Business environment Free Essays

Introduction generally th it is to be understood by saying business environment is that circumstanse where business runs or do its operations generally business environment can be divided in tow sectors one of them is external environmentswhich is known as PESTEL to academics another is internal environment which is more familiar as SWOT. Business environment show two kind of environment of business. Richman Copensaysthat the most important two part of business environment is External environment and internal environment. We will write a custom essay sample on Business environment or any similar topic only for you Order Now Lanworthington and chrisbritton say two kind of environment are Macro and micro environment of business environment. Internal Environment: Business has got an internal environment that was first identified by French physiologist Claude Bernard (1813–78), Adrian palmer Bob Hartley rightly said Micro environment and Macro environment is the part of internal environment. Richman and Copen, mention that Primary Activities and Support Activities are the part of internal environment. Macro Environment It is to be understood by macro environment is the outer elements of the business such as political, economical, social and so on, for most of the cases business has no control on macro environment. Political Environment Political environment has an important impact on the business. Political environment is not stable and can change quickly. The political environment in which the firm operates (or plan to operate) will have a significant impact on a company’s international marketing activities. The greater the level of involvement in a foreign markets, the greater the need to monitor the political climate of the countries business is conducted. Changes in government often result in changes in policy and attitudes towards foreign business. Adrian palmer Bob Hartley explain Political environment include PEST Political System: The basic role of a political system is to integrate the parts of a society into a viable functioning unit, bringing together people of different ethnic or other backgrounds and allow them to work together to govern themselves. Political systems are founded upon political policies, which are established by combining different points of view that are articulated by key constituencies, such as politicians, businesses, or other special-interest groups.1.Totalitarian state, 2.Democratic State Economic forecast: Business is a micro economic unit. The only function of economic forecasting is to make astrology look respectable. John Kenneth Galbraith US (Canadian-born) administrator economist (1908 – 2006) Social forecast: The term Social Forecasting is not a recent addition to business vocabulary. The use of social forecasting stems from recognition that social pressures are becoming an increasing determinant for the success of any organization. The various indicators indicate that the society will be experiencing a total change in next few years. Some of these changes have to be anticipated and must be incorporated in any long-range plans of an organization. Economic forecasting is essentially concerned with modelling how people behave using financial criteria as a means for maximising welfare. It is dependent on certain assumption of people behaviour. Elements for social forecast is1.Identification of important phenomenon, 2.Selection of phenomena for deeper study, 3.A system of measurement, 4.A time-scale Technology: Information technology refers to the management and use of information using computer-based tools. It includes acquiring, processing, storing, and distributing information. Most commonly it is a term used to refer to business applications of computer technology, rather than scientific applications. The term is used broadly in business to refer to anything that ties into the use of computers. The Socio-Cultural Environment This is perhaps the most difficult element of the macro-environment to evaluate, manifesting itself in changing tastes, purchasing behavior and changing priorities. The type of goods and services demanded by consumers is a function of their social conditioning and their consequent attitudes and beliefs. Core cultural values are those firmly established within a society and are therefore difficult to change. They are perpetuated through family, the church, education and the institutions of society and act as relatively fixed parameters within which marketing firms are forced to operate. Secondary cultural values, however, tend to be less strong and therefore more likely to undergo change. Generally, social change is preceded by changes over time in a society’s secondary cultural values, for example the change in social attitude towards credit. As recently as the 1960s, personal credit, or hire purchase as is sometimes known, was generally frowned upon and people having such arrangements tended not to discuss it in public. Today, offering instant credit has become an integral part of marketing, with many of us regularly using credit cards and store accounts. Indeed, for many people it is often the availability and terms of credit offered that are major factors in deciding to pu rchase a particular product. The Technological Environment One example of how technological change has affected marketing activities is in the development of electronic point of sale (EPOS) data capture at the retail level. The ‘laser checkout’ reads a bar code on the product being purchased and stores information that is used to analyze sales and re-order stock, as well as giving customers a printed readout of what they have purchased and the price charged. Manufacturers of fast-moving consumer goods, particularly packaged grocery products, have been forced to respond to these technological innovations by incorporating bar codes on their product labels or packaging. In this way, a change in the technological environment has affected the products and services that firms