Business Environment Assignment: A Portfolio Based on UK Business Economy

Question

Task: Business Environment Assignment Scenario:
You landed a job as a Junior Analyst working for the UK Government. Having been recently recruited, your manager wants to gauge how much you know before creating a tailor-made training plan for you. He has asked you to prepare a portfolio with the main concepts in economy.

Task 1 of 1 – Portfolio (All LOs)
Instructions
You should create a portfolio with the following details
a. A table differentiating the purpose of public and private sector organisations
b. A general mind map showing the main stakeholders of an organisation and their objectives, including government, regulatory bodies, competition, etc.
c. A table showing the impact of fiscal policies and monetary policies on businesses
d. A table showing how resources are allocated in a Capitalist, a Mixed and a Socialist economy
e. A diagram showing the impact of supply and demand on the market
f. A diagram explaining Michael Porter’s forces
g. A table explaining the effect of market decision (Good/service, cost, distribution, promotion) on business policies
h. A table showing the impact of various element of culture on business
i. A graph showing the value of international market to UK business over the last 70 years
j. A diagram showing the global factors on UK business
k. A diagram showing the impact of EU policies on UK business

Answer

LO 1. Business Organisations and their purpose considered in the business environment assignment
1.1 The difference of purposes between private and public sector

As evident from the above table is that the public sector and private sector both are very important for the development of the country. Whereas the public sector is regulated by the government, the private sector companies are independent and free to work in that perspective. The purpose of both organizations is also very distant from each other (?epel et al., 2018). Whereas, the private sector aims to serve the citizen private sector organizations' main aim is to earn profit as much as possible. The private sector employees are provided high salaries and other benefits like pension, HRA, gratuities which are not the case with the private sector employees. Another key difference between the private and public sector is that the private sector is much more competitive than compared to the public sector.

1.2 Stakeholders roles and Responsibilities

Figure 1: Mind map of stakeholders
(Source: ?epel et al., 2018)

Public Sector organisation
The stakeholders are always very important for any organizations and in the development of the private sector has a significant Importance for sure. The stakeholders associated with the private sector organisation are respectively, governments, international organisations, universities and various research institutes, national stakeholders, provincial stakeholders, healthcare providers, ICT service provider and the patients. The key responsibility of the private sector stakeholders is to provide leadership. The stakeholders help the organizations to set up their priorities and a clear vision and help them to achieve those targets with a clear vision. Keeping up a proper Communication is also a very important responsibility of the stakeholders in private sector organizations. Stakeholder by setting up effective communication with the organisation helps the private sector to prosper. Maintaining the interest of the employees is another key responsibility of the stakeholders. It is the utmost duty of the stakeholders like the government bodies to ensure that employees are well satisfied and happy with their job.

Private Sector
Private sector shareholders include the likes of owners and the founders of any private company, customers, employees, investors, creditor and competitors are some of the key stakeholders in the private sector. All these stakeholders have a very big role to play in the financial and social development of a country (Reed et al., 2019). Founder and Owners are the key persons who pave the way for others to have their livelihood. Customers are by far the most important stakeholders in the private sector as the growth or profit of the company depends mostly on its customers on the market. Employees and investors are two other stakeholders whose main responsibility is to keep the company moving forward by hard labour and financial support.

1.3 Stakeholders Objectives
There are many different stakeholders in the business and different objective of all these stakeholders' are met in a different way. For example stakeholder like the customers has different objectives like buying the products at a cheaper price (Lin, Ho and Shen, 2017). When the company after assessing the views and needs of the customers decreased their prices the objectives of the customers are met. This is how different objectives of different stakeholders can be met. It will only be met when both the sectors public and private will complement each other. Without proper cooperation, the objectives won't be met properly.

LO2. Economic Implications of Operating Business
2.1 Impact of Fiscal policy and Monetary policy

2.2 Resource Allocation

2.3 Impact of Supply and demand

Figure 2: Supply and Demand Graph
(Source: Pahaisuk and Tubtiang, 2019)

The supply and demand model has a strong impact on the price determination on the market. There is never anyone shortage or surpluses of goods at the equilibrium level. The market is always settled when supply and demand are found to be equal. However, it can have an adverse effect on the economy and on the market price determination when one of these two factors slightly varies (Pahaisuk and Tubtiang, 2019). Suppose when demand increases and supply could not match up to that level, the price increases extensively. Whereas on the other hand, when supply gets higher than the demand, then it also harms the business as the price starts dropping down.

2.4 Impact of regulation in an organisation
Regular supervision can help to improve the employer-employee relationship significantly. The continuous regulation also helps to improve the performance of different organisations in the private or public sectors like telecommunication, health industry, banking sector, IT sector and in many more organisations (Cebula, Rossi and Clark, 2016). It also helps to create a healthy and complementary relationship between both, the public and private sectors.

LO3. Understanding of business market environments
3.1 Porter's five forces

Figure 3: Porter Five Forces
(Source: Smith, Gilmer and Stockdale, 2019)

Porter's five forces is a method that is used to analyze the business competition. The five forces are drawn from industrial organisations economics that demonstrates the competitive intensity and attractiveness in the business market. The threat of new entrants is one of the key factors of Porter's five forces. It is evident that a new entrant will eventually increase the competition in the market and will reduce the profitability for other organizations in the market (Smith, Gilmer and Stockdale, 2019). Whereas, the 'threat of substitutes' factor also damages the growth of a business organisation. A substitute product can damage the growth of a business organisation.

