Question

Scenario

Understanding the relationship between businesses and the environment in which the businesses operate is very important in shaping how businesses behave. In your role as Business Development Manager, you will need to develop strategies that enable your organisation to meet its purposes in ways that comply with the relevant legal and regulatory frameworks. This would involve extensive research on the organisation’s purposes and the nature of the environment in which the business operates.

You need to prepare and present PowerPoint slides to your work colleagues identifying, describing and explaining the following:-

1.1          Identify the purposes of different types of organisations.

1.2          Describe the extent to which an organisation meets the objectives of different stakeholders

1.3          Explain five responsibilities of an organisation and the strategies used to meet them

2.1          Explain how economic systems attempt to allocate resources effectively

2.2          Assess the impact of fiscal and monetary policy on business organisations and their activities

2.3          Evaluate the impact of competition policy and other regulatory mechanisms on the activities of a selected organisation.

Answer 1

1.1 The purpose of an organisation can be majorly categorised into three segments : economic, social and ethical. The social purpose is to serve and derive the maximum benefit for the internal employees/ staff; the suppliers protection of business and delivering the best quality at the best price to the customers. The economic purpose of the organisation is to ensure the profitability of the business by driving the toline revenues and controlling the costs. The ethical purpose should be to be in compliance with the trade, legal and regulatory practices. The society and the environment should not be exploited or violated, while the profit making continues.

1.2 The organisations have the employees, shareholders, customers and the suppliers as the primary stakeholders. However, the interests of all the stakeholders are seldom optimal. The aim of a business is to attain profits; and hence the shareholders and customers are most benefitted. To acheive the satisfaction of these two the other two paly a crucial supporting role and hence their interest also nees to be taken care of. However, the same is seldom assured in 100% organisations across industries.

1.3 The organsiations aim to offer quality to customers, right pricing to attain the right degree of benefit to customers and the shareholders; the team building and transparency in organisation for benefit of employees and finally the suppliers are engaged throufgh supplier days.

2.1 The economic systems tend to allocate the resources as per their demand and utility. The higher the demand, the improved would be the pricing and hence the resources would be allocated to fulfill the demand .