BUSINESS ENVIRONMENT-Economic system

BUSINESS ENVIRONMENT- Economic System

Table of contents

Introduction……………………………………………………………………………………….3

Task 1………………………………………………………………………………………………3

1.1 Explain briefly the following organizations and their purposes. 3

1.1.1 Virgin Group LTD.. 3

1.1.2 Tesco PLC.. 4

1.1.3 McDonalds. 4

1.1.4 National Health Services (NHS) UK.. 4

1.1.5 A corner shop near where you stay. 5

1.2 The extent in which Tesco meets the objectives of different stakeholders. 5

1.3 Responsibilities of Tesco and strategies employed to meet them.. 6

Task 2. 6

2.1 How different economies attempt to allocate resources effectively. 6

2.1.1 Market economy. 7

2.1.2 Planned Economy. 7

2.1.3 Mixed economy. 7

2.2 Impacts of fiscal and monetary policy on Activities of Tesco PLC UK.. 8

2.3 Impact of competition policy and regulatory mechanism on Tesco PLC UK.. 8

Task 3. 8

3.1 How marketing structures determine pricing and output decision of the Tesco PLC UK.. 8

3.2 How marketing forces shape Tesco PLC UK responses. 9

3.3 How the business and cultural environments shape the behavior of Tesco PLC UK.. 9

Task 4. 10

4.1 Significance of international trade to Tesco PLC UK.. 10

4.2 Impacts of global factors on Tesco PLC………………………………………………….11

4.3 Impacts of Policies of the European Union on Tesco PLC UK.. 11

5.0 Conclusion. 12

6.0 Reference. 14

 Introduction

Many companies are in different organization environment and such will be mentioned in this report. However, before we go deep into our discussion, we will first determine what organization environment is and the causes behind company’s operation. Company environment is a process by which the inner and external causes amalgamate so as to impact the important scenario of an organization.   The inner and external causes consist of government activities, team factors suggestions, replacement, globally control, provider, alternatives, improvements, team factors, clients, suppliers and opponents. There will also be an addition of a detailed view on how different companies implement suggestions to manage their organization environment successfully. To begin our discussion, we will first look at different companies and the purpose of those companies.

  • Explain briefly the following organizations and their purpose

1.1.1 Virginia Group Limited

According to Cengage (2001pp67), this organization was created and began by Richard Branson and it is one of the British Centered international companies. The company’s important dealings are in wellness and fitness, entertainment, way of way of life and regional travel agent and also deal in cell mobile cellular mobile phones. The independent features of companies comes due to companies being sub units hence leading to the complexness and difference of commercial set up of companies. In Virgin Group Restricted, Branson who is the creator of the organization often permits a brand to an organization that has come up with an organization unit.

  • Tesco PLC

Given a rank as the second greatest store based on its earnings, Tesco is an British organization working in general merchandise and food such as beverages, foods cost-effective alternatives and Tesco Mobile cellular mobile phones. U.K form the headquarter of Tesco (Gott  et al 2010pp128). The important purpose of Tesco is to create sure that its clients are well offered and its employees are also well motivated to help in the growth and growth of the organization. The organization is a aspect of the FTSE 100 index with a capital of 24.4 billion cash money Dollars this year (Hellriegel et al 2009pp273).

  • McDonalds

This is a fast foods restaurant serving dairy products pizza and also one of the greatest trash foods restaurants. The secret head office of MacDonald Industry is in U. S. The restaurant gets its earnings from the earnings on the restaurant. Apart from dairy products pizza other foods sold at MacDonald consist of poultry, Chips, milkshake or smoothie or shake or shake, sodas, deserts and they also offer breakfast among other things (Innotica 2003pp98).

  • National Health Services

According to Oenb (2002pp 35), the healthcare program provides real wellness and fitness, physical wellness and wellness and fitness alternatives and operates in U. s. Empire. The Nationwide Health Solutions has four techniques that function individually and they consist of Northern Ireland in Europe in Western nations, England NHS, NHS Scotland, and NHS Wales. These method features using different suggestions, management’s and authority with its funding originating from taxation. The Country Health Service is known to cover emergency treatments, long illness, fatalities, antenatal care and transplants and many more.

