LONDON CHURCHILL COLLEGE

Assignment Submission

Programme:
Unit Number and Tit"e:

HND BTEC Ede !e"

#$% Business En&ironment

Unit Le&e":

'C( Le&e" )

Table of contents LO1 (Task 01): Understand the organisational purposes of business 1.1 Identify the purposes of different types of organization you must Describe the extent to which Siemens meets the objectives of different stakeho ders

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"xp ain the responsibi ities of Siemens and strategies emp oyed to meet stakeho ders.

LO2 (Task 02): Understand the nature of the national environment in hich businesses operate 2.1 2.2 2.! "xp ain how economic systems attempt to a ocate resources effective y. #ssess the impact of fisca and monetary po icy on business organisations and their activities. "va uate the impact of competition po icy and other regu atory mechanisms on the activities of a se ected organisation

LO! (Task 0!): Understand the behaviour of organisations in their market environment !.1 !.2 !.! "xp ain how market structures determine the pricing and output decisions of businesses I ustrate the way in which market forces shape organisationa responses using a range of examp es $udge how the business and cu tura environments shape the behaviour of a se ected organisation

LO" (Task 0"): #e able to assess the significance of the global factors that shape national business activities %.1 %.2 %.! Discuss the significance of internationa trade to &' business organisations #na yse the impact of g oba factors on &' business organisations "va uate the impact of po icies of the "uropean &nion on &' business organisations.

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%dentif& the purposes of different t&pes of organi'ation

Organisation( a business organisation can be defined as a socia arrangement that has specific structure and objective. #ccording to the previous researchers and purist the organisation inc udes specia isation and re)uirements of rationa coordination. In order to achieve the organisationa goa in an efficient manner the management of thrifty and divided the organisation in accordance with their specia ised groupings. *here are main y for organisation in the &'. It may inc ude private company +td, pub ic company imited, -o untary company and charitab e company .rivate company +td( In private imited company the shareho ders has imited iabi ity and the shares are not so d to the genera pub ic through the stock market. In this stage it is observed that the shareho ders in private imited company are often bound to offer their shares towards their fe ow shareho ders before they can se them to the third party. "xamp e( working group +imited is a private organisation which consists more than %// companies and estab ished by Sir 0ichard 1ranson in 123/. *he company is head)uartered in +ondon, &'. #ccording to the definition of private imited company the company has imited iabi ity. .ub ic imited company( the pub ic imited company enab es the shareho der to send their stocks, bonds in the genera pub ic in stock market. In this stage the pub ic imited companies shou d fo ow the re)uirements based on the fo owing( *he company must have a minimum of 4/,/// share capita . *he company shou d have registered as pub ic imited company *he company must be ab e to se its shares to the pub ic *he company shou d have two directors. -o untary organization(*he company can be formed by two or more persons to words the achievement of common object if based on mutua ob igations and duties. In this stage the individua s enter an agreement as vo unteers in order to estab ish the organisation and to deve op the purpose as a non5profit organisation. 6haritab e organisation( *he charitab e organisation can be a so defined as a non5profit organisation. *he company is deve oped and operated in the interest of the pub ic for !

common good. *he organisation making your education and re igious antipoverty activities etc. "xamp e( 1ritish 7eart 8oundation is a charitab e organisation. *he company estab ished 1$2 in 1291 in &'. (escribe the e)tent to hich *iemens meets the ob+ectives of different stakeholders *he stakeho ders are the re ated parties in the business schoo has significant interest on the business. In this stage it is observed that the individua s,, groups or organisations that have direct or indirect interest in the organisation can be defined as stakeho ders as they can effect can be affected by the actions, wars and po icies of the organisation or by the behaviour of the members of the organisation. *here are three categories of stakeho ders such as interna stakeho der, co ected stakeho ders and externa stakeho ders. *he interna stakeho ders are the emp oyees, management and owners. *he co ected stakeho ders can be defined as the customers, supp iers, competitors and shareho ders. :n the other hand externa stakeho ders can be identified as the government, society and creditors. In this study to emphasis upon the interest and the objectives of the stakeho ders Siemens has initiated the fo owing process( %nternal stakeholders: In order to focus upon the objectives of interna stakeho ders Siemens has initiated extrinsic and intrinsic motivation po icies for the emp oyees and the management in order to get the best possib e outcome from them as we as to inc ude the eve of service )ua ity for the existing and potentia customers. :n the other hand to make the objective of the owners Siemens as significant po icies and strategies which inf uence the reader po icy and profit sharing po icies. ,ollective stakeholders: *he co ected stakeho ders are the customers, supp iers and shareho ders. In order to meet the objectives of the stakeho ders Siemens has initiated significant po icies and strategies which inc ude effective customer service po icies for the customers, reducing the creditors days for the supp iers and providing significant financia and non5financia benefits for the shareho ders. -)ternal stakeholders: *he externa stakeho ders are the comments and society. In this stage Siemens offers attractive emp oyment opportunity for the society to reduce the eve of unemp oyment prob em. :n the other hand Siemens a so initiates supportive measures in order to make the objective of the government based on the economic and po itica circumstances. %

