Table of Contents

Introduction:
1.1 Identify the purposes of different types of organization considering their legal
structure and types (private company, public company, voluntary organization, co
operative, charitable)
1.2 Describe the extent to which an organization meets the objectives of different
stakeholders
1.3 Explain the responsibilities of an organization and strategies employed to meet
stakeholder interests; conflict of expectations; satisfying stakeholders objectives
2.1 Explain how economic systems to allocate resources effectively
2.2 Assess the impact of fiscal and monetary policy on business organizations and
their activities
2.3 Evaluate the impact of competition policy and other regulatory mechanisms on
the activities of a selected organization
3.1 Explain how market structures determine the pricing and output decisions of
businesses. Explain UKs present and communicate appropriate market situation and
determine which structure could help.
3.2 Illustrate the way in which market forces shape organizational responses using a
range of examples
3.3 Judge how the business and cultural environments shape the behaviour of
selected organization. As I am an Business analyst considering the alternatives,
appropriations, feasibility, desirability for managing and organizing activities
4.1 Discuss the significance of international trade to UK business organizations
4.2 Analyze the impact of global factors on UK business organizations.
4.3 Evaluate the impact of policies of the European Union on UK business
organizations. Recommend UK business organizations with creative thinking how
they can benefit from the EU policies.
Conclusion:

Introduction:
Business environment is an important subject that identifies the organizations business
opportunities, places, and shapes the structure for the organization because the organizations
are formal because they are legal entities and must be abide by the business and company
laws. The organizations have rules and procedures that are specific. Organizations are social
structure because they are collection of social elements, much as a machine has structure - a
particular arrangement of values, shifts, cams, and other parts. Organizations are in part
information processing entities. As the responsibilities of an organization and strategies
employed to meet stakeholder interests are an important function for the organization, it has
particular division to handle this situation (Jeffrey & Collins, 2004).

1.1 Identify the purposes of different types of organization considering their legal
structure and types (private company, public company, voluntary organization, co
operative, charitable)

There are different types of organization considering their legal structure and types such as
private company, public company, voluntary organization, co operative, charitable
organization. The traditional business firm was and still is hierarchical, centralized, structured
arrangement of specialists that typically relies on a fixed set of standard operating procedures
to deliver a mass produced product or services. The new style set of standard operating
procedure business firm has become flattened that mean to less hierarchical, decentralized,
customized and flexible arrangements of generalists who rely on real time information to
deliver mass customized products and services uniquely suited to specific markets or
customers. This new style of organization and business environment has become popular in

recent time. This new direction would be unthinkable without the development business
environment and new technology (Hans & Marconi, 2002).
The purposes of different types of organization considering their legal structure and types are
to establish the market according to the types, segments, advantages, business opportunities,
industrialization, facilities, funds and business environment of the organization. The capital
structure of the business depend on the business type of the organization and the types of
products serve to the customers are also determinant of companys capital and investment
policy that can be found from market research and information from marketing and
promotional campaigns (Yuan & William, 2004).

1.2 Describe the extent to which an organization meets the objectives of different
stakeholders

An organization meets the objectives and goals of the company of different stakeholders by
taking some important measurements that are identified the management body and corporate
governance of the organization. As an organization is stable, social, and formal structure that
takes resources from the environment and processes them to produce output. This technical
definition focuses on three elements of an organization. Capital and labour are the major and
important inputs and primary production factors provided by the business environment. The
organization using business environment transforms these into products and services in a
production function; hence it is a process that transforms capital and labour into product.
Then the products and services are consumed and used by environments in return for supply
inputs (Nita & Tariq, 2003).

Graph: Business goals, mission, vision, objectives

An organization meets the objectives of different stakeholders by maximizing the profit of the
organization. Though profit is not or should not be the primary goal for an organization, the
ultimate goals and performance of an organization is made and fixed by measuring the
companys profits and profitability.

1.3 Explain the responsibilities of an organization and strategies employed to meet

stakeholder interests; conflict of expectations; satisfying stakeholders objectives

There are lots of responsibilities of an organization and strategies employed to meet

stakeholder interests; conflict of expectations; satisfying stakeholders objectives. The
stakeholders of the organization mean to the parties and companys clients including
companys suppliers, customers, and investors. Because of an organization that is more stable
than an informal group in terms of longevity, it has an particular identity in controlling the
situation in business environment. Organizations are formal because they are legal entities
and must be abide by the business and company laws. The organizations have rules and

procedures that are specific. Organizations are social structure because they are collection of
social elements, much as a machine has structure - a particular arrangement of values, shifts,
cams, and other parts. Organizations are in part information processing entities. As the
responsibilities of an organization and strategies employed to meet stakeholder interests are
an important function for the organization, it has particular division to handle this situation.
The organization has also capabilities to manage the conflict of expectations; and it always
tries satisfying stakeholders objectives because the stakeholders are the major investors and
partners of the organization. (Kip, Ouse & Tykes, Byhalia, 2007)

