concerns by means of global governance as an international collective. “The distinct characteristics of global governance lies in the assumption that the effective handling of problems is no longer the exclusive responsibility of government but of joint activities by governments, international and supranational institutions.” This understanding of global interconnectedness has incited the creation of numerous organizations, institutions and international environmental initiatives, specifically the Kyoto Protocol. However, environmental impediments have not seen notable improvements and can be attributed to the flaws of global environmental governance. Firstly, contributing to the failure of environmental policies is the ineffective structure of the Kyoto Protocol. Furthermore, with the rise of globalization, neoliberal ideals have prioritized market successes at the detriment of the environment and international environmental initiatives. Lastly, the international environmental governing body of the United Nations Environment Programme (herein referred to as UNEP) lacks legitimacy, organization and corroborated influence. This paper asserts the fundamental flaws and failures of environmental global governance in efforts of controlling and improving environmental degradation. Although there have been many initiatives taken to...
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...This essay will discuss competitiveness of countries and account for a competitiveness indicator the United States (US), a member of the Organization of Economic Cooperation Countries (OECD) performs strongly in. It will also look at two competitiveness indicators where US underperforms and suggests ways in which such indicators could be improved. In addition to this, it will consider to what extent international practices match economic theories. First, the term competitiveness, and various methods used to measure it will be discussed. The second section will examine one competitiveness indicator in which the US excels. Two competitiveness indicators in which the US underperforms will be explored in the third section, and in particular, ways in which these indicators could be improved. Finally, the extent to which current practices match theories will be discussed. There is no accepted definition for the term “national competitiveness and it has become a much-debated concept. Clark and Tracey (2004) argued that the definition of competitiveness is one of the many unresolved debates posing significant challenges to contemporary academic inquiry and policy-making in the field of globalization and economic integration. Equally, Chursin and Makarov (2015 p.4) note that “with reference to an economic entity, market participant, economic process, etc., the meaning of competitiveness is interpreted in terms of the purposes, problems, and the content of the study”. In other words, “competitiveness...
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...statement that the world is more complex than that. When we make simplifications like this, we assume that the loss of understanding is minimal: the world is more complex, but the simplification is such that the essence of the processes are still captured by our model. I will argue here that assumptions about today’s world having two levels of organisation leaves out a very important factor; this in turn results in a misunderstanding. I will argue that there are so many levels between national and global -- defined by socioeconomic systems and subsystems -- that the best approximation is not to assume the existence of two levels, but rather a continuum of levels. This makes it theoretically rather difficult to capture the emergence of the global level. Nevertheless, I will also argue that we can expect to see the break-up of such a continuum either due to an internal systemic shock, the most likely being global socio-cultural instability, or an external one, the best candidate being a global environmental catastrophe....
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...BUSINESS ENVIRONMENT Submitted By: Submitted To: Table of Contents Introduction 3 2. LO1 Understand the organisational purposes of businesses 4 2.1 purposes of different types of organisation (P1.1) 4 2.2 Extent to which Tesco Plc meets the objectives of different stakeholders (P 1.2) 5 2.3 Various responsibilities of Tesco Plc as an organisation and the strategies it employs to meet the objectives of the stakeholders (P1.3) 6 3. Nature of the national environment in which business operates (LO2) 9 3.1 How different economic systems attempt to allocate resources effectively (P 2.1) 9 3.2 Impact of Fiscal and monetary policy on the activities of Tesco PLC (P 2.2). 10 3.3 Impact of competition policy and other regulatory mechanisms on the activities of Tesco Plc (P 2.3). 11 3.3.1 Impact of competition policy ON THE ACTIVITIES OF TESCO PLC 11 3.3.2 Impact of regulatory mechanisms on the activities of Tesco Plc 12 4. Understand the behaviour of the organizations in their market environment (LO3). 13 4.1 explain how market structures determine the pricing and output decisions of TEsco plc (P 3.1). 13 4.2 How market forces shape Tesco PLC UK responses using a range of examples (P 3.2). 14 4.3 Explain how the business and cultural environments shape the behaviour of Tesco PLC UK (P 3.3). 15 5. Significance of the global factors that shape national business activities (LO4) 16 5.1 SIGNIFICANCE of international trade to Tescos PLC UK ( P 4...
