An Assignment on business environment

An Assignment

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Business Environment

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Contents

Introduction:        3

LO1: UNDERSTAND THE ORGANISATIONAL PURPOSES OF BUSINESSES        3

1.1 Identify the purposes of different types of business organization, providing local, national and global examples        3

1.2 Select an organization of your choice and describe the extent to which this organization meets the objectives of its stakeholders.        4

1.3 Explain the responsibilities of an organisation and strategies used by organisations to ensure these are met.        5

LO2:  UNDERSTAND THE NATURE OF THE NATIONAL ENVIRONMENT IN WHICH BUSINESSES OPERATE        7

2.1 Using examples of different types of economic systems, explain how they attempt to allocate resources effectively        7

2.2 Assess the impact of current fiscal and monetary policies on organisations and their activities by using specific businesses as examples.        8

2.3 Evaluate the impact of current competition policy and other regulatory mechanisms within which it operates by using a selected organisation        9

LO3: UNDERSTAND THE BEHAVIOUR OF ORGANISATIONS IN THEIR MARKET ENVIRONMENT        10

3.1 Explain how market structures determine pricing and output decisions and give examples of the different market structures that exist and using diagrams.        10

3.2 illustrate how these market forces shape organisational responses and give examples of market forces and using diagrams        11

3.3 Judge how the business and cultural environments in which it operates shape the behavior of the specified organisation by using a selected organisation.        13

LO4:  BE ABLE TO ASSESS THE SIGNIFICANCE OF THE GLOBAL FACTORS THAT SHAPE NATIONAL BUSINESS ACTIVITIES        14

4.1 discuss the significance of international trade to business organization        14

4.2 Analyze the impact of global factors on business organizations.        15

4.3 Evaluate the impact of the policies of the European Union on business organisations        16

Conclusion:        16

Reference:        17

Introduction:

Business environment is the key factor of the macro economic environment though the Business environment is continuously changing the key aspect such as economic structure, policy, economic systems, political, cultural, technological are never change and Business environment define the mood of the organizational behaviour which is continuously change with the change of the action of the competitor. Therefore organization defines their policy in different context to sustain in critical situation and to maximize their market share.

LO1: UNDERSTAND THE ORGANISATIONAL PURPOSES OF BUSINESSES

1.1 Identify the purposes of different types of business organization, providing local, national and global examples

Today the arena of the business world is too wide and the range of this world is growing too faster than the any other element. With the development of the technology and increase of human needs business world get flourish (Quelch & Klein, 1996). There are different types of business organization. These are

• Sole traders
• Private limited
• Public limited
• Partnership
• Non-profit organization

Purpose of these organization: 

The purpose of these organization are given below

Sole Traders: this is the most common types of business in the world and this is the oldest form of business and the purpose of this business is to make profit for the owner and this is the local business systems (Longley, 2005).

Partnership: partnership business can be local or regional and the partner can be of various regions and the purpose of this business is to make profit for both the parties and parties.

Private Limited: Unilever company is a private limited organization and this organization run their business in the global context and the purpose of this organization is to run business in the global context and takes opportunity from the oversee country and thereby makes profit (Teegen & others, 2004).

Non-profit organization: UNESCO is a non-profit organization which also operates their activity around the world for the purpose of ensuring child education and child safety.

1.2 Select an organization of your choice and describe the extent to which this organization meets the objectives of its stakeholders.

Stockholders of Walmart

Walmart is the world’s number one largest retail business organization and this business organization serves a number of stockholders and meets their objectives. The objectives of these stakeholders are given below.

Suppliers: 

Walmart have a number of suppliers and the objectives of these suppliers is to ensure continuous product supply to the Walmart and price consistency of their supply product and thereby making profit and Walmart try to take continuous supply from some good supplier and maintain good relation with them (Atkinson & others, 1997).

Customers:

 Customers are the main stockholder of the Walmart and the success of the Walmart business depend on the satisfaction of the customers. Walmart try to meet the customer objectives such as good product, fair price, high quality, product information, good mannered sales person and all these objectives are meet by the Walmart (Allison & Kaye, 2011).

Employee: 

employee is another important stockholder agent and these stockholder serve the company so their performance determine the Walmart’s fate that’s why Walmart try to meet the employee’s following objectives such as good salary, promotions, sales allowance, leisure time, overtime salary, risk security and bonus etc.

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