LONDON CHURCHILL COLLEGE

Assignment Submission

Programme: HND BTEC EdexcelUnit Number and Title: 01- Business Environment

Unit Level: QCF Level 5

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Table of contents

LO1 (Task 01): Understand the organisational purposes of business

1.1 Identify the purposes of different types of organizationyou must

1.2 Describe the extent to which Siemens meets the objectives of different stakeholders

1.3 Explain the responsibilities of Siemens and strategies employed to meet stakeholders.

LO2 (Task 02): Understand the nature of the national environment in which businesses operate

2.1 Explain how economic systems attempt to allocate resources effectively.

2.2 Assess the impact of fiscal and monetary policy on business organisations and their activities.

2.3 Evaluate the impact of competition policy and other regulatory mechanisms on the activities of a selected organisation

LO3 (Task 03): Understand the behaviour of organisations in their market environment

3.1 Explain how market structures determine the pricing and output decisions of businesses

3.2 Illustrate the way in which market forces shape organisational responses using a range of examples

3.3 Judge how the business and cultural environments shape the behaviour of a selected organisation

LO4 (Task 04): Be able to assess the significance of the global factors that shape national business activities

4.1 Discuss the significance of international trade to UK business organisations

4.2 Analyse the impact of global factors on UK business organisations

4.3 Evaluate the impact of policies of the European Union on UK business organisations.

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1.1 Identify the purposes of different types of organization

Organisation: a business organisation can be defined as a social arrangement that has

specific structure and objective. According to the previous researchers and purist the

organisation includes specialisation and requirements of rational coordination. In order to

achieve the organisational goal in an efficient manner the management of thrifty and

divided the organisation in accordance with their specialised groupings.

There are mainly for organisation in the UK. It may include private company Ltd, public

company limited, Voluntary company and charitable company

Private company Ltd: In private limited company the shareholders has limited liability and

the shares are not sold to the general public through the stock market. In this stage it is

observed that the shareholders in private limited company are often bound to offer their

shares towards their fellow shareholders before they can sell them to the third party.

Example: working group Limited is a private organisation which consists more than 400

companies and established by Sir Richard Branson in 1970. The company is headquartered

in London, UK. According to the definition of private limited company the company has

limited liability.

Public limited company: the public limited company enables the shareholder to send their

stocks, bonds in the general public in stock market. In this stage the public limited

companies should follow the requirements based on the following:

The company must have a minimum of 50,000 share capital.

The company should have registered as public limited company

The company must be able to sell its shares to the public

The company should have two directors.

Voluntary organization:The company can be formed by two or more persons to words the

achievement of common object if based on mutual obligations and duties. In this stage the

individuals enter an agreement as volunteers in order to establish the organisation and to

develop the purpose as a non-profit organisation.

Charitable organisation: The charitable organisation can be also defined as a non-profit

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organisation. The company is developed and operated in the interest of the public for

common good. The organisation making your education and religious antipoverty

activities etc.

Example: British Heart Foundation is a charitable organisation. The company established

in 1961 in UK.

1.2 Describe the extent to which Siemens meets the objectives of different stakeholders

The stakeholders are the related parties in the business school has significant interest on

the business. In this stage it is observed that the individuals,, groups or organisations that

have direct or indirect interest in the organisation can be defined as stakeholders as they

can effect can be affected by the actions, wars and policies of the organisation or by the

behaviour of the members of the organisation.

There are three categories of stakeholders such as internal stakeholder, collected

stakeholders and external stakeholders. The internal stakeholders are the employees,

management and owners. The collected stakeholders can be defined as the customers,

suppliers, competitors and shareholders. On the other hand external stakeholders can be

identified as the government, society and creditors.

In this study to emphasis upon the interest and the objectives of the stakeholders Siemens has initiated the following process:

Internal stakeholders: In order to focus upon the objectives of internal stakeholders

Siemens has initiated extrinsic and intrinsic motivation policies for the employees and the

management in order to get the best possible outcome from them as well as to include the

level of service quality for the existing and potential customers. On the other hand to make

the objective of the owners Siemens as significant policies and strategies which influence

the reader policy and profit sharing policies.

Collective stakeholders: The collected stakeholders are the customers, suppliers and

shareholders. In order to meet the objectives of the stakeholders Siemens has initiated

significant policies and strategies which include effective customer service policies for the

customers, reducing the creditors days for the suppliers and providing significant financial

and non-financial benefits for the shareholders.

