Comprehensive Report on Business Context: Stakeholders and Policies

This report provides a comprehensive overview of the business context, examining different types of organizations and their purposes, the roles and strategic responsibilities of stakeholders, and ways of meeting their objectives. It delves into economic systems, analyzing resource allocation and the influence of fiscal and monetary policies on business, as well as the impact of competition and regional activities. The report also explores market decisions, organizational responses to market forces, and the importance of assessing culture in the business environment. Furthermore, it discusses the value of international markets to UK businesses, global factors affecting businesses, and the impacts of EU policies on UK businesses. The analysis incorporates examples such as Unilever and Primark to illustrate key concepts and their practical application in the business world.

BUSINESS CONTEXT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1.1 Different types of organisations and their purposes..............................................................3
1.2 Stakeholder roles and strategic responsibilities.....................................................................4
1.3 Ways of meeting different stakeholders’ objectives..............................................................4
2.1 Economic systems with resource allocation..........................................................................5
2.2 Influence of fiscal and monetary policies on business...........................................................5
2.3 Impact of competition............................................................................................................6
2.4 Impact of regional activities on organizations.......................................................................6
3.1 Market decisions and its influences on the policies of a specified business..........................7
3.2 An organisation’s response to market forces.........................................................................7
3.3 Importance of assessing culture in the business environment...............................................8
4.1 Value of international markets to UK businesses..................................................................8
4.2 Global factors affecting businesses........................................................................................8
4.3 Impacts of EU policies on UK businesses.............................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business context is an understanding of the factors which have an impact on the business
from different perspectives. It includes making the decisions and attaining the desired outcomes
within the business. It is used by the department of information technology in order to determine
the main implications required for the execution of strategic initiatives (Gogokhia, and Berulava,
2021). Business environment is the total of all the factors which have an influence on the
functioning of business operations. Such factors will affect the working of the business in either
direct or indirect means. This report deals with the basic understanding of the business
organizations along with the role of stakeholders. It describes the impact of economic and
business environments on the operations of business.
MAIN BODY
1.1 Different types of organisations and their purposes
There are mainly 3 types of organizations such as: For profit, not for-profit and non-
government.
Profit: It includes all those companies and organizations that set up business with primary aim
of earning profits. Such organizations operate un private sector. Such organizations are owned by
group of individuals and no by state (Laraswati and et.al., 2020). The primary purpose of
generating profit. Unilever is an example of this type of organization.
Not for profit: It consists of those companies that are set up for all advantages other than
earning profit. When companies set up business for serving people such as charities and social
enterprises. Such organizations operate in scientific, religious and educational sector. UNICEF,
The American Red Cross are examples of not for profit organizations.
Non-government: Such type of organizations is referred as NGOs. They operate
independently from the state and government. Different types of NGOs exist within each group.
The primary aim of such organizations is to promote change and improving quality of lives of
people. NGOs play a vital role in improving communities, society and individual’s engagement
in welfare program, developed by NGOs for people (Crawford, Morgan and Cordery, 2018).
Childline India is NGO of India and there are numbers of NGOs in UK.

1.2 Stakeholder roles and strategic responsibilities
Stakeholders refer individuals or a party who has an interest in a company and they want
company to earn profit and meet its goals. they got affected if company gets affected. Customers,
investors, employees are some stakeholders of organizations. Stakeholders play a vital role as
they help out in defining the future and they help company in accomplishing their goals. They
strive hard and perform their job role for meeting goals of company. Some stakeholders may
have negative impacts as it depends on their interest level towards company and its performance
(Järveläinen, 2020).
Internal stakeholders such as: employees, managers, board of directors and shareholders
help company in increasing sales by controlling project scheduling, working on budgetary issues
and creating scheduling parameters. Overall, it can be said that each stakeholder has his/her
specific role and duty and by performing them, they build a better organization by helping out in
decision making process.
1.3 Ways of meeting different stakeholders’ objectives
Satisfying stakeholders and managing them is vital for business performance because
stakeholders play a vital role in accomplishing goals. There are numbers of strategies by which
companies can manage and meet objectives of both internal and external stakeholders.
Practice good communication: For satisfying stakeholders’ needs such as: employees,
shareholders and others, employers need to focus on continuous communication with them. It
can help them out in knowing needs as what they want. Clear communication can make able to
stakeholders in understanding their roles and responsibilities (Bundy, Vogel and Zachary, 2018).
Active listening: Having an ability to listen carefully is one of the main key of managing
stakeholders. Customers are the main stakeholders who should be listened. When employers
listen them carefully then it makes them feel valued and by listening them, employers can
provide them with qualitative products.
Keeping the project vision visible: It is important for employers to keep projects’ vision
visible and accessible to all in order to engaging stakeholders with project. It helps stakeholders
in focusing on all those things that are important for them. It can decrease chances of scope
creep.

