BUSINESS ENVIRONMENT

Business Environment

Introduction1

Task 1: The Organizational Purposes of Businesses2

Different Types of Organization2

Objectives of Different Stakeholders3

Responsibilities and Strategies of an Organization4

Task 2: The Nature of the National Environment5

Economic Systems in allocating Resources Effectively5

Impact of Fiscal and Monetary Policy on Business Organizations and their Activities6

Impact of Competition Policy7

Task 3: The Behaviour of Organizations in the Market Environment8

Market Structures8

Market Forces shaping Organization Responses9

Impact of Business and Cultural Environment9

Task 4: The Significance of Global Factors10

Significance of International Trade to UK business organizations10

Impact of Global Factors on UK business organizations10

Impact of European Union's Policies on UK business organizations10

Conclusion11

Recommendations11

References12

Business Environment

Introduction

As the developments are taking place, the organizational environment is becoming much more complex. Any organization has to operate its business within the provided environment. A firm can be expressed as a microeconomic unit which is greatly influenced by the both internal and external environmental factors. It includes; the value system within which business operates, economic condition, political situation of a country, law and order, monetary and fiscal policies. Our lives are also influenced by the changes taking place in activities of the business environment. Such as wholesaling, retailing, production and operations, and the whole supply chain system greatly influence the economic activities (Fernando, 2011, p.33). Any kind of business must possess certain conditions, which include,

Organize the four factors of production; land, labour, capital and enterprise in a reasonable manner.

Involved in exchange of products or services; either tangible or intangible.

Identify its internal capabilities and external powers by conducting the SWOT analysis. Before understanding the strategies applied by the key players of the market, it is important for a firm to evaluate its own performance (Elearn, 2005, p.11)

The ultimate motive is profit. Many businesses get involved in diversified businesses to put themselves in a sheltered side, as if one line of business fails to generate profit, then they have other sources.

Courage to face the risk and uncertainty. Whenever, a firm invests in some kind of business, they should keep the likelihood of success and failure in their mind. Risk could be appear in any form like the customer's choices changed, availability of resources, use of advanced technology, tough competitors, and wrong decisions.

The ability of continuity in conducting business. It means that transactions should be going on a regular basis (Fernando, 2011, p.34).

The impact of globalization is clearly visible in the currently existing business environment. By the emergence of international organizations, many firms try to expand their businesses globally by setting their operations there. Some of the well-known companies which have their businesses in small countries started their businesses in such countries, which have potential buyers for them such as Nestle, Unilever, and Philip Electronics (Lucas, 2000, p.3).

Task 1: The Organizational Purposes of Businesses

Different Types of Organization

There are two types of organization; public sector and private sector. Public sector organizations are controlled by the Government or State of the country. The primary aims of such organizations include:

To provide the public with the basic and essential ...