produce and the way in which firms carry out their business operations. So technology, has an great impact business its potential for the business to updated with the technology all the tme Micro Environment Customers Organizations survive on the basis of meeting the needs, wants and providing benefits for their customers. Failure to do so will result in a failed business strategy. Employees The main element of micro environment is employees because it the force which move other resources of the organization, they have the controlling power of mobility. Suppliers su Figure 1Micro Environmental Factor/Stakeholder Analysis Supplier got the bargain power , that is why they are potential to the business. The have the power of controlling demands. Good relationship with supplier may facilitate business development. Shareholders Share holders for the public limited company and private limited company`s are important, because by law they are the partial owner of the organization, as result the got the voting power to select the governing comity those who run the business on their behalf. Media Positive or adverse media attention on an organizations product or service can in some cases make or break an organization. Consumer programmers with a wider and more direct audience can also have a very powerful and positive impact, forcing organizations to change their tactics. Competitors Business rivals are need to be consider in business environment, because their strategic plan promotion and policy affects the organization. External Environment A business does not function in a vacuum. It has to act and react to what happens outside the factory and office walls. These factors that happen outside the business are known as external factors or influences. These will affect the main internal functions of the business and possibly the objectives of the business and its strategies. Main Factors The main factor that affects most business is the degree of competition – how fiercely other businesses compete with the products that another business makes. The other factors that can affect the business are: Social – ultimate’s buyer, households and communities behave and their beliefs. For instance, changes in attitude towards health, or a greater number of pensioners in a population. Legal –new legislation in society affects the business. E.g. changes in employment laws on working hours. Economic –economy affects a business in terms of taxation, government spending, general demand, interest rates, exchange rates and European and global economic factors. Political – changes in government policy might affect the business e.g. a decision to subsidies building new houses in an area could be good for a local brick works. Technological – rapid pace of change in production processes and product innovation affect a business. Ethical – what is regarded as morally right or wrong for a business to doFor instance should it trade with countries which have a poor record on human rights? Changing External Environment Markets are changing all the time. It does depend on the type of product the business produces, however a business needs to react or lose customers. Some of the main reasons why markets change rapidly: Customers develop new needs and wants. New competitors enter a market. New technologies mean that new products can be made. A world or countrywide event happen e.g. Gulf War or foot and mouth disease. Government introduces new legislation e.g. increases minimum wage. Business and Competition Though a business does not want competition from other businesses, inevitably most will face a degree of competition. The amount and type of competition depends on the market the business operates in: Many small rival businesses – e.g. a shopping mall or city centre arcade – close rivalry. A few large rival firms – e.g. washing powder or Coke and Pepsi. A rapidly changing market – e.g. where the technology is being developed very quickly the mobile phone market. A business could react to an increase in competition (e.g. a launch of rival product) in the following ways: Cut prices (but can reduce profits) Improve quality (but increases costs) Spend more on promotion (e.g. do more advertising, increase brand loyalty; but costs money) Cut costs, e.g. use cheaper materials, make some workers redundan Social Environment and Responsibility Social change is when the people in the community adjust their attitudes to way they live. Businesses will need to adjust their products to meet these changes, e.g. taking sugar out of children’s drinks, because parents feel their children are having too much sugar in their diets. The business also needs to be aware of their social responsibilities. These are the way they act towards the different parts of society that they come into contact with. Legislation covers a number of the areas of responsibility that a business has with its customers, employees and other businesses. It is also important to consider the effects a business can have on the local community. These are known as the social benefits and social costs. Conclusion The topic was about Business Environment. Topic gives a brief of Internal and external environment and some critical analysis of them. Differentissue stand base of topics. How business environment runwhat r the process What based on business environment? These were the assignment was about. Bibliography Drucker, Peter. Managing the nonprofit organization, New York: Harper Collins, 1990. Frumkin, Peter. â€Å"Philanthropic leverage.† Society, Volume 37, p40, Transaction Publishers, September 2000. The business and marketing environment / Adrian Palmer and Bob Hartley London; New York: McGraw-Hill, c1996. Xiii, 340 p.: ill. ; 25 cm. Bib ID- 2721834. http://www.articlesnatch.com Boone, L., Kurtz, D. 1992. Contemporary Marketing. Fort Worth, TX: Dryden Press. â€Å"Developing Your Strategic SWOT Analysis.† Austrainer. 