Business Environment

Maryum Sarag

Business Environment

Table of Content
1.1 Identify the purpose of different types of organizations.
1.2 Describe the extents to which an organization meets the objectives of
different stakeholders.
1.3 Explain the responsibilities of an an organization and strategies
employed to meet them.
2.1 Explain how economic systems attempt to allocate resources
effectively.
2.2 Assess the impact of fiscal and monetary policy on business
organizations and their activities.
2.3 Evaluate the impact of competition policy and other regularity
mechanisms on the activates of a select organization.
3.1 Explain how market structure determine the pricing and output decisions
of business.
3.2 Illustrate the way in which market focuses shape organizational
responses using a range of examples.
3.3 Judge how the business and cultural environment shape the behavior of a
selected organization.
4.1 Discuss the significiance of international trade to UK business
organizations.
4.2 Analyse the impact of global factors on UK business organizations.
4.3 Evaluate the impact of policies of the European Union on UK businesss
organizations.

Introduction of Business Evironment

Business can not be operated in one specific way or form ,whatever happens
outside the boundary wall of the factory and office has an effect on the business.
The factors that takes place outside the boundary wall of the office and factory is
known as the external factors or influences. All the external factors have effect on
certain internal affairs and functions of the business and maybe the business it self
and its strategies. . It should be kept in mind that the internal and external factors
both can have a great influence on each other and can work together to have an
impact on the business. Business Environment includes a vast number of topics that
should be discussed , from initials and start of the business to the way of operating
the business , strategies to run the business , strategies to get hold on the
employees , strategies and different techniques to motivate the employees in order
to get the best out of them. Thus it is very important to establish the best provide
a suitable working environment for working environmentally and geographically in
order to utilize the best martial and human resources , there should be pleasant
and motivational working environment in order to figure out the and recognize the
diamond in rough type of employees and the ineligible employees. The course of
opening up and establishing your business is not just an venture, it is also a big
dare. To guide and help entrepreneurs with this, it is necessary to develop a suitable
business environment. Providing quicker approach to funding, making the
legislation clear and more helpful and an industrial culture and appreciating and
supporting networks for business are all influential as long as the establishment
and success of the businesses is concerned. However to create a suitable business
environment does not only mean to just improve the growth potential of
businesses but to also make Asia a place where it is beneficial to make an
investment and work. Thus the encouragement of corporate social duty is causative
to make business in Asia further attractive

Sainsbury
Introduction:
Sainsbury came into existence as a result of the love story of two young British
couple in Londons Drury Lane. It was back in 1969 when Mary Ann Staples (19
years old) and John James Sainsbury (24 years old) decided to make a small diary
business by renting a small area in London dreary Lane. It was hard for anybody to
predict back then that the small dairy shop would become a great successful
business one day and would be known nationwide eventually. the father of Mary

Ann Staples was the owner of a dairy shop , and John James Sainsbury was the son
of a craftsman belonging from Lambent Mary Ann Staples and John James
Sainsbury started their very first shop on 20th April 1869, the exact day that they
got married . They successfully opened their second shop in 1873 at Queens
Crescent, Kentish Town , only after 4 years of the establishment of their first shop
which was quite a big achievement back then . As a result of their impressive hard
work and dedication towards their business Sainsbury was gradually transformed
into one of the most successful dairy business nationwide , having the widest
variety of products in their store with most advance equipments like refrigerators
and fans in order to keep and deliver their products fresh and its best form.
Business Environment

LO 1.1. Identify the purpose of different types of organization.

A work organization is a social arrangement for the controlled performance of
collective goals (Buchanan and Huczynski, 2004). The structre of formal
responsibilities , relationships , and authorities with the help of which certain aims
and objectives are achived is called Organization. Organizations are are operated in
different ways depending upon the strategies adapted , for example pyramids ,
committees , matrix organizations and ecologies. Organization may vary
accordingly to their purposes and aims, for example there are Public sector , Private
sector and the third sector. Public sectors composition of every country may
vary , in most of the countries the public sector facilitates services as such the
military, police, primary education , healthcare for the people that can not afford
it ,public road and public transit.. The public sector may facilitate services which
non-payer cant be disqualified from for example street lighting, water filteration
plants, garbage system, roads and facilities that is advantageous to all people and
its not just for the individual that uses the facility for example free public education
and facilities that provide equal opportunities. The system which contributes in the
economy of a country with the involvement of individuals and businesses instead
of government is called the private sector. Private sector companies are mostly run
with the aim to generate profit . Non profit seeking organizations fall into the
category of third sector , such organizations provide service to the people free of
cost . . Some of renowned and most largest largest third sector organizations in
Pakistan are , Edhi Foundation , Al khidmat foundation Pakistan, Child care
foundation of Pkistan , American Pakistan Foundation , Care foundation , Heritage
Foundation and etc.

. LO 1.2. Describe the extent to which an organization meets

the objectives of defferent stakeholders.
Different stakeholders have different interests and managers have to create value
for all the the stakeholders. ( Palmer and Hartley , 2011) It is the managements
responsibility to increase the value of the stake . While the employees are assigned
to carry on different activities in order to generate the stake and achieve a better
value. Study theories youll find out that the "stakeholders" in some theories or
models), especially the very basics of a person's desire to belong and fit into the
organization. It is the stakeholder theory that implies that all stakeholders (or
individuals) must be treated equally regardless of the fact that some people will
obviously contribute more than others to an organization. Creditors want on time
payment without any delays. Government wants a good source of employment for
the people and more taxes that can help the economy. Community wants good
products and more job services , less tax and more job opportunities for
employment. Community development project , more job opportunity for the local
people. Companies should have codes of ethics for their managers and employees.
These codes should govern how managers deal with their stakeholders, such as
treating suppliers fairly, providing customers with advance warning of problems
with their orders and staying true to corporate values, such as not collaborating
with companies that employ child labor or ignore environmental laws. Companies
should
train new and existing employees on these ethics codes and publish the documents
on their internal websites. . Managers should provide full and timely disclosure of
relevant information to stakeholders. Senior management and investors need timely
and comprehensive financial information to make investment decisions. Regulatory
authorities rely in part on company disclosures to verify compliance with
government regulations. Employees, suppliers and customers need to know any bad
news immediately so that they can make alternative plans. The bad news may
include the sudden loss of a major customer, introduction of new products by
competitors, or adverse regulatory decisions. By disclosing the bad news promptly,
managers demonstrate respect for their stakeholders