Relationship between business and the local, national and global

Relationship between calling and the local, case and globalThe aim of this unit is to provide learners with an understanding of variant organisations, the influence of s hearholders and the relationship between business and the local, national and global environments.Q1 Identify the purposes of different types of organisation?autonomic nervous systemORGANIZATIONDEFINITIONAn brass instrument is a mixer arrangement which brings towards collective goals, controlsits own performance, and it has a boundary to chance upon it separate from its environment. The word I isderived from the Greek word organon, itself derived from the better-known word ergon.TYPESbureaucratic structuresBureaucratic structures have a certain degree of standardization. They be better suited for more than(prenominal)(prenominal)complex or larger scale plaques. They usually adopt a tall structure. Then tension betweenbureaucratic structures and non-bureaucratic is echoed in Burns and Stalked distinction be tweenmechanistic and organic structures. It is not the entire amour ab bulge out bureaucratic structure. It is actually much complex and useful for hierarchical structures administration, virtuallyly in tallorganizations.Functional structureEmployees within the functional dividers of an organization plan to perform a specified set oftasks, for instance the engineering department would be staffed further with softw ar engineers.This leads to operational efficiencies within that group. However it could otioseively lead to a lack ofcommunication between some other fields because these populate jst tend to theie limited.Divisional structureAlso called a product structure, the divisional structure groups each organizational functioninto a divisions. Each division within a divisional structure contains all the necessary resourcesand functions within it. Divisions nookie be divided from different points of view. There cig artte bemade a distinction on geographical basi or on pro duct/ value basis. Another example, anautomobile company with a divisional structure talent have one division for SUVs, anotherdivision for subcompact cars, and another division for sedans. Each division would have its owngross revenue, engineering and grocerying departments.Matrix structureThe matrix structure groups employees by some(prenominal) function and product. This structure suffer combinethe best of all other separate structures.This structure is often used by different employes tocomplete some tasks in order to excise advantage of combine strengths and to finish weaknesses.An example would be a company that produces two products, product a and product b. Using thematrix structure, this company would ready functions within the company as fol funkys product asales department, product a customer service department, product a accounting, product b salesdepartment, product b customer service department, product b accounting department. Matrixstructure is amongst the pure st of organizational structures, a simple lattice emulating order and order demonstrated in nature.TeamOne of the freshest organizational structure which is developed in 20th century .In smallishBusiness the team structure basis be moldd as the entire organization. Teams can be two horizontaland vertical.while an organization is comprises as a set of concourse who meet to progress to newerdimensions, the quality of organizational structure revolves around the competencies of teams intotality. For example every one of the whole food market, the largest immanent-foods grocer in the USdeveloping a think strategy.While team leaders in any store or in any region atomic chassis 18 also a team.Q2 Describe the extent to which an organization meets the objectives of different s have gotholders?AnsDefinitionIt is called the measure to which an organization fulfilthe goals and all overview the capers of stakeholders by taking review oftheir whole business cases.Major differences in how organizations carry out the various steps and activities in the strategic planningprocess argon more of a matter of the size of the organization than its for-profit/nonprofit status. Smallnonprofits and small for-profits tend to postulate somewhat similar planning activities that argon differentfrom those conducted in large organizations. On the other hand, large nonprofits and large for-profitstend to conduct somewhat similar planning activities that are different from those conducted in smallorganizations. (The focus of the planning activities is often different between for-profits and nonprofits.Nonprofits tend to focus more on matters of board development, fundraising and volunteermanagement. For-profits tend to focus more on activities to maximize profit.Also, with the size of the organization, differences in how organizations carry out the planning activitiesare more of a matter of the nature of the inclusion in the organization than its for-profit/nonprofitstatus. For example, detail given plurality may prefer a linear, top-down, general-to- ad hoc approach toplanning. On the other hand, rather artistic and highly reflective people may favor of a highly divergentand organic approach to planning.Q Explain the responsibilities of an organization and strategies employed to meet them?AnsIt Is defied as the the duty and salubrious being of the staff , contractors and the population in the land where it operates.Organisations also have a responsibleness to ensure that others are not put at risk by their work-relatedactivities, including driving. These promoters, thus, point to a need to carry out an assessment of thehealth and recourse risks for employees while they are at work, and to other people who might be runed by their work activities.Organisations should also looks at its employers which includes in it the data of the employers shouldbe be kept