Business envoirnment assigment BTEC HND

Business environment

BM 16

Hijaz Ahamed Page 1


BM 16

Table of ContentsAcknowledgement.......................................................................................................................................5

LO1.........................................................................................................................................................6

1.1 identify the purpose of different types of Organization..............................................................6

Access Engineering..................................................................................................................................6

Nawaloka Hospitals PLC...........................................................................................................................7

Bank of Ceylon.........................................................................................................................................8

Mas Holdings...........................................................................................................................................9

Softlogic:Softlogicb provides a wide range of service in many industries. They provide service in ICT, Healthcare, Retail, Financial Services, Automobiles and Leisure. The company’s purpose is to make the right decisions to increase returns on money invested. Employing and rewarding the best, to leverage market potential and become the most admired corporate in Sri Lanka.....................................................................................................10

P1.2 Describe the extent to which an organization meets the objectives of different stakeholder..................................................................................................................................................................12

Strategies to meet stakeholderobjectives – A case study of Nawaloka Hospitals PLC...........................12

Nawaloka Hospitals PLC...................................................................................................................12

We can analysis Stakeholders of Nawaloka Hospitals.................................................................13

Stakeholder Mapping.........................................................................................................................14

Objectives of internal stakeholders in Nawaloka Hospitals...........................................................15

How does the company keeps everyone happy.............................................................................17

P1.3Explain the responsibilities of an organization and strategies..................................................18

Access engineering responsibilities.................................................................................................18

LO 2...........................................................................................................................................................22

P2.1 Explain how economic systems attempt to allocate resource effectively....................................22

Task2.2..................................................................................................................................................27

Assess the impact of fiscal and monetary policy on business organizations and their activities...........27

Task2.3..................................................................................................................................................30

Evaluate the impact of competition policy and other regulatory mechanisms on the activities of a selected organization............................................................................................................................30

Hijaz Ahamed Page 2


BM 16LO 3...........................................................................................................................................................33

Task3.1..................................................................................................................................................33

3.1Explain how market structure determines the pricing and output decisions of businesses.........33

Task3.2..................................................................................................................................................34

Task 3.3..................................................................................................................................................39

LO4............................................................................................................................................................40

Task 4.1..................................................................................................................................................40

Task 4.2..................................................................................................................................................43

Task 4.3..................................................................................................................................................47

Conclusion.................................................................................................................................................50

Bibliography...............................................................................................................................................51

Hijaz Ahamed Page 3


BM 16

Hijaz Ahamed Page 4

Declaration of Authenticity

I certify that the work submitted is my own. Where the work of others has been used t support my work then credit has been acknowledgment.

Signature: ………………….. Date:……………...


BM 16

AcknowledgementI have taken efforts in this assignment. However, it would not have been possible

without the kind support and help of many individuals and organization. I am using this

opportunity to express my gratitude to all those who provided me the possibility to

complete this assignment. I am thankful for their aspiring guidance and friendly advice

during the assignment work. I would like to express my warm thanks to Mr.Shanker

Rajamani,Mr.Zarudeen. Thank you sir for your guidance and support . I would like to

extend my gratitude to the management of British College of Applied Studies and my

fellow class mates BM 16 for providing and helping me in all the materials required to

complete this assignment.

Hijaz Ahamed

BM 16

Hijaz Ahamed Page 5


BM 16

LO1

1.1 identify the purpose of different types of Organization

An organized group of a company, business, club that is formed for a purpose is called as

an organization. All organizations have a management structure. This structure will help to

develop relationships between the different activities with the members,. In Sri Lanka the

organizations can be categorized into private and government and Non government

organizations. The private companies are managed under the private sector and government

organizations works according to the rules and regulation system of Sri Lankan government.

For this purpose I have selected 5 organizations;

Access Engineering: We are one of Sri Lanka’s foremost entities in the Civil

Engineering and Construction industry in srilanka. We live and breathe plans, blueprints,

specifications and all manner of systems and processes that ‘come with the territory’.

Access Engineering ensures sustained value creation for the benefit of all stakeholders.

Owner : Mr.Sumal Perera

Purpose: VISION

To be the foremost Sri Lankan business enterprise in value engineering

MISSION

To meet the challenges in the development of multi sector civil engineering projects, providing innovative solutions whilst developing long term progressive relationships with all our stakeholders.

Legal Type: Public limited company

Hijaz Ahamed Page 6


BM 16

Nawaloka Hospitals PLC: The entry of Nawaloka Hospitals into the state

dominated healthcare sector in 1985, saw the private health care system take root in Sri

Lanka. The launch of the hospital and the overwhelming response it received from the

people demonstrated a long felt need for superior healthcare in a pleasant environment.

