Business Environment (You Just Need to Improve Task-2 and 3)

7/31/2019 Business Environment (You Just Need to Improve Task-2 and 3)

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S.N. Contents Pg. No.

01 Introduction 02

02 The purposes of different types of organization 03

03 The extent to which an organization meets the objectives of different stakeholders 04

04 The responsibilities of an organization to meet the stakeholders objectives 05

05 Attempts of the economic systems to allocate the resources effectively 06

06 Impact of fiscal & monetary policy on business organization & their activities 07

07 Impact of competition policy & other regulatory mechanism on the activities of a

selected organization

09

08 Determination of pricing & output decisions of businesses by market structures 10

09 Shaping up of the behavior of an organization by business & cultural environment 10

10 The significance of intermediate trade to UK business organizations 11

11 The impact of global factors on UK business organizations 12

12 The impact of policies of the European Union on UK business organizations 13

13 Conclusions 14

14 References 15

Introduction

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Table of

Contents


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For the formulation & implementation of any kinds of activities in human life or anywhere else

environmental analysis is very much important because the environment plays a significant role in

the success & failure of the actions taken. In case of the establishment of the business organization

& the functioning of the business in successful manners, the environment is very much vital & has

major impacts on its functioning.

The most important & influential factors of the business environment are the geographical

environment, the natural environment, the technological environment, the corporate environment,

the legal & regulatory environment, the political environment, the economic environment & the

technological environment etc. Before going to start any operation of a business organization

whether locally or globally, the entrepreneurs must assess the conditions of the environment will

take the various business related decisions on the basis of the results of the assessment of the

environmental factors. Here, I will try to make a brief discussion on the business environment &

the effects of the various environmental factors on the business organizations of UK as the case.

(Heinz Weihrich, Harold Koonz 1994)

The purposes of different types of organization

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Every organization is established with a view to achieve some goals that are reached with the

consistent activities through well planned framework & other aspects of the organizational

directions. For example, the main goal of a University is to provide the students with vast

knowledge & educations that will help them to be the wise & resource persons in the world. Since

we are dealing with the business organization, there are various business forms of organizations

according to the fulfillment of some criteria. What will be the forms of the organization depends on

the following factors-

Capital requirement of the project;

Required no. of employees that you need for the project;

Planning for the earning distribution of the project;

The assumed liabilities when implementing the project; The time period of the project to be operated in a successful manners;

Possible legal & regulatory restrictions;

The type of business operation starts from the project;

The implications of the tax & its effect;

According to the meeting up of the above criteria, there can be formed the following types of

business organizations with the following purposes to be served-

ASole-proprietorship is established with the purpose of utilizing the small resources & to

provide the locally required services;

APartnership is contracted in order to utilize the savings of the partners & make a mutual

relationship among the partners & try to grow in a bigger form;

A Company organization whether private or public is established with the intention to

finance the huge project of the production sectors & to utilize vast resources of the world &

employing a huge number of human resources of the various parts of the world. (Heinz

Weihrich, Harold Koonz 1994)

The extent to which an organization meets the objectives of different stakeholders

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BAT repay the interest & the loan amount to the creditors in due time & in some cases also

give some commission on the profit earned;

Some gifts & other financial & non-financial helps are provided to the middlemen of BAT

by the company;

BAT is the highest Tax paying company in Bangladesh for several years & are paying tax

regularly without delinquency;

BAT is complying with all the regulatory & legal requirement imposed by the government

of the Bangladesh from its inception of operation;

BAT is also some social work all over the country like tree plantation program, scholarship

program other social welfare. (Heinz Weihrich, Harold Koonz 1994).

The responsibilities of an organization to meet the stakeholders objectives

We have already discussed about the stakeholders of the organization & the attempts the

organizations are taking to meet the objectives of the stakeholders in the organizational process of

operation. There are some responsibilities of an organization towards the fulfillment of the

objectives of the stakeholders. Therefore, the responsibilities are-

Its the sole duty of the business organization to provide the employees & the workers with

the safe working environment with the reasonable working hours, appropriate payment for

the work done & treating the employees as the contributors;

The organization should manage the waste materials in such a way so that these may no

pollute the environment of the surrounding area of the industries & be harmful for the

society;

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The organization should maintain the code of the business ethics & also follow the laws of

the country while paying tax & giving remuneration to the employees & the workers as

well;

The business organization should return the owners of the business the appropriate return

in the form of wealth maximization of the owners & in a regular basis;

Every society has the demands from the business organization in the form of some of the

social welfare that will uphold the image of the company in the upper position & it should

be continued for a long time. (Weston H. Agor 1986).