External stakeholders: The external stakeholders are the comments and society. In this

stage Siemens offers attractive employment opportunity for the society to reduce the level

of unemployment problem. On the other hand Siemens also initiates supportive measures

in order to make the objective of the government based on the economic and political

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circumstances.

1.3 Explain the responsibilities of Siemens and strategies employed to meet stakeholders.

In order to achieve competitive position in the current marketplace it is crucial for Siemens

to emphasis upon the responsibilities and strategies employed to meet the stakeholders

objectives. In this stage the nature of responsibilities can be categorised into economy

responsibilities, legal responsibilities, ethical responsibilities, discretionary

responsibilities.

Economy responsibilities: Economy responsibilities can be defined as the faster primary

responsibilities of Siemens. In this stage the prime responsibilities is to produce and

distribute products and services in order to make profit for the owners and shareholders.

Legal responsibilities: The legal responsibilities can be defined as the responsibilities

reached an organisation must comply with. In this stage it is crucial for the organisation to

keep its legal documents up to date in accordance with the rules and regulations and

fulfilling the requirements of any regulatory bodies.

Ethical responsibilities: The ethical responsibilities may include morality ABS such as

acting fairly, Wiley according nationality, respecting the rights of the individuals etc. In

this stage Siemens should take significant initiative to focus upon the ethical

responsibilities in order to establish and maintain its reputed brand image in the

competitive marketplace.

Discretionary responsibilities: The discretionary responsibilities are not required by the

law and it does not hamper the organisation's image. Although the organisations should

focus upon the discretionary responsibilities with not expectations of getting anything in

return. It is purely and truly four the contribution of the society. In this stage Siemens has

significant policies in place to conduct the discretionary responsibilities in the given

situation.

2.1 Explain how economic systems attempt to allocate resources effectively.

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The system can be defined as the process through which production, distribution and

consumption of homes and services are performing the economy. In addition to the

economic system focuses upon the way through which it is possible to allocate the

available resources in an efficient manner in order to get the significant output

international community. In this stage it is observed that the economic system is linked

with the political system of the country. If a country is politically Democratic then the

economy is likely to be open for the individuals. According to the situation of the given

market the economic system is categorised in the following:

Market economy: In market economy it is a free-market system in which the individuals

or organisations all and run of product in activities and allocate resources for the common

interest of the people. In this stage the market economy has limited freedom. In addition to

it is monitored by the government for fair trade and competition.

Command economy: The command economy is an economic system which is controlled

and directed by the government. In this stage it is observed that the allocation of resources

is determined by the government as well as the manufacturing and distribution of products

and services are based on the comment decision-making process. It is also defined as

planned economy. In this stage it is observed that NHS the national health care system is

operated by the UK government which is an example of command economy.

Mixed economy: mixed economy is the accumulation of market economy and planned

economy. In a mixed economy starting industries are under direct control of the

government and rest of the organisations are born and, by the individuals.

From the above-mentioned discussion it can be observed that economic system is crucial

for the organisation and the nation to serve the related parties through the efficient use of

the resources.

2.2 Assess the impact of fiscal and monetary policy on business organisations and their activities.

The fiscal policy: the fiscal policy can be defined as the common spending policies which

has significant influence on the macroeconomic conditions. In addition to the fiscal policy

plays a significant role to improve the unemployment rate is, reducing the inflation rate as

well as influences aggregate demand and aggregate supply in order to stimulate economic

growth of the country. It is also criticised by the researchers that the fiscal policy dental

affects particular groups these proportionately. In this stage it is observed that it acts

decrees may not be applied to taxpayer at all income levels. On the other hand an

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increased of common spending we have the biggest influence on the group that is

receiving the spending.

Monetary policy: The monetary policy is one of the state or national government policies

which has significant influence in the economy. It analyses the monetary authority usually

the central bank of the country such as the bank of England to control availability and

supply of money and the rate of interest, exchange-rate etc. Is the prime objective of

monetary policy is to focus upon the stimulation of economy broke and balance following

payments etc.

From the above-mentioned discussion it can be observed that fiscal and monetary policy

are two major drivers of the nations economic performance.