Owner: Mr.Jayantha Dharmadasa

Purpose: VISION

“To be the hospital of tomorrow”, to provide quality and safe

healthcare to the people whilst maintaining leadership and

Excellence in the healthcare facility.

MISSION

“Healing with feeling” to provide the best quality healthcare in accordance with

international standards to the needy in a cost effective, timely and professional manner.


Hijaz Ahamed Page 7


BM 16 Bank of Ceylon: BOC having completed more than seven decades of glorious existence, the Bank is firmly entrenched as Sri Lanka’s premier financial services organization offering a broad range of services consists of commercial banking, trade finance, development financing, mortgage financing, lease financing, investment banking, corporate financing, dealing in Government securities, pawn brokering, credit card facilities, off-shore banking, foreign currency operations and other financial services. BOC holds the leadership position in its assets, deposits, and foreign currency remittances

Owner: Government-Owned

Purpose: VISION

“Bankers to the Nation.”

MISSION

Customers – Foster mutuality rewarding customer relationships with all our customers

exceeding their expectations.

Staff – Give all our staff the recognition and rewards to be the best team of achievers in

service excellence.

Owners – Be a profitable catalyst for equitable development covering urban & rural areas.

Society – Provide world – class banking services across the nation as a beacon for

progress and growth.

Legal Type: Government-owned Corporation

Hijaz Ahamed Page 8


BM 16

Mas Holdings: A company which focuses on fashion and lifestyle. It is a manufacturer of intimate apparel, sportswear, and provides IT solutions to the apparel and footwear industry .The seamlessly integrated supply chain that is balanced to perfection with the organization’s strategically placed design houses gives MAS the knowledge, the means and the speed to delivery that is demanded by the industry..

Owners: Mr.Mahesh Amalean, Ajay Amalean, Sharad Amalean

Purpose:

VISION

To Inspire, Innovate, Create Value and Respect Human

MISSION

Inspire Innovation and Sustainability

Build Talent and Strategic Relationships

Achieve Excellence and Ambitious Profitable Growth

VALUES

Values

Honesty & Integrity

Humility

Passion for Excellence

Trust & Mutual Respect


Hijaz Ahamed Page 9

https://en.wikipedia.org/w/index.php?title=Sharad_Amalean&action=edit&redlink=1

https://en.wikipedia.org/w/index.php?title=Ajay_Amalean&action=edit&redlink=1

https://en.wikipedia.org/wiki/Mahesh_Amalean


BM 16Softlogic:Softlogicb provides a wide range of service in many industries. They provide service in ICT, Healthcare, Retail, Financial Services, Automobiles and Leisure. The company’s purpose is to make the right decisions to increase returns on money invested. Employing and rewarding the best, to leverage market potential and become the most admired corporate in Sri Lanka.

Chairman: Mr. Ashok Pathirage

Purpose:

VISION

To be the most preferred and trusted product and service provider, delivering high quality

solutions to corporate and retail customers so as to set new industry standards and enhance

shareholder value.

MISSION

Making the right decisions to increase returns on money invested. Employing and rewarding the best, to leverage market potential and become the most admired corporate in Sri Lanka.


Organization Legal Form Type AdvantagesPurpose/vision/mission

Hijaz Ahamed Page 10


BM 16

Access Engineering

PublicLimited Company

PrivateProfit distributed among stakeholders.To raise huge financial resources

Their purpose is to meet the challenges in the

development of multi sector civil engineering projects

, providing innovative

solutions whilst developing long term progressive

relationships

with all the stakeholders

Nawaloka Hospitals PLC



We are committed to achieving and maintaining a

standard of excellence in all we do. – Excellence in

clinical care, service and communication – Collaboration

within our Institution and with others who share our

mission and goal

Bank of Ceylon

Government-owned Corporation

PublicStability and Service According to the Mission, Vision they are doing their

strategies, By following Mission, Vision they are following their objectives. This is helping them to reach their target very soon. From this their quality is increasing among the society.

Mas Holdings



To Inspire, Innovate, Create Value and Respect

Humanity.

Softlogic Holdings


Private Profit distributed among stakeholders.To raise huge financial resources

Soft logic provides a wide range of service in many

industries. They provide service in ICT, Healthcare,

Retail, Financial Services, Automobiles and

Leisure. The company’s purpose is to make

the right decisions to increase returns on money

invested. Employing and rewarding the best, to

leverage market potential and become the most

admired corporate in Sri Lanka.

Table 0-1.: Types and purposes of the organization



BM 16

P1.2 Describe the extent to which an organization meets the objectives of different stakeholder

Strategies to meet stakeholderobjectives – A case study of Nawaloka Hospitals PLCStakeholders are individuals or groups who have an interest the operations and objectives of the business how the organization performs. They can be internal or external. Stakeholders are very important for the organization to be success. They can affect or be affected by the organization’s actions, objectives and policies. There are mainly three categories of stakeholders who have an effect on the organization.