When another organisation comes up with the same kind of product at a cheaper price the consumers become more interested in the 2nd company that provides the same quality of product at an affordable price. This will increase the competitiveness in the market extensively. Bargaining power of customers implies customers' ability to put the business companies under pressure. Business organizations in response take measures for reducing buyer power. The firms are seen incorporating a loyalty program. Also, in that case the company needs to evaluate whether the buyers have any other substitutes available or not as that will badly affect the bargaining power of the buyer (?epel et al., 2018). The other two factors are also very important in a business perspective and it is very important for the organizations to respond against these factors. Bargaining power of suppliers is also a key factor in the business industry.

The organisations are always highly dependent on the suppliers and this they hardly have any choice to go against the demands of the suppliers. When the suppliers of any particular organisation bargains with the business organisation regarding the prices of the raw materials, most of the times the organisations accept that. However, there have been some cases where the business organisations found signed a business deal with different suppliers (Karwowski and Centurion-Vicencio, 2018). The last factor of industry rivalry is the most intense factor in the competitive business industry. An organisation should have a clear understanding and knowledge of the strategies and the positive factors of its rival business organisation. The business organisation should be very spontaneous to respond to any changes like the price changes or the changes in the quality of the products. This will help a business organisation to be one step ahead from other rivals in the market.

3.2 The effect of the market decision on business policies

3.3 Importance of business culture

Business culture has always been a subject od key importance in the field of business and every business organisation has a different business cultural environment inside. A rich organisational culture separates a business organisation from others and creates a different identity of that organisation. This helps the organisation to get more popular amongst the customers. The organisational culture defines the core values and principles of an organisation like leadership values, team management, work ethics, customer handling and so on (Smith, Gilmer and Stockdale, 2019).

Reflecting these core values can help the business organisation improving their sales by attracting more customers.
A healthy working environment culture helps the employees to work freely and give their best for the development of the organisation. This in result not only increases the sales of the organisation but also enhance their reputation in the international market. It also helps the organisations to retain their employees that indirectly saves a lot of expenses for the business organisation (Agarwal and Sajid, 2017). The training of new employees causes huge dum of money. An effective office culture helps the organisations eliminating that factor. Establishing a healthy communication with the different departments and with the customers is another key element of business culture. It helps the business organisations to cast a positive impression on the minds of the employees and on the customers about the business organisation and thereby it will help the organisation increasing their sales. Leadership skill brings positive energy and helps the organisation to move forward in the business with a new motivation.

LO4. The effects of Global Market
4.1 Importance of Plagiarism and Academic Misconduct
Plagiarism is a kind of intellectual theft and it is of many forms starting from deliberate cheating to accidental. In fact, copying, just a few words from other sources without proper citation refers to plagiarism students who are found guilty of plagiarism actually deprive themselves of knowledge that they could gain had they done the writing by themselves. Plagiarism also undermines the trust of the public upon the educational institutions when students get promoted and receive their degrees without putting the right amount of hard work (Reed et al., 2019). Academic misconduct is also a key factor that a student should take care of. Academic integrity is also very important because it offers peace of mind knowing that one believes to do the right thing and always try to act with those beliefs. Academic misconduct not only maligns a student's academic career but at the same time also maligns the reputation of the educational institution.

4.2 The value of the international market to U.K. business

Figure 4: International businesses values
(Source: Khurram, Hassan and Khurram, 2020)

The value of the international market to the U.K. business is comparatively satisfactory. However, it could improve a lot. According to the EDB (Ease of Doing Business) ranking, the top most country is New Zeeland and U.K. ranked at no 8th spot. The United Kingdom jumped one place higher from 9th position from last year and reached to 8th spot in the current financial year (Khurram, Hassan and Khurram, 2020). This shows that the business market of the U.K. is not of superior quality and at the same time it is not a subject to worry for the U.K. marketers. The minute improvement suggested that the value of the U.K. business organisations has improved in the international market. However, it is true that still, the value of business organisations of the U.K. is well behind than some other foreign business organisations. The business organisations of the United Kingdom need to improve this ranking to increase its value in the international market.

4.3 Global factors on the U.K. business
There are many global factors that largely affect businesses in the United Kingdom. These factors are like social factors, legal factors, and technological factors and so on.

Figure 5: Global factors affecting business
(Source: Smith, Gilmer and Stockdale, 2019)

Social factor
It is vital for the leading business organisations in the U.K. that operates globally to design their business module as per the different social cultures. Different social factors like religions, languages, and lifestyle have significant importance in business and that business organisation in the U.K. need to consider these social values. Otherwise, the business organisation won't be able to perform internationally.

Legal factors
The different international laws and code of conducts are the key factors that are affecting the business for the U.K. based organisation. Every country has a different foreign business policy and the business organisation of the U.K. need to strictly follow those laws and regulation imposed by the government. It has been seen that the U.K. based business organisation failed to do so that resulted in a huge financial loss for the business organisations.

Technological factors
To expand the business globally the business organisations need to be advanced with the use of technology. The inability to use modern technology affected their business badly.

4.4 Impact of EU policies on the U.K. business

Figure 6: Impact of EU policies
(Source: Agarwal and Sajid, 2017)

The policies of the European Union badly affected the U.K. business as the overall trade reduced significantly. The U.K. faced greater competition from EU business. This resulted in a huge loss for the U.K. business organisations. The increasing number of competitions badly affected the growth and development of the organisations (Khurram, Hassan and Khurram, 2020). The business organisations due to the limitations of EU policies could not expand their business internationally which resulted in a huge financial loss for the business organisation of the U.K. The increased expenses because of the compliance with EU rules and regulations also affected the business organisations of the United Kingdom.

Reference List
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