An Assignment on business environment

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Other stockholders:

Other stockholders are

- Government

- Shareholders

- Investors

- Communities

- Trade union

1.3 Explain the responsibilities of an organisation and strategies used by organisations to ensure these are met.

Walmart is one of the largest retail shops and this company operates their business globally and this company has a number of responsibilities to the customer, employee, supplier, government, local community, law enforcement agency, environmental responsibility (Carroll, 1991). These responsibilities are also part of their strategic business decision as due to these responsibilities they can satisfy most of their stockholders. These responsibilities are explained below.

Customer:

Customer is the main target of the Walmart though this group has an objective of gaining good product by the comparatively low price beyond meeting this objectives Walmart play some responsibility to these group and these are ensuring quality product, sending message about the new product, give the correct information to the customer and wishes regular customer on some occasion.

Environmental responsibility:

Walmart is too much concern about the wastage removal and reduction of the environmental pollution. For meeting this target they keep some dust bine of various places to collect the wastage and they recycle that wastage (Miles & others, 1978). Therefore they try to reduce the environment pollution by using environment friendly products.

Law enforcement agency:

Law enforcement agency is liable to protect the interest of the entire business group and they maintain a harmony among the business so Walmart assist this agency by maintaining all the rules and regulation of the law enforcement agency.

Local community:

Local community has a ethical demand for the employment on the Walmart and they also expect social well being of their community by the Walmart and Walmart meet that responsibility by employed most of the local people.

LO2: UNDERSTAND THE NATURE OF THE NATIONAL ENVIRONMENT IN WHICH BUSINESSES OPERATE

2.1 Using examples of different types of economic systems, explain how they attempt to allocate resources effectively

Economic systems represent how the economy of a country is controlled. There are four different types of economic systems that are prevailing in the world. These four economic systems are command, Free enterprise, and Transition and mixed economic systems (Huselid, 1995). These economic systems are explained below

Command Economic systems:

This is the autocratic economy where the state controls the everything in the economy and state takes every economic decision for the people. Here the authority define what is the amount of production for the year, how much variety of product state going to product and the amount of stock product for the future time and the authority also distribute the product among the people based on their contribution. Former Soviet Union is the example of the command economic systems (Barney, 1991).

Free enterprise economic systems: free enterprise indicates that every thing is free and here all the decision is taken by the people of the country and people determine what they are going to produce and they generate profit by their own attempt and here, business opportunity is too high. USA is the example of the free enterprise economic systems.

Mixed Economic systems:

Mixed economy is the combination of the two economy and these two are command economy and free enterprise economy and the unique feature of these economic systems is that here private and public limited company is prevail and most important product is controlled by the government and other sector and product is controlled by the private business operator. India is the proper example of the Mixed economic systems.

Transition Economic systems:

This economy is the conversion from the command economy and here every activity is operate similar to free enterprise economic systems and The breaking states from the former soviet union who follow the democratic systems is under that economic systems.

2.2 Assess the impact of current fiscal and monetary policies on organisations and their activities by using specific businesses as examples.

Walmart is the multinational company and this company has to adjust their business policy with the change of the government fiscal and monetary policy. The impact of the current and fiscal monetary policy on the Walmart group of UK outlet is given below.

Impact of the current fiscal policy on Walmart in UK:

Fiscal policy is the way of controlling the major macro economic factor of the economic systems and this policy is highly control the inflation rate of the country. And this responsibility is relies on the Main bank of the UK so Bank of England is responsible for that fiscal policy (Miller, 1992). At the time of high inflation bank of England increase the interest rate so that time people want to save more and they consume less so Walmart will take less supply from their supplier and they will increase the product price due to inflation.

Impact of current monetary policy on Walmart in UK:

Monetary policy is made by the government and the aim of this policy to take control over the economy by changing the taxation rate and government expenditure and economic development also depend on this policy. When government increase the taxation rate then government conduct development activity on a area and Walmart will include that tax with the product price and they will consider the effect of the government development product and they analyze the factor whether they can get any business opportunity from that development work.

2.3 Evaluate the impact of current competition policy and other regulatory mechanisms within which it operates by using a selected organisation

Competition policy is to ensure the fair competition among the company