Figure 1: Stakeholders

Nawaloka Hospitals PLC:We can categorize their stakeholders under these main three categories:

Internal Stakeholders Connected Stakeholders External Stakeholders



BM 16

Directors

Managers

Medical Staff

Suppliers

Investors

Customers

Competitors

Government

Media

Local Community

Table 0-2: Stakeholders of Nawaloka Hospitals.

We can analysis Stakeholders of Nawaloka Hospitals

Stake holder Power Interest

Investors H HDirectors L HManagers L HEmployee H LGovernment H LCustomer H LMedia H LCompetitors L L

Table 3: Stakeholders of Nawaloka Hospital


LOW HIGHLO

W


BM 16Stakeholder Mapping

Figure 2: Stakeholder mapping for Nawaloka Hospitals.


POWER

HIGH

INTEREST


BM 16

Objectives of internal stakeholders in Nawaloka Hospitals

Directors In this Hospital directors serve as the company’s central manager

which possesses formal control of the hospital.

And also their objective is to take accurate decision which helps for

the success of the company.

Managers Managers here identify, discuss and agree clear performance

objectives or standards with the staff which define effective

performance for their job.

Medical Staff Staff are important assets in an organization

In Nawaloka the employees bring the skills such as Friendly and

problem solving which will help the organization to reduce risks and

more responsible.

Table 4: Internal Stakeholders in Nawaloka Hospitals



BM 16

Suppliers Here we are well engage with Suppliers becausethey are very

important asset.

Their objective is to provide good quality medical, and equipments.

Increase Profit and higher customer satisfaction.

Investors Investors expect more profitable share on time

Choosing profitable organizations to invest money Ex: private

hospital

Customers Customers expect quality Service with Low cost from the

organization

Customers will give feedbacks with the services which provided to

the patient which helps us to improve our hospital.

Table 5: Connected stakeholders in Nawaloka Hospitals.

Objectives of external stakeholders in Nawaloka Hospitals

Competitors Competitors challenges will help us Bring more quality products and

equipments to compete with competitive companies.

Government Government allocates share of money from budget to companies for

development of their businesses.

Influence for the business through the fiscal policy to maintain

economy

Media/Local communities Media makes a relationship between the company and consumers.

It improves international communication and creates a vision about

the company.

Table 6: External Stakeholders in Nawaloka Hospita



BM 16How does the company keeps everyone happy

Company provides these important factors to the employees

Respect

Trust

Staff Training

Clear Communication

Appreciation

Chance to make own decision

Opportunities to grow

Free Health checkup once in a month

Promotion

Motivation

Transfer

Staff welfare



BM 16

P1.3Explain the responsibilities of an organization and strategies

Every organization has some specific responsibilities towards people. It is important for an

organization to have responsibilities towards social, environmental and many other which will

satisfy the people and also it has a positive impact on the organization. According to my

scenario I have divided into two common responsibilities

1) Legal Responsibility

2) Ethical Responsibility

Legal: How are companies follows the Rules and regulations of the government, how the

company treats their employee according to the employee Law.

Ethical: How the company influence the individual to work, Judgment about good and bad. We

need to conceder about work ethics and work practice.

*work ethics; A work ethic is a bunch of moral principals an employee uses in his job in the

organization.

*work practice; Basic requirement of the organization or company usually do.

Access engineering responsibilities Responsibilities Significance How the Access Engineering

deliver this responsibility

Environmental Responsibility

Environmental

responsibility is a kind of

duty that how the

company going to protects

human health and the

environment while

operating the business.

Companies create their

own environmental

responsibilities, follow

The environmental

responsibilities of Access

Engineering is achieved by

the strategies that is the

contribution to sustain

natural resources and the

environment for future

generations through

business operations in

compliance to environmental



BM 16those responsibilities and

evaluate that to attract

customers as well as the

community to their

business. Through these

responsibilities,

companies produce their

goods and services in

environment friendly way

and continue the business

as Eco friendly.

regulations, conservation of

natural resources, protection

and enhancement of wildlife

habitats, strict control of the

production and disposal of

hazardous waste, and

support to the local

environmental projects and

activities. They also have the

go green concept.

Social responsibility

Social responsibility is the

obligation that the

organization has towards

the people and the

society. It’s a modern

philosophy states that all

individuals and

organizations are

obligated to help the

community at large.

Social responsibilities

need to relate to the

corporate objectives of the

organization and

companies try to attract

the society for their

business through the

social responsibilities.

For the social responsibility

the company has done many

CSR projects which will help

the society. The company

has done many tree planting

programmes, apprenticeship

programmes, renovation of

the kande Nawakkulama

Tank,

Malayaparaththakulama and

also the company has done

mentoring programmes for

university students.



