Impact of Business Environment on Small Firms' Growth
Added on 2019-12-18
12 Pages3913 Words420 Views
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Businessenvironment
Table of ContentsINTRODUCTION...........................................................................................................................11.1 Purposes of different types of organisation..........................................................................11.2 Extent to which an organisation meet the objectives of different stakeholders....................21.3 Responsibilities of an organisation ......................................................................................2TASK 2............................................................................................................................................32.1 How economic systems attempt to allocate resources effectively........................................32.2 Assess the impact of fiscal and monetary policy on business organisations and theiractivities......................................................................................................................................42.3 Impact of competition policy on the activities of a organisation........................................4TASK 3 ...........................................................................................................................................53.1 How market structures determine the pricing .....................................................................53.2 Market forces shape organisational responses......................................................................53.3 How business and cultural environments shape the behaviour of a organisation................6TASK 4............................................................................................................................................74.1 Discuss the significance of international trade to UK business organisations......................74.2 Analyse the impact of global factors on UK business organisations....................................74.3 Impact of policies of the European Union on UK business organisations...........................7Conclusion ......................................................................................................................................8References ......................................................................................................................................9
INTRODUCTIONThis report is based on the Nestle company and tells that what are the mainresponsibilities of an enterprise while conducting business activities. Present report contain theinformation like how an enterprise can optimum utilise its available resources by collecting theinformation from economic system. This report tells how fiscal and monetary policy affects thebusiness and its activities. How competition forces affect the activities and decisions of anenterprise and what are the main components which contribute in deciding the price of a productis involved in this report. It contains how the culture of the organisation affect the activities andbehaviours of the employees and of the enterprise. The significance of international trade on UKbusiness is described under this and how global factors affect the various business organisations.This report tells or show light on how economic conditions affect the allocation of resources ofan enterprise. TASK 11.1 Purposes of different types of organisationSole trader: The sole trader is a man who individual start a business and bear all lossesand profits generate from the business. It is the most common form of businessownership spread in a wide area.Purpose: The main purpose of a sole trader is to make and provide service to the clients andcharge a fix amount from them(Hamilton and Webster, 2015). A sole trader is responsible for allhis debts.Partnership: When two or more than two persons agree to start commercial activity with amutual understanding and decide to share all the profits and loss equally is known aspartnership.Purpose: The purpose of partnership is to hold, operate and maintain the investment activities.The nature of the business is to promote the partnership activities and saving all the interests ofthe partner.Company: A company is a legal entity made up of a number of people for carrying on acommercial activity(Klapper and Parker,2010). All the people shares common interestand purpose.Purpose: The main purpose of all the owners of a company is to generate a large number ofprofit by investing the fund in high return activities.1
Franchising: Franchising is the activity of give license to the other party to use good ideasor products. Franchisee take the permission from the franchise to give him the right tosell the product to the customers in exchange of some fees.Purpose:The main purpose of a franchisee is to sell a unique product or idea to the persons andmake a profit from this activity.1.2 Extent to which an organisation meet the objectives of different stakeholders.Different stakeholders have different type of needs and objectives. These objectivesaffected by the following:Investors: Investors need the information about a company or firm because invest in it.The collected information help them in deciding whether to buy, sell or hold theshares( Gecevska and et.al., 2010).Employees: Employees are the representative of the company these are the one whichcan provide various benefits to the company by delivering the good information aboutthe company because this will influence the stakeholders in investing the company.Lenders: Lenders are the one which give or provide loan to the company. Beforelending the loan they collected the information about the company that the company orfirm is that able to pay back the loan.Suppliers: These are the one which supply the raw material to the manufactures oncredit. Suppliers help the manufactures in start the manufacturing process.Customers: Customers are the one which help the enter[prise in generating revenue.Customers who have a long term involvement in the firm collects the information aboutthe company in order to take investment decisions. Government and agencies: Government plays a big role in smoothly functioning all theactivities of an enterprise. Government all the required information about an enterprise inorder to regulate its activities(Moutinho, 2011).Public: The decisions taken by the enterprise affect a large number of public. Thefinancial information distributed by the company affect the investment decisions of thepublic.1.3 Responsibilities of an organisation An organisation has many responsibilities while conducting the business activities. It isan enterprise's responsibility to work in ethical behaviour and apply the concept of corporate2
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