Attempts of the economic systems to allocate the resources effectively

Every country has its own economic system

which determines the patterns of the flow of

the economic resources of the country. There

are many types of economic systems all over

the world. Among them, the most important

& the widely used are the Controlled

economy, the free market economy & the

mixed economy which is base on some of the

economic systems.

Since the economic systems determine the way of circulating the resources of the country, it has

great impact on the resource allocation of the country resulting in the allocation of the resources of

the organization. Therefore, which resources to be utilized in the production process for the

customers & which production would be the profitable one is determined by the economic systems

that is shown in the figure given below-

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So, the multinational companies should keep in mind the impact of various economic systems

since they have to operate globally all over the world. Here, the society of a country is related in

strong manners with the business & even with all the activities of the people of that particular

country. The overall flow of the resources of the country is determined by the economic actions of

the society & thats why the performance of the business is very much dependent & influenced by

the economic flow of the resources of the society. (Weston H. Agor 1986).

Impact of fiscal & monetary policy on business organization & their activities

For the monitoring & controlling the national economy of the country, the government of that

country adjusts the level of spending with the resources that is done through the use of fiscal policyof the country formulated & implemented by the government. For exerting the monetary supply of

the country, the central bank of that country formulate & implement the fiscal policy as the sister

policy in the economic viewpoint. Here we take a look at how fiscal policy works, how it must be

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Impact of competition policy & other regulatory mechanism on the activities

of a selected organization

In the present globalized world, there is huge no. of competition all over the world having

competitive market structure in most of the sectors of businesses because of the huge no. of

competitors resulting in the less control on the market. For example, in the daily needed product

market, the competition is very high all over the world. Again, the regulatory & the law enforcing

authority are the most important environmental factors in the context of business operating in a

country. For example, BAT has to pay 56% Income Tax in Bangladesh on the income generated

per year. Therefore, the competition policy & the regulatory mechanism impact the activities of the

business organization in the following manners-

The total revenue of the company & the profit after tax is influenced by the mechanism of

the regulatory agency every year when the new & revised tax is imposed & also some of

the restrictions are imposed on the products & on the company coming from the outside of

the country;

The levels of competition among the firms of the specific regions affect the activities of the

business firms. When the competition among the firm is so high, the performance of thepersonnel have to be increased to cope with the competition;

When the government of a country changes the rate of tax of a particular sector, the

business firms of that particular sectors have to think about the alternative with the changed

situations;

The resource market & the labor market also are affected by the regulatory mechanism &

the competitive changed policies of the country.(Weston H. Agor 1986)

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Determination of pricing & output decisions of businesses by market

structures

Market structure is the reflection of some of the factors that determine in what shape the market is

operating. It consists of the control over the market by the buyers & sellers, the range of the

customers & the competitors in the market, the relationship among the buyers & sellers, the

information availability among the buyers & sellers etc. Market structures are of several types

which are-

Pure competition;

Pure monopoly;

Monopoly;

Monopolistic competition

Oligopoly;

Oligopoly;

Price discrimination

Therefore, on the basis of the structure of the market of the country, the overall functioning of the

business that is the financing, marketing, the production, the human resource & other management

facts of the business organization. So, before going to start any business in a country the overall

market structure of a country must be taken into consideration. (Weston H. Agor 1986).

Shaping up of the behavior of an organization by business & cultural environment

Among the environmental factors of an organization, the business & the cultural environments aretwo important aspects if the company is of the nature of dealing with the business global in nature.

Business environment is the factors that composed of the behaviors of the other business sectors,

the favor environments of the business in the country fairly & with security & in a free manners,

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the ethical basement of the businessmen doing business in that particular region & the competition

& bad competition among the businesses.

Again, the cultural environmental factors composed of the manners of behaving with the people,

the religious views of the people, the living habit of the people, the eating habit, the dress code of

the people, the lifestyle of the people, the likings & disliking of the people etc. For example the

jeans & short dress are very much available in the western countries whereas these are not well

accepted by the people of the Indian Sub continent due to religious & other cultural views.

