Business Environment Analysis: Impact on Business Organizations Report

This report provides a comprehensive analysis of the business environment, exploring various aspects that impact organizations. It begins by identifying the purposes of different types of organizations, differentiating between for-profit, non-profit, and public sectors. The report then examines how organizations meet their objectives, using Burger King as a case study, and discusses the responsibilities of an organization and the strategies employed to meet them. The economic system section describes how economic systems allocate resources effectively, covering centralized, free market, and mixed economies with examples. The report further evaluates the impact of fiscal and monetary policies, competition policy, and market forces on business organizations. It also analyzes the significance of international trade, global factors, and the policies of the European Union on UK business organizations. The report concludes with an overview of the key findings and implications of the business environment on organizational success.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK ..............................................................................................................................................3
1.1 Identify the purposes of different types of organization.......................................................3
1.2 Describe the extend in which organisation meet their objectives.........................................5
1.3 Responsibilities of an organization and strategies employed to meet them..........................6
2.1 Describe how economic system attempts to allocate resources effectively..........................7
2.2 Evaluate the impact of fiscal and monetary policy on business organisation and their
activities......................................................................................................................................7
2.3 Impact of competition policy and other regulatory mechanisms on the activities of a
selected organization...................................................................................................................8
3.1Determination of pricing and output decisions through market structure ........................9
3.2 Methods in which market force shape organizational responses..........................................9
3.3Impact of business and cultural environment to shape the behaviour of selected
organization...............................................................................................................................10
4.1 Significance of international trade to UK business organizations......................................10
4.2 Analyse the impact of global factors on UK business organizations..................................11
4.3 Evaluate the impact of policies of the European Union on UK business organizations.....11
CONCLUSION..............................................................................................................................12

INTRODUCTION
Business environment plays an essential role in overall objectives of company. Due to
changes in technology, government regulations, legal rules and change in the market trends
induces every business organisation to create some innovative techniques and latest gadgets in
their organisation structure to remain sustain in the market for longer period (Adeoye and
Elegunde ,2012). It is the important responsibility of management to scan all the modification
coming in external market and then formulate their own strategies and tactics in order to gain
competitive advantages over competitors. Under this assignment it tell about the impact of
business environment in relation to micro and macro elements that also affects on working
structure and employee performance. Further give the significance regarding the policies and
strategies company using in their products and services on the basis of macro and micro factors
and elements for gaining competitive advantages over competitors. Further, discuss about
purpose of different organizations, responsibilities of organization and strategies employed to
them, importance of economic system and impact of policies of European union on UK business
organisation and how its impact on achieving objective of company.
TASK
1.1 Identify the purposes of different types of organization
In business world there are different types of companies which are available in market for
performing task and actions within the organisation in order to accomplishing organisation
objectives and earn high profits in market place. The main focus is to uplift the living standard of
society. Basically there are two sector where company work which include both public and
private sector that stated below:-
Basis for comparison NGO Not for profit For profit
Meaning NGO can described as
non governmental
sector whose basic
objective is to work
for social welfare and
facilitates those
services to poor and
Non for profit
organisation whose
main objective is to
contribute good for
economy. Because of
their objectives these
association are tax
The main motive of
this type of
organisation is to earn
profits and establish
competitive position in
market through their
innovative goods and

needy person that help
in enhancing their
future and living
standards. For
example UNICEF one
of the real examples
who engaged in such
type of business
practices.
exempt and supported
by government in form
of finance. They
generally work for the
development of
children who are
exploited by higher
class people so to
educate them and
uplift their future. For
example save for
children work in this
sector only.
services. For example
coco-cola multi-
national soft-drink
company who enjoy
high market and earn
huge amount of
profits.
Area of operations This type of business
expand on large scale.
Operation is limited on
particular country.
If company gained
strong market position
then they can plan for
expanding their stores
at various other places.
Objectives The main objective
and goal of UNICEF is
to organise such
activities that allow
the development of
rural people which
uplift standard of
whole economy.
Under this main
objective of save the
children community is
to promote art,
commerce and science
and the revenue they
generated used for the
welfare of children.
Utmost criteria of
coca-cola is to enhance
productivity and
maximise sales and
market share through
their innovative
products and services
which satisfying the
needs wants of
customers.
Three factors which are important are described below:-

