Business environment refers to the combination of external and internal factors influence the organization of the operating conditions. There are several factors of the customer and the business environment, such as suppliers, technology, law and government activity and the market, social and economic trends competitions and owner, is improved.
Task 1: The Contextual Environment:
1. a Identify the Purpose of Different Types of Organization: There are different types of organizations in the business world. All organizations have grown different purposes. Aviation, telecom organizations, foods etc is the purpose of profit in a standard way socially. A not-for-profit service organization such as the University aim is to help all people without any profit. Such as clubs, labor unions, etc. The purpose of the organization of mutual benefit is to join together to pursue their own self-interest. The public welfare organization such as the police, fire service, provides services to all members of a given population.
Premier Food and Vodafone as the case may be, their main purpose is to maximize business and their profits by providing goods or services to their customers in order to maximize the wealth of your organization. Input process output analysis indicates the overall performance of the output fundamental business processes through the input. The input processing output to know generally we can see the cash flow statement, we can infer the overall performance at a glance Premier Foods cash flow figure for the year 2013 is as follows:
In the statement, we can see the current status of the input and output process. Now we have the input process output Vodafone is displayed. Mixed financial performance Vodafone is the company cash flow in 2014 year is £ 4.4 billion in cash flow of £ 2.1 billion in dividend income received from Verizon Wireless.
1. b Explain of how economic systems attempt to allocate resources effectively Circulation of the fruit of human labor, various processes of distribution, production and labor organization are included in the real economy. And the future of manufacturing and production within the distribution and circulation used in the entire infrastructure through which this occurs products and services include consumer goods, machinery, tools and other technologies. There are three kinds of economic systems adopted all over the world. They are: Free Market: The involvement of government in a free market economy is minimal. Here are all the financial resources provided by the private sector, including of course the market.
The determination of prices in the economy occurs depending on how much of that market demand for goods and services to be provided. Centrally planned: The central planning of all resources allocated by the government, the economy and the government to develop a plan for all market activities. Private sector participation in any economic accumulation are kept far away from the system. Mixed market: a mixed economy that includes both the capitalist and socialist economies. Both private and public companies can be embedded in the economy. Another economy is practiced named market economy. In the market for the production and what we do to the economy and consumer and business buying decisions can be free. Market economy is a mixed economy is in contrast to refrain from government intervention.
The two companies Vodafone and enter the consideration between Premier Foods, a leading food will be more likely to succeed in Vodafone and centrally planned economic system of the market economy system. Premier foods are all companies conducting business across all of Europe under the best food that the European-based companies and resources can help you promote your business all the various plans are government allocation. Here are the base of the consumer demand for products and services easily be determined by the centrally planned economy system. Meanwhile, Vodafone and multinational companies in the world and operates 434 million subscribers. Also owned and 21 partner networks in additional countries 40 works in conjunction with the rest of the world. So it is clear that the system and this needs to be more flourishing market economy.
1. c Illustration the way in which market forces shape organizational responses using a range of examples The power of the market economy and the demand is very basic principles formed through the reaction of the organization’s products and services to consumers about supply and demand is very important, the company always tries to identify. And the company ensures that the demand is met by implementing a cost-effective strategy. Consider the best food in the customer’s environment is uncertain output than a decade ago. From the beginning of the best food acquiring new brands and businesses, has expanded. Has added value to select more products to customers than any previous brand. They keep our customers and do the following strategies to attract new:
Building lasting relationships with customers
Understand their needs and preferences of their likings
Creating innovative products, maintaining the quality of the product Cost savings compared to competing groups
Ensuring supportable to the customers
Customers can meet a variety of needs to bring more features they feel more certain than 10 years ago, the old company. New item, the customer’s power, the ability of the supplier, the degree of substitution with the possibility of leading the company to give a competitive threat to them more confident, you can see the actual needs of the customer.
1. d Describe the extent to which an organization meets the objectives of different stake holders: Investors, employees, loans, suppliers and trade creditors, customers, governments and agencies, the public are stakeholders in an organization. Premier Food is committed to manage the business and socially responsible manner. They strongly believe that corporate social responsibility is one of the most powerful strategies of the company. All stakeholders in the food market, in particular their employees, customers, suppliers and consumers are both ethical production and supply chain and its impact on the transport of interacting with products, quality and wellness products and environmental interest.