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...Evolving Corporate Culture Report Evolving Corporate Culture Report Diversification of environment is the key to the growth in today's competitive global marketplace. No longer can America's organizations and corporations hide behind their lack of cultural intelligence. All organizations that seek global market relevancy means embracing diversity in elements such as how they perceive, think, act and innovate. Thus, they take into consideration all the factors that affect strategic planning and management. Corporate management is the process of leading, administrating and directing a company. Business tasks often performed by corporate management might include strategic planning, and managing company resources and applying them with a focus on attaining the company’s objectives. Expansion of global business space of an organization or a company can lead to amid challenges in its operations hence the need for change in corporate strategic management. For instance, the Equity Bank in Kenya was a local corporation initially but in the recent years, it has expanded its scope to other countries and states e.g. Uganda, Tanzania, Rwanda and Democratic Republic of Congo (DRC). This has led to the need for changes in its corporate operations due to large scope. Thus, it is true that its expansion has resulted in various changes; these include; change in strategic management, change in business planning, change in controlling and financial management, change in marketing management...
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...(A) Name Course Date Institution Why did Chile institute capital controls in 1991? Despite the impressive economic performance by Chile in the 1990’s, dramatic changes in the external environment call for a review of its capital controls. For instance, in 1991 the country instituted the “encaje” to control excessive speculative capital inflows. In addition, these controls would help the country efficiently manage her exchange rate regime and pursue an autonomous monetary policy. Due to the low prevailing global interest rates at the time, excess capital inflows exposed the Central Bank's capacity to manage the exchange rate within acceptable margins. Indeed, if the influx continued, Chile's inflation would drastically rise to unmanageable levels (Alfaro & Tella, 2007). Before the 1997 Asian financial crunch and the Russian debt crisis of 1998, the Chilean economy had thrived despite these controls. However, in the aftermath of these crises, the country suffered both trade and financial deficits. For instance, since Asia nations served as her important export destination, Chile’s current account deteriorated massively. Moreover, the declining price of cooper saw a plummeting of foreign exchange due to dwindling demand from traditional export markets. Certainly, these unpredictable changes in the dynamic economic environment force Chile to reassess its capital control strategies (Alfaro & Tella, 2007). Did the controls meet their objectives? There is mounting...
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...------------------------------------------------- Analysis of an organisation’s Business Environment ------------------------------------------------- ------------------------------------------------- Submitted To: ------------------------------------------------- Submitted By: Date of Submission: Executive Summary: Before setting up business organization, the owner or the manager of that organization decides which function the business organization has to perform and design its objectives. After those organizations have to decide about which strategies they use to achieve these objectives. There are some internal and external parties involved with large or even small business organization known as stakeholders. Stakeholders may be shareholders, managers or employees, customers, suppliers, lenders, and government. They have some objectives also. Organizations are responsible for their objectives. Organizations are also responsible to the society, and their customers. Every organization should concern about the business and cultural environment. Understanding the business and cultural environment organization can find out its strength, weakness, opportunity, and threats. Knowing these organization can overcome the threats and weakness and can go global. Through international trade organization can easily import or export goods and services which help to increase their economic conditions. Objective of British Airways is to provide smarter...
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...Business Environment on Armani Contents Introduction…………………………………………………………………………………………………………………… Task 1……………………………………………………………………………………………………………………………. 1 1.1 Identify the purposes of different types of organization………………………………............ 1 1.2 Describe the extent to which an organization meets the objectives of different stakeholders………………………………………………………………………………………………………………………….. 3 1.3 Explain the responsibilities of an organization and strategies employed them……………….. 4 Task 2…………………………………………………………………………………………………………………………………….. 6 2.1 Explain how economic systems attempt to allocate resources effectively……………………. 6 2.2 Assess the impact of fiscal and monetary policy on business organizations and their activities………………………………………………………………………………………………………………………………….. 8 2.3 Evaluate the impact of competition policy and other regulatory mechanisms on the activities of a selected organization…………………………………………………………………………………… 9 Task 3………………………………………………………………………………………………………………………………… 10 3.1 Explain how market structures determine the pricing and output decisions in various organizations………………………………………………………………………………………………………………… 10 3.2 Illustrate the way in which market forces shape organizational responses using a range of examples……………………………………………………………………………………………………………………… 11 3.3 Judge how business and cultural environments shape the...
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