2.1 Economic systems with resource allocation
Resource allocation is the process of planning, managing and assigning the resources
which are helpful in attaining the goals of the organization. It helps in working effectively.
Economic system is a group for allocating the scare resources and determine what is supposed to
be produced as well as the outputs generated (Calabrese, and et.al., 2018). In command
economies, the decisions are made related to the allocation of resources along with allocation of
production and consumption process. On the other hand, in market economies, there is a private
ownership of the resources which is developed based on the property rights and other factors
which are related to production and consumption with a proper coordination within the market.
The resources allocated are productive to use with the help of pricing which is determined in the
market. These prices are the base signals for the buyers and sellers. Many of the economies
comes under mixed economies which is in between these two extremes. Rational agent is
responsible for allocating the resources based on the analysis. In the case of command
economies, it becomes difficult to process without the market and prices tend to fail to be an
effective signal.
2.2 Influence of fiscal and monetary policies on business
Monetary and fiscal policies are important in the process of regulating the economic and
business activities over time. They affect the timeline and length of the cycles./ During the phase
of expansion there is a growth in the economy and businesses will look to add jobs along with an
increase in the customer spending. Fiscal policies involves having the use of government
spending and raising the revenue (Carson, 2017). This will impact various different aspects of
business and economy. Fiscal policies involves the changes in taxation and also the spending
limit. Low amount of taxes means to have more disposable income for the consumers and more
money to invest in business. Monetary policy is about the changes in short term interest rates.
Low rates for the interest will help the business have low interest expenses and more income for
the customers. This helps in generating higher profits for the businesses. High interest rates
impact the business in an opposite way such as affecting the stock prices for the business which
affects the customer spending.

2.3 Impact of competition
Competition within the business market has the power to lead the business of the
company to invent and innovate more at lower costs manufacturing processes. It can increase the
profits and help in passings these savings to the consumers. Competition helps the business to
identify the needs of customers and then develop new products which are supposed to meet these
needs and requirements. A competitive business environment effects positively on the customer
as the companies are aiming to gain the attention of customers and in this process, they will offer
high quality goods and services at affordable prices. Moreover, while considering the
competition, companies will bring out the products based in the innovation strategies and ideas.
Competition is important for the success of business operations in the market economy. It helps
in providing the best products and services. However, competition can be problematic in the case
where one business will force other business to close the setting or put the prices extremely low
which can result in loss.
2.4 Impact of regional activities on organizations
Regulations can have a positive impact on the growth of business with the help of
removing the failure which might happen within the market along with improving the economic
efficiency. Some regulations will impact the business in the ways which businesses have to
report their income and pay taxes. While, some other regulations are related to the ways the
companies will dispose their waste material. For each and every industry working in the business
world there are regulations for the business. Regulations is important in protecting the legitimate
interests in the businesses as well as community (Stoyanova and Angelova, 2018). Business are
also subjected to monitoring and investigating to make sure that it is working with regulations.
Agencies imposing the regulations have the power to impose the penalties or punish the
company when a regulation is breached. The bad impacts of regulation includes strangle of the
innovation and growth. It undermines the sustainable development and harm the people.
Regulations have negative impact on the growth as it creates compliance costs along with
undesirable distortions and some unintended consequences.