2.1 Explain how economic systems to allocate resources effectively

An economic systems that allocates business and organizations resources effectively, has to
have strategic goals and guidance to control over the entire business system. The economic
system plays an important role for the development of the organization as it is a collection of
rights, privileges, obligations, and responsibilities that are delicately balanced over a period
of time through conflict management and proper resolution to the raised problem. In this
behavioural view of the firm, people and the corporate clients, and the employees in
organization develop customary ways of working; they gain attachments to existing
relationships, and they make arrangements with subordinates and supervisors about how
work will be done, and under what conditions. Most of these arrangements and feelings are
not discussed in any rulebooks. The economic system is totally depend on it because the
organizational view is most important to solve business related problems and to get quick
solution to the problems (Collins & Bobbi, 2006).

Graph: Circular Flow of Income

(Source: Malden, N, T & Brews, S (2003) The Importance of Business Environment, Brendon
Publication Limited, 4th Edition, and P: 112-150, 120-165)

The graph above shows the resource allocating system in an economy of a nation. The
circular flow of income has lots of contribution in national income and resource allocation
process. The parties and contributor of circular flow of income are households, resource
markets, products markets, and business organization of firms.

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

The impacts of fiscal and monetary policy on business organizations are very effective and
responsive as well. The fiscal policy is the government policy, using which government of an
independent nation rules over on financial institutions and industrialization, government

expenditures, tax revenue, and government rules and laws on firms and companies. The
government collects tax revenue imposing the VAT, and direct tax (Income tax); government
make payments for further development works, and government other expenditures that fall
under fiscal policy taken by the government (Guan & Rakes, 2001).

Graph: Government Policy

The monetary policy is referred to the controlling of money supply by the central bank of a
country using a higher or lower interest rate and government bonds. The tools are effective to
control the money supply in the economy and control over or tackle the inflation or deflation.
These types of situation can be controlled and managed by monetary policy (Morin, Arul,
2002).

Graph: Expansion and Contraction Policy

(Source: Sep, Tooke and Akers, Julia (2007) Business Environment and Organizational
Development, 5th Edition, McGraw Hill Publication Ltd, p: 123)
2.3 Evaluate the impact of competition policy and other regulatory mechanisms on the
activities of a selected organization
The impact of competition policy and other regulatory mechanisms on the activities in a
organization is very influential and responsive. The competition policy among the
competitors of business firms, industry, and organizations follow their competitors to survive
in the competitive market place. It is very important to notice the competitors and take over
any types of situation by the management (Palmer & Rodriguez, 2004).

In case of Dell Inc, the organization got a test of being a market leader during 2000s. That
time the organization has supplied latest types of products to its international customers, the
low prices strategy help the organization to grasp the market share of the company. The other
regulatory mechanisms of this company help to take a control over the growing market in
computer industry (Roger & Beckons, 2001).
8

3.1 Explain how market structures determine the pricing and output decisions of
businesses. Explain UKs present and communicate appropriate market situation and
determine which structure could help.
The market structures often determine the pricing and output decisions of businesses. An
explanation of UKs present market situation is enough to depict the situation. The pricing
strategy depends on the situation of market structure and the competition in the market place
among the seller. It also depends on the consumers purchasing power, buying ability, and
products quality. Products quality and strong brand image is the important measures that
control the products pricing in a market place (Palmer & Rodriguez, 2004).

Chart: Types of Markets

(Source: Pedi, Lynch and Rues, L (2007) Organizational Behaviour 5th Edition, Reckon

wood Publications Limited, p: 68)

3.2 Illustrate the way in which market forces shape organizational responses using a
range of examples
There are several market forces that shape organizational responses using a range of service
and products availability. In case of competitive market, the price of the products is
determined based on the competitors price and market demand for the products. The demand
of the customer is controlled by the purchasing power of the buyer or the customers. It is an
important stage for the market researcher to find a suitable solution to the customers
problems and setting a bearable and payable price for that. There are different types of forces
that shape organizational responses. These types of force change the internal environment of
the organization. The internal environment is consisted with the parties and factors of
organizations internal matters such as the employees of the organization, the technology, the
information related to business policy, and the strategic intent, and finally the brand image are
the internal factors for the organization. These all tend to change the organizational shape
keeping a face with the customer growing and changing market demand and competitors
products or service specialization (Palmer & Rodriguez, 2004).