2.3 Evaluate the impact of competition policy and other regulatory mechanisms on the

activities of a selected organization

The competition policies are the rules and regulations which allows competition

authorities to regulate anticompetitive conduct in order to develop their fair market

competition. It need to words the achievement of high-level economic welfare and

efficiency for the society and the nation. In order to make the market more bitter the

competition policies played a significant role for the European Union. The prime

principles of competition policies can be defined as monitoring any merger, joint venture

and acquisition of organisations in order to ensure fair competition process. In addition to

providing any anticompetitive practices such as predatory pricing, price-fixing. Finally to

resist the marketing activities and practices which may cause limitation in the free-market

competition and trading between business are considered to be one of the prime principles

of competition commission.

In addition to competition policies and other regulatory mechanism has significant impact

on the activities of the organisation in the wider context. The competition commission

regulates the organisation's behaviour as well as the pricing policy, Marjorie in a position

and finally to enhance competition between suppliers and to reduce anticompetitive

behaviour between the organisations.

3.1 Explain how market structures determine the pricing and output decisions of

businesses

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The pricing and output decisions are considered to be the important determinant in market

structures. It need to words the pricing and output supply product decisions. The pricing

and output decisions depend largely on the environment of the market in relation to words

the market competition. According to the nature of market the market competition can be

categorised into perfect competition and imperfect competition.

The perfect competition is observed in the market containing a large number of small

organisations are small farms. They sound the same products Grendel farm individually

has any control over the pricing of the products and services. In this stage there are some

significant characteristics of perfect market such as the buyers and sellers have three exes

in the market. I'll buyers and sellers have knowledge about the price and quality of the

product and services finally the prime objective of all buyers and sellers is to achieve

profitability.

On the other hand the imperfect competition reflects that there are no free flow of

information of Bryson product between the buyers and sellers. In addition to all the farms

within the market and knocks immediately size and capable of influencing price and

supply of product they trade in the marketplace.

The imperfect market competition takes place in Mono holy, oligopoly and monopolistic

competition stage. In Mono holy only one farm produces ourselves a particular goods or

services. In this stage the entry of other farms is restricted due to copyrights trademarks.

In oligopoly there are few farms are companies produce and treat the same products and

supply. They have the control of supply and the pricing of the project in the market. The

tobacco companies are the examples of oligopoly market.

The monopolistic competition is the situation in the marketplace where the buyers and

sellers are free to enter but seminal competitors are already offering the same products and

services in the marketplace.

Therefore from the above-mentioned discussion it can be observed that the pricing and

supply of products and services depends upon the factors based on the market structure.

3.2 Illustrate the way in which market forces shape organisational responses using a

range of examples

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The market forces are the forces of demand and supply of goods and services traded in the

marketplace. In this stage the profit oriented buyers and sellers influences the quantity of

products produced an offer in the marketplace and the pricing policies of those products

depending upon the state of the market. The demand and supply supported by the prize are

interrelated with each other.

Demand and supply: the demand and supply are considered to be the prime determinants

in order to influence the market situation of the company. In this stage the supply

represents the total number of commands of products available in the marketplace for

trading and starting point of time where the demands technically reveals the figure of how

much says it organisation or company generated by a particular product and the particular

point of time or how much the customers are willing to purchase the product. In this stage

how much the buyers want to buy is defined as the demand in the market and how much

of the sailors want to sell is the supply.

The Demand curve: The changes in demand curve is due to the changes in pricing policy

that undermined by the management in the company in different stages depending upon

the activities in the marketplace.

Price

P1 A C

P2 B

Demand (before) Demand (after)

Q1 Q2 Q3 Quantity Demanded

From the above-mentioned diagram it is observed that when the price of the product

changes the quantity demand of the product also changes. Therefore the demand of the

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project is against the pricing policy of the product.

Supply curve: The supply curve demonstrates the amount of product in the solar are

willing to sell in the marketplace based on the different pricing policies.

Supply Curve represents the amount of products the sellers are willing to sell in the market at different prices.

Price Supply (after) Supply (before)

P1 C A

P2 B

Q3 Q2 Q1

Quantity

From the above-mentioned diagram it can be observed that the pricing policy of the

product and the supply of the product are moving in the same direction.

Therefore from the above-mentioned discussion it can be observed that the man and the

pricing policy in vast related on the other hand the supply and the pricing policy changes

in the same direction.

