Business

Abstract

In this study we try to explore the concept of “businesses and their impact of economy” in a holistic context. The main focus of the research is on “businesses” and its relation with “economy”. The research also analyzes many aspects of “economic policy instruments” and tries to gauge its effect on “businesses”. Finally the research describes various factors which are responsible for “level of CSR” and tries to describe the overall effect of “Stakeholders”.

Business

1.Describe the role of business in the economy.

Imagine a world wherein you have to produce everything on your own such as growing your own food, sewing your own clothes, cooking all your meals, building your own furniture, house, cell phone and computer. Although this list is not exhaustive but does this kind of life seems practical for you in this modern age? Answer is no as it's impossible to undertake all these tasks personally on a daily basis. Not because all these activities requires a lot of time, but tons of resources and variety of skills and competencies to build house, computer and car etc. Resources and time are scare, and people need to make choices when it comes to spend their time and resources (Kelly, 2002).

To address this scarce resource problem, we have a concept of business in an economy. People come up with idea with specialization or knowledge; they possess limited skills and competencies, sometimes just one, and concentrate their limited resources to produce one or limited amount of products or service competitively. Some businesses make computers, while others offer their expertise in building the house. Businesses in our economy have allowed us enjoy and consume more service and goods than we could have enjoyed otherwise if we had to produce everything on our own. All the incredible technologies and food we enjoy is because we have business in our economy (Zabojnik & Bernhardt, 2001).

2.Compare and contrast the roles of for-profit and non-profit.

Organizations for both profit as well as nonprofit play different yet significant roles in the economy. For profit organizations' main motive is earn maximum profit for which they employ different strategies on both ends, internal (cost minimization) as well as external (differentiation, best quality, wide range of products or services, affordable prices etc.). In contrast, non-profit organizations main motive is their cause for which they come into being and work towards the attainment of that cause. For instance, in United States of America, we have both, non-profit and for profit universities. The main difference between these two kinds of universities is their fee structure which also somehow affects the quality of the education they provide to their students. For profit universities charge high fees to students therefore not every American student can afford it. This is where non-profit universities come in. These universities provide almost equal level of quality education (with less facilities of course) to students all over the United States. Their cause is to provide quality yet affordable education to every American student who is willing to pursue higher studies (Carroll ...