Graph: Forces of economy from the view point of international trade

(Source: Alep, Fouke and Teas, Bhili (2007) Business Environment and Organizational
Development, 5th Edition, McGraw Hill Publication Ltd, p: 103)

10

3.3 Judge how the business and cultural environments shape the behaviour of selected
organization. As I am an Business analyst considering the alternatives, appropriations,
feasibility, desirability for managing and organizing activities
The analysis and the report show that the business and cultural environments shape the
behaviour of particular organization. The alternatives, appropriations, feasibility, desirability
for managing and organizing activities, are the important factors for the business
development process. It depends on the decision making process though it is a sequential
process of several process, people considers decision making as taking action. Every
organization and managers of every organization has to take several actions for several
purposes. Such action taking process is simply called decision making. It is the duty of
management of an organization to decide which products to be sold more, which products
prices will be cut down, which brand should be taken off from the market place which mode
of distribution will be used to deliver products. These all depends on the decision making
process, and implementation of the decisions (Martin & Hingis, 2001).
The impact of global economy: The impact of global economy on business functions is
immense as global economy influence the activities of an organizations business functions
directly or indirectly. The impact has been seen in economic crisis all over the world in the
year of 2009 when European countries and United States of America has faced from credit
crunch problems and severe credit crisis that make most of the organizations in the list of
default. The impact is positive and brings best outcomes if global economic condition is
comparatively better but it has negative impact on business firms if some countries face
economic crisis. This happens because of direct impact of economy of one nation that has
peer relationship as business partners. However, the business firms should tae precautionary
actions to overcome these economic problems to sustain the business in spite of global
economic crisis. (Kildee, Croly & Revs, S (2003)

11

4.1 Discuss the significance of international trade to UK business organizations

There is significance of international trade to UK business organizations. The international
trade process has a huge effect on UK business organization. As an organization meets the
objectives and goals of the company of different stakeholders by taking some important
measurements that are identified the management body and corporate governance of the
organization that is stable, social, and formal structure that takes resources from the
environment and processes them to produce output which focuses on three elements of an
organization. Capital and labour are the major and important inputs and primary production
factors provided by the business environment. The organization using business environment
transforms these into products and services in a production function; hence it is a process that
transforms capital and labour into product. Then the products and services are consumed and
used by environments in return for supply inputs. Capital market has shaped the UK economy
and has the great contribution in international business. The growth of UK business has
become profitable over the world and there are lots of participants are taking part in investing
to UK capital market (Annual Report of London Stock Exchange, 2012).

Graph: International business and economic effects of tariffs

(Source: Lido, Cynic and Rakes, K, L (2007) Organizational Behaviour 5th Edition, Reckon
wood Publications Limited, p: 78)

12

4.2 Analyze the impact of global factors on UK business organizations.

The impact of global factors on UK business organization is remarkable. The global factors
are the factors that shape the economy and force to determine the business criteria and
investment structure. The graph below shows important information about the economic
problem and global resource scarcity.

(Source: Silone, N, T and Irony and Rows, S (2003) The Importance of Business Environment,
Brendon Publication Limited, 4th Edition, & P: 131)

The economic growth of a country depends on the use and capitalization of its resources in
global arena. It has productive effect, and allocation of efficiency depending on its use and
capitalization. It is noticeable that the purposes of different types of organization considering
their legal structure and types are to establish the market according to the types, segments,
advantages, business opportunities, industrialization, facilities, funds and business
environment of the organization. The capital structure of the business depend on the business
type of the organization and the types of products serve to the customers are also determinant
of companys capital and investment policy that can be found from market research and
information from marketing and promotional campaigns. Capital and labour are the major
and important inputs and primary production factors provided by the business environment.
13

The organization using business environment transforms these into products and services in a
production function; hence it is a process that transforms capital and labour into product.
Then the products and services are consumed and used by environments in return for supply
inputs. As an organization meets the objectives of different stakeholders by maximizing the
profit of the organization, it has a force and pressure to build the market share and satisfy its
investors. Though profit is not or should not be the primary goal for an organization, the
ultimate goals and performance of an organization is made and fixed by measuring the
companys profits and profitability. Organizations are in part information processing entities.
As the responsibilities of an organization and strategies employed to meet stakeholder
interests are an important function for the organization, it has particular division to handle
this situation. The organization has also capabilities to manage the conflict of expectations
The competition policy in UK markets among the competitors of business firms, industry,
and organizations follow their competitors to survive in the competitive market place. It is
very important to notice the competitors and take over any types of situation by the
management as there are several market forces that shape organizational responses using a
range of service and products availability. In case of competitive market, the price of the
products is determined based on the competitors price and market demand for the products.
The demand of the customer is controlled by the purchasing power of the buyer or the
customers. It is an important stage for the market researcher to find a suitable solution to the
customers problems and setting a bearable and payable price for that. There are different
types of forces that shape organizational responses. These types of force change the internal
environment of the organization. The internal environment is consisted with the parties and
factors of organizations internal matters such as the employees of the organization, the
technology, the information related to business policy, and the strategic intent, and finally the
brand image are the internal factors for the organization. These all tend to change the

