BUSINESS ENVIRONMENT

Business Environment



Introduction1

Assignment One: Business Environment2

Task 12

1.1.Indentify the purposes of different types of organisation in the UK.2

1.Sector Classification2

2.Commercial Interest Classification3

3.Size-oriented Classification3

4.Formal and Informal Organisations3

1.2 Describe the extent to which an organisation meets the objectives of different stakeholders.3

1.3.Explain the responsibilities of an organisation and strategies employed to meet them - example tax return etc. Use mission statement and vision statement to answer this question also think of PESTEL.5

Strategies5

Task 210

2.1 Explain how economic systems attempt to allocate resources effectively.10

Free market Economic System11

Mixed Economy System12

Centrally Planned Economic System12

2.2. Assess the impact of fiscal and monetary policy on business organisations and their activities..........12

2.3 Evaluate the impact of competition policy and other regulatory mechanisms on the activities of a selected organisation. (Choose a company).13

Business Environment

Introduction

Business environment is a necessary element to be considered and is so vital in the context of conducting any business in a specific economy. Business environment is an amalgamation of internal and external factors that definitely have a great impact on the operating situation of any business organisation (Schmidt, 1996, p. 238).

In this paper, there will be an exploration of several concepts asked in assignment based on business environment through various tasks. In the first part, there will be an exploration that will require showing an understanding of the organisational purposes within the context of the overall business environment of UK (Moncrieff, 2000, p. 247). Also, there will be a requirement of showing an understanding towards the nature of the national environment in which the economy of UK works and operates its businesses as there are also various governmental policies and laws that influence the business environment.

Assignment One: Business Environment

Task 1

Indentify the purposes of different types of organisation in the UK

Mainly, there are four different types of organisations such as: Business organisations, Non-profit service organisations, Mutual benefit organisations, and Commonwealth organisations.

The purpose of a business organisation is to generate profit in a manner that is socially accepted by everyone. E.g. Fast Food, Airlines.

The purpose of a Non-Profit Service Organisation is to help out all the local people without expecting any charges against those services. e.g. Universities, NHS.

The purpose of a Mutual-benefit Organisation to pursue their personal self-interest by joining together various individuals. e.g. Trade Unions, Clubs.

The purpose of a Commonwealth organisation is to provide services to the members of a specified populace. e.g. Police, Fire Service (Markides, 1999, p. 57).

Some other organisations in UK are classified as follows:

Sector Classification

Some organisations are 'private sector', whilst others are 'public sector' organisations. A private sector organisation is controlled and owned by private business people for generating a profit margin for the shareholders. Whereas, a public sector organisation is supervised and controlled by the governmental authorities.

Commercial Interest Classification

In this classification, there are 'profit-oriented' and 'Non-profit oriented' organisations. A profit-oriented organisation set strategic pricing for its products and services with an intention of making good profit. Non-profit oriented organisations are those which do not have intentions to make profit through its workings.

Size-oriented Classification

Organisations in UK are also classified by their sizes such ...