BM 16

Customer Responsibility Customer responsibility is

a kind of obligation that

the organization has

towards their customers.

Companies produce their

goods and services

according to the common

standards and qualities.

And also the

organizations established

their own standards to

produce quality goods and

services to their

customers. People are

seeking to buy quality

goods and services from

the companies because of

that organizations

motivated to follow

customer responsibilities

for attract their customers

to company

And also the company is

providing a good

construction service to

satisfy their customers as

well. And the company

investing the advancement

of the construction industry

through diverse education

programs, development of

human resources and

dissemination of best

practices in construction

management which will

satisfy their customers.

Supplier Responsibility

Supplier responsibility is the

organization work according

to the all rules and

conditions that agreed with

suppliers and treated fairy

for all suppliers. The

organizations try to motivate

As the Civil Engineering and

Construction industry it

important to meet the supplier

needs. For that company is

maintaining a good relationship

with their suppliers and also the

company does many



BM 16their suppliers and help them

through many ways to

increase their sustainability

of supply.

programmers which will satisfy

their customers.

Shareholder Responsibility

It’s the way that how the

company treat to their

shareholders and give the

relevant power to them.

The company does many

provides many projects for Sri

Lankan consumers and try to

increase their profit. According

to their rules, they divide the

profit in fair way to their

shareholders.

Figure 3: Access engineering responsibilities



BM 16LO 2

P2.1 Explain how economic systems attempt to allocate resource effectively

Economic system is the way that which a country allocates their resources and produce goods

and services for usage of their community. In the world economy, there are three main categories

of economic systems known as, free market economy, Command economy and Mixed economy.

Generally all these three economic systems face three basic economic problems that are,

What to produce

How to produce

To whom to produce

There are three common economic systems,

1. Free Market Economy

2. Command Economy

3. Mixed Economy

Free Market Economy

Free market economy is also called as capitalism. Here the economic decisions are taken by the

market mechanism. The supply and demand of goods and services to be determined entirely by

the values of the market rather than the government. This is a type of economy where the price,

supply and demand are distorted by government regulations .All the revenue owned by

individuals The free market and the free price system, commodity around the world available to

consumers. Here the economic decisions are taken by the market decisions and firms try to

maximize their profit in order to be successful in the market. Individuals can make their own

decisions without any barriers and because of that they try to produce goods through the

minimum cost. And the consumers expect greatest benefits through the products for least cost.

Individuals are independent to decide

1) What to produce?

2) How to produce?



BM 163) Whom to produce?

Advantages in Open market economy

Price is determined by the competitors.So consumer enjoys the benefits of the competition.Consumer feels free to choose the product.Example: Smart phones Fast foods Telecom (Charges)

Command Economy

Command economy is also called as planned economy. It is controlled by the state or

government. Here the decisions will be made by the central planning committees. Government

makes all the planning regarding economic activities. Private sectors are expected later in the

involvement of all economic accumulation. Here the government allocates all resources

according to the central plan and uses the nation’s capital, labor and natural resources in the most

effective ways. The central plan sets strategies to product all goods and services and the main

aim is to supply enough foods, housing and other basic needs to everyone in the country or

government allocate the resource . The government has the fully control on taking decision

1) What to produce?

2) How to produce?

3) Whom to produce?

Advantages in command economy

Government is the monopoly No domestic competitors Example: Sri Lanka Petroleum Corporation Sri Lanka Telecom Sri Lanka Energy Power sector

Mixed Economy

The mixed economy is controlled by the government and the market. In this globalized world

most countries are getting this economic system. Mixed economic system divides the available

economic resources available in the country for the private and government sectors. An example



BM 16for the mixed economy is Sri Lanka. Most modern economies display the features of two or

more economic systems. In many economies, the private sectors are working to increase their

sales of products as well as the profit. But the government is not like that because they provide

goods and services to increase the standards and life style of the community. They do not

provide to increase the profit. But mixed economies do not block the profit seeking of private

sector.

So considering these economic systems the mixed economic system is the suitable one for our

current world. The advantage of this market is that it allows competition between producers of

regulations in place to protect society as a whole. With the government being present in the

economy, it brings a sense of security for sellers and buyers. This security helps maintain a stable

economy. Overall, businesses, and consumers in mixed economies have freedoms that are

important to both. And while the government actively participates and supports, its control is

limited, which is good for the structure. So for the current situation mixed economy is the most

appropriate one in the world.

Example: Garments Factories Tea Factories

Explain to what extend private set get involved to resource allocation process in Sri Lanka.

Before 1977, Economic of Sri Lanka followed by command economy economic policies, To

build a command economy throughout country without any interface from other countries.

Example (Singapore, United Kingdom, China, Korea etc).Government limits the export exports

and imports, limits the foreign exchange currency example (Indian rupees, Pakistan Rupees).

