Understanding Market Structures and Dynamics

This economics assignment delves into different market structures (perfect competition, monopoly, oligopoly, monopolistic competition) and their influence on business behavior and market outcomes. It examines the interplay between these structures, firm strategies, and consumer welfare. The assignment also explores the roles of fiscal and monetary policies in shaping market dynamics and economic performance.

BUSINESS-ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Different types of business organizations ............................................................................1
1.2 Key stakeholders of organization and meeting their objectives ...........................................2
1.3 Accomplishing responsibilities of stakeholders ...................................................................3
TASK 2............................................................................................................................................4
2.1 Economic system attempting to allocate resources ..............................................................4
2.2 Impact of fiscal and monetary policies on UK organizations ..............................................4
2.3 The impact of competition policy and other regulatory mechanisms on the organization...5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business environment comprises information of all the internal and external factors
which influence their decisions in a cut throat competitive market. It involves different factors
like employees, suppliers, creditors, government, competitors, etc. By taking the above scenario
into consideration, this present report has been prepared on Global Tech private limited which is
a global manufacturer of consumer electronics products having their headquarter in UK and USA
respectively (Black, 2000). Their focus is on producing mobile handsets and tablet devices for
their customers. This study will emphasize on the ways through which mentioned firm meets the
objective of their stakeholders. Further, this report will also show the impact of monetary and
fiscal policy for two Global Tech competitors.
TASK 1
1.1 Different types of business organizations
Global tech mark their foot in different sectors namely consumer electronics, fast food,
telecommunication, etc. but everywhere they have faced tough competitors because there exists
some giant market holders. Further, Global tech set their own plans and policies which generally
helps them to achieve their goals and objectives. Different purpose of organizations is: Global tech competitors: One of the major competitors for the cited firm is in the
consumer electronics sector i.e. Samsung. Samsung having diversified options in
different field throughout the globe and they are giving tough competition to Global tech.
Further, mentioned company are having their operation in America, UK, Russia and
China but Samsung has their assemble plants and sales networks in more than 80
countries and employ more than 370,000 workers in the electronic sector (Dawson,
2009). Further, Samsung is also having different series in their mobile phone and tablet
sectors. Government organization: Government organization like NHS in UK plays a significant
role to protect the health of the individuals. These organizations are well supported by the
local body and patients prefer to go NHS as compared with private hospitals. NHS is also
treated as public funded health care organization where individual also contribute a small
amount from their salary for their welfare and securing life of patients who comes to the
hospital.
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 Charity: Charities are those organizations whose major role is to help the needy people.
Further, these ventures assist the people who are mentally unsound and physically
crippled etc. Thus, they continue to organize social welfare activities in order to help the
needy people. Moreover, they only accept the donation from public who gives to the
organization with positive mindset (Fernando, 2011).
1.2 Key stakeholders of organization and meeting their objectives
Stakeholders are those who play a significant role in the development of business
organization. Here, the discussion will be made on Giant tech major competitor Samsung. Cited
organization has different competitors and they have to satisfy their needs and objectives in the
significant manner. Their major stakeholders are: Owners / directors- Samsung owners are the top executives and they are the one who
prepare the plan and policies for developing brand image and goodwill for the business
venture. In order to meet their objectives, employees of Samsung have to provide best of
the result to them so that revenue and productivity of the firm can be increased in the
consumer electronics segment. Further, with more distribution of mobile phones it will
significantly improve goodwill and profit. Shareholders- These are treated as investors and they involve deposit some amount of
capital within business venture. Samsung being a public limited company accepts
deposits from the public through initial public offer. Moreover, those who have invested
money in the organization are treated as shareholders for the business venture. The major
aim of Samsung is to give their investors productive return in the form of dividends.
More dividends will lead to more investment and significantly it will increase more
shareholders to the organization (Kew and Stredwick, 2005). Further, these shareholders
are interested in the information which enable them to access a good amount of dividend
in coming time period. Lenders- Lenders are the creditors for business venture and they are the one who
provides short term and long term loan to the cited firm. Samsung's major lenders are
banks, financial institution and also different corporate friends. The major objective of
the firm towards them is to return the amount of loan within specific due time. However,
if not so then it will affect their brand image immensely.
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 Employees- Employees are their representative groups who perform task and duties.
They are also interested in information which helps them to assess the ability of the
venture and provide remuneration, retirement benefits and employment opportunities. In
the consumer electronics sector, only Samsung employees more than 370,000 employees
who are giving their productive services throughout the globe. The objectives of
company towards the employee is to give them better remuneration and growth
opportunities within the organization so that they can work with best of their dedication
to achieve their individual as well as organizational growth and objectives
(Kryzanowski, 2006).