  • A neighboring corner shop

A nearby place shop can be referred to as a small shop in the team that earnings item such as beverages, magazines and household specifications. The business owners of such shops often create important options regarding the growth and growth of their shops. These shops are usually not big in size and there for are only on the team or the neighborhood it serves at plenty of your energy and effort. The business owners of these shops also create options in regards to the problems and earnings developed within a particular time frame (Steers et al 2006 pp107).

  • How does Tesco meet the objectives of different stakeholders

The employees, the clients, the administration and the provider’s type aspect of the stakeholders’ of Tesco. For the common outstanding of stakeholders, Tesco understands from concentrating on its stakeholders. The question that needs to be addressed is how do they comprehend from their customers? How do they get to know that they are satisfied with the alternatives that they get? What about the traders and the employees? How does the organization fulfill their objectives? On the issue of clients, Tesco does this by examining the activities of clients whenever they offer their alternatives.

However, contrary to the clients, Tassoni (2007) noticed that the traders are up-dates on different success of the organization and also different programs that they have. The organization also has strategic marketing strategies that create sure that the organization has outstanding growth earnings hence concentrating on the traders and investor’s growth. For the employees, the organization assures that they execute in a beneficial environment. The employees also have forums where they air out their problems to the organization. The priority goals of Tesco are to create sure those clients are offered top quality alternatives and that their employees are properly secured and healthy. The organization also assures that no stakeholder is discriminated based on gender or public. Having respected non- government companies and control segments Tesco has enhanced in its growth. The control department and the non- government companies support Tesco in its growth by giving their views on the coming up problems within the organization and the way forward. Lastly, through efficient communication, Tesco has recognized outstanding relationship with their suppliers (Warner 2010 pp14).

  • Responsibilities of Tesco and strategies employed to meet them

Angiello (2005pp347) pointed out that different obligations are available in Tesco as an organization which comes from working, environmental, worker’s responsibility to team obligations. Under working responsibility, to create sure that earnings are developed, the organization has in place efficient suggestions. These suggestions help in the growth of the organization and its expansion in terms of advantages (Ghidini 2010p.37). On the issue of environmental responsibility, Tesco contains in properly secured organization so as to reduce damaging the surroundings. This is done through techniques that the organization has in place to create sure a maintainable environment and such techniques consist of recycle of spend elements. Under team responsibility, the organization identifies the customer’s needs in different places and joins a lot of importance to its clients. Lastly, there is the employee responsibility. Under the employee responsibility, Tesco provides necessary rewards so as to create sure that its employees are motivated accordingly. By motivation, it means that the employees are motivated to execute more smartly for example by satisfying them whenever the organization makes more advantages or by increasing their salary (Harris et al 2004pp89).

Task 2

2.1 How different economies attempt to allocate resources effectively

Distribution of resources is done successfully in accordance with the kind of the economic system. There are three types of cost-effective techniques which will be looked unto in the repot and they consist of structured economic system, market economic system and mixed economic system.

2.1.1 Market economy

Based in market economic system, main options are joined on market process. The factor of production under the marketplace economic system is not owned by the main government but by companies and personal groups. Requirement, offer and ability execute a significant factor to create options (Steers et al, 2006pp30).

2.1.2 Planned Economy

In comparison to the marketplace economic system, in a structured economic system, the government is the key player in resource allocation choice. The government Agencies execute all the planning regarding how sources will be allocated (Hutt et al 2010p.195). Before the allocation of sources an intense research on different needs of people is performed to establish how successfully the restricted sources can be allocated to create value for the globe. A nation with a structured economic system tries to create sure reasonable resource allocation to all techniques of way of way of life. The examples of nations that execute structured economic system consist of main Western nations, Asia and Latina in the U. s. States.