Public sector:- These type of organisation owned and controlled by higher authority I.e.
government and all the laws and legislation are enforced by local bodies in order to control the
decorum and ethical practices. Apart from it, organisation comprises of large employee base and
has to perform different function and purpose to regulate all the activities in efficient manner
(Aula ,2010). For example Sainsbury's indulge in retail sector who provide goods and services
to all target audiences of particular group.
Purpose:- The main purpose is to become top most company in retail sector and provide such
attractive features in goods and services which provide utmost satisfaction to costumers and also
help in providing employment opportunities to many people.
Private sector:- These type of organisation are fully controlled and owned by private members
only and all the policies, regulation, strategies and method related to recruitment are made by
them only. Vision and objective of such company must be legal and ethical and not consider
illegal from economy point of view. For example Wait-rose limited private owned enterprise
whose give their services at global level.
Purpose:- The main objective and goal of organisation is to give the superior quality of services
to their customers that will help in strengthen the brand value and also add the value in the
product portfolio of company.
Voluntary organisation:- These organisation are basically established their business on their own
choice and main objective of such company is to work for social development and variables for
monetary purpose. Case of Amnesty International whose main task is to inspire and educate the
people against all the injustices and inequality arises in relation to human rights and dignity.
Purpose:- The main goal and purpose is to create awareness among people regarding human
rights and regulations which also helpful in increasing the education level and enforced the
growth of society also.
Partnership:- It is that type of business in which two or more people come in partnership using its
own capital and set their own objectives and goals. All the terms and condition are decided in
partnership deed and in case of loss and profit that all must be distributed among partners only
from their own property because of unlimited liability factor.
1.2 Describe the extend in which organisation meet their objectives
Their are different types of company in food sector which operated their business in
global country like Burger king, McDonald's, Subway and KFC. In general there are three types

of business organisation which include public, private and voluntary organisation. Further, it has
been said that public sector work for serving the general public by providing the goods and
services at affordable prices on the other hand private company wants to earn huge amount of
profits in order to enhance market share and profits. For example Burger king is private owned
enterprise whose main objective is provide standard quality of products and services and main
USP is to give quick delivery of services to their target audiences (Bill Pasmore and
CMC ,2010). Apart from it, they also take the initiatives to clean the environment and add some
attractive and tasty features in their food products that satisfy large target audiences. The main
objectives of Burger king are:-
 Its short term objectives is opening of Mos Burger restaurant in Ken-more square.
 Provide healthy and hygiene foods products and services.
 Another objective is to establish long term relation with customers and also planning to
expand their stores at global reach.
 It also aim to operate their business in ethical and effective manner so they maintain the
decorum of business.
 The main target in these day is to become top most company in fast food products and
services which allow them to sustain in external environment for longer period of time.
 Improve brand image and establish such strong strategies that help them to beat all the
challenges of rivalry.
1.3 Responsibilities of an organization and strategies employed to meet them
The main responsibilities and duty of Burger king is to develop and produce goods and
food products for youngsters and children (Chow and et. al. Intellectual Property II LP, 2012) .
They also take the assistance of innovative technology , gadgets and appliances for more
convenience of people who hang out their stores. Apart from it, they also suggest audiences
about the nutrition tips and details about the hygiene foods which are according to the body of
individuals. It further helpful in maintaining the supply chain and logistics system of
organisation by installing digital techniques and effective communication in their working
operations.
Innovative technology and creative ideas must be adopted in working structure of
company which improve the employee growth and skills which help in improving the quality of

products and services. Apart from it, organise systematic training development event to provide
direction in order to inhale professionalism in all workforce.
The main strategies adopted by Burger king is to take the advantages of opportunities available
and reduce threats coming in external environment. They also use their tactics at the time of
selecting best option from available strategic option for getting better outcomes. They further
plan to open their stores in highly retail locations which provide them more costumer base as
compare to rivalry. They also plan for executing long term campaign in relation to branding
through roadshows, television and social media, they advertise product from 30 to 60 seconds so
that large number of customers aware regarding all the services given by them along with their
benefits. In order to increase market share they focusing in offering new products as well as
existing products such as whooper.
2.1 Describe how economic system attempts to allocate resources effectively
In every country there are different economic system which has been regulated at
different countries according to economic situations and demand factors. System of economy
divided into three parts I.e. centralised, free market force and mixed economy (Colfax , Rivera
and Perez ,2010). In case of centrally planned economy all the rules and regulation made by
government only and they take decisions related to price of products without concerning to other
parties. In case of free market forces private players run their own business without interference
of government and pricing decisions are done on the basis of market demand and supply.
Further, they are also free to exports and imports the goods and services without government
intervention. But in case of command economy government is fully responsible and liable for
taking decisions and use the resources effectively.
In japan socialist economy are established where the government authorities manage the
affairs and resources in such a way so that they provides necessary goods and services to general
public at affordable prices and they planned distribution channel according to the needs and
demand of general public. In economy like India mixed economy is followed where the system
of economy run by public and private sectors in which main and important decision related to
administration and finance done by government and pricing policy and export import decision
taken by private organizations. The main objective of all economic system is to use all the
resources in effective and efficient manner by reducing the cost of production in manufacturing
of goods and services.

