Business Enviornment Assignment Final

BUSINESS ENVIORNMENT

CASE STUDY OF CAMELOT

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BUSINESS ENVIORNMENT – ASSIGNMENT 01

Table of ContentsA. INTRODUCTION.............................................................................................................................3

B. CONTENT.........................................................................................................................................4

I. UNDERSTAND THE ORGANISATIONAL PURPOSE OF BUSINESSES............................4

1.1 Identify the purpose of Camelot as an organisation.......................................................................4

1.2 Describe the extent to which Camelot meets the objectives of different stakeholders. Draw from the case study and further independent research..................................................................................4

1.3 Explain the responsibilities of Camelot and strategies they employ to meet these requirements.. .5

II. UNDERSTAND THE NATURE OF THE NATIONAL ENVIORNMENT IN BUSINESS OPERATE..............................................................................................................................................6

2.1 Explain how economic systems attempt to allocate resources effectively.....................................6

2.2. Assess the impact of fiscal and monetary policy as it relates to Camelot and their activities........7

2.3. Evaluate the impact of competition policy and other regulatory mechanisms in UK on the activities of Camelot............................................................................................................................7

III. UNDERSTAND THE BEHAVIOR OF ORGANISATIONS IN THEIR MARKET ENVIORNMENT..................................................................................................................................9

3.1. Explain in context of Camelot how market structures determine the pricing and output decisions..............................................................................................................................................................9

3.2. Illustrate the way in which market forces shape organisational responses using a range of examples from the case study and independent research.....................................................................9

3.3. Judge how the business and cultural environments shape the behaviour of Camelot..................10

IV. BE ABLE TO ASSESS THE SIGNIFICANCE OF THE GLOBAL FACTORS THAT SHAPE NATIONAL BUSINESS ACTIVITIES...............................................................................12

4.1. Discuss the significance of international trade to UK business organisation..............................12

4.2 Analyze the impact of global factors on UK business organisations using Camelot to support your analysis......................................................................................................................................12

4.3 Evaluate the impact of policies of the European Union on Camelot............................................13

C. CONCLUSION................................................................................................................................15

D.REFERENCE......................................................................................................................................16

1. Book sources:..................................................................................................................................16

Internet sources:..................................................................................................................................16

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A.INTRODUCTION

Business environment is the combination of both internal and external forces that will help to

find out the new way to grow and prosper in other countries outside the national boundaries. It is

also help to judge the working environment of the organisation in the said economic and social

environment.

Part one will cover the organisational purpose of business operations. Firstly, I will explain the

vision, mission and objectives of the selected organisation. Then how the organization meets the

objectives of different stake holders. Further detail of responsibilities and strategies are given

that is employed by any organisation for gaining ultimate profit.

In the second part, the understanding the nature of national environment is given in which a

certain organisation is operating. For this economic resources are analysed and assess the impact

of fiscal and monetary policy on the business activities. Moreover, evaluation of competition

policy and other regulatory mechanisms are conducted.

In the third part understand the organisational behaviour in the market environment by the

judgement of business and cultural environment. Additionally market forces are illustrated that

shape the organisational responses. And finally the report is focused on how the global factors

are significant in shaping the business activities.

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B.CONTENT

I. UNDERSTAND THE ORGANISATIONAL PURPOSE OF BUSINESSES

1.1 Identify the purpose of Camelot as an organisation

The ultimate aim of any organisation is to serve the customers by meeting the objectives of

different stake holders. Thus to satisfy the needs of the customers by fulfilling the

responsibilities and strategies employed by the organisation. No doubt at the start of the

organisation, it targeted the survival. Later on it grows and succeeds to meet the shared vision

and mission.

In any organisation, faith of the customers is the most valuable property. Camelot is serving the

people in increasing the fund and money for the very good cause and enjoyment. They are trying

to do their best in preceding the national lottery system as great as possible.

1.2 Describe the extent to which Camelot meets the objectives of different stakeholders. Draw from the case study and further independent research.

For the organisation, customers, employees, suppliers, legal entities and government are the main

stakeholders that put the great influence in getting the market share and enhance the profitability

of the company. While there are three main broad categories of Camelot including internal

stakeholders, connected stakeholders, and external stakeholders.

Internal stakeholders contain employees and managers. Camelot must have to ensure the good

working environment that is comfortable, clean and relaxing, so that they are able to fully

concentrate on their work. This is very supportive for the career development of the employees

in terms of possible promotional prospects. Job security is one of the most important aspects for

the workers working in any organisation. In this regard, considerable salary and insurance is the

preliminary surety for job. Internal stakeholders are just like a family, if organisation gives the

feeling of home, they are dedicated and motivated for the continuous growth of the organisation.