1. e Explain of the responsibilities of an organization and strategies employed to meet them: The core responsibility is to serve the organization. If the responsible discharge can measure the value of an organization to its stakeholders Premier Foods, follow a unique strategy for discharging the responsibilities of the stakeholders. They discharge in consideration of the following locations: They can get the maximum satisfaction of the best food, consider the customer’s first priority. For example, they achieved the award “Best Product of the Year” for reducing fat in Mr. Kipling Delightful. They supply chain vendors act fairly and ethical standards for the purpose of ensuring the quality to believe that it is important for the quality of the product They are committed to high standards of health and safety.
They are in accordance with the welfare of the staff sets the minimum standards of human rights for all companies in the group to comply with in order to fulfill their moral, legal and humanitarian responsibility. Task 2: The General Business Environment:
2. a Analysis of the impact of global factors on UK business organization: The ecological affecting the business, politics, economy, society, science and technology, many global businesses of British forces in place the legal factors can be analyzed using the PESTEL analysis effectively to shocks. Business organization in the UK Premier Foods PESTEL analysis as described below: Political: Political customs between the world’s political stability, the level of international affairs officials in the UK and other countries are in a state, political factors Premier Foods. It has more brand joint products are available to analyze these factors. Economical: The most important element of the new economic superpowers such as WB and the global economic crisis, the impact of the World Trade Organization (WTO), the stock market fluctuations, the effect of the cost advantage militia best food.
Social: Immigration and Migration popular national population increased mix of Premier Foods family pattern, as a change in family values on a global scale, is facing a variety of these social factors that may affect the business. Technological: Adoption of the technology in the competitive global technology infrastructure, the level of the emergence of innovation regularly to address one of the largest telecommunications companies to communicate with the corruption in this section, because this element is also more like the phone has a small role in the Premier Foods the technology uses a variety of different brands. Ecological: The impact of the global warming trend is “green” to increase the level of sensitivity of the issue, you can increase the level of contamination among the general ecological factors can be a stakeholder.
Premier has produced the least harmful food products with little effect on its cause can harm the ecosystem Legal: Various laws and regulations to protect data, increase the level of legal globalization affects the cross-country employment and maintain a fair assessment of the changes in the Premier food business decisions of health and safety legislation. They have a fair policy to deal with the recognition and for the health and safety legislation in all cases. Simple ranks of the best food PESTEL analysis as a management consultant in the discussion above in order, according to the ecological potential of their activities and business, economic, social, legal, technological, political, as can be arranged.
2. b Assess the impact of monetary policy on business organization and their activities There are various macro-economic factors that affect the business. The unemployment rate, consumer price inflation is described below, depending on the RPI inflation, exchange rates, interest rates, etc. The best food activities in terms of the impact of macroeconomic factors: Unemployment rate is measured by the amount of unemployment in the economy, structure, and can be seen in a wide variety of classic cycle of unemployment in the economy. The cause of this unemployment may affect the federal and provincial governments to increase taxes for the best food, the former employee claims for unemployment insurance, new competitors will increase with the increase in new employment policy competition.
In addition, the purchase of consumer claims processing burden, weakening the increased penalties, including dismissal Inflation is a general increase in prices across the economy. CPI (Consumer Price Index) indicates that the price paid by the consumer. Inflation = (CPI- Consumer Price Index last year of the current year) / year CPI * 100 If the CPI is raised faster than those of the average wage, the purchasing power of consumers is reduced. When there is no inflation, it will affect the net sales premier food. Retail Price Index (RPI) is a monthly publication is primarily used measure of inflation in the UK by the National Statistics Office. Exchange Rates are expressed as a single value, the call another.