in privacy and should provide them with all the peace of mind.Organisations should also lookaft er the environment means factory where the production takes placethe surrounding area .They should make sure that the surrounding area including population , land andother things should not b harmed by their activities.Organizational members, themselves, should be giving remarkable to what these new responsibilitiesshould be, rather than leaving this task to management.It is also the responsibility of the organisatios to make peace of mind of costumers and making their willby advertising their products in a well manner .A greater awareness of environmental issues, working conditions and social responsibility has led anincreasing number of consumers to take these aspects into consideration when shopping.If the chief executive director isnt fully behind the program, employees will certainly notice and this apparenthypocrisy may cause such cynicism that the organization may be worse take away than having no formal ethicsprogram at all. Therefore, the chief executive should announce the program, and champion itsdevelopment and writ of execution. Most important, the chief executive should consistently point tolead in an ethical manner. If a mistake is made, admit it.Q Explain how economical systems attempt to allocate resources fixively?AnsThe allocated resources are the resources in a business by which we can sale our productswithout the review of these resources we cannot take our business to the market.The major function of an economic system is to work out the basic economic problems which areWhat is to be produced, How is it to be produced, For whom to produce and How efficient is the use of resources. These economic problems are caused by the fact that resources are limited but humane wants are unlimited. Therefore, every country desires to adopt an appropriate system which will result in efficient allocation of resources so as to avoid scarcity.There are three systems used for this purpose which areCommand economic systemMixed economic systemFree mar ket economic systemIn a command economic system resources are allocated by the political relation through their planning system. The main mapping in this system are government , employes and consumers. All system is owned by the government.The Market system of parsimony which is also called the price system simply put is a means of allocating resources in which the resources are allocated by the market mechanism and the major economic problems are resolved by private individuals.In mixed economic system resources are allocated by the government and the stakeholders as wellAnd this system is owned by the two parties I.e. government and the investers as well.some resources are allocated through the price or market mechanism and others are allocated by the state. In theory, such a system is able to combine the best elements of both a planned deliverance and a market economy. In reality, the proportion of planned and market varies, with some countries placing more emphasis on market solutions to resource allocations and others favouring a greater role for state planning.Third one is called pure economic system but it is rarely found. a market economy answers the three questions that form the economic problem through a market system. The market system is stalld on the demand and supply of products. Demand and supply determine prices and prices act as signals to both producers and consumers .The market system depends on a number of terms to ensure it is working properly.the profit motive _the incentive for a reward for enterprise earnest levels of information being available to both producers and consumersPrice accurately reflecting the costs and benefits of consumption and productionThe ease with which resources can move to different usesIf I spoil a usb priced at 12.99 but do not like the music on it, I might decide that I was not getting 12.99 worth of value I could have used that 12.99 to better effect by buying something else that would have given me mo re satisfaction.In short there should ba an understanding between the costumers and the producers for the well being of this system and for the progress of this business.Q Assess the impact of fiscal and monetary policy on business organizations and their impact?AnsThis Paper compares the dynamic impact of fiscal policy on macroeconomic variables implied by a large class of general equilibrium models with the empirical results from an set vector autoregression. In the data we find that positive mental institutions in government outlay are followed by fast(a) and persistent increaseThere is a strong relationship between between public expenditure , reforms and growth as fiscaladjud honestments are created by reforms and growth.Assessing the effect of monetary policy and take bargaining on employement and inflation in theEuropean monetary union in the first step a kay kensyen is developed.Fiscal policy changes can be targeted to affect certain groups (e.g. increases in means-test edbenefits for low income households, reductions in the rate of corporation assess for small-mediumsized enterprises, investment allowances for businesses in certain regions)Consider too the personal effects of using either monetary or fiscal policy to achieve a given increase innational income because actual GDP.Lower pastime rates will lead to an increase in both consumer and fixed capital spending both of whichincreases current equilibrium national income. Since investment spending results in a larger capitalstock, thusly incomes in the future will also be higher through the impact on LRAS.When the economy is in a recession (when business and consumer confidence is very low and perhapswhere deflationary pressures are taking hold) monetary policy may be ineffective in increasing currentnational spending and income. The problems