Question

QUESTION 3 Discuss the Market Capitalism and Dominance Model in the BGS (Business Government Society) Field. QUESTION 4 Illustrate and explain the SEVEN (7) key environments of Business.

Answer 1

Question 3

In Market Capitalism model, bulk of economic activity is carried out by private enterprise operating in a competitive environment. Government interference in economic life will be held to a minimum. Market performance is the only acceptable measure of performance. It is the function of government not free enterprise to minister to social problems. The primary contribution to society made by business is to create jobs and wealth through jobs. Individuals have perfect knowledge. Individuals are rational in making decisions.

Business and government dominate the great mass of business and people in society. A small elite sits astride a system that works to create and provide power and wealth for the few privileged ones. In the US when large trusts at the end of the 19th century dominated . Marxism maintained this form of government was how capitalist societies operated. Proponents of the dominance model focus on the defects and inefficiencies of capitalism. They believe that corporations are insulated from pressures holding them responsible, that regulation by a government in thrall to big business is feeble, and that market forces are inadequate to ensure ethical management.

Question 4

The term business environment connotes external forces, factors and institutions that are beyond the control of the business and they affect the functioning of a business enterprise. These include customers, competitors, suppliers, government and the social, political, legal and technological factors etc. While some of these factors or forces may have direct influence over the business firm, others may operate indirectly.

Business environment may be defined as the total surroundings, which have a direct or indirect bearing on the functioning of business.

Business environment may also be defined as the set of external forces, such as economic factors, social factors, political and legal factors, demographic factors, technological factors, etc., which are uncontrollable in nature and affects the business decisions of a firm.

• No one business is large or powerful enough to create major changes in the external environment. Thus, managers are primarily adapters to, rather than agents of, change. Global competition is basically an uncontrollable element in the external environment. In some situations, however, a firm can influence external events through its strategies.

• Changes in the degree of monetary movement make business cycles that influence organizations and people from various perspectives. At the point when the economy is developing, for instance, joblessness rates are low, and pay levels rise. Expansion and financing costs are different territories that change as per monetary action. Through the strategies it sets, for example, assessments and loan fee levels, an administration endeavors to invigorate or reduce the degree of financial movement. Moreover, the powers of gracefully and request decide how costs and amounts of merchandise and ventures carry on in a free market.

• The political atmosphere of a nation is another basic factor for chiefs to consider in everyday business tasks. The measure of government action, the kinds of laws it passes, and the general political solidness of an administration are three segments of political atmosphere.

• Segment factors are a wild factor in the business condition and critical to administrators. Demography is the investigation of individuals' fundamental measurements, for example, their age, sexual orientation, race and ethnicity, and area. Socioeconomics assist organizations with characterizing the business sectors for their items and furthermore decide the size and arrangement of the workforce

• Social factors—our mentalities, qualities, morals, and ways of life—impact what, how, where, and when individuals buy items or administrations. They are hard to foresee, characterize, and measure since they can be extremely emotional. They additionally change as individuals travel through various life stages. Individuals of any age have a more extensive scope of interests, opposing customary customer profiles.

• The use of innovation can invigorate development under free enterprise or some other financial framework. Innovation is the use of science and designing abilities and information to take care of creation and authoritative issues. New gear and programming that improve profitability and lessen expenses can be among an organization's most significant resources.