Economic policies of Sri Lanka tried to build a national economic or command economy without

any influence of other countries.

After 1977, The newly appointed president J. R Jayewardene (1977) thought to change the economy polices. He gave hands to the private sectors to involve to the market. J.R Government changed to mix economy Instead of command economy.. After this changes entire foreign policies also changed.

Some characterizes of the Economic in these years, shown below.

1)To encourage Foreign investors to invest in this country.2)To limited investments by government3)To increase job opportunities( unemployment rate over 18%)



BM 16 4)Prices of the internal market mainly decided by market demand and supply, but prices of some goods and services still control by government authorities. (Bus fees, petroleum etc.)

How the private has combined with government? Private sector was assigned to play a major role in economic development. Such as industry likeTransport industry:Sri Lanka depends heavily on its public transportation systems with buses and trains forming the backbone of the system with limited presence of sea and air transport in the domestic setup. The domestic passenger transport sector is primarily made up of cars, vans and motor cycles for private transport, while the public transport sector largely consists of buses and a small percentage of par transit vehicles. (World Bank, 2015c)After private combined with government there was a big impact on vehicle as well



BM 16

Road Construction : High ways

History of Lanka’s Expressways The first concept for this was mooted just after the 1988-89 JVP uprising by then President Ranasinghe Premadasa who proposed an ‘alternate trunk road network’ to develop the country’s hinterland areas. The pre-feasibility studies for several of these highways were done in the early 1990s. However it was left to the subsequent Government of President Kumaratunga to move this forward. ADB financing was approved for one section of the Southern Highway in November 1999 and the RDA started clearing work thereafter. Approval of funding from Japan’s JBIC was also obtained in March 2001 for the balance section. However in August 2001 a group of 49 villagers filed a petition in the Appeal Court seeking reasonable compensation. This action delayed the project till a new compensation system was developed and the project was allowed to proceed only in 2005 with one part as four lane and the balance as a two lane highway. The initial cost estimate for the 126 km from Kottawa to Matara was US Dollars (USD) 349 million, at a unit cost of USD 2.8 million per km. The Government of President Mahinda Rajapaksha, had the highway re-designed as a fully four lane expressway of 96 km up to Galle and had it completed in 2011 at a cost of USD 741 million or USD 7.7 million per km, the increase being partly due to the redesign and in some cases re-construction. The subsequent section up to Matara – a length of 35 km was completed in 2014 at a cost of 180 million USD or 5.1 million USD per km. Similarly, an expressway to the Katunayake airport was planned in the late 1980s and the current road trace finalized in the late 1990s but not implemented due to the inability to obtain favorable financing terms. The construction of the Katunayake Expressway started with funding from China in 2009. The planning for the Outer Circular Road also dates back to the 1990s for which funding from Japan was secured in 2007. Since then the current government has accelerated the expressway construction program having completed a total of 167 km with a further 101 km under construction a commendable progress to date (Source Sunday Times Paper)



BM 16

In future Most of the government sector going to be privatization it cans disadvantages as well.

Task2.2

Assess the impact of fiscal and monetary policy on business organizations and their activities

Inflation- gradually increase of price of goods, In order to control inflation every country follow two policy

1)Monetary Policy

2)Fiscal Policy

In economic, fiscal policy is the use of government expenditure and revenue collection

to influence the economy. This policy is basically used for the betterment of the a

country or a nation, it works for the development of the countries economy. It generates

its own funds via taxation and the revenue generated by the government is spent on the

state in its different fields like education ,Health ,Road constructions etc.

Health Budget:

358. Honorable Speaker, we have a large number of base and divisional hospitals.

These hospitals lack basic healthcare facilities such as bed strength, diagnosis

equipment, consumables, etc. I am also aware that these hospitals find it difficult to

retain doctors as they lack proper facilities for the resident doctors such as suitable

accommodation etc. In this background, I propose to fulfill the basic accommodation

requirements of doctors and other medical staff in rural areas within a period of 2 years.

I encourage private public partnerships where the private sector will construct and

maintain the facility for which government will provide rent.

359. It is also proposed to build and equip 10 district-based stroke centers attached to

tertiary care hospitals within the next 2 years and also it is proposed to strengthen the

accident and emergency care services in the hospitals. As such I propose to allocate a

sum of Rs.5,000 million for this purpose.



BM 16If the tax is low there will be more disposable income which will increase the purchasing power of people’s, more money for further investments.

If the taxation is high, it will result in reduction in disposable income which will reflect ineffective business activities. Fiscal policy instruments1) Budget2) Taxation 3) Public Expenditure 4) Public Works 5) Public Debt.

In economic, monetary policy the change in supply and demands of any states economy is known as the monetary policy of that state. The interest rates given by any states increases or decrease by the need of their money which makes the money available easily. Due to the availability of money the economic activities of the state increases or decreases. This is controlled my by central bank of the respective country.

