1. Understand the organizational purposes of businesses:
1.1 Indentify the purposes of different types of organisation
1.2 Describe the extent to which an organization meets the objectives of different stakeholders
1.3 Explain the responsibilities of an organization and strategies employed to meet them
2. Understand the nature of the national environment in which business operate:
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
3. Understand the behaviour of organisations in their market environment:
3.1 Explain how market structures determine the pricing and output decisions of businesses
3.2 Illustrate the way in which market forces shape
3.3 Judge how the business and cultural environments shape the behaviour of a selected organisation
4. Be able to assess the significance of the global factors that shape national business activities:
4.1 Discuss the significance of international trade to UK business organisations
4.2 Analyse the impact of global factors on UK business organisations
4.3 Evaluate the impact of policies of the European Union on UK business organisations.
1.1 There are two types of organization one is private organization and other is public organization. To identify the purpose of private organization, in private organization there are few companies like sole traders, partnerships, companies and franchises. Sole traders are a form of industry ownership and it is founded in a broad range of activities (electrical work, bushing etc), in sole trader you have to make all the judgment yourself (Patro, 2015).
Partnership are generally, writing out a action of a company, which is witness by a solicitors an set out the significant information such as how the revenue and surplus will be shared (Partnership focuses on design of laser fused components, 2015).
Were as on the other hand Cathay Pacific (CX) is a public limited company, it is an international airline based in Hong Kong and also listed in Hong Kong Stock Exchange Company in 1986. According to this CX vision is to be the best airline around the world, while achieving the vision, CX put security for their passenger first and they do their work from heart so that they can provide better service to their passengers. CX is also focus on being a socially and environmentally dependable company (Botha, Kourie, & Snyman, 2014).
Different organization has their own aims and vision like rising market share, profit, growth etc. CX always provide and outstanding services to their customers this level of services are the purpose of CX (Wetherly, & Otter, 2014).
1.2 Stakeholders describe those individual or group that has interest in any operation of business (Kelly and Kugel, 2015). There are different types of stakeholders which will meet the organization goals and also help the organization to show high level of interest in the business (eg, CX stakeholders will be the customers of business and workers in the airport, employees etc). For the organization like CX it’s is important for them to satisfy the objectives of stakeholders. To satisfied the objectives of stakeholders, an organization need to find out the way how to communicate with the stakeholders ( eg, CX will have the meeting with their head officers to understand the needs, on the other hand CX has customer survey to know their better hope).
For satisfied the objectives of stakeholders CX also offer a free-of-charge employees assistance program to all types of employees, it is a confidential counseling services to the staff with work related issues (Aminu, & Shariff, 2014). On the other hand CX is planning for different type of scheme for those types of customers who want to spend more time with family.
1.3 The responsibilities of an organization and strategies employed to meet them are the following:
2.1 An economy system is comprise the different processes of organizing and how to motivate labor, and also circulate the fruits of individual labor, as well as products and services, customer goods, equipment, etc.
There are three kinds of economic system Free market, centrally planned, mixed market and also mention three level of economy y organization like national, international, local (Nagac, 2015).
2.2 In the business organization fiscal and monetary policy play a great impact on their activities.
Fiscal policy is identified by the government and the amount of taxation is fully paid to the government. If government increased the tax level, then the firm has tless money to invest and recruit, on the other hand if government will decreased the tax level then firm will invest for many sectors and this will create job for the people. Government can also charge more money from their customers for particular product and services (Shiamptanis, 2015).
On the other hand monetary policy is controlled by the central bank, here monetary policy will not only harm the business organization but it will harm the entire economy system (Peiris and Vardoulakis, 2015). Its ability is to obtain credit. There are two kind of monetary policy that is expansionary policy and Contractionary. They are totally opposite from each other, expansionary policy decrease the taxes and increase money supply (Kapopoulos, 2004) while contractionary policy is totally opposite (Makin, 2014).
2.3 Cathay Pacific (CX) is a public limited company which is based in Hong Kong and also listed in the Hong Kong stock exchange in 1986. It is one of the most famous airline organization, airline organization is one of the most challenging and every organization invest more money in development, while they are competing with each other while get competitive advantages.
Competitive policy will help them to promote and make the market better and also help to get better competence of various organizations. Here competition policy are based on four policies are market liberalization, merger control, antitrust and cartels and state aid control. These policies restrict from price policy and other kind of abuses. Competitors of CX airline organization are Singapore airlines limited, china southern airline co., and ltd.
3.1 Market structure is very important for the organization and it also play a important role in the determination of price and production. There are few market structures like perfect competition, monopoly, monopolistic and oligopoly.
In perfect competition there are unlimited numbers of buyer’s and they are perfectly elastic demand. In this there is freedom of entry and exits of buyers and they are product differentiation (JULIEN, 2010). In Monopoly there are only a single number of sellers and it is completely opposite to perfect competition. In monopolistic competition, there are few common characteristic of perfect competition and monopoly (Scherer, 2014). It is also known as imperfect competition. They sell their product and services by their own way like packaging, marketing etc (Yomogida, 2010). in this marketer does not have the perfect knowledge about the product and also don’t know the quality of particular product. Last oligopoly market they are almost similar to monopoly market in this market at least two firm are controlled.
