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BUSINESS ENVIRONMENT INTRODUCTION

   

Added on  2020-01-28

12 Pages3320 Words71 Views
Leadership ManagementMechanical EngineeringCalculus and AnalysisEconomicsPolitical Science
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BUSINESSENVIRONMENT
BUSINESS ENVIRONMENT INTRODUCTION_1

Table of ContentsINTRODUCTION......................................................................................................................1TASK 1......................................................................................................................................1AC 1.1 Identify the purpose of organization....................................................................1AC 1.2 Meeting objectives of different stakeholders of the organization........................2AC 1.3 Organization responsibilities and strategies to meet shareholders objectives......3TASK 2......................................................................................................................................4AC 2.1 Allocation of resources under different economic system...................................4AC 2.2 Impact of fiscal and monetary policy on the organization and their activities.....4AC 2.3 Impact of competition policy and other regulatory mechanism...........................5CONCLUSION .........................................................................................................................5REFERENCES...........................................................................................................................7
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INTRODUCTIONEvery business organization is greatly influenced by its environment. It consists ofboth the internal and external factors that affect company's operations, its stakeholders andregulations. Global Tech is a private limited company and international manufacturer ofelectronic products which operates in UK, America, Russia and China. Headquarter ofcompany was established in America and UK. It provides wide range of products such asmobile handsets, tablet devices etc. and competes with Apple, Samsung and Sony. Moreover,it owns a subsidiary telecommunication and ICT company providing consultancy and servicecontracts to large charities and government departments. Recently, company has diversifiedits business operations through acquiring popular fast food outlets which are facing fiercecompetition from McDonalds and KFC. Present project report will help to analyse the marketin which company is operating. It will also discuss about all the internal as well as externalfactors such as market forces, fiscal and monetary policies, regulatory policies and otherwhich affect the business operations of organization. TASK 1AC 1.1 Identify the purpose of organizationGlobal tech's competitor: GT is facing fierce competition from Hewlett Packard (HP).It is an American global IT company established in 1939, headquartered in Palo Alto,California, US. It provides wide range of hardware and software products to consumers,SMBs, large organizations and government. HP's vision statement is to produce innovativeproducts as well as services and find out the best solution to meet customer’s needs.However, its mission is to deliver qualitative products, services and solutions in order to gainhigh customer loyalty (Patel, 2012). On the other hand, its corporate objectives are relatedwith maximizing profitability, creating shareholder value, enhancing organization growth,leading market position, promoting and rewarding employees, improving leadershipcapabilities at all the levels, acquiring global citizenship etc. Government organization: They are non-profit organizations. So, their main purposeis to promote public welfare rather than earning high profits. For instance, transparencyinternational organization has been established with the mission to stop corruption in thesociety as well as maintain integrity, transparency and accountability (Mellahi and Frynas,2015). On contrary, its vision is to eliminate corruption at all the levels such as government,politics, corporation and society. Henceforth, its core values are to enhance transparency,integrity, justice, democracy, courage and accountability.1 | Page
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Charity: Shaw Trust is a charitable organization established with the purpose to assistpeople who are facing consequences of unemployment. Its vision is to build a society inwhich every citizen has opportunity to employment, independence and inclusion (Prajogo,2016). However, its mission is to educate and improve employability skills so that all thepeople will be employed and lived independently. Thus, they will be able to survive betterlife and secure their jobs.AC 1.2 Meeting objectives of different stakeholders of the organizationStakeholders: HP has different types of internal as well as external stakeholders suchas owners, customers, lenders, directors, investors and employees. Internal stakeholders arethe internal part of organization while external stakeholders lie in the market. HP regularlyfocuses on meeting the objectives of stakeholders through various ways. These are describedhereunder:Shareholders: Person who invests their own funds in the way of equity is known asshareholder. HP is focused on satisfying their shareholders through providing regular returnin the form of dividend. Further, company regularly tries to maximize shareholder’s wealthand create value through enhancing their profitability and share prices. Lenders: They are the persons who provide funds at an interest rate. HP pays attentionto accomplish lender’s objectives through making regular interest payment. Moreover,company maintains its solvency position and interest bearing ability to secure lender money.In addition to it, growth in revenue, profitability and better cash earning capacity satisfylenders in terms of getting timely interest payment. Furthermore, good credit rating,improved financial performance and collateral security help to satisfy lender’s objectives to agreat extent. Employees: They are crucial part of organizational success as they provide company'sservices to the customers. They have objectives to get better monetary payments, incrementin salary, promotion, job security, good working conditions, incentives, bonus and other kindof non-monetary payments such as reward, performance appraisal and leave entitlement. HPcontributes the development of human capital and maintains collaborative workplace relationto satisfy their workers. Company focuses on providing better salary, promoting employees,eliminating their working barriers, rendering freedom in their work, assisting them indifficulties and giving extra benefits such as appraisal, bonuses and salary increment. Customers: HP delivers its services to large number of customers and maximizes itsrevenues as well as profits. They are the important external stakeholders who use company's2 | Page
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