2.1.3 Mixed economy

In mixed economic system, there is the combination of structured economic system and market economic system. Under mixed economic system, the sources are split between the Government and the person sector (Kutz 2007pp98). Example of a mixed economic system is the nation of England where the government controls resource allocation to education and real wellness and fitness while the person companies have taken over resource allocation to Telecoms and energy generation and submission.

2.2 Impacts of fiscal and monetary policy on Activities of Tesco PLC UK

Monetary policies or guidelines are suggestions that are applied to help in handling cash offer. Cost-effective technique directly outcomes item forex costs, asset costs, financial commitment and consumption. The UK working technique has confident lower rates for borrowing which has confident that different trader can easily access loans hence according them to be able to spend cash on Tesco companies (Stanley 2002p.227).

Unlike working technique, Cost-effective technique in the UK contains the State`s taxation and making an investment on companies. The UK government has decreased the level of taxation of companies and this has caused a beneficial impact to Tesco PLC due to the factor that it is now able to enhance its investments across the globe without the initial fear of outstanding taxation costs (Tassoni 2007pp328). Reduced taxation has decreased the costs of products at Tesco hence encouraging more purchases by the clients and creating customer’s commitment. Reduced taxation has also led to an important reduction of the amount of selecting and working hence it has enhanced the chances of Tesco Company growth.

2.3 Impact of competition policy and regulatory mechanism on Tesco PLC UK

Warner (2010pp187) noticed that a company’s harassing activities are often banned by aggressive law. The aggressive law assures that a organization does not execute rejection to deal, aggressive costs and price gouging. The rival’s technique has led to a rise in opponents within Tesco marked thus creating earnings for the companies. Just like the opponents technique, the handling process has also developed earnings to the organization by ensuring that the obligations carried out in the organization achieves the business’s goals and is legal.

Task 3

3.1 How marketing structures determine pricing and output decision of the Tesco PLC UK

Many market elements are available such as oligopolies, and monopolies. There is also a aggressive market structure where there are many clients and suppliers. Many clients and suppliers usually bring the issue of market costs. The combination market provides and demand conditions usually determine the marketplace costs. A greater opponent reduces the discussing energy for the buyer hence they will be price takers. In perfect opponents Tesco will continue to emphasize its outcome given that the value (Price=MR=AR) exceeds Tesco`s minimal price (MC) (Xahir 2012p.53).

3.2 How marketing forces shape Tesco PLC UK responses

Indirect and direct external pressure usually types the promotion causes. Within Tesco PLC UK, there exists the following forces; cost-effective, opponent, legal, government, particular growth, handling and socio-cultural (Cengage, 2001, p71). Tesco`s environment is quick changing and it is important for the control to monitor these factors carefully to be able to survive because environmental causes generate threats, opportunities and question or risk to the organization (Gott et al 2010pp227). If the company’s managers fail to identify the external causes, it will leave the organization not really prepared to deal with problems and threats. Tesco should therefore concentrate on monitoring so that it can respond properly to the promotion energy. For instance, there can be an enhanced need for the products which Tesco offers. If Tesco was monitoring this, they can enhance offer to the marketplace hence enhances earnings for the organization. Industry causes monitoring help to check the company`s activities in regards to the alternatives and products offered by a organization.

3.3 How the business and cultural environments shape the behavior of Tesco PLC UK

Business environment controls and Influence Organization’s activities (Hellriegel et al 2009 pp165). The team environment has also an outstanding impact on the activities of a organization such as Tesco. Company activities have a shared meaning and common belief that is held by affiliates of the organization. Social values determine how different affiliates within the organization will act towards each other (Innotica 2003pp75). Good environmental way of way of life leads to greater employee commitment to the organization, helps in selecting and communicating of the new employees and enhances the company`s performance through promoting and creating workers` effort.

Environmental way of way of life outcomes on the right thinking and charges of different employees within an organization since it provides specifications that must be upheld by the organization. To help in the improvement of performance in Tesco, the organization has put in place a way of way of life that motivates employees to create, comprehend and offer their very best. The leadership and control of Tesco usually affect the way of way of life (Oenb 2002p. 118). The way of way of life of growth has helped Tesco to extremely create every time.

