BUSINESS ENVIRONMENT

Business Environment



INFORMAL REPORT

Understand the nature of the national environment in which businesses operate.

Nature plays a pivotal role in the establishment of businesses on a local or international platform. One must understand that in today's modern world of rapid development and expansion, it has become extremely necessary and important for businesses to understand the natural environment and surrounding in which these businesses shall pertain to operate (Aaker & Joachimstaler, 2000, pp.225).

Environment and nature are amongst the many factors that contribute towards crafting, execution and evaluation of business strategies and establishment that have taken place in the real world. For instance, Forster, which is a relatively small-sized, marketing agency, has scored the first position in the light of contributing towards environmental restoration and reservation of natural habitat in the United Kingdom (Ang & Lim, 2006, pp.39). Reports and results suggested that the company has company has a low environmental impact, and earned a 94 percent green score from employees.

Explain how economic systems attempt to allocate resources effectively. What are these economic systems? What about Market Forces?

Economics and economic systems is the most important facet for any business to flourish or excel in their given area of expansion. When design, planning or attempting to execute strategy in the light of business operations, economic factors take centre stage for the heads of authority and the business heads to pave way for undertaking prompt, yet profitable decision for the sustainability of the business and creating a competitive edge (Ballantyne, Warren & Nobbs, 2006, pp.339).

Answering questions related to market size, buyers and seller base, distribution channels, industry and company analysis and their profitability, etc. are all answered in the area of economics that significantly contribute towards clear, vivid analysis of highlighting profit sanctuaries and profitable business operations (Budhwar, 2000, pp.285).

In addition to this, generally the kind of economic systems that are being developed are on the basis of a few objectives, depending upon where the country wants to go to. These could include efficiency, growth, liberty or equality. With a blend of market forces, such

Assess the impact of fiscal and monetary policy on businesses organisations and their activities. How does it affect Tesco?

For a brief overview of the two terms, monetary policy implies patented rules and regulations that keep track of expansion or contraction of money and monetary funds in the economy. On the other hand, fiscal policy is coined for the revenues and expenditures that shall be undertaken by the Government (Chi et.al, 2005, pp.253).

To assess each impact depends on the kind of business that you are in. Changes in monetary and fiscal policy, such as fluctuations prevailing in the foreign exchange rates (FOREX rates), credit stability ratings, loan extension and advancement to willing individuals or organizations may help in improving conditions of the financial sector and accordingly help us to maintain within the financial sect and the real estate simultaneously (Choe, 2003, pp.257).

Tesco tends to mould and maintain its position by moulding its offering with reference ...