3.2 Market forces show the relation between the supply and demand in the market, were as demand refers to the quality of product sold in the market and supply refers to the numbers of goods and services available in the market. In this supply relation means relationship between the supply quality and price of the product and services are supplied in the market.
Example, CX are able to give a better aircraft for direct flight from Hong Kong to New York. Thus, more direct air tickets from Hong Kong to New York will be offered in the marketer due to bigger aircraft. Moreover supply will affect the government policy and weather changes. Total good and services are in higher demand whereas due to the change in consumer test and preference will also affect the demand of particular product available in the market. For this it will help to change the strategy of an organization in marketing and so on (Niemann-Struweg, 2014).
3.3 As per the business and culture environment they play a vital role in an organization were as business environment are of two types internal and external, external will include economic and non- economic environment (Faria,& Wellington, 2014). Economic environment will include the economic policy, systems etc were as non economic will include technology, demography etc. the two culture found in this business environment are micro and macro environment. Micro culture related to the multicultural or local culture was as macro culture refers to the culture which people generally shared (Apetrei, Kureshi and Horodnic, 2015).
CX is an international airline which carries different passenger from different countries following this different passenger has their own culture, for that it is important for CX to understand the cultures of different countries. And CX has also many offices in different countries (Kireeva-Karimova, 2015). For increasing the sales revenue CX has to understand the local culture. Like for example, Asian passenger want to have oriental meal in which they can select either rice or noodle. For this reason CX has to provide more oriental meal so that they can increase their passenger to choose CX.
4.1 International trade is essential for business organization and it is not possible to turn out all goods and services inside a country (International Trade, 2015). Several goods are presented in some other countries, thus it needs to exchange the products and services which are not likely to execute without international trading. International trade is very commercial and profitable for an organization (Carroll, & Buchholtz,2014). . UK business organization is also refers as globalization country, were they can sell and buy their goods and services across the nation. For UK it is important for them to grow international trade because it will help them to grow their economic growth in the right way and also help them in large rewards in businesses. Apart from that it will help UK organization to increase their investors as well as help in overseas the market. There are few benefit which will help in international trading to UK business organization, like Broadens Horizons and markets, in this if the companies which are UK based manufacture their product which are for domestic use, will completely maximize their potential and export only those product in the country. Production costs, in this trading their goods and services to other country then only company will release itself upper to lower level of production costs. Materials, UK depends on the other countries while producing their goods and services. In UK several raw materials are not found like mango, banana for those product UK have to export from hotter country on the other hand UK import many luxurious and expensive materials like cars, weapons etc to fulfill the needs of other countries. For this international trade help those to export and import the goods and services from other countries or else there will be extremely limited choice for each country.
4.2 The impact of global factors on UK business organization are, in this there are four factors which will affect the UK business organization such as political, economical, technological and social & cultural (Piffer, 2015). For an organization it is important for them to understand this effect because it will help them in developing their business policy and also help in bringing different impact to their business. Social and cultural factors are somehow related to the change in social and cultural factors. They can produce high quality of goods, approaching from the tastes & preference of consumers and their lifestyles pattern in population in UK. Like for example if the consumer is from local area basically half of them are family, then it will affect the business of normal grocery store.
The level of global technology, transportation and the manufacturers will get through and it will have a big impact on business. Example, to communicate and produce their goods and services across the nation, organization are using advance technology, for this it will get affected on the increase in sales and also affect their reputation in an organization. Apart from that for an organization UK government are providing a high speed of internet so that they can communicate well with the other countries and time zone (Schaffer, Agusti,,& Dhooge,2014).
4.3 UK has to maintain some regulations and law after joining EU. Foe European Union all laws and policies are same and all country are have follow all the legislation (Pellikka and Malinen, 2015). The EU is a trading bloc, custom union, and supranational body, were as trading bloc allow free trade union, goods across the countries and it is an intergovernmental agreement. On the other hand custom union, in this there are no tariff barriers and allow the members of EU to sell all types of goods and services from the other countries and last supranational body, in this countries force to give up rights of decision making and also divide the interest of voting. They came up with certain act like single European act 1986, which aim is to create single market. And it will bring benefits for all the members of EU. These days, The EU is playing an significant role in influence the business activities during laws, taxation, policy, regulations etc (Parsons, 2010).
UK business encourages the export of goods and services with the help of international trade. Apart from that it will help to promote their goods and services in UK, and also discourage any import of goods and services from other nation, for this kind of reason employment policy are used and this policy will give the liberty of association for employees to work in EU without using any visa.
Conclusion:
For an organization is will necessary to understand the importance of business environment. By using the business environment organization can identify their SWOT analyses that is strength, weakness, opportunities and threats. For understanding the requirements of business environment organization will supervise the social, political, economical and technological factors for regular basis. Cathay Pacific (CX) will supervise its environment in an regular manner and made their plans according to the situation (Meiners, Ringleb, & Edwards,2014).
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