Business Environment

Business Environment

Table on Content

Introduction1

LO1: Understanding the Organizational Purposes of Business3

1.1 Identify the Purposes of Different Types of Organizations3

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 to meet them.5

LO2: Understand the nature of the national environment in which businesses operate6

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 activities8

2.2.1 Fiscal Policy8

2.2.2 Monitory Policy8

2.2.3 The Implications of Such Policies on Business and organization8

2.3 Evaluate the impact of competition policy and other regulatory mechanisms on the activities of a selected organization9

2.3.1 Low Price9

2.3.2 Better Quality10

2.3.3 More Choice10

2.3.4 Development10

2.3.5 Better contestants in worldwide business sectors10

LO3: Understand the behavior of organizations in their market environment11

3.1 Explain how market structures determine the pricing and output decisions of businesses11

3.2 Illustrate the way in which market forces shape organizational responses using a range of examples11

3.3 Judge how the business and cultural environments shape the behavior of a selected organization12

LO4: Be able to assess the significance of the global factors that shape national business activities14

4.1 Discuss the significance of international trade to UK business organizations14

4.2 Analyze the impact of global factors on UK business organizations14

4.3 Evaluate the impact of policies of the European Union on UK business organizations15

Final Summary16

Business Environment

Introduction

This paper is an environmental analysis of businesses, which operates in the comparable markets. To successfully pursue this assignment, two businesses are chosen from the British market, and analyzed on the rubric that is been provided. Despite of it a charity organization is also need to be put under consideration to understand the business environment. The two organizations, which I have chosen are “Vodafone” and “Tesco”, whereas, the charity organization, which I have chosen is “Save the Children Fund”. All these organizations are associated with entirely different business industries. Vodafone is a telecommunication company, which is considerably the leading telecom operator in the British market. Whereas, Tesco is retail operator that runs a chain of retail stores across the Britain. However, the Save the Children Fund is an international organization, which is also a big NGO operating for the rights of children. The paper will elucidate and analyze the business environment, with various perspectives, for both the organizations.

The graphs mentioned on the following page demonstrate the growth of these companies on the scale of last few years.

Fig 1: This graph shows the revenue generated by Vodafone since 2005 till 2012

Fig 2: This graph is demonstrating the growth of TESCO in the last one decade, and expected growth in next three years

LO1: Understanding the Organizational Purposes of Business

This is considerably the first section of this assignment, in which both organizations are examined to understand the organizational purposes of their business.

1.1 Identify the Purposes of Different Types of Organizations

Organizational purpose defines the reason for the existence of an organization in the market place. It actually explains that how a particular organization fulfils basic human needs, and how it is going to impact the ...