experienced by the Japanese in trying to stimulate theireconomy through a zero-interest rate policy might be mentioned here.The government has introduce d a lower starting rate of income tax for lower income earners.This is designed to provide an incentive for people to work extra hours and keep more of whatthey earn.Changes to the tax and benefit system also seek to reduce the risk of the poverty trap wherehouseholds on low incomes see little net financial benefit from supplying extra hours of their tire. If tax and benefit reforms can improve incentives and lead to an increase in the laboursupply, this will help to reduce the equilibrium rate of unemployment (the NAIRU) and therebyincrease the economys non-inflationary growth rate.Taxation and the Pattern of DemandChanges to indirect taxes in particular can have an effect on the pattern of demand for goodsand function. For example, the rising value of duty on cigarettes and alcohol is designed to causea substitution effect among consumers and thereby reduce the demand for what are perceived asde-merit goods. In contrast, a government financial subsidy to producers has the effect ofreducing their costs of production, threatening the market price and encouraging an expansion ofdemand.The use of indirect taxation and subsidies is often justified on the grounds of instances of marketfailure. But there might also be a justification based on achieving a more equitable allocationof resources e.g. providing basic state health care desolate at the point of use.Taxation and labour productivitySome economists argue that taxes can have a significant effect on the intensity with whichpeople work and their overall efficiency and productivity. But there is little substantiveempirical evidence to support this view. Many factors contribute to improving productivity taxchanges can play a role but isolating the impact of tax cuts on productiQ Evaluate the impact of competition policy and other regulative mechanisms on the activities of a selected organization?AnsA set of laws, practices and procedures aimed at enhancing the economic efficiency of the provision of goods and services by maximizing competition among suppliers and consumers in a market or market-like environment is called competition policy.Competition policy is one of the Singapore issues , or new issue that were introduced at the first wto company held in Singapore in 1996.According to the declaration of the Singapore minestarial conference a working group is to be established to study issues raised by members concerning the interaction between trade and policy in order to identify possible areas that may be subject of a mulatilateral framework agreemenat.When markets deviate from hawkish ideals, assessing the dynamism of government intervention requires a careful assessment of the costs of market failures relative to the benefits of imperfect regulation. The recognition that even imperfect markets may be best-loved to regulated outcomes accompanied a dramatic transformation in the nature and extent of government intervention across a broad range of markets over the past thirty years. Many industries long subject to price and entry regulation in the joined States among them airlines, trucking, railroads, and banking were deregulated.NBER researchers continue in the vanguard of research, market design, and implementation of electricity restructuring. Much of the empirical work to date has focused on re incorporated generation markets, in which prices generally are determined through a competitive bidding process.Some of the topics or development of trade union movements encouraged in this PA may alsobe more suitable for a small project grant (projects requesting total costsof $100,000 or less) (R03). If so, applicants are encouraged to apply underthe procedures outlined in the AHRQ Small Research Grant Program PA, create in the NIH Guide for Grants and Contracts (NIH Guide), January 2,2001.Competition should be in business because in this way we can represent our products in a well maner for example take mc donalds as an organization .When we talk about competition In mc donalds we have to keep eye on a lot of aspects which are by 1s competitions we should take care that others are not gona harm.Special offers should be kept in such a way that other branches should not take negative effect by it .It depends on the location as well means if some where rents are higher and the branch cannot afford itSo therefore it is difficult for them to make some promotional offers.Q Explain how market structures determine the pricing and output decisions of businesses?AnsA variety of recent proposals rely hard on market forces as a means of controlling hospitalcost inflation. Sceptics argue, however, that increased competition might lead to cost-increasingacquisitions of specialized clinical services and other forms of non-price competition as means ofattracting physicians and patients. Using data from hospitals in 1972 we analyzed the impact of marketstructure on average hospital costs, measurable in terms of both cost per patient and cost per patientday. Under the retrospective reimbursement system in place at the time, hospitals in more competitiveenvironments exhibited significantly higher costs of production than did those in less competitiveenvironments.Conventional wisdom has it that a large part of the explanation of Keynesian unemployment is theobserve rigidities and prices. What has been lacking however is a satisfactory theory which explains howwages and prices can be at non market clearing level.If all firms in an attention actin concert to determine pricing policies, they can maximize their combinedprofits . Traditional oligopoly theories widely appericiate this fact and therefore they desire to collude tomaximize their juncture long run profits.It also suggests that the character and scope of collusive