Therefore, the above cultural & business environment shape up accordingly & differently the

business organization & their actions in the various regions according to the cultural differences of

the people & the regions as well that results in the changes in the patterns of the business. (Weston

H. Agor 1986)

The significance of intermediate trade to UK business organizations

Intermediate trade refers to be involved in the trading business rather than involved in the

production of the products. For example, many traders of UK involved in the trading of the

garments industry products imported from Bangladesh, Chaina & some other countries of the

world producing garments products.

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Due to the environmental differences & since this is a multinational country & huge no. of people

are living in this country, there is a good demands of the goods & services in UK that are not

solely produced here. For that reason, the export-import business & the intermediate business are

very crucial here. Again, UK is the producers of many software & technological products that is

also be exported in the other countries of the world. For the above mentioned reasons the

intermediate business is very significant in UK in order to add value to the value chain of the UK

market & to help the production industry of the country & also to supply the required products to

the residents of the country. (Weston H. Agor 1986)

The impact of global factors on UK business organizations

We already know that UK is a multinational country in the world & there are many business

organizations established in UK & operating all over the world & also some of the organizations

which are operating in UK coming from other countries of the world. Therefore, there are some

global factors which have global impact on the activities of the business organizations of UK. So,

the factors & their impacts are-

Global recession has a great impact

on the share market, the business

activities, the production industry &

the financial institution of the world.

In the same way this has a major

effect on the businesses of UK;

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For the increased competition among the companies of this region ensures the better

quality products with more features on the products & the increased customer cares for the

retention of the loyal customers;

There has been created an atmosphere in the region that is full of mutual understanding &

faithful relations among the bureaucrats of the countries that is also helpful for the security

of the people of these countries. (Heinz Weihrich, Harold Koonz 1994).

Conclusions

Every society has the demands from the business organization in the form of some of the social

welfare that will uphold the image of the company in the upper position & it should be continued

for a long time. The levels of competition among the firms of the specific regions affect the

activities of the business firms. When the competition among the firm is so high, the performances

of the personnel have to be increased to cope with the competition. The most important &

influential factors of the business environment are the geographical environment, the natural

environment, the technological environment, the corporate environment, the legal & regulatory

environment, the political environment, the economic environment & the technological

environment etc. Before going to start any operation of a business organization whether locally or

globally, the entrepreneurs must assess the conditions of the environment will take the various

business related decisions on the basis of the results of the assessment of the environmental factors.

References

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Heinz Weihrich, Harold Koonz, (1994), Management- a Global Perspective, (10th

edition), McGraw hill incorporation, New York.

James A. Wall Jr, (1990), Managers in the People Republic of China, Academy of

Management Executive, China.

George A. Steiner, (1975), Business and Society, (6th edn), McGraw Hill Publication,

New York.

Gerald D. Keim, Carl P. Zeithhami. (1986), Corporate Political Strategy & Legislative

Decision Making, Academy of Management Review, China.

Gregory S. Carpenter & Kent Nakamoto, (1989) Consumer Preference Formation &

Pioneering AdvantageJournal of Marketing Research, pp285-298.

Dale Buss, (2003) Sweet Success, Brandweek, pp.22-23.

Kotler P. & Keller K. Lane, (1994), Marketing Management (12 th edn) Prentice Hall

International, Inc, London.

Weston H. Agor (1986) How the Top Management Use Their Intuition to Make

Important Decisions Business Horizon. Prentice Hall International, Inc, London.

Ulrich Ramen, (1988), Proven Skills Match Challenges of 1992, Asian Finance, India.

Cyril A. Donald, (1961), Ground rules for using managerial tools in Decision Making,

McGraw Hill Publication, New York.

David, A DeCenzo & Stephen P. Robbins (2005). Fundamentals of Human Resource

Management. 8th ed. India: John Wiley & Sons. p60-345.

Dessler, G (2003). Human Resource Management. 9th ed. India: Pearson Education.

p185-268.

Glenn, G (2000). Out of Red, Into the Blue: p50-52.

Stephen P. Robbins & Timothy A. Judge (2010). Organizational Behavior. 13 th ed.

London: PEARSON Prentice Hall. p36-270,316-380,416-477,550-610.

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Business Environment (You Just Need to Improve Task-2 and 3)