2.2 Evaluate the impact of fiscal and monetary policy on business organisation and their
activities
Both fiscal and monetary policies are established and formulated by government and had
great impact on operations and working structure of business. Fiscal policies are described as
those policies which determined by government in which term condition related to tax structure
and company has to pay amount of tax to government. In particular country if heavy tax has been
charged then they having less funds to invest and recruit which keep burden on customers
because tax burden of retailer goes to end users by charging high prices (Commander and
Svejnar , 2011).
On the other hand if government charge low tax from companies then they can save the
money and invest in different sectors like infrastructure, logistics and for the creation of job for
population. Apart from it monetary policy is controlled by central bank which not only affect
corporate world but also to whole economy. Under this central bank decide the interest rate for
obtaining credit according to inflation deflation situations. In case of inflation interest rate
become high but the purchasing power of buyer is lower because of less money supply on the
other in case of deflation interest rate become lower but purchasing power is high which
maintain the balance between the demand and supply of money in economy. Expansionary
policies reducing taxes and increase government expenditures and increase money supply.
2.3 Impact of competition policy and other regulatory mechanisms on the activities of a selected
organization
Burger King is one of the top most sector in fast food industries in all over the world. It is
very complex task to maintain long sustainable position and for this company invest lot of
money for the development of products and services and gaining the competitive advantages
over competitors (Cuervo‐Cazurra ,2011). Due to different rivalry in fast food sector Burger
King are required to implement innovative and creative goods and services by adding more
features which attract large customer base. And the competition policy exist in economy make
the fast food market more efficient and also helpful in increasing customer choice, preferences
and innovation in technology increasing product efficiency and better price policy.
Competition is also negatively affected by cartels and monopoly which need to controlled
by the government strict rules regulation that helps in maintaining healthy competition in
economy. Factors like price discrimination and premium price exploit costumers by charging

high prices and different prices from customers which need to controlled for effective
productivity. Policy of competition breaks monopolist market and reduce all the barrier in new
entrance. Different regulation like fair trading, favourable environmental policies and better
customer services helpful in maintaining ethical practices and decorum in corporate world. Apart
from it, government also establish laws related to competition policies which ensure protection
of consumers and fair trading in business sectors. Burger king facing competition from
McDonald's, Domino's and Subway in respect of quality, price of foods and services which are
almost same.
3.1Determination of pricing and output decisions through market structure
Market structure play a major role in determining of price and production. In market there are
various market structure like monopolistic , monopoly, perfect and oligopoly market. Burger
king is one of the monopolistic market which have large number of firms and every firm has
small portion of market share (Gecevska and et. al. ,2010). Products under monopolistic
competition market structure are similar, each firm differentiates their product through attributes
such as style, brand name, location and their pricing strategies. In the effort to differentiate their
products their competitor's product, each firm is attempting to create a loyal customer base.
These organisation don't have that much consequences on pricing and output strategies. They
always tries to supply products in the market. In this market firm differentiates their hamburger
and they are not made exactly the same. As Wendy's increase their prices , some of their
customers will begin eating at Burger king while other will remain loyal to Wendy's. This
function is related with downward curve that firms in a monopolistic-ally competitive market
structure experience. Market covered under oligopoly required consist of various small number
of firms which together control on market share and which help in determining the price and
supply. In monopoly market is that where there is only one buyer who individually determine the
price and supply of product. It there is more demand in the market, company increases the prices
but excess price can determine the demand of product. In perfect competition market there are
large number of buyers and consumers and selling homogeneous product. Under this price are
perfectly elastic.
3.2 Methods in which market force shape organizational responses
Market units helps in determining the interconnection between supply and demand within that
market. Organizational response is the activity which is given by a business or a company to a

business or economical conditions. Organizational response to market forces have more impact
on the company's goodwill and profits. Some big companies do proper market research
according to research they analysis to ensure that they are able to provide better services and
products to their customers. Burger king's able to judge the market demand for their products
correctly which tries to keep their customers happy by supplying products in right amount what
customers ordered. The profit of Burger King's is increasing as they are able to judge their
margin correctly so they are able to supply and sell their products as possible without over
stocking etc.(Hilton and Platt ,2013). This company supplying better qualities product to its
customers to maintained their faith in their products. If the company are not able to satisfy its
customers the reputation may be decreased. The relationship between market forces and
organisation response is dominating in terms of business success and customer satisfaction. For
this market research is important in order to determine market forces so that an organization give
better results to the market they are operating in.
3.3Impact of business and cultural environment to shape the behaviour of selected organization
Business and cultural environment has more consequence on organizational behaviour. There are
two kinds of business environment : economic and non-economic environment. The economic
environment influences through economic policies, system and condition. And non economic
environment consist of natural, demographic, technological, legal, political, social environment.
Burger King's is operating its business in many countries where is is not possible form them to
follow same economic environment. For examples per capita income of UK and India are not
same (Porter and Rivkin ,2012). Economic policies like industrial policy, fiscal, monetary,
foreign investment and export-import policies are not same. For those countries which have more
impact on organizational behaviour. Social includes social factors like life expectancy rate,
literacy, traditional and customs etc. In Indian culture beef is prohibited for Hindus , so most of
the people don't eat beef. Political factors includes the political systems, government policies and
attitude towards the business community .The consistency of the government also influences
business and related activities .Legal refers to set of laws, regulation which influence the
business organisation and their operations. Burger king's has to obey and work within the
framework of law. All these factors have a direct impact on the demand for food of Burger
King's.