conduct is related to the structural and legalconditions cotfronting the firms in a market.Growth theorists have investigated extensively the idea that technological progress is endogenous and driven by mark et forces. General equilibrium (GE) models developed to explain these forces depart from the traditional theory of growth. Since innovation requires profit-seeking firms to undertake up-front research and development (RD), the factors determining the incentives to undertake RD in imperfect markets are central to the seminal theories of Romer (1990), Grossman and Helpman (1991), and Aghion, P. and Howitt, P., 1992. A model of growth through notional destruction. Econometrica 60, pp. 323-351Aghion and Howitt (1992). These contributions, however, downplay the role of market structure. In contrast, an important strand of literature in Industrial organization (IO) argues that market structure is a key factor determining RD investment because it captures accepts of the business environment, like the size and number of firms, barriers to entry, and diversification. These factors determine market rivalry which, in turn, determines the opportunities and constraints that firms face when pla nning.The financial structure and oligopoly have at least one common feature both place little emphasis on the strategic relationship between financial decisions and output market decisions.In financial theory , the product market is typically assumed to offer an exogenous random returns which is un affected by the debt equity positions of the firms in the market.A structural model is proposed which integrates and extends previous findings on the interrelations between risk-return outcomes, market share, firm conduct attributes, and inter-firm rivalry. It is argued that the relative impact of market share and firm conduct attributes on risk-return outcomes depends on the intensity of rivalryBy these market structure kinds we can determine these policies very well and can get achieveable goals by making business on the top.Q illustrate the way in which market forces shape organizational responses using a range of examples?AnsAn organization is a collection of people working together under a defined structure for thepurpose of achieving predetermined outcomes through the use of financial, human, and materialresources. There are a number of approaches to the structure and management of organizations.Forces of demand and supply representing the aggregate influenceof self-interested buyers and sellers on priceand quantity of the goods and services offered in a market. In general, excess-demand causes prices andquantity of supply to rise, and excess supply causes them to fallThe market forces also effect the organisatioal structure in thses five steps which are illustrated as belowThe entry of competitors (how easy or difficult is it for new entrants to start to compete,which barriers do survive)The fear of substitutes (how easy can our product or service be produced, especiallycheaper)The bargaining power of buyers (how strong is the position of buyers, can they worktogether to order large mountains)The bargaining power of suppliers (how strong is the position of sellers, are there manyor only few potential suppliers, is there a monopoly)The rivalry among the existing players (is there a strong competition between the existingplayers, is one player very dominant or all all equal in strength/size)Some academics believe that a sixth force could be included government.A well-arranges organization is particularly important to call centers, given that the powerful poolingprinciple the immutable law that says consolidation of resources will result in improved efficiencies lies at the heart of call center effectiveness. In fact, when call centers began catching on several decadesago, the big challenge was to get callers to abandon the need to reach specific individuals. Today, asbuilding customer relationships and loyalty have reached the forefront of strategy, the need to developeffective, collaborative organizations is more important than ever.However, there is an unfortunate paradox at work in many organizations. On one hand, theorganizational design is constantly exerting its forces as it channels communications, shapes protocoland establishes lines of authority. It is one of the most influential and evident aspects of any enterprise.Most managers can draw their organization charts in their sleep. Yet, it is an issue that, in the daily,somehow becomes assumed almost outside the realm of managerial consciousness.By the use of these five market forces the organizational responses can be managed in a well way andThe company can make progress in a well way.Q Judge how the business and cultural environments shape the behavior of a selected organization?AnsBusiness and cultural environment comprises all those factors that affect a companysoperations, and includes customers, competitors, stakeholders, suppliers, industry trends, regulations,other government activities, social and economic factors and technological developments.These factors affect the behaviour of an organization in different ways and these are the base as w ell foran organization.Organisation behaviour is a major part of any business and cultural environment because it setsout to help students understand how human beings deal with being part of organisations, large orsmall, working in teams and so forth. It is, essentially, the study of the soft end of business.The theories derive from a variety of disciplines including sociology and psychology. It concernsitself with the alter patterns of individual and group working. Thus the apparent aim ofthe study of organisational behaviour is to understand why people work in certain ways and thenworking out how to use this knowledge to improve the use of resources.The history of the study of organisational behaviour is