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-)plain the responsibilities of *iemens and strategies emplo&ed to meet stakeholders$ In order to achieve competitive position in the current marketp ace it is crucia for Siemens to emphasis upon the responsibi ities and strategies emp oyed to meet the stakeho ders objectives. In this stage the nature of responsibi ities can be categorised into economy responsibi ities, responsibi ities. -conom& responsibilities: "conomy responsibi ities can be defined as the faster primary responsibi ities of Siemens. In this stage the prime responsibi ities is to produce and distribute products and services in order to make profit for the owners and shareho ders. Legal responsibilities: *he ega responsibi ities can be defined as the responsibi ities reached an organisation must comp y with. In this stage it is crucia for the organisation to keep its ega documents up to date in accordance with the ru es and regu ations and fu fi ing the re)uirements of any regu atory bodies. -thical responsibilities: *he ethica responsibi ities may inc ude mora ity #1S such as acting fair y, ;i ey according nationa ity, respecting the rights of the individua s etc. In this stage Siemens shou d take significant initiative to focus upon the ethica responsibi ities in order to estab ish and maintain its reputed brand image in the competitive marketp ace. (iscretionar& responsibilities: *he discretionary responsibi ities are not re)uired by the aw and it does not hamper the organisation<s image. # though the organisations shou d focus upon the discretionary responsibi ities with not expectations of getting anything in return. It is pure y and tru y four the contribution of the society. In this stage Siemens has significant po icies in p ace to conduct the discretionary responsibi ities in the given situation. ega responsibi ities, ethica responsibi ities, discretionary

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-)plain ho economic s&stems attempt to allocate resources effectivel&$ *he system can be defined as the process through which production, distribution and consumption of homes and services are performing the economy. In addition to the 4

economic system focuses upon the way through which it is possib e to a ocate the avai ab e resources in an efficient manner in order to get the significant output internationa community. In this stage it is observed that the economic system is inked with the po itica system of the country. If a country is po itica y Democratic then the economy is ike y to be open for the individua s. #ccording to the situation of the given market the economic system is categorised in the fo owing( =arket economy( In market economy it is a free5market system in which the individua s or organisations a and run of product in activities and a ocate resources for the common interest of the peop e. In this stage the market economy has imited freedom. In addition to it is monitored by the government for fair trade and competition. 6ommand economy( *he command economy is an economic system which is contro ed and directed by the government. In this stage it is observed that the a ocation of resources is determined by the government as we as the manufacturing and distribution of products and services are based on the comment decision5making process. It is a so defined as p anned economy. In this stage it is observed that >7S the nationa hea th care system is operated by the &' government which is an examp e of command economy. =ixed economy( mixed economy is the accumu ation of market economy and p anned economy. In a mixed economy starting industries are under direct contro of the government and rest of the organisations are born and, by the individua s. 8rom the above5mentioned discussion it can be observed that economic system is crucia for the organisation and the nation to serve the re ated parties through the efficient use of the resources. 2$2 .ssess the impact of fiscal and monetar& polic& on business organisations and their activities$ The fiscal polic&: the fisca po icy can be defined as the common spending po icies which has significant inf uence on the macroeconomic conditions. In addition to the fisca po icy p ays a significant ro e to improve the unemp oyment rate is, reducing the inf ation rate as we as inf uences aggregate demand and aggregate supp y in order to stimu ate economic growth of the country. It is a so criticised by the researchers that the fisca po icy denta affects particu ar groups these proportionate y. In this stage it is observed that it acts decrees may not be app ied to taxpayer at a receiving the spending. 9 income eve s. :n the other hand an increased of common spending we have the biggest inf uence on the group that is