 Customers- Customers are their lifeblood as organization produces electronic gadgets
for their satisfaction only. The expectations of customer from organization are to give
them best of the products at an affordable price. Further, by getting positive response
from more customers, organization will be easily able to increase their revenue and
profitability.
1.3 Accomplishing responsibilities of stakeholders
Samsung has to significantly accomplish the goals and objectives of their major
stakeholders which will lead them to increase their revenue and profitability in the coming time
period. These responsibilities are discussed down under: Shareholders: With more interest of the individuals, share price for particular company
goes up and it will give them high return in the future. Further, through initial public
offer, Samsung issues shares to the public and individuals tend to purchase that because
they have high interest in the organization’s profitability and financial success.
Responsibilities of Samsung are to provide them with all the basic information relating to
their annual reports and accounting records. By seeing the increasing profit year by year,
shareholders will tend to invest more but at their own risk only (Manral, 2010). Employees: The responsibility of Samsung is to give their employee a healthy
environment so that they can work with best of their efficiency and capability. Further,
HR manager of Samsung should also implement effective HRM policy which will work
on satisfying desires of the individuals. Further, giving them appraisals and incentives
will boost their morale and they will become dedicated employees towards the business
organization.
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 Customers: Customers satisfaction plays a crucial role and Samsung have to implement
effective CRM policy so that they can make entry of their customers in the given
software. This will generally help the organization when they give all the details for their
new launch of the gadget or device (Sledge, 2011). This will help the organization to
make a chain of loyal customer base and this will lead to increase in revenue and profits
as well.
Further apart from this, some major responsibilities are:
 Social responsibility
 Environment responsibility
 Developing goodwill
 Management responsibilities towards various stakeholders
 Making these responsibilities as a part of strategy
TASK 2
2.1 Economic system attempting to allocate resources
There are different types of economic systems which are followed by the local
government of UK so that they can allocate the natural as well as human resource in best and
precised form. Different economic systems have been discussed down under:
 Command economy: As the name itself elaborates that the government have full
command over the economy and they allocate important resources like employees, capital
and different others. Further, local body also have information relating to all business
ventures and they take efficient decision relating to allocation of resources for the benefit
of society (Stackelberg and et.al., 2010). However, interference of government not allow
enterprise to take effective decisions and also restricts them in performing their task and
duties at times.
 Free enterprise economy: Under free enterprise economy, local body can perform their
business operations either with small or no restrictions. However, there exists some
barriers which are imposed by government but they are negligible and organization can
operate their functions in precised and effective manner. Organizations love to work in
this situation as they are able to fulfill the needs and demands of their customers more
precisely and effectively.
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 Mixed economy: Mixed economy is generally a combination of both command economy
and free enterprise economy. Here, some restrictions' comes into play as government uses
various types of fiscal and monetary policy in order to control the economy of UK. This
economy has been employed in UK because it provides opportunity to both the private
and government sectors. Further, management of business venture also differs from the
government restrictions and they can set their plans and policies accordingly (Beger,
2005).
2.2 Impact of fiscal and monetary policies on UK organizations
Global tech is influenced by their different competitors in their different operations. In
the consumer electronic segment, they getting stiff competition from Samsung, Dell, Apple and
in the fast food outlets they are competed by McDonald's and KFC. Due to this, their revenue
and profits for the year 2014 has been downtown significantly (FISCAL AND MONETARY
POLICIES, 2014). Moreover, Fiscal policy is the method where government adjusts the spending
in order to control the nation economy. These policies also helps in influencing the assessment
rates and government spending so that they can easily control the economy. Further, the
motivation behind the fiscal policy is to reduce the rate of expansion, impact financial
development in time of remission On the contrary side, monetary policy is regulated by the
Federal Reserve which controls and influence the availability of cost of money within the nation.
Further, some major policies are prepared by government by considering different economic
position of the country. These policies are regulated by the monetary bank or money board which
emphasize on rate of development. These policies include interest rates, exchange rates, control
of money supply, etc.
Change in the rate of interest constitute part of monetary policy and it generally has a
huge impact on the functioning of the business organization. If interest rate goes high then it will
be difficult for medium as well as global ventures to raise fund from both internal and external
sources. People will tend to purchase less and global enterprises like McDonald's and Samsung
will face difficulty in selling their products (Gatti, Gallegati and Kirman, 2000). Further,
alteration in tax rates is a part of fiscal policy and local body impacts the business operation
through different ways and perspectives. If tax rate is reduced the both Samsung and McDonald's
will be able to give best of the services to their potential customer’s at an affordable price.
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Further, they will also be able to sell more of their products which will eventually increase their
revenue and profits.
