Understanding the nature of the national environment in which businesses operate

If government increases the tax level, firms have less money to invest and recruit. It ensures wider customer choice; technical innovation which promotes dynamic efficiency and effective price competition between supplies.

Understand the organizational purpose of business 1. Regulatory committee monitor prices, ensures standards customer services, surrogates competitors and opening up markets Riley, G.

All those policies restrict competition including price fixing and other abuses. However, some will be responsible for ensuring that it sets targets and budgets and does what it is set up to do. Video footage, not necessarily relating to business or management, or acting could be used to illustrate some aspects of a business.

Its main function is to ensure that trade flows as smoothly, predictably and freely as possible. On the other hand, regulations are enforced by government to forecast how a market works and the outcomes which results for both customers and manufacturers.

This model is working very well; now they has less risk but they are gaining the revenue by rent and profit share. The objectives of those organizations are different.

External Environment The external environment constitutes factors and forces which are external to the business and on which the marketer has little or no control. Many raw materials are comes from other countries like banana and mango did not grow in the UK and for those products UK have to export from hotter countries.

The business environment is one of the most dynamic aspects of the business.

Marketing Environment: Explanation, Components, & Importance

The purposes of those organizations are not same. Organization may charge more money to customers for their products and services. Teaching and learning Methods It is recommended that a range of strategies be used to deliver this unit.

Threats and Opportunities A sound knowledge of the market environment often gives a first mover advantage to the marketer as he makes sure that his business is safe from the future threats and taps the future opportunities. On the other hand, External environment consists of demo-graphical factors, socio-cultural factors, political factors, geo-physical factors, government and legal factors.

Understand the organisational purposes of businesses 1. Some regulations are fair trading, standard customer services, and environmental policies and so on.

business environment

Competition policies are based on four policies: By doing trading domestically they can attain steady growth but if they do it internationally they will gain international reputation as well as great revenue.

Some goods are available in some countries, so it needs to exchange the products and services which are not possible to execute without international trading. Be able to assess the significance of the global factors that shape national business activities 4.

All the products price of those companies are almost same. Materials Markets The internal environment is under the control of the marketer and can be changed with the changing external environment. Competition policy breaks the monopolistic market and ensures easy entry on new competitors.

Here government distributes all the resources according to the people demand and demography. National authorities can monitor the activities of the business organizations locally.

In a command economy, government is responsible for making decisions and distributing resources. Legal environment refers to set of laws, regulations, which influence the business organisations and their operations.

UK has good reputation all over the world for their advancement in technology and global factor gives the opportunity to UK business organizations to conduct business all over the world.

Business environment is the set of conditions institutional, political, economical, legal or social that is uncontrollable and affects the functions of the organization. Understand the behavior of organizations in their market environment 3. People pay taxes to the government and this money is used to finance most of the public sectors.

A marketer needs to be fully aware of the current scenario, dynamism, and future predictions of the marketing environment if he wants his plans to succeed. All the products price of those companies are almost same.Mar 31,  · Task 2: LO2 Understand the nature of the national environment in which businesses operate.

Evaluate the impact of competition policy and other regulatory mechanisms on the activities of a selected organisation. Task 3: LO3 Understand the behaviour of /5(K). unit 1: business environment lo2: understand the nature of the national environment in which business operates economic systems allocation of resources 1.

All states has to deal with scarcity. 2.

LO2 Understand the nature of national environment in which businesses operate Explain how economic systems attempt to allocate resources effectively In the various places of the world, different countries have different amount of resources from which businesses produce products to.

Understand the nature of the national environment in which businesses operate explain how economic system attempts to allocate resources effectively There will be different economic systems and above economic systems will implemented in different countries according to their demand.

Understanding the nature of the national environment in which businesses operate It is very clear in the modern business arena that the national environment has a great impact on the business activities in a country.

LO2 Understand the nature of national environment in which businesses operate Explain how economic systems attempt to allocate resources effectively In the various places of the world, different countries have different amount of resources from which businesses produce products to satisfy the wants of people.

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Understanding the nature of the national environment in which businesses operate
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