/onetar& polic&( *he monetary po icy is one of the state or nationa government po icies which has significant inf uence in the economy. It ana yses the monetary authority usua y the centra bank of the country such as the bank of "ng and to contro avai abi ity and supp y of money and the rate of interest, exchange5rate etc. Is the prime objective of monetary po icy is to focus upon the stimu ation of economy broke and ba ance fo owing payments etc. 8rom the above5mentioned discussion it can be observed that fisca and monetary po icy are two major drivers of the nations economic performance. 2$! -valuate the impact of competition polic& and other regulator& mechanisms on the activities of a selected organi'ation *he competition po icies are the ru es and regu ations which a ows competition authorities to regu ate anticompetitive conduct in order to deve op their fair market competition. It need to words the achievement of high5 eve economic we fare and efficiency for the society and the nation. In order to make the market more bitter the competition po icies p ayed a significant ro e for the "uropean &nion. *he prime princip es of competition po icies can be defined as monitoring any merger, joint venture and ac)uisition of organisations in order to ensure fair competition process. In addition to providing any anticompetitive practices such as predatory pricing, price5fixing. 8ina y to resist the marketing activities and practices which may cause imitation in the free5market competition and trading between business are considered to be one of the prime princip es of competition commission. In addition to competition po icies and other regu atory mechanism has significant impact on the activities of the organisation in the wider context. *he competition commission regu ates the organisation<s behaviour as we as the pricing po icy, =arjorie in a position and fina y to enhance competition between supp iers and to reduce anticompetitive behaviour between the organisations.

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-)plain ho businesses

market structures determine the pricing and output decisions of

*he pricing and output decisions are considered to be the important determinant in market structures. It need to words the pricing and output supp y product decisions. *he pricing 3

and output decisions depend arge y on the environment of the market in re ation to words the market competition. #ccording to the nature of market the market competition can be categorised into perfect competition and imperfect competition. *he perfect competition is observed in the market containing a arge number of sma organisations are sma farms. *hey sound the same products ?rende farm individua y has any contro over the pricing of the products and services. In this stage there are some significant characteristics of perfect market such as the buyers and se ers have three exes in the market. I< buyers and se ers have know edge about the price and )ua ity of the product and services fina y the prime objective of a buyers and se ers is to achieve profitabi ity. :n the other hand the imperfect competition ref ects that there are no free f ow of information of 1ryson product between the buyers and se ers. In addition to a the farms within the market and knocks immediate y size and capab e of inf uencing price and supp y of product they trade in the marketp ace. *he imperfect market competition takes p ace in =ono ho y, o igopo y and monopo istic competition stage. In =ono ho y on y one farm produces ourse ves a particu ar goods or services. In this stage the entry of other farms is restricted due to copyrights trademarks. In o igopo y there are few farms are companies produce and treat the same products and supp y. *hey have the contro of supp y and the pricing of the project in the market. *he tobacco companies are the examp es of o igopo y market. *he monopo istic competition is the situation in the marketp ace where the buyers and se ers are free to enter but semina competitors are a ready offering the same products and services in the marketp ace. *herefore from the above5mentioned discussion it can be observed that the pricing and supp y of products and services depends upon the factors based on the market structure.

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%llustrate the

a& in

hich market forces shape organisational responses using a

range of e)amples *he market forces are the forces of demand and supp y of goods and services traded in the marketp ace. In this stage the profit oriented buyers and se ers inf uences the )uantity of products produced an offer in the marketp ace and the pricing po icies of those products @

depending upon the state of the market. *he demand and supp y supported by the prize are interre ated with each other. Demand and supp y( the demand and supp y are considered to be the prime determinants in order to inf uence the market situation of the company. In this stage the supp y represents the tota number of commands of products avai ab e in the marketp ace for trading and starting point of time where the demands technica y revea s the figure of how much says it organisation or company generated by a particu ar product and the particu ar point of time or how much the customers are wi ing to purchase the product. In this stage how much the buyers want to buy is defined as the demand in the market and how much of the sai ors want to se is the supp y. *he Demand curve( *he changes in demand curve is due to the changes in pricing po icy that undermined by the management in the company in different stages depending upon the activities in the marketp ace.

.rice .1 .2 # 1 6

Demand AbeforeB C1 C2 C!

Demand AafterB Cuantity Demanded

8rom the above5mentioned diagram it is observed that when the price of the product changes the )uantity demand of the product a so changes. *herefore the demand of the project is against the pricing po icy of the product. Supp y curve( *he supp y curve demonstrates the amount of product in the so ar are wi ing to se in the marketp ace based on the different pricing po icies. 2

Supp y 6urve represents the amount of products the se ers are wi ing to se market at different prices. .rice .1 .2 Supp y AafterB 6 Supp y AbeforeB # 1

in the

C! Cuantity

C2

C1

8rom the above5mentioned diagram it can be observed that the pricing po icy of the product and the supp y of the product are moving in the same direction. *herefore from the above5mentioned discussion it can be observed that the man and the pricing po icy in vast re ated on the other hand the supp y and the pricing po icy changes !$! in the same direction. 0udge ho the business and cultural environments shape the behaviour of a selected organi'ation *he business and cu tura environment has significant impact towards the behaviour of the organisation. In this study it is observed that Siemens has estab ished itse f in competitive position in the marketp ace. In this stage the cu ture of Siemens has significant impact towards the operation of the business as we as to dea with the human resources, customers and the community around the organisation. In addition to the extent to which persona freedom, decision5making freedom, innovation and creativity are a owed are a so one of the significant determinant of the cu ture. In addition to the information and powerfu in the different eve s of management in Siemens a so that undermines the cu ture of the organisation. 8ina y the efficiency of the emp oyees and their commitment towards the organisationa objective of Siemens ref ects the cu ture of the organisation based on the behavioura activities.

