EC4F11FB Introduction to Business Environment: UK Economy Analysis

This report provides an analysis of the UK business environment, focusing on key factors impacting business operations. It begins with an introduction to the business environment, highlighting its dynamic and ever-changing nature. The report then delves into monetary and fiscal policies, explaining their objectives and impact on the UK economy. Monetary policy, managed by the central bank, governs the money supply, while fiscal policy involves government spending and tax adjustments. The report also examines global factors such as globalization, technological development, environmental protection, and climate change, as well as the rise of emerging economies. Furthermore, it explores regional factors within the UK and their influence on business activities, including the impact of Brexit. The report concludes by summarizing the effects of monetary and fiscal policies on business organizations and emphasizes the need for businesses to adapt to remain competitive. References are provided for further reading.

INTRODUCTION TO BUSINESS
ENVIRONMENT

 Introduction
 Monetary policy
 Fiscal policy
 Global factor
 Regional factor
 Conclusion
 References
Table of content

 The business environment is defined as the environment in which the
business exists.
 The business environment is very dynamic and ever changing and there
are many different changes taking place within the business environment
which impacts the running and function of the business.
Introduction

 The monetary policy is the one which is the policy of the central bank and
which governs and manages the whole money supply chain within the
economy.
 This includes the governance of all the monetary transactions like cash,
cheques, money market, capital market, credit business and all the other
money related business.
 Maintenance of this system of policy that is the monetary policy is the
most important policy.
Monetary policy

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 Objectives of the policy- the major objectives of the monetary policy
governing the UK economy are as follows-
 The monetary policy’s main objective is the management of the
inflation. The inflation is referred to as the rise in the general price level
of the goods and services.
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 Types of monetary policy- there are many different types of monetary
policy which the economy of UK can use in managing the different
business in the economy
 These different type of policy are discussed in the following points
connected below-
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 Fiscal policy is the means by which a government adjusts its spending level and tax
rates to monitor and influences a United Kingdom economy.
 It is the easier and effective strategy to monetary policy through the central bank
influence the money supply.
Fiscal policy

 Objective of fiscal policy
 The main objective of fiscal policy is to increase the aggregate outputs of the
economy in an effective manner.
 To maintain the conditions to full employment, economic stability and stabilize
rate of growth.
 To optimize the allocation of resource and equitable distribution of income and
wealth.
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 Approaches
 Fiscal policy reflects tax
 Imposing higher income tax reduces
available income to purchase goods
and services
 These reduces demand and profits
for businesses
 Increase public expenditure leads to
increase in demand for goods and
services
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 The above discussion is based on the fiscal and monetary policy is affect to the
business and UK economy in negative manner.
 Globalization
 Fast technological development.
Global factor

 Protection of the environment
 This have objective which is
conserve natural resource and
existing natural environment and
where it is possible to repair the
natural environment, damage and
reverse trends.
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