Connected stakeholders are wholly and solely concern with their own interest associated with the

organisation. Retailers, bookmakers are the connected stakeholders of Camelot that hope to

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establish a healthy, long lasting, friendly and fruitful relationship with the company which also

ensures the company’s stability and growth.

External stakeholders are the government and regulatory agencies for which it should have to

obey the rules, protect the environment and support the governmental activities. The other

external stakeholders are the customers, whose needs and demands must be fulfilled and satisfied

at its extreme level.

1.3 Explain the responsibilities of Camelot and strategies they employ to meet these requirements.

Every organisation also has these three types of responsibilities containing environmental, ethical

and management responsibility.

Environmental Responsibility: The company is committed not only with the staff members but

also with the external stake holders and is concerning with environmental protection. All this lie

under the heading of corporate responsibility code. Under this context company is dealing with

legal regulations and legislations, issues related to ecological problems, green concerns issues

and the most important are the aspects that are very much relevant and pertinent to business.

Additionally, indirect pressure from the customers and external stake holders also put

consequences for ecological problems.

Ethical Responsibility: This is the responsibility in which company’s operations must be in

favour of employees, people and environment. It is normally expected by almost all types of

organisations. Like one of the most examples are the pollution control programs. Camelot is

involved in fulfilling the environmental quality standards in this regard.

Management Responsibility: it is of the view that management is responsible for employees,

customers, suppliers, competitors, hence every stake holder in the community. Like management

is responsible for the hiring and firing of the employees. Giving them fringe benefits and also

retrains their skills so as to increase the performance level. In terms of customers, management is

responsible for providing the high quality product or services and ensure honestly and fair

treatment with them.

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II. UNDERSTAND THE NATURE OF THE NATIONAL ENVIORNMENT IN

BUSINESS OPERATE

2.1 Explain how economic systems attempt to allocate resources effectively

For the allocation of the resources, company must have to do the right decisions based on the

type of economy. One of the important aspects in terms of resources is the infiniteness so as

every organisation and every person is free to use them easily. Thus for the optimal allocation of

resources, companies or people have to find out a reasonable economic system.

Planned Economy

In this type of economy, government is taking the initiative and decision on what to produce and

how much one have to produce. In the present situation there are only two countries that are

following this type of economy one is Cuba and other is North Korea. In such type of economy,

state plans are designed at three main levels:

Macroeconomic level

Microeconomic level

Distribution of output

The only drawback of such economies is that no incentives are give=n to productivity and there

are less chances of investment.

Market Economy

In such type of economies, companies have the independent right and government has only very

little involvement. Thus companies produce what the market demands and as per the demand of

the customers. Thus customer oriented and market oriented products are coming in to the market.

In this regard resources are effectively utilized based on the demand factor. But in this economy

extensive competition has to face due to the drawback of monopoly created by one favoured

company. Government is normally interfere in regulating the price and quality control in terms

of production as well as consumption processes. Similarly, subsidy and taxation, prohibition and

provision all are under the control of government.

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2.2. Assess the impact of fiscal and monetary policy as it relates to Camelot and their activities

Fiscal and monetary policy is always and almost decided by the government that put great

impact on the operations of any organisation. There are the two major tools of macro economics.

Fiscal policy is the policy in which government expenditures are used along with the collection

of revenues in order to influence the economy. While monetary policy is used as authority to

control the money supply in the country. Thus the ultimate aim is to control the inflation and

price stabilization. It helps to promote employment, adequate balance in international payment,

economic growth etc. Moreover, it influences the economy through alteration in interest rates,

echange rate differences, money supply and bank lending control.

When considering the fiscal policy, taxation and government expenses are used to standardize

the economy. Thus it promotes the development of the companies. In case of Camelot, fiscal

policy in a manner that if the employee earn more money and have wish for consumption along

with the fact that demand is constantly increasing, the it will help to increase the income of the

company. Because more and more people want to invest their money in any profitable option and

it provides them the best available opportunity. Similarly in case of monetary policy, company

can easily manage the business in the said rule and regulations. Thus, perform effective and

efficient in the increased competitive environment. In conclusion, government can use both fiscal

and monetary policy to circulate equal amount of money as well as balance out the economy.

2.3. Evaluate the impact of competition policy and other regulatory mechanisms in UK on the activities of Camelot

Industry policy is based on the concept that government must support such policies and activities

that will encourage the growth and success of the manufacturing sector of economy. In this

context some of the common policies include structure of the industry policy, organizational

policy, and industry technology policy. It can promote the development by limiting the

operational activities. Camelot is concerned with the unequal tax regimes. In this regard,

government has eradicated the tax on bingo and betting just to protect the huge gambling

industry on which a major share of UK economy relies.

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Similarly, social policy is the study of social services as well as welfare activities in the state. In

general terms it is based on establishing the relationship between the politics and the society.

