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Diploma in Business
Unit Number and Title
Unit 1 Business Environment distinction Copy
There are various set of organization is set up and established for the different purpose and functions of the business man. In the first part of business environment organization behaviour and structure are considered then functions of the organization are taken into consideration. With the increasing ramification of this changing economy international trade is being deployed by organization in its internal and external set of activities for the enhancement of business. In addition to this PESTL and SWOT analysis are the most effective tools which are used business environment assignment distinction Copy for development of effective business system.Global factors of UK and European Union are the most valuable factors that put into emphasis upon while coming up with strategic planning.
Background- Primark is an Irish clothing retailers operating in Australia, Belgium, France and other countries. This company has been running its business since very long time and currently Paul has been appointed to take care of all the businessactivities as a CEO in the key managerial persons. In addition to this Primark has been founded by Arthur Ryan in June 1969 in order to promote fashion industry and its customised products in France. Primark is being accustomed with the orders and directors issued by the promoter of its parent company name Associated British company (Evans, et Al, 2016).In this fast moving business environment there are various sort of business is incorporated for the effective functioning of the business. there are various types of business are incorporated by the promoters group for the smooth functioning of the business such as sole proprietorship, partnership, private company, public company NPO, NBFC, Banks and other corporate bodies.Primark is generally a private multinational company which is running its business with the help of more than thousands of employees in all over the world. There are various set of activities which are performed by organization in retail fashion industry.There are following purpose of the Primark Company in this sophisticated world in order to accomplish set objective and goals (Cheeseman, 2016).
Purpose of Primark:
There are other functions which are followed by Primark in determined approach given as below
Vision- It is concerned with various set of activities and plans which provides where company want to be in its near future. Primark has established its vision to enhance its business and establish more than 400 Outlets all over the world.
Mission- This is accompanied with written statement which provides course of action for the proposed goals and objective of the organization. In this Primark has established mission statement to capture more than 30 % market share in fashion industry in next 4 years.
Objectives- The main objective of Primark is to earn more profit while at the same time providing high quality products to clients in determined approach.
CSR- It stands for corporate social responsibilities. Primark has been complying with all the required rules and regulation and has been indulge in CSR activities in determined approach to promote society and stakeholders.
Co-Operative-This is the body which is established with a view to promote social activities. This business is owned and run by only associated members in determined approach. This is related with providing equal benefits to associated members with a view to promote social activities. In Today’s world there are following co- operative society could be incorporated.
There are following purpose of Co-Operative society which could be defined as below
Primark has been running its business effectively with a view to earn set objective and goal in effective approach. Primark has been accompanied with various stakeholders such as employees, government, shareholders, suppliers, promoter, banks, and lenders,Persons in concert, clients and other persons who ever are having interest in the working of the organization. In order to describe the extent to which Primark meets the objectives of its stakeholders are given as below (Evans, et. Al., 2016).
Economic system- It is the system which is based upon the economy’s want and need in determined time. In this system all the organization from different places make joint efforts so that clients demand and need could be accomplished in effective way. As per the particular point of view of the stakeholders of the organization production system of goods and services of the organization throughout the time is completely dependent upon the available resources and other available capital of the economy. In this fast moving world where there is scarcity of the resources is found it is hard to manage resources efficiently with a view to cater people needs and demand. Therefore it is government who attempts to the allocation of resources effectively in organizational bidders. It is economic system which is the underlying point while deciding how the scarcity of resources will be used to make effective production of foods and services in determined approach (BANICA & HAGIU, 2015).
There are several approaches of economic system has been adopted by different countries with a view to develop an effective working mechanism (Heydon, 2016).
CUBA: It is the free market economy where is less government policies and intervention are involve which influence demand and supply of the people at large. Furthermore economic system of Cuba is also accompanied with high availability of resources and less demand of product in this given market segment. Therefore price and productive environment depends upon how organization is dealing with economical polices and people demand.Economic system of the Cuba is less concerned with how to distribute resources in the production of specified goods and product but it is focusing on how to export goods to outside the world.
United Kingdome: The economy of UK has been suffering with recession since very long time which has resulted into loss in company’s GDP. There are various changes are made in the economic condition of the U.K.
With the reduction in Government intervention and less interest rate has rendered company to make investment in its operating activities so that more production could be made in determined approach. In addition to this inflation rate of UK is also very stable that has allowed Primark to make effective use of resources for cater the need of people at large.
China: Economic system of china is very effective as there are found more raw material and more human power to covert that raw material in finished goods. China has been following mixed economic system in which public and private bodies both make effective working system for the production of required products and goods. In addition to this various blue chip companies have been indulge in production of required goods. Unlike the other countries China has been exporting highest amount of trade goods for the betterment of world. In addition to this mix economy of china has allowed government to make intervention only for the social development and economic welfare.
There are following characteristic of Mixed economy:
Fiscal policies- It is the tool and mechanism which is used by government and other department for controlling flow of money in the economic environment.It is the tool which is deployed by government with a view to control the money in the given economy. There is seen that if government want to make growth in the economy then there will be high amount of expenditure in various government action plan. If government want to control inflation rate of economic growth then there will be less expansion plan and increment in tax rate which will lower down the company policies and framework (Geyfman, 2014).
Monetary policies- It is the government plan and tool which is used with a view to control the economy. There are various functions are performed by government in order to control Economic of the country such as issues of gilt securities, increase, decrease of rate of interest, expenditure and budget plan for the economic activities. This policy of government has huge impact on the growth and funds of economy. It provides the best effective approach to cater the people needs and demand (Gupta, 2013).