Task 4

4.1 Significance of international trade to Tesco PLC UK

It is of great important to companies in worldwide business in various ways. In scenario of Tesco, Worldwide organization has offered Tesco the probability to expand its market shifting on the globe like into African-American, Asia and North America. These new markets have efficient for Tesco UK because it has enhanced the earnings for the organization.

Apart from growth of market shifting, globally organization has led to particular details sharing; Tesco usually gets details from other nations to enhance its organization (Steers  et al 2006 pp48). A large market has significantly decreased organization difference since there is extensive offer and need for Tesco`s products globally. Tesco can now import more cost-effective raw content and sources that are more cost-effective elsewhere hence enhanced success for the organization (Tesco 2002 pp26).

4.2 Impacts of global factors on Tesco PLC

The globally factors that impact Tesco PLC organization consist of legal factors, team factor, cost-effective factor, government factors and particular factors. Under Guidelines, Tesco familiarizing itself with different rules from different nations has helped the organization to act as per the suggestions all over the globe. Tesco has a duty of familiarizing itself with team factors in instances where they want to successfully bring out their organization in a new and different region. Under cost-effective law, cost-effective techniques vary from one nation to another and Tesco has to determine the tendency of cost-effective techniques in different nations.

Economical techniques determine the success of a organization in that nation since some countries` economic system value personal goals better than mixed goals. In comparison with the cost-effective factor, the particular factor comes in a consequence of the growth in the field of Technology. Tesco has to create sure an efficient technique in the particular growth so that it is not left behind by the marketplace trends. Lastly, under government factors, the organization has to take government problems of different places or nations that it plans to execute its organization in. Countries which are politically unpredictable are not beneficial for organization this is because of government anxiety (Xahir 2012pp153). When this occurs, Tesco PLC`s property may be taken, broken and the normal dealings revoked.

4.3 Impacts of Policies of the European Union on Tesco PLC UK

According to Angiello (2005pp57), the Western Collaboration has come up with different control that impact organization and organization activities through making an investment and taxation, supply of organization support and advice, control, rules and directives. Below are some of the Western labor unions which have outstanding outcomes on Tesco.

The Western Collaboration has an efficient profession technique that tries to activate profession through encouraging organization efficiency to create sure Western companies are more aggressive in the globally market, hence creating more jobs.

The Western Collaboration has acquired funds to back up places of outstanding team hunger and lack of employment. This technique is known as Local technique which sets out on spending for the factor that enhanced growth of more efficient places of Western Collaboration, profession has been lost in other places (Ghidini 2010p. 49). This has motivated the growth of Tesco. With the growth of Tesco more profession opportunity has been began out for various people in different places.

European Collaboration technique of globally organization motivates engagement in globally trade; this has helped Tesco to take factor in globally organization by creating shops in different places hence enhanced earnings to the globe. With the Western Method of Worldwide Company, Tesco has also been able to take factor in organization in different places with ease without any fear, thus enhance in its advantages creating.

The Western union`s technique on personal right protection has confident that Tesco details different problems in regards to personal rights. This is through ensuring efficient hiring and protecting of personal rights. The Western Collaboration Strategy on Human Rights has also confident that the rights of the employees in regards to the wages are properly secured and that the employees are not molested at their place of execute (Harris et al 2004pp164).

5.0 Conclusion

In summary, it can be said that the process of ensuring an efficient organization companies are not an easier process since several factors come into execute. It is therefore, very vital to create a beneficial organization environment for a organization through efficient control of the external energy that face a organization. As pre-specified in the technique, the organization should create sure it achieves its responsibility in an appropriate way and by achieving its liability; the organization should consider what has been mentioned above to help in the success.

People ignore research in company’s environment and sometimes see it as a ineffective. However, that should not be the scenario. Enough research should be done on the an organization`s environment to enhance efficient response to different threats, question and opportunity developed by the changing organization environment. An efficient organization companies are the one that knows the different globally factors that outcomes it features and knows how to take advantages of them. Different nations should create an advantageous environment that enhances organization success. With organization success, the Government is sure of a constant economic system for its citizens hence a better way of way of life.