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:n the other hand the business environment of Siemens based on the po itica , economic, techno ogica , ega and environmenta issues in which the organisation operates its business. #s a motivationa company doing the fo owing market entry mode of the oca business expansion it is crucia for Siemens to consider the po itica situation. :n the other hand during the fo owing market entry mode the economy( issue such as exchange rate, economic downturn as red as the emp oyment opportunity of the guest country a so p ays a significant impact. :n the other hand the techno ogica deve opment needs to be considered dea ing the deve opment and growth of Siemens in oca and g oba context. 8ina y to words the business deve opment it is crucia for Siemens to emphasis upon the comment ru es, regu ations, emp oyment act and fina y the ega issues which may create cha enging issues for the company doing the business expansion. "$1 (iscuss the significance of international trade to U1 business organisations *he internationa trade can be defined as the exchange of goods and services between the countries across the geographica borders. #t present competitive business wor d if you countries nowadays can focus on the domestic products. Internationa trade enhances the goods and services to be avai ab e to the countries for trading where goods and services are not produced domestica y. *he internationa free aser significant ro e in &' economic. It is vita for the economic deve opment as we as the sustainabi ity. #t present in competitive g oba economy it is crucia to pauses economic strengths and progress which may have achieved through the internationa trade. #t present the &' economy has inf uenced by the internationa trade which has conse)uences of increasing g oba ised economy. *he internationa trade enhances &' to consume foods from appropriate manufacturing boards a so come from a proc ivity. In this stage without internationa trade it is not possib e for &' to serve its customers weak there is re)uired products and services. In this stage it is a so mentioned that &.'.<s estab ish this country. @/.%D of its ?D. comes from service industry. In this stage the media services provider organisations "$2 are education, hea thcare, finance and business services etc. .nal&se the impact of global factors on U1 business organi'ations *here is a significant impact of g oba factors on &' business organisations. It is mentioned ear ier that &' is a service based country. In this stage during the internationa business expansion it is important for &' to emphasis upon the significant oca determinants which may inc ude po itica , economica , socia , cu tura and environmenta factors in g oba context. In this stage it is a so observed that during the g oba isation 11

process it is significant to take into account the fo owing factors to words the business expansion and growth in competitive marketp ace. 8ina y it can be observed that the g oba factors which has significant impact towards the economic growth and deve opment of the business needs to be taken into account is the prime g oba factors during the deve opment of &' business organisations.

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-valuate the impact of policies of the -uropean Union on U1 business organisations$

In order to eva uate the impact of po icies of "uropean &nion on &' business organisation it is observed that the "uropean &nion of you is an economy integration of 23 "uropean nations. In this stage the "uropean &nion has deve oped a number of po icies that invo ves significant impact on &' business organisations the most common po icies inc udes common agricu tura po icy and competition commission. In this stage the "& commission for competition emphasis upon six area of po icies that inc udes anti5trust, carte s, ibera izations, state aid the internationa and margers. In addition to it is a so observed that the "& po icies has significant impact on emp oyment and abour management. In context of &' the abour cost is genera y higher than the eastern "uropean countries. In this stage the workers from a around the "uropean &nion region can be benefited by the emp oyment opportunity in &'. It is a so criticised the "uropean the workforce to &' can be threat to the oca workers. In this stage the unemp oyment the risk can raise threat to the &' economy. *herefore it can be observed that the &' business organisations can be benefited from the ski s and expertise of the workforce in context of "uropean &nion.

2eference 1. "rik > 1owman, A2/11B. "ntrepreneur *raining =anua , *hird "dition. ?uanzi Institute .ress. 2. Scott #ndrew Shane A2//!B. # ?enera *heory of "ntrepreneurship( the Individua 5 :pportunity >exus. "dward " gar .ub ishing. !. *homas >. Duening, 0obert D. 7isrich, =ichae # +echter. A2//2B. *echno ogy "ntrepreneurship( -a ue 6reation, .rotection, and 6apture. #cademic .ress. 12

%. .inson, +inda. A2//%B. #natomy of a 1usiness . an( # Step5by5Step ?uide to 1ui ding a 1usiness and Securing Eour 6ompanyFs 8uture A9th "ditionB.

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