This will help to develop the healthy competition in the industry, but in most cases government

is using this strategy in order to resolve the problems related to environment and mark as

protection strategy. In this context, Camelot is supporting the government in reallocating the

employees. Thus it will ease out the pressure of enterprise as well as employees.

In the conclusion both policies help the organisation in the development and support the of

enterprise plus for the welfare of the staff on the long term basis.

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III. UNDERSTAND THE BEHAVIOR OF ORGANISATIONS IN THEIR

MARKET ENVIORNMENT

3.1. Explain in context of Camelot how market structures determine the pricing and output decisions.

There are different kinds of markets performing its functions in different economies. And based

on those markets, different kinds of output and pricing decisions are taken place. Usually pricing

and output decisions are totally different and interdependent as well except for the case of

perfectly competitive markets.

In perfectly competitive market, a firm operating in it is so small as compared to the whole

market that it cannot affect the prices. In this case, it takes the prices as it is mentioned and on

that price selective quantity is supplied. Price in that market is equal to the marginal cost of the

production.

In monopolist market, things are very different. It can change the prices as it wants because it is

the only one entity which sets the prices and provides the goods. So it acts as the market power

for the provision of the goods so as charge their own choice prices. In this case if the prices

increase, the quantity demand decreases. Thus monopolist must have to consider both positive

and negative effects that may become the cause for the increase in prices.

In oligopoly, pricing is a bit complicated as compare to other market structures, and it will totally

set after the interactions between the firms at the strategic level. Same is the decision taken for

the quantity demanded.

3.2. Illustrate the way in which market forces shape organisational responses using a range of examples from the case study and independent research.

Market forces actually determine the demand and supply and their inter relationship. In the long

term basis there are four major forces that set the trend and allow the traders and investors to

capture profits. These major forces are government interactions, international transactions,

supply and demand forces and speculation expectations. While organisational response is the

reaction of the company in return of business or economic situations.

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Organisation’s response to market forces has the direct impact on the profits and repute of the

organisation. But to determine the demand and supply in an appropriate form, companies have to

conduct detailed research and analysis. Then it could finalize that where the supply will meet the

demand of the customers or not.

If the company is willing to judge the market demand, for this they have to make their customers

happy, contented and satisfied so as to ensure the regular supply of their products or services.

Thus relationship between the market forces and organisational response result in form of

profitability, ultimate success and customer satisfaction. That’s why companies are constantly

involve in determining the market forces and indulge their staff in market research just to match

the customer demand.

Like the case of Camelot, it is constantly struggling hard to have the competitive edge in the

industry through the provision of ultimate best services to customers. It tries to deliver healthy

returns to shareholders and all times involve in retaining the trust and support og general public.

Moreover, company is fully supportive to increase the sales volume by maximizing the level of

satisfaction of retailers as well as customers.

3.3. Judge how the business and cultural environments shape the behaviour of Camelot

In order to judge the external environment of the organisation, the best way is to conduct

PESTEL analysis; which stands for political, economic, socio-cultural, technological,

environmental and legal constraints.

Political: government is responsible for the provision of stable and healthy environment for

doing the economic activities. It is also responsible for maintain and improving the social and

infrastructure of the market.

Economic: it affects the performance of the organisation at both local and international level. It

is dealing with interest rates, inflation rates, exchange rates etc. As company is performing its

activities in the strong economic country so it is easy to cater the services and operations of the

company in the effective manner.

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Socio-cultural: it is based on the long term trends and beliefs that people follow while living in

a particular region. It can bring changes in the Camelot’s demand in form of

Pattern

Location

Recruitment policies

Technological: these are ways through which products can be made, sold and services can be

provided to the targeted customers. These are the ways through which markets can be identified,

firms can be managed and try to extend the means of communication and promotional services.

Environmental: the existing and physical environment is very important to run the real time

business. It is also necessary to find out the right form of resources to get the required results.

Legal: these are laws and regulations that will support the company to run its operations.

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IV. BE ABLE TO ASSESS THE SIGNIFICANCE OF THE GLOBAL FACTORS

THAT SHAPE NATIONAL BUSINESS ACTIVITIES

4.1. Discuss the significance of international trade to UK business organisation

International trade is known as buying and selling of goods or services across the border. In this

modern and fast moving world, international trade is the back bone of any country and is very

helpful in expanding the business to other premises or locations. It will support the fact to

expand the business and get the profits rather to restrict the buying and selling only within the

said borders.