The impact of Premier Foods business the way you can, such as: Exchange rate appreciation in exports more expensive and reduces the competitiveness of export companies Devaluation of the exchange rate is a cheaper export and export companies will help. Interest is paid on savings interest rate charged or the load. Impact on the interest rate will vary between companies. The best food is so little effect on the business, depending on the interest rate the company is mainly selling food every day. The unemployment rate will be ranked first in terms of its effect on the leading food business and are discussed in the above analysis and rate, inflation, and finally exchange rates.
2. c Explanation of how market structures determine the pricing and output decision of businesses There are various factors affecting the behavior of the consumer. By analyzing consumer behavior, we can see that consumer goods that looks like consumption goods only after selecting the promise that they bigger utility. Cultural factors and social factors are the most important factors to explain the behavior of consumers and to determine the price and output decisions of the business. Social and cultural factors that influence consumers’ best food is as follows: Culture of the community lead consumers to make decisions about the various brands All cultures to determine the best food is so mainly include subcultures, such as religion, national, regional and ethnic groups in the United Kingdom By determining what social class they will capture such a wide range of branded food purchasing behavior.
Including social factors reference group, family, role and status of all these factors a significant impact on the production of various types of food for the best food. All elements Ambrosia custard and rice pudding, virgin soup, rice, noodles, and Vito and OXO stocks and tombs, etc. They also support the brand angelic special cultural and social factors are more levels, depending on the overall power brands such joy division whipping dessert, Atora amount of fat, flour, custard new, Home pride cooking sauces, cakes, etc.
2. d Judge how the business and cultural environment shape the behavior of a selected organization Premier Food is one of the largest branded food productions in the United Kingdom and belongs to the fast moving consumer goods in the areas of the UK economy. It has a variety of power brands, and supports the brand in a business context. In addition to producing a cake product of a long standing Cadbury brand American base Mondelez such licenses and other PLC. Gores Group also signed an agreement to build a company name Hovis bread, depending on the business and joint ventures. New to stop growing the brand and support the brand with a lot of sugar to create a self-produced brands all over the complexity of controlling the current strategy so far by the best food they prefer to do business with joint ventures in order to reduce the competition of getting business a competitive advantage can reduce the risk.
Task 3 : The International And Regulatory Legal Environment:
3.a Describe the significance of international trade to UK business organization For a complete survey showing Premier 62% in favor to leave the following EU food irradiation and the British government declared immediately following the referendum on EU membership in terms of the company’s input will fall before the bad situation. Prior to investing in different countries of the results of a large amount of food is best for all future years. Running after the referendum, they will fail to achieve their desired goals as strategic planning for the business plan from the previous analysis, we .IPO referendum as soon as the cash flow of the company during the entire run, but some of my output is falling, increases the input reference that can increase the production of plants or brands may be necessary to minimize the production of different brands, or in any other place also causes. So, leads to a complex problem when running backwards strategic plan.
3.b Evaluate the impact of competition policy and other regulatory mechanisms on the activities of a selected organization European Economic Area (EEA) provides the European Free Trade Association, the European Union (EU) and products through the European Community, people, services and free movement of capital. Between Premier Food and phones, the first in the UK may have more to lose outside the European Economic Area. Place it will lose the freedom of business and support a variety of power brands business with them according to the different local socio-economic areas can be set. 3.c Evaluate the impact of policies of the European Union on UK business organizations The important aspect of the regulatory framework for all kinds of business of the enterprise. The regulatory system imposes different kinds of other problems in conducting the process described rules and regulations.
The most common contract law regulating the overall general regulation, more actions are the product of external phone (Vodafone), cooperative behavior, the role of the company, negotiated the instrument acts, acts of insurance companies, commercial securities acts, bad behavior, behavior interventions, such as patent act Vodafone’s sale may lose more than by the British Premier foods because the broad business and access business in cross country and has a huge amount of investment. It is fine for everyone involved in the business environment, every business context global environment, the general environment and the overall environmental factors affecting the business process is clear. Operations and business environment, locally or globally, you can also control both over the business activities at all stages of the business process.
The business environment is an important issue to discuss any business to make a strategic decision. Premier Foods is successful because of his business beyond the consideration of effective business environment factors. The effect on the business environment factors on business policies and activities, so you must have the awareness to these issues.