3.1 Market decisions and its influences on the policies of a specified business
Marketing decisions refers decision of promoting of organizational products as how to
promote products, decision of selecting communication channels and others. All these decisions
need to be taken in an effective manner and it can affect overall performance of company.
For example: Market decisions influence internal strategies and specific policies of
businesses to the great extent. Primark is the main retailer that does not provide its products
online and also use traditional ways of communication. This selection or decision is affecting it
in a negative manner because nowadays, all companies are providing products online. Surviving
in this competitive era by not making effective decision can affect performance to the great
extent. Also, businesses need to make decision as per the business policies (Theoharides, 2020).
As per some policies, companies are not allowed to charge higher price. Businesses need to
follow all rules and polices such as not to discriminate anyone. If all marketing decisions are
being taken in an effective manner, then it can improve image of company and can help it out in
meeting goals.
3.2 An organisation’s response to market forces
In regard to market forces, it can be said that it refers all those factors that influence
availability of goods and price in a market economy. Governmental policies or changes in
political forces, changes in supply and demand are main market forces that affect the most.
Unilever is well-known retailer and has successfully expanded business (Kavanagh and et.al.,
2020). The main reason and key of its success is its ability to respond marker forces and working
as per the changing factors. It is stated that it implements some approaches of operational
management such as: just in time, quality management and others.
Just in time approach, help it out in ordering raw materials only when it needs them. It
reduces cost of additional inventory and also make warehouse space free. It does not store raw
materials that helps it out in managing a balance between supply and demand.
It focuses on managing customers’ relations and it helps in retaining customers with it for
the long run, Improved customers’ relations also help inn surviving in changing political
situations (Folinas, Fotiadis and Coudounaris, 2017). Overall, it can be said that a successful
business is the one that understand needs of customers, identify changes and develop strategies
accordingly.

3.3 Importance of assessing culture in the business environment
Business culture also plays a vital role as it can affect overall performance of company.
While expanding business and producing products, businesses need to assess culture, values of
target people and moral principles. It is believed that tastes and needs varies as per the different
cultures. So, it becomes important to understand culture of target people before producing
products and attracting customers. It can increase customers’ satisfaction rate (Intezari, Taskin
and Pauleen, 2017).
In addition, it can be said that by assessing business Unilever and companies can motivate
employees and coordinate their behaviour towards meeting visions. By having a clear and
defined culture that comprises beliefs, they can influence leaders and employees in which
manner they interact and handle business transaction. It ca improve decision process and can
increase staff retention rate.
4.1 Value of international markets to UK businesses
In regard to value of international markets to UK businesses, it is known that UK had an
overall trade deficit of around 79 billion GBP with EU in the year of 2019. International trade is
vital for UK businesses because 28-30% of products are being sold abroad. It is easier for UK
businesses to sell its products and services around EU and other markets because single market
tariff of EU’s has been eliminated (Strange and Humphrey, 2019). Other advantages and value of
international market to UK businesses is: it supported lifting a billion people out of global
poverty over the last 20-25 years. It has benefited companies of UK to the great extent as it
provided easier access to cheaper imports for customers by which they can money.
4.2 Global factors affecting businesses
There are numbers of global and external environmental factors that affect businesses of
UK to the great extent. Unilever, Zara, Tesco are examples of businesses that got affected by
changing factors. These global factors include: political, economic, social environmental and
others. As per the social factors, companies have to strive hard for satisfying changing needs of
customers. Changes in laws and acts also affect companies’ overall performance and for
protecting against lawsuits, companies need to follow all rules and standards (Uyar, 2019). As
per the environmental factors, companies are bound to produce sustainable products and making
use of natural resources to only some extent. People are becoming health conscious and

environmental concerned so, for satisfying them, companies have to invest in technologies and
other resources that may increase cost and take time.
4.3 Impacts of EU policies on UK businesses
As we all know that UK is part of the single EU market and it makes beneficial to UK in
increasing market size. But Brexit is one of the main factor that has affected UK businesses to
the great extent as UK is finding difficulties in satisfying customers’ needs because after
separation of this from EU, it is not allowed to import products at cheaper price (Ziv and et.al.,
2018). UK’s export dropped down by around 19.3% and import by 21.6%. But on the other
hand, it is found that EU’s single market tariff has been eliminated so, it can make beneficial to
UK, if it agrees to deal with EU.
CONCLUSION
It can be concluded that there are different types of organizations which serve different
purposes within the market. Economic systems have a relation with the process of resource
allocations as well as its utilization. Moreover, the factors such as competition and regulation
activities will impact the growth in positive as well as negative way. The business environment is
also affected by the market decisions and policies along with the response of the organization in
relation with the market forces. It is important for the companies to assess the culture of the
business. When, the organization is looking to expand globally there are factors in the global
markets which will affect the business of the company.

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