When there is low interest rate, consumers will have higher disposable income.

If people have high purchasing power more business will enter to the market with profit.

high interest rate will reduce the buying power of the consumers which will have a negative impact for businesses. When consumers spend less, sales volume will be reduced and lower the profits.

Monetary policy instruments1. Open market 2. Bank rate 3. Cash reserve ration 4. Statutory liquidity ration 5. Repo rate 6. Reverse repo rate

1) Open market : An open market is an economic system with unrestricted market with free market access by and competition of buyers and sellers.

2)Bank rate: it is rate which is taken by central bak of the respective country

3) Cash reserve ration :which is known as CRR,which bank hold certain amount as reserve

4)salutary liquidity ration: Amount of liquid assets such as metals(Gold) or other approved securities, that a financial institution must maintain as reserves other than the cash(investopedia).

5)Repo rate: It’s is known as repurchasing agreement rate which is known as repo rate. buying the security and agreeing to sell in the future for the short term.



BM 166)reserve repo rate: rate at which the central bank of a country borrows money from commercial banks within the country.

The two policies affect the sir Lankan industry

1)Fiscal policy : vehicle import On 26th May 2016, the government introduced new Unit Rate Tax that will affect vehicle prices in the country according to the engine capacity of individual vehicles. Exactly country has more vehicle than expected with this issue public effected a lot. Reason is to control the inflation government identify many ways as a result they increase tax of import vehicle over 1000cc.Threr fore price of imported vehicle price increase.Example;

It affects consumer purchasing power as well.

Increase of tax will cause vehicle industry and risk of loss.



BM 16

2) Monetary policy: As per the annual budget its clear showcase that the interest rate have not changed much, so borrowing has been highly increase as per that government bank issue more money, So many entrepreneur will enter to the market so automatically demand will increase.

As per the results customers will enjoy the price because of the demand.

2016 budget government giving hands to small businessmen’s with low interest rate .

i. Less than 1 million : No charge

ii. Between 1 million and 10 million : 2 percent

iii. Above 10 million : 3 percent

Task2.3

Evaluate the impact of competition policy and other regulatory mechanisms on the activities of a selected organization.

Competition Policy:

Competition policy means the activities carried out two or more business in order to capture a certain market. Competition is must because it will help businesses to produce quality products and maximize the benefits to consumers.

It will ensure following factors:

Lower Prices

Innovation

Efficiency

Quality

As per the policy government focus to create a fair market.



BM 16

Regulatory mechanism:

Regulatory mechanism is the means by which something can be controlled or monitored. They are appointed by the government to see how market works and the outcomes that results for both producers and consumers. This controls the internal environment relatively stable and maintained with narrow limits.

UK imposes some rules and regulation on companies according to the compertition policies.

Tesco PLC

Tesco is a British multinational grocery and general merchandise retailer .which is the leading general retailer in uk.

Success story: The main features is that the company policy prevents firms without abusing their dominant market policies.

Company aim to protect public interest to ensure company does not produce profit due to anti-competitive methods as same companies become greedy of exist only to make profit basically those companies do anything to succeed in the market.

This policy allows companies to achieve their goals while achieving profit in the other hand. perspective in this policies is to gain profit tas long as they don’t use unethical methods, because of this short term methods many companies lack their place in the market.

Globalization results in more multinational companies coming into the market and compete for long. Example VODAFONE UK

Disadvantages in competition policies

1)Competition policies in UK is very lengthy.

2) Every government has it own way regulatory the companies polices

Example: new industrial policy that would protect industries that are strategically important to the UK this decision was taken by this government led by prime minister of UK Theresa May. It defers with government to government this indicate the how new prime minister willing to change.


https://en.wikipedia.org/wiki/Multinational_corporation


BM 16

Solution

1)Break in to many departments

2)protecting dominant market (Vodafone,tesco,aston martin)

3)Creating merges investigation team

4)Cartel investigation team

5)not allowing to buy out market,because of this many companies gone away from uk such as Jaguar,Landrover

Tesco PLC In this case competition commission identified TESCO plc. Because of tesco many small companies in a risk it effected on small retailer grocery shops in uk. As per the issue tesco is a larger retailer so price reduction comparing to small shops. Tesco has every thing under one roof any of the small businessmen cannot compete so one by one going away. Purchasing the existing grocery shops to make the price with control. Local market was highly concentrated. Allowing new competitors to enter in to the market. Competition policies ased tesco to regulate the price. GSK

GSK believes that they are the biggest competitive today uk.GSK is leading pharmaceutical company in uk.many pharmaceutical companies facing difficult challenges in the instry because gsk had a great market.gsk is always think different and goes with new innovation it made them to be the leader in the market.Gsk has made a concept that their brand is the best. Governments can have a major influence on investment decisions made by the industry and thereby on the contribution made by the industry to the local economy. It is against this background that new national partnerships between industry and governments must be formed to develop a better mutual understanding and develop solutions that benefit both partners.



