Unit 02: Business Environment Assignment

Unit 02: Business Environment
Contents
Task 1 – Portfolio..................................................................................................................................2
a. A table differentiating the purpose of public and private sector organisations...........................2
b. A mind map showing the main stakeholders of an organisation and their objectives, including
government, regulatory bodies, competition, etc...............................................................................3
c. A table showing the impact of fiscal policies and monetary policies on businesses..................4
d. A table showing how resources are allocated in a Capitalist, a Mixed and a Socialist economy5
e. A diagram showing the impact of supply and demand on the market........................................7
f. A diagram explaining Michael Porter’s forces...........................................................................8
g. A table explaining the effect of market decision (Good/service, cost, distribution, promotion)
on business policies...........................................................................................................................9
j. A diagram showing the global factors on UK business............................................................12
k. A diagram showing the impact of EU policies on UK business...............................................13
References...........................................................................................................................................14
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Unit 02: Business Environment
Task 1 – Portfolio
a. A table differentiating the purpose of public and private sector organisations
The private sector comprises of business which is owned, managed and controlled by individuals. On
the contrary, public sector comprises of various business enterprises owned and managed by
Government.
BASIS FOR
COMPARISON PUBLIC SECTOR PRIVATE SECTOR
Meaning The section of a nation's economy,
which is under the control of
government, whether it is central, state
or local, is known as the Public Sector.
The section of a nation's economy,
which owned and controlled by private
individuals or companies is known as
Private Sector.
Basic objective To serve the citizens of the country. Earning Profit
Raises money from Public Revenue like tax, duty, penalty
etc.
Issuing shares and debentures or by
taking loan
Areas Police, Army, Mining, Health,
Manufacturing, Electricity, Education,
Transport, Telecommunication,
Agriculture, Banking, Insurance, etc.
Finance, Information Technology,
Mining, Transport, Education,
Telecommunication, Manufacturing,
Banking, Construction, Pharmaceuticals
etc.
Benefits of
working
Job security, Retirement benefits,
Allowances, Perquisites etc.
Good salary package, Competitive
environment, Incentives etc.
Basis of Promotion Seniority Merit
Job Stability Yes No
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Unit 02: Business Environment
b. A mind map showing the main stakeholders of an organisation and their objectives, including government, regulatory bodies, competition, etc.
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Unit 02: Business Environment
c. A table showing the impact of fiscal policies and monetary policies on businesses
The economic position of a country can be monitored, controlled and regulated by the sound
economic policies. The fiscal and monetary policies of the nation are the two measures, which can
help in bringing stability and developing smoothly. Fiscal policy is the policy relating to government
revenues from taxes and expenditure on various projects. Monetary Policy, on the other hand, is
mainly concerned with the flow of money in the economy.
ASIS FOR
COMPARISON FISCAL POLICY MONETARY POLICY
Meaning The tool used by the government in which
it uses its tax revenue and expenditure
policies to affect the economy is known as
Fiscal Policy.
The tool used by the central bank to
regulate the money supply in the
economy is known as Monetary
Policy.
Administered by Ministry of Finance Central Bank
Nature The fiscal policy changes every year. The change in monetary policy
depends on the economic status of
the nation.
Related to Government Revenue & Expenditure Banks & Credit Control
Focuses on Economic Growth Economic Stability
Policy instruments Tax rates and government spending Interest rates and credit ratios
Political influence Yes No
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