1999. http://www.austrainer.com/archives/1397.htm. (5 Dec. 1999). Ferrell, O., Hartline, M., Lucas, G., Luck, D. 1998. Marketing Strategy. Orlando, FL: Dryden Press. â€Å"SWOT Analysis- Strengths, Weaknesses, Opportunities, Threats.† PMI- Plus, Minus, Interesting. 1999. http://www.mindtools.com/swot.html. (5 Dec. 1999). â€Å"Swoting† Your Way to Success.† BHC. 1999. http://www.bradhuckelco.com.au/swot.htm. (5 Dec. 1999). How to cite Business environment, Essay examples Business Environment Free Essays |Edexcel BTEC HNC/HND Business Management | |Unit Title: |Unit 1 |Date Issued | |Business Environment | |Week beginning 11/02/13 | |Student Name |Student ID |Due Date – 03/06/13 | |Lecturers Name: Ibrahim kevin, Sujata, |Internal Verifier Name | |Issac |Mr. M. Azam | Rules and regulations: |Plagiarism is presenting somebody else’s work as your own. We will write a custom essay sample on Business Environment or any similar topic only for you Order Now It includes: copying information directly from the Web or books without | |referencing the material; submitting joint coursework as an individual effort; copying another student’s coursework; stealing coursework from| |another student and submitting it as your own work. Suspected plagiarism will be investigated and if found to have occurred will be dealt | |with according to the procedures set down by the College. Please see your student handbook for further details of what is / isn’t plagiarism. | Coursework Regulations 1. Submission of coursework must be undertaken according to the relevant procedure – whether online or paper-based. Lecturers will give information as to which procedure must be followed, and details of submission procedures and penalty fees can be obtained from Academic Administration or the general student handbook. 2. All coursework must be submitted to the e-learning system –stponline. co. uk. Under no circumstances can other College staff accept them. Please check the Academic Admin Office opening hours. 3. Late coursework will be accepted by Academic Admin Office and marked according to the guidelines given in your Student Handbook for this year. 4. If you need an extension (even for one day) for a valid reason, you must request one. Collect a coursework extension request form from the Academic Admin Office. Then take the form to your lecturer, along with evidence to back up your request. The completed form must be accompanied by evidence such as a medical certificate in the event of you being sick. The completed form must then be returned to Academic Admin for processing. This is the only way to get an extension. 5. General guidelines for submission of coursework: a) All work must be word-processed and must be of â€Å"good† standard. b) Document margins shall not be more than 2. 5cm or less than 1. 5cm c) Font size in the range of 11 to 14 points distributed to including headings and body text. Preferred typeface to be of a common standard such as Arial or Times New Roman for the main text. ) Any computer files generated such as program code (software), graphic files that form part of the course work must be submitted either online with the documentation or on a CD for paper submissions. e) The copy of the course work submitted may not be returned to you after marking and you are advised to have your personal copy for your reference. f) All work completed, including any software constructed may not be used for any purpose other than the purpose of intended study without prior written permission from St Patrick’s International College. LEARNING OUTCOMES AND ASSESSMENT CRITERIA Outcomes |Assessment requirements | |LO1 Understand the |1. 1 identify the purposes of different types of organisation | |organisational purposes of |1. 2 describe the extent to which an organisation meets the objectives of different stakeholders | |businesses |1. 3 explain the responsibilities of an organisation and strategies employed to meet them | |LO2 Understand the nature of the |2. explain how economic systems attempt to allocate resources effectively | |national environment in |2. 2 assess the impact of fiscal and monetary policy on business organisations and their activities | |which businesses operate |2. 3 evaluate the impact of competition policy and other regulatory mechanisms on the activities of a selected| | |organisation | |LO3 Understand the behaviour of |3. explain how market structures determine the pricing and output decisions of businesses | |orga nisations in their market |3. 2 illustrate the way in which market forces shape organisational responses using a range of examples | |environment |3. 3 judge how the business and cultural environments shape the behaviour of a selected organisation | |LO4 Be able to assess the |4. 1 discuss the significance of international trade to UK business organisations | |significance of the global factors that shape |4. analyse the impact of global factors on UK business organisations | |national business activities |4. 3 evaluate the impact of policies of the European Union on UK business organisations. | Summary of assessment Plan |The Learning Outcomes (LO) are covered in one assignment/coursework divided into four closely linked scenarios reflecting the relevant Assessment | |Criteria (A. C). See Evaluation Sheet below for LO and A. C | |LO |A. C |Assessment |Issue date | Formative Due date | | | |Methods | | | | LO1 |1. 1,1. 2 1. 3 |Individual report | Teaching Week 2 | Teaching week 4 | |LO2 |2. 1,2. 2, 2. 3 |Individual report |Teaching Week 2 |Teaching week 7 | |LO3 |3. ,3. 2, 3. 3 |Individual report |Teaching Week 2 |Teaching week 10 | |LO4 |4. 1,4. 2 4. 