Business Environment

Topics: Planned economy, Mixed economy, Market economy Pages: 11 (2777 words) Published: March 3, 2015

Business Environment


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....
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