Business Environment

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ACKNOWLEDGEMENT

First and foremost, it is the author’s duty to record the gratitude and deepest appreciation to the Lecturer in Working with and Leading People, Mrs. Sanduni Siripala, who generously helped and offered indispensable assistance, guidance and support.

In addition, the author expresses her gratitude to the American College of Higher Education for their tremendous contribution in carrying out the following study at a success.

Last, but not least, the author wishes to convey her love and gratitude to her family and friends for their kind support offered throughout the duration of the study.  Thank You.

EXECUTIVE SUMMARY

The following report extends a research on business environment which are broadly discussed in several areas.

The first section covers different types of organisations, their purposes, stakeholders related to them, the extent to which organisations meet the stakeholders’ objectives and the corporate social responsibility.

Next, the study evaluates on different economic systems and how the resources are allocated under different economic systems. Also, it further explains the Fiscal and Monetary policy of the country and the impact of those policies on the selected businesses. Moreover, the study introduces the competition policy and other regulatory mechanisms currently prevailing in the country and evaluates the impact of those policies and mechanisms in one of the selected organisation.

Furthermore, the study covers areas of market structure and how such structure determines the pricing and output decisions of the businesses how demand-supply theories ad business, cultural environments shape the behaviour of organisations.

Finally, the study gives a comprehensive analysis on the importance of International trade to UK Business Organisations, impact of global factors on UK Business organisations and the impact of EU policies on UK Business organizations.

CONTENT

• Acknowledgement…………………………………………………………………...01

• Executive Summary………………………………………………………………….02

• Introduction………………………………………………………………………….04

• Task 1: Organisations and their Purposes……..………………….………………….05

• Task 2: Stakeholders and Objectives………………………………………………...07

• Task 3: Responsibility towards the Society………………………………………….09

• Task 4: Economic Systems………………………………….…………………...…..10

• Task 5: Fiscal and Monetary Policies and their Impact………………………..……12

• Task 6: Other Policies and their Impact on Business………………………………..14

• Task 7: Market Structure and Pricing Decisions…………………………………….15

• Task 8: Demand and Supply Theory with regard to Businesses……..……………...16

• Task 9: Impact of Business and Cultural Environment for an Organisation……..…19

• Conclusion…………………………………………………………………………...22

• Reference…………………………………………………………………………….23

Figures

• Figure 1………………………………………………………………………………16
• Figure 2………………………………………………………………………………17
• Figure 3………………………………………………………………………………17
• Figure 4………………………………………………………………………………18

INTRODUCTION

Business environment combines both the internal and external environments which guide to create a new path to grow in industries and to analyse the working environment required according to the existing socio-economic environments. Thus, it enables an organisation to earn profit through utilizing resources in the most appropriate manner.

The following is an informative, comprehensive study on different types of organisations, their objectives and responsibilities of an organisation in social, ethical and environmental aspects, resources issues and economic systems and market supply and demand.

Furthermore, the study intends to provide more information on market types and market forces which include ways of competing, regulation and strategies adopted by firms to exist in the different markets.

Task 1

Organisations and their Purposes

There are different types of organisations established in order to reach their own different sets of specific goals and objectives. Organisations can be categorised into four distinct sectors as Private, Public, Government and Voluntary.

A private sector organisation refers to a stock corporation which does not trade stock shares publicly in the open market, but are held internally by only a few individuals of the organisation and are usually set up for personal gains. They are often being funded by issuing shares, bank loans and overdrafts. In contrast, a public sector organisation is an organisation branch of government which is owned and controlled by the government and is concerned regarding the services offered to the local citizens. These are usually partly or wholly funded by the government from the public funds.

Also a government organisation is created and controlled by the government itself, whereas voluntary organisations are non- profit, non-statutory and autonomous organisations that do not belong to the government and are interested in serving and developing the community committed to benefit others. The latter may involve in philanthropic activities such as relieving poverty, advancing education and religion etcetra.

The following is a brief of four different types of organisations, which belongs to the above categories and their purposes of existence.