BM 16LO 3Task3.1

3.1Explain how market structure determines the pricing and output decisions of businesses.

Prefect competition:There are so many sellers in the market offering same product. And also there is no way to that firm to charge higher price than its competitors because all firms sells a standardized products. And the main thing is the interaction of supply and demand decides the price for all participants in this market.

There will be a large amount of organizations to compete with this. The kind of competition of this market is price competition. There are no barriers to the new comers. It means free entry. This type of market structure called as price-takers. The specialty of this market is perfectly elastic demand

Example: Kandy vegetable store ,Kandy private institution, Airline industry

Monopoly :

Monopoly market has the power to establish any price that it wants. And the ability of monopoly to sat its price is further limited by the possibility of rising marginal costs of production

This must be the one and only organization in the market. There are no competitors. The entry to the other organizations is impossible. This is called as price setters. This will be the only one firm in the market.

Example: Highland milk

Oligopoly :

The pricing decisions made by few members in oligopoly market. Whether the sellers in oligopoly compete each other by differentiating their product, dominating market share, or both the fact that there are relatively few sellers creates a situation where each is carefully watching the other as it sets its price.

Example : Sri Lanka Gas ,vehicle industry



BM 16

According to these 3 organizations they have to consider some factors when they decide outputs & price when marketing conditions change.

Kandy vegetable store – this store is in the perfect competition There are a lot of organizations will compete with them. So they have to consider the type of factors. Those are:-

Price, quality, Home delivery customer satisfaction, customer needs.

Highland milk - This is in the monopoly market. Highland use there own ways because they are the leading local milk provider, specially they are the price setter

Sri Lanka Gas – they do have very few competitors in the market, they are differentiated they product with the look,price,price,quantity.

Task3.2List some market forces

Recession Competition Technology Media Legal Ethical Political Completion

1)Recession: Certain time economic gradually decrease because of trade and industrial activities, it affect counties Annual GDP as well.

2) Competition: Two individual parties or two deferent regions uses the same resource that country has to gain victory over others.

3) Technology: to invent things or to solve problems make the work easy.

4) Legal: Countries has their own system it call law that’s should follow if unable to it will be illegal

5)Ethical: Way the people behave based on their own beliefs on what is right and wrong.

6)Political: Government or parties influence.



BM 16

Demand

Demand refers to the quantity of a good that is desired by buyers. An important

distinction to make is the difference between demand and the quantity demanded.

Quantity demanded refers to the specific amount of the product that buyers are willing

to buy at a given price.(academia.edu)

Income A rise in a person’s income will increase

the person’s demand (shift demand curve

to the right). A fall will lead to a decrease

in demand for normal goods.

Consumer Preferences Favorable change leads to an increase in

demand and unfavorable change will lead

to a decrease.

Number of buyers The more buyers will lead to an increase in

demand and the fewer buyers lead to a

decrease in demand.

Price of related goods Substitute goods – Price of

substitute and demand for the other

good are directly related

Complement goods – Price of

complement and demand for the

other good are inversely related.

Expectation of future Future price – Consumers current

demand will increase if they expect higher

future prices, their demand will decrease if

the consumers expect lower future prices.



BM 16

Future Income – Consumers current

demand will increase if they expect higher

future income, their demand will decrease

if they expect lower future income.

Demand curve shift to the left

If the price of substitute good (Dove Shampoo) decreases, the demand curves of

good (sunsilk Shampoo) will shift to the left.

If the prices of complement good (Toothbrush) increases, the demand curve of

good (Toothpaste) will shift to the left

If the income of consumers decreases, the demand curve for jewelries will shift to

the left.

If the amount of consumers decreases, the demand curve will shift to the left.

Demand curve shift to the right

If the income of consumers increases, the demand curve will shift to the right.

Increase in the price of substitute goods

If the number of buyers increases, the demand curve will shift to the right.

To diagram show demand curve shift to right and left

Supply



BM 16Supply is the total amount of a good or service available for purchase at any specified

price. Higher the price, higher the quantity supplied. Producers supply more at a higher

price because selling a higher quantity at higher price increases revenue. (Investopedia)

Determinants of Supply

Number of sellers Increase in number of sellers will increase

supply and shift the supply curve

rightwards and the decrease in number of

sellers will decrease the supply

Production cost If the production cost is high it will reduce

the profit.

