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

Answer: 1.1

Purposes of different types of organizations: The purpose of organizations is to achieve their goal and objective for which the organization is built. There are various of types of organizations and they have different purposes as below

• Commercial/Profit Generating Organizations: The purpose of these organizations is to generate revenue and profit for their shareholders or investors.

• Government /Public Organization: The purpose of these government initiated organizations is to develop the manufacturing and service system for meeting the nation’s demand in the particular segments.

• Non-Government Organizations: These are the non-government organization engaged in executing the government projects. Thus the purpose of these organizations is to generate revenue and profit by supporting and executing government initiatives n the nation.

• Non-Profit Organization: The main purpose of these organizations are not of revenue or profit generation, but their main purpose is to support the society /welfare works in the nation. These are society improvement organization for welfare of human beings.

Answer 1.2:

Extent to which an organization meets the objectives of different stakeholders:

The organization generally meets the objective of different stakeholders. The organization is planned and developed in such a way that the organization is able to meet its objective and goal. The objective and goal of the organization is the objectives of the stakeholders only. Thus the organization uses the resources and energy to achieve the goal and objective of the organization, which in terms helps in meeting the objective of the stakeholders of the organization.

The organization runs based on the list of objectives. These objectives are the functional objectives which will deliver the desired /targeted output from the organization. This target output from the organization delivers objective of the stakeholders. Thus generally an organization completely meets the objectives of their stakeholders. If the organization does not meet, then number of corrective and preventive actions will be initiated to ensure that organization achieves its goal and objective.

Answer 1.3:

Five responsibilities of an organization and the strategies used to meet them :

• Responsibility 1- Generate revenue and profit for the organization: The strategy used is to target the desired sales for the financial year.
• Responsibility 2- Generate welfare for employees: The strategy is to drive employee welfare initiatives at work place.
• Responsibility 3 : Support the community in which the organization works. The strategy is to drive social corporate responsibility initiatives.
• Responsibility 4: Create right working environment for the employees The strategy is to develop the great place to work in the organization.
• Responsibility -5: The organization to develop good support system for their customers. The strategy is to drive customer support excellence approach in the organization