Edexcel Btec Business Environment Section 1 and Section 2

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Edexcel Level 5

Higher National Diploma in Business – Human Resource Management

Organization Purpose & It's Environment

on
Unit 1/Business Environment

by

DR22576

Human Resources Management Institute,
246, Nawala Rd, Nawala, Colombo - Sri Lanka

Submitted on

04/11/2012
Acknowledgment

I should thank my parents for all the support and courage they have given me to complete this assignment successfully.

I should also thank our lecturer for this module, Mrs. Niroshini Dias, for teaching us this module and for not letting us having any uncertainties about the subject matter.

I should also thank Mr. Gihan Talgodapitiya and Miss Wathsala Nayakkara, because without them, we won't be able to follow this program.

I must also thank all my friends, specially Shajani Gunasena, who helped me to make this assignment a successful.

Table of Contents

Acknowledgment2
Introduction4
Different types of organizations and their purposes5
Stakeholders and their objectives10
Internal Stakeholders of Shell10
External Stakeholders of Shell12
Responsibilities of an organization and strategies employed to meet them15
Economic Systems and how resources are allocated effectively19
Economic System19
Impact of Fiscal and Monetary policy on Shell and its activities23
Fiscal policy23
Effect of fiscal policy on Shell23
Monetary Policy26
Impact of Competition Policy on Shell29
Conclusion31
References31

Introduction

The first section of this assignment presents the different types of business organizations that are present and their purposes. Then, by taking Shell company as the organization to discuss the rest of the tasks, it is analyzed how Shell meets the objectives of different stakeholders.

The third section includes in general about the responsibilities of an organization and more specifically, the strategies used by Shell to meet those responsibilities are discussed further. The next part of the report presents in general about how economic systems attempt to allocate resources effectively.

Subsequently the impact of fiscal and monetary policy on Shell and their activities are presented in this report. The body of this report ends by the impact of competition policy and other regulatory mechanisms on the activities of Shell.

Different types of organizations and their purposes

There are different types of business organizations. A business can have one owner or many owners. So a business have different types of ownership depending on the aims and objectives of the owners. The main objective of any business is usually to obtain a profit. Although in some businesses even if their main objective was not obtaining profits, they still have to make profits in the long run in order to survive. The main types of organizations are Sole Trader, Partnership, Public Limited Companies, Private Limited Companies, Cooperatives, Franchises and Public Sector. (NGOs). The purposes, aims and objectives of each of the above mentioned types of organizations are discussed below.

Sole Trader
Sole Trader is a business that is owned by only one person but there can be several employees working for that organization. At the start of a sole trader business, they may not have specific aims or objectives. The main aim of a sole trader business is to survive or sustain in the market and become stable. Then they will try to achieve the breakeven point, so that they will have no loses. Later on their purpose will be to obtain profits and in the mean time they will try to expand their business to a Partnership or Private Limited company where there will be at least two people funding to the business. Then again their main purpose will be to obtain profits, if they have already achieved the breakeven point. They will always try to provide good service to the customers. Advantages of a sole trader business are;

* No taxes to be paid
*...
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