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Assignment on Business Environment and Economic System

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Added on  2019-12-03

Assignment on Business Environment and Economic System

   Added on 2019-12-03

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BUSINESSENVIRONMENT (Task 2)1
Assignment on Business Environment and Economic System_1
TABLE OF CONTENTSINTRODUCTION................................................................................................................................3TASK 2.................................................................................................................................................32.1 The significance of economic system on allocation of resources..........................................32.2 Impact of fiscal and monetary policy on Tesco.....................................................................42.3 Impact of competition policy on the functioning of Tesco....................................................4CONCLUSION....................................................................................................................................5REFFERENCES...................................................................................................................................6Bibliography.........................................................................................................................................62
Assignment on Business Environment and Economic System_2
INTRODUCTIONBusiness environment represents the combination of all extrinsic and intrinsic factors thatimpact the working of business. It is important for an organization to study business environmentin order to achieve its overall stated goals (Understanding the Business Environment, 2013). Inthe present research report, various aspects of business environment on Tesco have been studied.It covers the impact of government policies on the business of Tesco. TASK 22.1 The significance of economic system on allocation of resourcesEconomic system is a process of manufacturing and exchanging products and servicesalong with the allotment of resources in a society. The economic system is studied to determinethe way in which different business enterprises utilize the resources of country (EconomicSystem, 2013). However, there are various economic systems that are implemented by differentnations as per their needs and demand. They are explained as under:Free market economy: In this type of economy, there is small role of government incontrolling different economic activities. The main role is of private corporations,producers and consumers. The major goal of enterprises that are working in sucheconomy is to maximize the profit (Butler and Farrell, 2014). The organization makesmajor business decisions on the basis on market mechanism as well as demand andsupply forces determine the price of products. Here, business enterprise can dointernational trade freely without much government intervention. Command economy: This is a type of economy in which all the major decisionsregarding business functioning and distribution of resources are taken by governmentand little intervention of private corporations is there in it (Elsevier, 2013). The mainobjective of government under this type of economy is to provide maximum welfare tosociety. Here, the government decides type and quantum of goods that must be producedalong with the distribution of those goods within society. Mixed economy: It is a combination of free and command economy where economicdecisions are taken jointly by the demand and supply forces and also by government.3
Assignment on Business Environment and Economic System_3

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