3.3 Judge how the business and cultural environments shape the behaviour of a selected

organization

The business and cultural environment has significant impact towards the behaviour of the

organisation. In this study it is observed that Siemens has established itself in competitive

position in the marketplace. In this stage the culture of Siemens has significant impact

towards the operation of the business as well as to deal with the human resources,

customers and the community around the organisation. In addition to the extent to which

personal freedom, decision-making freedom, innovation and creativity are allowed are

also one of the significant determinant of the culture. In addition to the information and

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powerful in the different levels of management in Siemens also that undermines the

culture of the organisation. Finally the efficiency of the employees and their commitment

towards the organisational objective of Siemens reflects the culture of the organisation

based on the behavioural activities.

On the other hand the business environment of Siemens based on the political, economic,

technological, legal and environmental issues in which the organisation operates its

business. As a motivational company doing the following market entry mode of the local

business expansion it is crucial for Siemens to consider the political situation. On the other

hand during the following market entry mode the economy: issue such as exchange rate,

economic downturn as red as the employment opportunity of the guest country also plays

a significant impact. On the other hand the technological development needs to be

considered dealing the development and growth of Siemens in local and global context.

Finally to words the business development it is crucial for Siemens to emphasis upon the

comment rules, regulations, employment act and finally the legal issues which may create

challenging issues for the company doing the business expansion.

4.1 Discuss the significance of international trade to UK business organisations

The international trade can be defined as the exchange of goods and services between the

countries across the geographical borders. At present competitive business world if you

countries nowadays can focus on the domestic products. International trade enhances the

goods and services to be available to the countries for trading where goods and services

are not produced domestically. The international free laser significant role in UK

economic. It is vital for the economic development as well as the sustainability. At present

in competitive global economy it is crucial to pauses economic strengths and progress

which may have achieved through the international trade. At present the UK economy has

influenced by the international trade which has consequences of increasing globalised

economy. The international trade enhances UK to consume foods from appropriate

manufacturing boards also come from a proclivity. In this stage without international trade

it is not possible for UK to serve its customers weak there is required products and

services. In this stage it is also mentioned that U.K.'s establish this country. 80.4% of its

GDP comes from service industry. In this stage the media services provider organisations

are education, healthcare, finance and business services etc.

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4.2 Analyse the impact of global factors on UK business organizations

There is a significant impact of global factors on UK business organisations. It is

mentioned earlier that UK is a service based country. In this stage during the international

business expansion it is important for UK to emphasis upon the significant local

determinants which may include political, economical, social, cultural and environmental

factors in global context. In this stage it is also observed that during the globalisation

process it is significant to take into account the following factors to words the business

expansion and growth in competitive marketplace. Finally it can be observed that the

global factors which has significant impact towards the economic growth and

development of the business needs to be taken into account is the prime global factors

during the development of UK business organisations.

4.3 Evaluate the impact of policies of the European Union on UK business organisations.

In order to evaluate the impact of policies of European Union on UK business organisation it

is observed that the European Union of you is an economy integration of 27 European

nations. In this stage the European Union has developed a number of policies that involves

significant impact on UK business organisations the most common policies includes common

agricultural policy and competition commission. In this stage the EU commission for

competition emphasis upon six area of policies that includes anti-trust, cartels, liberalizations,

state aid the international and margers.

In addition to it is also observed that the EU policies has significant impact on employment

and labour management. In context of UK the labour cost is generally higher than the eastern

European countries. In this stage the workers from all around the European Union region can

be benefited by the employment opportunity in UK. It is also criticised the European the

workforce to UK can be threat to the local workers. In this stage the unemployment the risk

can raise threat to the UK economy. Therefore it can be observed that the UK business

organisations can be benefited from the skills and expertise of the workforce in context of

European Union.

Reference

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1. Erik N Bowman, (2011). Entrepreneur Training Manual, Third Edition. Guanzi

Institute Press.

2. Scott Andrew Shane (2003). A General Theory of Entrepreneurship: the Individual-

Opportunity Nexus. Edward Elgar Publishing.

3. Thomas N. Duening, Robert D. Hisrich, Michael A Lechter. (2009). Technology

Entrepreneurship: Value Creation, Protection, and Capture. Academic Press.

4. Pinson, Linda. (2004). Anatomy of a Business Plan: A Step-by-Step Guide to

Building a Business and Securing Your Company’s Future (6th Edition).

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