3 |Individual report |Teaching Week 2 |Teaching week 14 | |Final Submission |Week Beginning 03/06/13 | GRADE DESCRIPTORS |Merit descriptors |Indicative characteristics |Contextualised Indicative |Check (/? | | |characteristics | | |M1 | | | | | | |Identify and apply |effective judgments have been made | | | | |strategies to find |complex problems with more than one variable have been explored | | | | |appropriate |an effective approach to study and research has been applied | | | | |solutions | | | | |M2 |Select/design and |relevant theories and techniques have been applied | | | | |apply appropriate |a range of methods and techniques have been applied | | | | |meth ods/ techniques |a range of sources of information has been used | | | | | |the selection of methods and techniques/sources has been justified | | | | | |the design of methods/techniques has been justified | | | | | |complex information/data has been synthesised and processed | | | | | |appropriate learning methods/techniques have been applied | | |M3 |Present and |the appropriate structure and approach has been used | | | | |communicate |coherent, logical development of principles/concepts for the intended | | | | |appropriate findings|audience | | | | | |a range of methods of presentation have been used and technical | | | | | |language has been accurately used | | | | | |communication has taken place in familiar and unfamiliar contexts | | | | | |the communication is appropriate for familiar and unfamiliar audiences | | | | | |and appropriate media have been used | | | Distinction Descriptors |Indicative characteristics |Contextualised Indicative |( | | | |characteristics | | |D 1 |Use critical reflection |conclusions have been arrived at through synthesis of ideas and have | | | | |to evaluate own work and|been justified | | | | |justify valid |the validity of results has been evaluated using defined criteria | | | | |conclusions |self-criticism of approach has taken place | | | | | |realistic improvements have been proposed against defined | | | | | |characteristics for success | | |D2 |Take responsibility for |autonomy/independence has been demonstrated | | | | |managing and organising |substantial activities, projects or investigations have been planned, | | | | |activities |managed and organised | | | | | |activities have been managed | | | | | |the unforeseen has been accommodated | | | | | |the importance of interdependence has been recognised and achieved | | | |D3 |Demonstrate convergent/ |ideas have been generated and decisions taken | | | | |lateral/creative |self-evaluation has taken place | | | | |thinking |convergent and lateral thinking have been applied | | | | | |problems have been solved | | | | | |innovation and creative thought have been applied | | | | | |receptiveness to new ideas is evident | | | | | |effective thinking has taken place in unfamiliar contexts | | | Assignment Brief Questions Instructions: Answer all the tasks of the each Learning Outcome Scenario: Select an organisation operating in the UK that you have access to and from which you can obtain information, and carry out the following tasks by thoroughly analysing the Business Environment in which the company operates. LO1: Understand the organisational purposes of businesses. . 1a: Provide a brief background of that organisation. This should include a description of its mission, vision, short- and long-term objectives, type of sector it belongs (private or public sector). Discuss how this organisation has been impacted by changes in its industry. In this part, focus on the constraints within which the organisation has to operate in its sector. Pr ovide evidence and reference the sources. 1. 1b: Compare the purpose of your chosen organisation to another that operates in a different sector 1. 2: Identify the key stakeholders of your chosen organisation? Identify their interests in and influence on the organisation. How do they impact the organisation? Using the Stakeholder Analysis matrix, plot where, in your opinion, each stakeholder might stand based on your research and analysis. Make sure your analysis is based on evidence and research and do NOT guess or make wild assumptions. 1. 3: Explain the organisation’s responsibilities to its stakeholders and identify the strategies its adopts to meeting their needs and expectations LO2: Understand the nature of the national environment in which businesses operate. 2. 1: What specific benefits and constraints that your organisation might face operating in a different economic system (i. e. in free and command economic systems)? Look at specific political, economic and social aspects such as government interference, population, labour force, market growth, exchange rates, trading partners, consumer tastes and preferences the organisation etc. 2. 2: Using the concept of Aggregate Money Demand (AMD = C+I+G+X-M) or otherwise, explain with reasons, what might happen to business activity in general and to your organisation specifically, if the following happened: i. A general fall in the level of income tax? ii. A rise in the value of the pound? iii. A fall in interest rates? iv. A large increase in unemployment? v. A large increase in the level of Government expenditure? 2. 3: Discuss how government-related regulations including competition policy impacting you organisation. LO3: Understand the behaviour of organisations in their market environment. 3. : Explain how the various market structures determine the price and outputs decisions of businesses in the market environment of your organisation. Explain with r easons what market structure that your organisation might be classified. 3. 2: Illustrate, with examples, how the market forces of demand and supply influence business decisions and activities of your organisation regarding the products offered and their prices 3. 3: Briefly describe how the social, cultural and competitive environment has affected your organisation as a whole. LO4: Be able to assess the significance of the global factors that shape national business activities. 4. 1 4. 2: Discuss future market opportunities and threats facing your chosen organisation. Consider in what ways the role of World Trade Organisation (WTO), emerging markets (BRIC countries – Brazil, Russia, India and China) and protectionist tendencies of national governments may impact your organisation in the next 10 years or so. 4. 