often broken down into different phases,beginning with both Scientific Management and the study of bureaucracy in the early-twentiethcentury. Both of these schools of thought were attempts to analyse human activity at work. Thefirst looked at human beings as though they were par t of a machine and sought to break activitiesdown into discrete actions. The study of bureaucracy instead looked at the whole organisationsand sought to define them through the varying levels of authority within the whole. The role ofthe manager in all this was also considered as the topic grew in scope.As the study of psychology and psycho-analysis became more prevalent and more civilise,these rather mechanistic views eventually gave way to a more humanistic period in which it wasseen that the workplace was also structured around mutually interactive groups of people whocould not be defined in the earlier simplistic terms. Later on these ideas became even moresophisticated as it seemed that the work place was somewhere, if the conditions were right,people would find positive experiences, and where they could seek fulfilment and becomecreative.Organisational behaviour, perhaps because it is about human beings, that generally defycategorisation, is theme to many theories. Because i t is about people and the way they react toand interact with each other, it is an ideal topic for teaching through fiction. Once again fictionprovides eternal opportunities to describe the conflicts and allegiances that are constantly beingformed and re-formed in the work place. The fact that most novels are in some way or otherabout relationships and the ways in which people deal with negative and positive experienceswithin groups, and how alliances can shift over time and through inhering or external pressures,means that they are rich in examples to be used in illustrating the various theories that make upthe study of organisational behaviour. The fact that psychology, sociology and anthropologyfeature so strongly in the topic offers a variety of approaches in interpreting the scenarios, just asin real life.Q Discuss the significance of transnational trade to uk business organizations?AnsThe buying and change of goods and services across national borders is known as internation altrade.It is of vast importance not just for a single country but all the countries because without international trade the economy of a country and business organization can not make a progress on international level and they will b unable to display their manufactures to display at international level.International trade is the anchorperson of our modern, commercial world, as producers in different nations try to profit from an expanded market, rather than be limited to selling within their own borders. There are many reasons that trade across national borders occurs, including lower production costs in one region versus another, specialized industries, lack or surplus of natural resources and consumer tastes.There is currently a great deal of concern over jobs being taken away from the United States, member countries of the European Union and other developed nations as countries such as China, Korea, India, Indonesia and others produce goods and services at much lower costs. Bo th the United States and the European Union have compel face restrictions on imports from Asian nations to try to stem this tide. Clearly, a company that can pay its workers the equivalent of dollars a day, as compared to dollars an hour, has a distinct selling advantage. Nevertheless, American and European consumers are only too happy to lower their costs of living by taking advantage of cheaper, imported goods.Even though many consumers prefer to buy less expensive goods, some international trade is surrogateed by a specialized industry that has developed due to national talent and/or tradition. Swiss watches, for example, will never be price-competitive with mass produced watches from Asia. German cutlery, English bone China, Scottish wool, fine French silks such as Hermes and other such products always find their way onto the international trade scene because consumers in many parts of the world are willing to foster the importation of these goods to satisfy their concept that certain countries are the best at making certain goods.One of the biggest components of international trade, both in terms of volume and value of goods is oil. Total net oil imports in 2005 are over 26 million barrels per day (U.S. Energy Information admin.figures) (Note Importedoil include harsh oil, natural gas liquids, and refined products.) At a recent average of $50 per barrel, that translates to $1billion, three hundred million, PER DAY. The natural resources of a handful of nations, most notably the nations of OPEC, the Organization of Petroleum Exporting Countries, are swept onto the international trade scene in staggering numbers each day, and consumer nations continue to absorb this flow. opposite natural resources contribute to the movement of international trade, but none to the extent of the oil trade. Diamonds from Africa, both for industrial and jewelry use, wheat and other agricultural products from the United States and Australia, coal and steel from Canada and Ru ssia, all flow across borders from these nations that have the natural resources to the nations that lack them.Despite complaints about trade imbalances, effects on domestic economies, specie upheavals, and loss of jobs, the reality of goods and services continually crossing borders will not go away. International trade will continue to be the engine that runs most nations.Q Analyse the impact of global factors on uk business organizations?AnsBusinesses are affected by an external environment as much as they are affected by the competitors. Global factors affecting business are legal, political, social, technological and economic. Understand