For an individual UK business organisation, numbers of reasons are possible that will make the

internationally trade attractive and profitable:

It is new market segment

Domestic markets are so saturated that push the organization to go abroad and seek other

markets outside the boundary

Nature of product has a demand to trade it in the other overseas markets

A lot of commercial buyers are located outside the boundary that creates a demand so as

suppliers provide the products to cater their needs

For the specialized goods and services domestic market is not fulfilling the requirement

of economies of scale so it is better to move abroad

4.2 Analyze the impact of global factors on UK business organisations using Camelot to support your analysis

Undoubtedly, service industry is heavily under the influence of global economic developments.

In order to analyze the impact of global factors the approach remains the same that is PESTEL

analysis.

Political: for the development and implementation of the plan it is necessary that government

should be stable and efficiently perform its role in the economic reforms and international

relationship building. Though there a risk involved in this case but certain measure could be

taken to minimize the risk:

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Collaborate with local partners

Use of lease agreements rather to rely on outright purchase of facilities

Must take insurance policy

Economic: some of the common economic facts that can affect the demand and supply forces

are as follow:

How the economic activities are taken place in the overseas market?

How much is the economic growth in the newly industrialized countries?

What is the rate of interest, exchange rate and rate of inflation in the other countries?

Social: In the UK, a large numbesed cost in r of aged people is in the population. Thus the firms

have the pressure to commit the pension payments for such employees.

Technological: in this modernised world, companies have to consider certain technological

factors like:

How to access to patents and copy right?

Issue of intellectual property rights

Transference of technology requirement

Relative technology cost and its comparison with labor cost

Environmental: it is the utmost duty of the organisation to cater the legislative measures in

terms of environment protection.

Legal: In the recent years, UK has changed its policies in terms of legal constraints. It has

widely affected the firm’s behaviour. Like the introduction of age discrimination and disability

legislations have increased the level of minimum wage rate.

4.3 Evaluate the impact of policies of the European Union on Camelot

EU comprises of 15 member states and has the two main sources for the formulation and

implementation of law. One is the primary source that based on treaty provisions and other is the

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secondary source in which legislations and interpretations are made. In order to join the union,

some of the economic and political conditions have to be fulfilled such that:

Must be a stable country and respect the human rights, rule of law and protection of

minorities.

Economy is based on functioning market economy

Must support the common rules services that are, standard and policies formulated by

EU law.

While some of the eliminations of trade restrictions include:

Those products are approved in any of the EU country and as per the set regulations can

easily and freely marketed in all EU countries

Shipping charges for the member countries is given on the equal terms and conditions

and same is deal with air fares

For the protection of idea or creation, harmonized copy rights, patents or trademarks are

registered.

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C.CONCLUSION

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

purposes and its main aim for formulation and working. Moreover, it clears the concept of

working environment and nature of environment in which a firm is operating.

In the first part, the main targeted area is to identify the main purpose of organisation and to

identify the nature of the environment in which it is working. In the second part, it is explained

that different types of organisations are working and have different responsibilities for

stakeholders as well as strategy employed. All this is studied for the optimal allocation of

resources. Moreover, influence of fiscal and monetary policy and competition policy is explained

in perspective of selected organisation. Third part is based on the understanding of the behaviour

of the organisation in the given market environment. And the last part includes assessment of the

significance of the global factors that help to shape national business activities.

Thus it is very effective report in giving the information about business environment and

economic conditions. Moreover, it is useful in understanding the impact of policies while

running the business in the UK environment.

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D.REFERENCE

1. Book sources:

Shaikh, S 2010, Business Enviornment, 2nd Ed, India: Pearson Education

Internet sources:

Advisory report on Camelot activities, [online]. Available from:

http://www.bitc.org.uk/our-resources/case-studies/advisory-case-study-strategy-

development-camelot

Camelot annual report, [online]. Available from: h ttp://www.natlotcomm.gov.uk/assets-

uploaded/documents/annual-report-20102011_1311934839.pdf

Corporate Planning Report, [online]. Available from:

http://www.natlotcomm.gov.uk/assets-uploaded/documents/CorporatePlanvfinwithcover.

pdf

Organizational Response, [online]. Available from:

http://www.richardchangassociates.com/pdfs/CO1205_takingtheLead.pdf

Purpose of organization, [online]. Available from:

http://www.angelfire.com/musicals/kalpana/Goal.htm

Relationship between market forces and organizational response, [online]. Available

from: http://www.blurtit.com/q609511.html

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http://www.natlotcomm.gov.uk/assets-uploaded/documents/CorporatePlanvfinwithcover.pdf

http://www.natlotcomm.gov.uk/assets-uploaded/documents/CorporatePlanvfinwithcover.pdf

http://www.natlotcomm.gov.uk/assets-uploaded/documents/annual-report-20102011_1311934839.pdf

http://www.natlotcomm.gov.uk/assets-uploaded/documents/annual-report-20102011_1311934839.pdf

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Business Enviornment Assignment Final