3: Analyse the benefits and constraints of policies of the European Union on your organisation Preparing your assignment Your assignment must strike a balance between theory and practice. Your work must avoid bland description of what is already stated in the case study; description should be limited to what is absolutely necessary to emphasise a point of view or make your analysis clear. Similarly, you should not simply describe theories in your assignment with no practical application of them. You should show due diligence in writing your assignment to ensure that it reflects the highest standard of presentation. Other key considerations †¢ Your assignment must include a cover page with title, student name and number, student contact details (email mobile phone number), date, word count, and contents page with page numbers. †¢ The Introduction in your assignment should cover the background, the issues and the aim of the investigation. †¢ Your assignment must use good quality sources (academic material or credible news sources, up to date and relevant to the topic) and correctly referenced using the Harvard system. General guidelines †¢ The assignment must be neatly typed using Font Size-12, Ariel or Times New Roman. Your assignment must word processed on A4 paper, single sided and double line spaced. †¢ Both right hand and left hand margin must be suitably spaced. †¢ Your written work can be above or below the 10% range of the word limit whic h is 3,000 words. If your work exceeds the recommended maximum guidelines, then your work will be penalised. †¢ An electronic copy of the assignment must be submitted on Moodle by the due date. †¢ Plagiarism, spelling and grammatical errors are unacceptable. Marking criteria The assignment will be assessed for its overall quality, with the emphasis being upon how components fit together and the suitability of the work for Undergraduate level of research. The quality of the work will be assessed using the following marking criteria. |Distinction |Excellent in every way. Knowledgeable, incisively analytical, conceptually sound, widely-researched and | | |well-structured. Displays a critical and sophisticated understanding of ideas, debates, methodologies and | | |principles. Comprehensively cited and referenced. A degree of flair apparent in the work. | |Merit |Very good, well-researched, solid. Addresses question. Sensibly structured and well presented. Evidence of analysis,| | |reasoning and evaluation. May have some errors in emphasis but not in fact, and may be limited in terms of | | |supporting material and breadth of coverage. Appropriately cited and referenced. | |Pass |Pass. Descriptive narrative. May be partly irrelevant. Indiscriminate. Lacks structure. Could be more direct and | | |explicit. Little independent research evident. Short bibliography. In some areas, there is evidence of confusion and| | |irrelevance of information. Written content heavily based on lecture notes, but a minimum of understanding to | | |justify a pass. | ———————– Assignment Brief – General ———————– Business Environment – Assignment How to cite Business Environment, Essay examples Business environment Free Essays Any investor strongly aspires to build a great and a profound company, and the success of any given business critically depends on the individuals involved. This infers that, the business activity involved has to be handled by individuals who are involved and committed to the growth and the growth of the given activity. These individuals may entail such duties as; satisfying clients, assisting partners, and promoting the communities in which they carry out their trade. We will write a custom essay sample on Business environment or any similar topic only for you Order Now Hence, these individuals or groups must be held responsible for attaining big, daring goals with resolute integrity. Therefore, for a business activity to progress, individuals who are leaders, who understand that to be strictly great, one must persistently endeavor to do better individually while helping others progress. However, a major disparity which relates to this whole concept of business environment pertains to negligence. More than often most investors have cited negligence as one factor greatly affects any business progression and equally resulting into massive losses or legal tussles (Munguti, 2007). Typically, negligence can be either   from the employer or from the employee, generally as legal issue, negligence greatly affects the business activity as well as damaging the image of the given business. This is due to the fact that, the injured parties are more than often forced to seek damages which are often hefty payments or the imprisonment of the involved individual. It should be noted that, negligence can be said to be a legal circumstance in which the employer ignores or fails to provide suitable work atmosphere that is risk free and is supportive of workers rights. Examining such definition, it is quite apparent that, there are a number of critical situations that can be considered as employer negligence. For instance, an employer may be viewed as negligent for failing to offer suitable training to his workers or where he is considered not to uphold safety and health standards. Equally, another important aspect is, in any given business activity the employer may also be blamed of employer negligence if he employs a worker with violent attitudes. From a business aspect, the employer have an ethical responsibility to ascertain that the business environment is secure for both the workers as well as the clients, also the employer is legally obliged do so . Typically, many nations have passed and implemented policies that are designed to compel employers to meet certain legal provisions in order to protect the workers. Hence, on the other hand, several jurisdictions have legal structures for protecting workers rights. Therefore, if in a given business activity the employer fails to operate within the defined legal boundaries, he or she becomes vulnerable to being sued for being negligence. 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