Technology New technologies help to reduce the

production cost and it will increase the

profit. I

Future price expectation If producer expect higher prices in future,

they’ll try to hold on to their inventories and

offer the products to the buyers in the

future

Supply curve shift to the left

If the costs rise, there’s less can be produced at any given price so the supply curve will shift to the left. A shift to the left in which less will be supplied at every price caused by,

Increase in average cost of production

Taxation of raw materials

A switch in production

Supply curve shift to the right

Supply curve shifts to the right because that more is supplied at every price. This occurs due to,

Reduction in average costs of production



BM 16 Improvements in technology

Subsidy on labor

Subsidy on raw materials

Task 3.3Food City in Sri Lanka

Food City is a chain shop which is in Sri Lanka and also it is a Sri Lankan company. This is a famous supermarket in SriLanka.

What is the external environmental situation Food City face?

The external factors are:- Technology factor, legal factor, economic factor, socio-cultural factor, environmental factor & political factor.

Technology factor- Food city has to change it technologies according to the new generation. If Food city do like that it can catch the market.



BM 16Legal factor- Food city has to follow the rules & regulations f the government and also it must register as legal according to the law.

Economic factor- Food city has to follow the economic policies. When they change the economic policies Food city also must follow according to it.

Socio-cultural factor- Food city has to change its culture according to Sri Lankan environment & its culture. Before starting the business all the organizations must know this.

Environmental factor- Food city has to sell harmless products to the environment & to the society.

What are the cultural differences Food city has faces?

Food city has to be flexible according to the customers. If Food city is flexible only it can stand firmly in the market otherwise it has to fail in its goals. At first Food city wants to know the Sri Lankan culture to attract the customers & catch the market.

Food city always change its decoration according to the seasonal celebrations such as Christmas, English New year & Sinhala; Tamil New year. So like this Food city is moving into international market.

LO4Task 4.1



BM 16



BM 16



BM 16

Task 4.2



BM 16



BM 16



BM 16



BM 16

Task 4.3



BM 16



BM 16



BM 16

Conclusion

In conclusion, this report has successfully demonstrated the understanding of the organizational

purposes, working environmental.i have gain many important parts in this subject..For example

changes in government economic policies, inflation,rapid technological developments, political

uncertainty, Market focus. All influence the working of business environment in important ways.

Increasing taxes by government can make things expensive. In this entire subject I loved most

is the 4th part that’s International Trade in UK business organizations and the impact of global

factors on UK business organizations which made me strong to get know about international

trade which will help us near future.

Finally once again I need to thank Mr. Shanker Rajamani for the encouragement and support

given to us .Moreover, Providing live industrial experience which will help us to get know about



BM 16peoples and process. it is very effective report in giving the information about business

environment and economic condition in Sri Lanka and united kingdom.

Hijaz Ahamed

BM 16

BibliographyAnon., 2015. Access Engineering. [Online] (2015) Available at: http://www.accessengsl.com/about-us/ [Accessed 11 October 2016].

Anon., 2015. Bank of Ceylon. [Online] Available at: http://web.boc.lk/index.php?route=information/information&information_id=15 [Accessed 29 May 2016].

Anon., 2015. Nawaloka Hospital plc. [Online] Available at: http://www.nawaloka.com/info/about-us/ [Accessed 5 October 2016].

Anon., 2016. MAS Holding. [Online] Available at: http://www.masholdings.com/our-values.html [Accessed 5 October 2016].

Anon., 2016. Softlogic Holdings PLC. [Online] Available at: http://www.softlogic.lk/corporate_info-2-0.html [Accessed 29 May 2016].

Boundless. “The Benefits of Mixed Economies.” Boundless Business. Boundless, 2.S.2.R.2.O.2.f.h.b.c.-b.-t.-a.-b.-2.-u.-m.-e.-s., n.d.


http://www.accessengsl.com/about-us/

http://www.nawaloka.com/info/about-us/

http://www.masholdings.com/our-values.html

http://www.softlogic.lk/corporate_info-2-0.html

http://www.softlogic.lk/corporate_info-2-0.html

http://web.boc.lk/index.php?route=information/information&information_id=15


BM 16Carmudi Sri Lanka, May 31, 2016. Vehicle Price Changes in Sri Lanka after New Tax Reforms. http://www.carmudi.lk/journal/car-price-changes-sri-lanka-new-tax-reforms/.

GlaxoSmithKline Communications and Government Affairs , April 2014. GSK Public policy positions. A publication of GlaxoSmithKline Communications and Government Affairs.

Gorvenment, S., 2015. BUDGET 2016 FULL SPEECH & PROPOSALS. Budget 2015/16. http://www.ft.lk/article/499335/BUDGET-2016-FULL-SPEECH---PROPOSALS.

Kmart, February 24, 2013. Mixed economy, Free market, Economic system. StudyMode.com.

Kumarage, P.A.S., n.d. The Real Cost of Highway Development-. Sunday times .



BM 16