14

organizational shape keeping a face with the customer growing and changing market demand
and competitors products or service specialization (Gonzalez, Holguin, 2006).
4.3 Evaluate the impact of policies of the European Union on UK business
organizations. Recommend UK business organizations with creative thinking how they
can benefit from the EU policies.
There is an effective impact of policies of the European Union on UK business organizations.
The UK business organizations can benefit from the EU policies with creative thinking and
proper utilization of its internal resources and organizational strength, the policies, strategies,
and by using the techniques of being a market leader in the industry of firms of EU
businesses. The market is very potential and profitable as well. The evaluation on UK
business organizations finds that An economic systems that allocates business and
organizations resources effectively, has to have strategic goals and guidance to control over
the entire business system. The economic system plays an important role for the development
of the organization as it is a collection of rights, privileges, obligations, and responsibilities
that are delicately balanced over a period of time through conflict management and proper
resolution to the raised problem. In this behavioural view of the firm, people and the
corporate clients, and the employees in organization develop customary ways of working;
they gain attachments to existing relationships, and they make arrangements with
subordinates and supervisors about how work will be done, and under what conditions.
(Zelda, N, T & Kory (2003)

The analysis finds that UKs present market situation is enough to depict the situation that
depends on the consumers purchasing power, buying ability, and products quality. Products
quality and strong brand image is the important measures that control the products pricing in
a market place. The international trade process has a huge effect on UK business
organization. As an organization meets the objectives and goals of the company of different

15

stakeholders by taking some important measurements that are identified the management
body and corporate governance of the organization that is stable, social, and formal structure
that takes resources from the environment and processes them to produce output which
focuses on three elements of an organization. Capital and labour are the major and important
inputs and primary production factors provided by the business environment. Most of these
arrangements and feelings are not discussed in any rulebooks. The economic system is totally
depends on it because the organizational view is most important to solve business related
problems and to get quick solution to the problems. The organization using business
environment transforms these into products and services in a production function; hence it is
a process that transforms capital and labour into product. Then the products and services are
consumed and used by environments in return for supply inputs. Capital market has shaped
the UK economy and has the great contribution in international business. The growth of UK
business has become profitable over the world and there are lots of participants are taking
part in investing to UK capital market. (Minis, K, R & Kuris, T, 2005)

Conclusion:
Finally it is clear that the necessity of business environment and its shape has enormous
importance and essentialities. Though the traditional business firm was and still is
hierarchical, centralized, structured arrangement of specialists that typically relies on a fixed
set of standard operating procedures to deliver a mass produced product or services, the new
style set of standard operating procedure business firm has become flattened that mean to less
hierarchical, decentralized, customized and flexible arrangements of generalists who rely on
real time information to deliver mass customized products and services uniquely suited to
specific markets or customers. This new style of organization and business environment has
become popular in recent time. This new direction would be unthinkable without the
development business environment and new technology.
16

Bibliography & References

Alep, Fouke and Teas, Bhili (2007) Business Environment and Organizational
Development, 5th Edition, McGraw Hill Publication Ltd, p: 112-142
Bids, Dynic and Rues, K, L (2007) Organizational Behaviour 5th Edition, Reckon wood
Publications Limited, p: 56-78
Tinned, K, R and Kris, T (2005) Business Environment and Organizational Development,
Vol.6, No.2, William & Abridges Publication Ltd
Kildee, N, T and Croly and Revs, S (2003) The Importance of Business Environment,
Brendon Publication Limited, 4th Edition, and P: 112-150, 120-165
Kip, Ouse and Tykes, Byhalia (2007) Business Environment and Organizational
Development, 5th Edition, McGraw Hill Publication Ltd, p: 112-142
Lido, Cynic and Rakes, K, L (2007) Organizational Behaviour 5th Edition, Reckon wood
Publications Limited, p: 56-78
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Vol.6, No.2, William & Abridges Publication Ltd
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Development, 5th Edition, McGraw Hill Publication Ltd, p: 112-142
Pedi, Lynch and Rues, K, L (2007) Organizational Behaviour 5th Edition, Reckon wood
Publications Limited, p: 56-78

17

Randi, K, R and Kooris, T (2005) Business Environment and Organizational Development,

Vol.6, No.2, William & Abridges Publication Ltd
Silone, N, T and Irony and Rows, S (2003) The Importance of Business Environment,
Brendon Publication Limited, 4th Edition, and P: 112-150, 120-165
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Development, 5th Edition, McGraw Hill Publication Ltd, p: 112-142
Vivo, Mimic and Auks, K, L (2007) Organizational Behaviour 5th Edition, Reckon wood
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Brendon Publication Limited, 4th Edition, and P: 112-150, 120-165

18