Impact of fiscal and monetary policies on farming business.
Farming business is accompanied with activities of production of foods and raw material in identified approach. monetary policies has been used by government to promote this farming business as high amount of donation in this sector by the government has resulted into low cost of production and has rendered farmers to get rid of interest burden. In addition to this farmer has been offered low interest rate loan so that they could make more production for the better development of economy. Monetary policies are being used by government to promote farming business in U.K. which has resulted into low inflation rate in determined approach.
Fiscal policies are used to cater the growth of the economy. Government has used various tools and method throughout the time with a view to develop an effective mechanism for the betterment of current economy and increasing farming business. In addition to this government has been issuing various bonds and gilt securities for the betterment of farming business.
Impact of fiscal and monetary policies on housing business.
Housing business is coupled with activities of development or building house. Monetary policies has been used by government to promote housing business by reducing the home loan interest rate and also provided a good help in the betterment of real estate business.
Fiscal policies are used to cater the growth of the economy. Government has used various tools and method throughout the time with a view to develop an effective working environment of housing business. Moreover government has issued several polices and regulation to make housing loans easy and less cost associated program for the people.
Competition policies- It is the policies and statutes which are used by organization with a view to cater the competition in industry and maintain a positive level of working environment in industry. The competition of company has high level of impact on the organizational growth and profit earning capacity. The main objective of competition policy is to make sophisticated changes in the working condition of the organization and develop an effective technology in business working environment (FELDMAN & BIGGS, 2012).
There are various organizations which are working in order to run their business and accomplish set of goals and objectives.The pricing or output decision of the business is generally depends on the current position of the company product in the market. The demand and supply of the product in the market plays a key role in determining the price and level of the output of the company. The market structure of and country includes the relation between the demand and supply in the targeted market and the level of competition between the companies in the market. A product may have high demand in one market and may have very low demand in the other market. The demand of the product generally depends upon the environment of the company and the need of the customer within the market. The detail discussion on this market structure and their effect on business are as follows-
The market forces generally include the effect of demand and supply on the price and output of the product. The employee should understand the relation between these factors to increase the profitability of the business (Jochem& Reitz, 2014).
If the demand of the product rises than the company should increase the price of the product on the other hand if the demand of the product starts declining than the company should reduce the price of the product to attain consumer equilibrium. The simultaneous increase in price with demand will help in earning a good profit on the company product. Whereas, on the other side the decrease in price when the demand decreases will help the company in avoiding the dead stock.In addition to this company has been complying with all the required laws and regulation in determined approach and has established following methods to complete its responsibilities.
If the supply of the product increases the company should reduce the price of the product and on the other hand if there is decrease in the supply of the product the company will increase the price to earn a nominal return on its profit. If the demand declines the company should increase the price of the product to cover the loss. On the other hand if the supply increases the company will reduce its price to sell its entire product and earn appropriate profit for the business.
The competition in the market also affects the pricing and output decision of the company. If there is low competition the company can charge high price for the product on the other hand if the competition between the companies is high than the company must concentrate on reducing the price of the product.
Market structure of the business is comprised of perfect competition, Monopoly, oligopoly and other business structure in this fast moving economic.
The environment in which the company operates has a huge effect on the functioning of the business. The preference of the customer is different in each market. The demand of the product may be very high in one market on the other hand it may have very low demand in the other market. The marketing management should determine the preference of the customer before entering in the market. The forces in the market which generally affect the business are political, social, legal etc. The company should analyse the effect of these factors before deciding to enter in the market.
In this fast moving and high competition industry there are two core competencies which should be developed by each and every organization for the proper sustainability. Cost leadership and product differentiation are the most effective strategies which are used by organization
Business is comprised of several complex set of activities in which various functions are performed in orderly manner to accomplished set of goals. In this report it is observed that there are various set of corporate bodies which could be taken by an entrepreneur for the setting his own business.International trade is becoming very effective throughout the time with a view to make world economically open. International trade has been becoming huge and now several countries are making regional block in order to promote international trade and reducing tariff and traits. There are several international trade blocks such as EU, NAFTA, and AFTA and furthermore (FELDMAN & BIGGS, 2012).
Organization is comprised of several set of stakeholders such as employees, shareholders, promoters and persons working in concert. Therefore it is observed that organizational behaviour and structure are dependent factors upon vision, mission and set objectives. The Fiscal and monetary policies are the key concern which is observed by top management in preparing of strategic and tactical planning of the business
E.U. is accompanied with 28 countries that are located primarily in Europe. This is the regional block incorporated with a view to promote international trade at specified terms and conditions. With the changes in the EU due to the exit of Britain has resulted into very much loss to other counties such as U.K., U.S., France and other countries. There are so many policies and regulation which is issued internationally with a view to promote and control international trade in E.U.
There are some of the policies which are issued by EU which affect the organization in U.K. Tariff and trades-organization form U.K. has been importing raw material form other members at zero tariff rate but as the zero tariff and traits of the regional block has resulted into loss of revenue at large.
In the end it would said that each and every organization should observe all the legal and ethical policies in the working environment. International trade has increased very much for the betterment of the organizational working system. There are various international policies and regulation has been issued by legal authorities on international level which needs to be followed by all the organization for the effective development of international trade.
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