Hnc Marketing Assignment

Topics: Economics, Economic system, Planned economy Pages: 6 (1531 words) Published: May 25, 2011
Business Environment |
Unit 4 – Assignment 2|
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December 2008

Contents

December 20081
Assignment 23
Unit 4 – Business Environment3
Introduction3
Section 1 – Investigate the economic, social and global environment in which organisations operate.4

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Assignment 2
Unit 4 – Business Environment
Introduction

This assignment covers outcomes 2 and 3 of unit 4 – The Business Environment The learning outcomes are:
Section 1 – Investigate the economic, social and global environment in which organisations operate.

1.aExplain how economic systems attempt to allocate and make effective use of resources. As part of your discussion, make reference to the Planned / Free market and Mixed economies.

Rodrigue (2008) states that economic s systems deal with the relationships between production (supply) and consumption (demand). Four elements define production: * Manufacturing – the process of utilising raw materials and making them into finished goods. * Regulation – production systems are controlled and regulated by governments. * Circulation – the transportation of finished goods and the communication link between all parties * Distribution – goods and services made available to the consumer by retailing. Factors of production include land and natural resources, capital and labour, with enterprise considered to be the fourth factor as the main purpose of the organisation.

Resources are available to every individual depending upon their personal wealth or income. Income can be exchanged for goods and services which enable us meet our own particular needs or wants. Resources are usually in three or four categories, as illustrated below:

Figure 1 – Economic Systems

Types of Economic Systems
Xxx
The centrally planned economy – this type of system which is associated with the post-Second World War socialist economies of Eastern Europe, China and Cuba. The central planning authority makes all decisions on production within the state. The state or its agencies control the following: * Has ownership and/or controls the main economic system

* Sets the priorities in the use of resources
* Controls output targets for businesses, usually under state ownership * Directs resources to meet the set targets
* Co-ordinates production and controls the output rate of resources This type of economy is based within Socialist and Communist led country. The free-market or capitalist economy is a direct contrast to the centrally planned system examples in practice are United States, United Kingdom and Japan. Private individuals or firms interact with the markets with a system of prices which determines the allocation of resources. Key features of this type of economic system are: * Resources are in private ownership

* Firms, also in private ownership, make all the decisions on production and are free from state intervention * The consumer is ‘king’ and usually dictates the pattern of supply which influences the pattern of resource allocation. A mixed economy is an economic system which features both market and command economy. China can be described as a mixed economy and features include: * Xxxx

A traditional economy is a system based on customs and traditions. This economy is based on agriculture and hunting. Countries like Rwanda and Haiti are examples, the main features are: * Xxx

Organisations feel that production efficiency is key but economists are concerned with allocate is key and has to be efficient. Discuss the impact of social welfare and industrial policy initiatives on two UK organisations of your choice, together with the wider community.

The Social Welfare Policy exists to protect and improve the standard of living of the United Kingdom’s residents. The UK’s Government has several agencies which have been set up to collect and re-distribute wealth to the nation, agencies include: * The Benefits Agency: assesses...

Bibliography: BPP (2004) HNC/HND Business Environment Course Book, Walsall, W M Print
Newbould and Luffman (1979) Successful Business Policies, London, Pearson Education
www.onmediaia.com NHS pension change could cause staff exodus [14/12/08]
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