2.3 The impact of competition policy and other regulatory mechanisms on the organization
Competition policy is treated as an advanced rivalry which helps in improving markets
work and contribute their best towards effectiveness in individual market. The good thing about
this policy is that it gives low price for all the products and helps in gaining high market share
along with development of goodwill. As mentioned earlier, Global tech's one of the major
competitor in the field of electronics is Samsung. Through various policies and regulatory
mechanism the competitive environment of the company can be understood below:
Competition Act 1998
This act established guidelines to perform and regulate business activities on the basis of
fair office of trading. It provided a framework to the company in identifying and dealing with the
restrictive and unethical business practices. Due to which Samsung is not able to abuse its
dominant position in the market (Calderini, Garrone and Sobrero, 2003).
Enterprise Act 2002
Competition law implemented by the UK government has another major source of
managing and monitoring competitive business activities i.e, Enterprise Act, 2002. Here, there
are numerous reforms and provisions designed to conduct mergers and acquisitions among
Samsung and other business entities. This framework strengthen and empowers the consumers
against prohibited corporate issues (Poak, 2013).
Office of fair trading
This non-profit department of United Kingdom imposes both competition law and
consumer protection law. The economic regulator provides a healthy competitive atmosphere by
ensuring vigorous competition between fair dealing businesses. It prohibits unfair business
activities such as cartels, scams and rogue.
Competition and Market Authority
Earlier it was known as Competition Commission, it conducts in-depth inquires into
mergers, markets and regulation of major organized industries (Sheeba, 2012). The authority
creates a healthy competition between various companies to benefit their businesses, customers
and UK economy. It not only make recommendations to the government but is also responsible
for taking appropriate remedies and measures to competition problems.
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CONCLUSION
From the above report it elucidates the external and internal business environment of an
organization. It identifies different stakeholders of Global Tech company and their objectives
and needs with the corporation. The responsibilities played by the managerial staff of the
business entity. Further, it discusses different types of market economies that allocate its
resources according to its nature and characteristics. The fiscal and monetary policies of UK
have a great influence on the working structure of Global Tech and its competitors. The report
also evaluates the impact of competition policies and other regulatory mechanisms on the
business entity. The different market structures and determination of their prices and output
decisions is also explained in the assignment.
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REFERENCES
Journals and Books
Beger, G., 2005. Copyright law in the European Union, with special reference to Germany.
Library Review. pp. 119–132.
Black, J. A., 2000. Fermenting change - Capitalizing on the inherent change found in dynamic
non-linear (or complex) systems. Journal of Organizational Change Management. 13(6).
pp.520–525.
Calderini, M., Garrone, P. and Sobrero, M., 2003. Corporate Governance, Market Structure, and
Innovation. Edward Elgar Publishing.
Dawson, P. J., 2009. The UK pig cycle: a spectral analysis. British Food Journal. 111(11).
pp.1237–1247.
Fernando, A. C., 2011. Business Environment. Pearson Education India.
Floyd, D. and McManus, J., 2005. The role of SMEs in improving the competitive position of the
European Union. European Business Review. 17(2). pp.144- 150.
Gatti, D. D., Gallegati, M. and Kirman, P. A., 2000. Interaction and Market Structure: Essays on
Heterogeneity in Economics. Springer.
Hin Li, L., 2012. The impact of housing environment attributes on children's academic
performance at school: an empirical study of Hong Kong. Housing, Care and Support. 15(3).
pp. 129–139.
Kew, J. and Stredwick, J., 2005. Business Environment: Managing in a Strategic Context. CIPD
Publishing.
Kryzanowski, L., 2006. A reformulated asset pricing model based on contrarian strategies.
Studies in Economics and Finance. 23(3). pp.185–201.
Manral, L., 2010. Towards a theory of endogenous market structure in strategy: Exploring the
endogeneity of demand-side determinants of firm investment strategy and market structure.
Journal of Strategy and Management. 3(4). pp.352–373.
Oberholster, S. J., 2010. War on savings: modern monetary management in crisis. Journal of
Financial Regulation and Compliance. 18(3). pp.201–223.
Poak, J. J., 2013. An International Economic System. Routledge.
Sledge, S., 2011. Dynamic competition: a look at firms in the FortuneGlobal 500.
Competitiveness Review. 21(5). pp.428–440.
Stackelberg, H. V. and et.al., 2010. Market Structure and Equilibrium. Springer.
Online
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FISCAL AND MONETARY POLICIES. 2014. [Online]. Available through:
<http://alison.com/courses/Understanding-Fiscal-Monetary-Policies>. [Accessed On 20th
February 2016].
Sheeba, 2012. Types of Market Structures. [Online]. Available through:
<http://financetrain.com/types-of-market-structures/>. [Accessed On 20th February 2016].
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