6.0 Reference

Angiello, R. (2005, March 3). How Political, Legal, Economic and Technological Systems Affect International Business Tutorial. Retrieved August 15, 2013, from Bergen Community Clloge: Retrieved from http://www.bergen.edu/faculty/rangiello/global3.html

Cengage, G. (2001, December 4). Economic Systems Study Guide & Homework Help – Reference – eNotes.com. Retrieved August 14, 2013, from eNotes.com: Retrieved from http://www.enotes.com/economic-systems-reference/economic-systems

Ghidini, G. (2010). Innovation, competition and consumer welfare in intellectual property law. Northampton, Mass, Edward Elgar. Retrieved from http://site.ebrary.com/id/10395027.

Gott, E. S., & Loughran, K. (2010). Contemporary African fashion. Bloomington, IN, Indiana University Press. Retrieved from http://site.ebrary.com/id/10481742.

Harris, P., & Mcdonald, F. (2004). European business and marketing. London [u.a.], sage.

Hellriegel, D., & Slocum, J. W. (2009). Organizational behavior. Mason, OH, South-Western Cengage Learning.

Hutt, M. D., & Speh, T. W. (2010). Business marketing management: B2B. Mason, OH, South-Western Cengage Learning.

Innotica. (2003, June 1). Organizational Behaviour and Culture | Innotica. Retrieved August 15, 2013, from Innotica: Innovation for strategic change: Retrieved from

http://www.innotica.com/learning/courses/man/organizational-behaviour-and-culture

Kutz, M. (2007). Environmentally conscious mechanical design. Hoboken, Wiley.

 

Oenb. (2002, April 22). How Does Monetary Policy Impact the Economy? – Oesterreichische Nationalbank. Retrieved August 14, 2013, from OESTERREICHISCHE NATIONAL BANK: Retrieved from http://www.oenb.at/en/geldp_volksw/geldpolitik/wirtschaft/how_does_monetary_policy_impact_the_economy_.jsp

Stanley, M. (2002, February 22). Various Issues in Competition Policy: Regulation. Retrieved August 15, 2013, from Regulation: Retrieved from http://www.regulation.org.uk/issues.shtml

Steers, R. M., & NardoN, L. (2006). Managing in the global economy. Armonk, N.Y., M.E. Sharpe. Retrieved from http://site.ebrary.com/id/10178053.

Tassoni, P. (2007). Child care and education: cache level 3. Oxford, Heinemann.

Tesco. (2002, July 20). Corporate Responsibility – Tesco. Retrieved Agust 14, 2013, from Tesco PLC: Retrieved from http://www.tesco-graduates.com/home/about/social-responsibility

Warner. (2010, July 20). Advantages and Disadvantages of International Trade. Retrieved August 15, 2013, from Webicy: Retrieved from http://www.webicy.com/general-business/14594-advantages-disadvantages-international-trade.html

Xahir, A. (2012, May 29). Market Structures – Price and Output Determination in Monopoly. Retrieved August 15, 2013, from EconoMaldives: Retrieved from

http://www.economaldives.net/2012/04/topic-13-market-structures-price-and.html

Authenticity and Confidentiality Guaranteed

The authenticity of our freelance essay writing and the confidentiality of all the information are guaranteed. We do not disclose private information of our customers and we do not reuse ANY custom papers.

Order custom written term papers, sample essays, thesis papers, research papers, book reviews, dissertations, speeches, book reports and other assignments. Exclusive writing in approximately 70 subjects. NO PLAGIARISM

Order a custom paper written from scratch
on practically any subject

Essay Freelance Writers/ BUSINESS ENVIRONMENT-Economic systemQualified writers only

Essay Freelance Writers/ BUSINESS ENVIRONMENT-Economic systemPlagiarism free guarantee

Essay Freelance Writers/ BUSINESS ENVIRONMENT-Economic systemIt will just take you 2 minutes