BUSINESS ENVIRONMENT

Organisational purposes of businesses and the impact of national environment on businesses

Learning Outcome

LO1: Understand the organisational purposes of businesses   

P 1.1 Identify the purposes of different types of organisation.

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

P 1.3 Explain the responsibilities of an organisation and strategies employed to meet them.

LO2: Understand the nature of the national environment in which business operate   

P 2.1 Explain how economic systems attempt to allocate resources effectively.

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

P 2.3 Evaluate the impact of competition policy and other regulatory mechanisms on the activities of an organisation.

Identify and apply strategies to find appropriate solutions

Ensure that an effective approach to study and research has been applied while

• Proposing the type of organisation for the venture

• Assess the impact of fiscal and monetary policies on the proposed venture

• Evaluate the impact of competition policy and other regulatory mechanisms

Select/design and apply appropriate methods/techniques

Ensure range of sources of information has been used while:

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

• Assessing the impact of fiscal and monetary policy on business organisations and their activities

Present and communicate appropriate findings

Ensure that appropriate structure and approach has been used while:

• Identify the purposes of different types of organisation

• Evaluate the impact of competition policy and other regulatory mechanisms on the activities of an organisation

Use critical reflection to evaluate own work and justify valid conclusions

Self-criticism of approach has taken place while:

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

• Evaluate the impact of competition policy and other regulatory mechanisms

Take responsibility for managing and organising activities

Ensure that substantial activities, projects or investigations have been planned, managed and organised for:

• Assessing the impact of fiscal and monetary policy on business organisation and their activities

• Evaluating the impact of competition policy and other regulatory mechanisms

Demonstrate convergent/lateral/creative thinking

Self evaluation has taken place while:

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

• Explain how economic systems attempt to allocate resources effectively

• Evaluate the impact of competition policy and other regulatory mechanisms

The purpose of this assignment is to Understand:

• Different objectives of various types of organization and their responsibilities

• Allocation of resources in different economic systems

• Fiscal and monetary policies

• Impact of regulatory mechanisms on the business activities

Scenario

Melwyn Industries is one of the world's largest manufacturer and exporter of wrist watches and India's leading producer of watches sold under brand name Melwyn at exclusive Melwyn retail stores. It is a subsidiary of SANA a giant conglomerate dealing in automotive, steel and hospitality industry.

Melwyn Industries was started 10 years ago and its watches gained distinct brand identities with a set of products aiming at different market segments. Currently the Melwyn umbrella has sub brands like ALPHA for executives, DIVA for women and REGAL - designer watches catering to the high-end segment.

After this successful penetration, this company intends to create some more products for the youth segment, for this purpose, Company wants to enter in the footwear industry. The main purpose of the company is to satisfy the growing needs of the youngsters, by providing various range of fancy footwear on the reasonable prices.

Now the company decided to work on this project immediately for this purpose, he has hired you as a project manager. You have agreed to manage this new venture on an annual salary of INR 8,00,000.

The company has designated INR 25,00,000 in capital for use in setting up the new business. You will need to calculate how much capital you need to build up on credit in order to get the business going. 

You need to develop a business plan for this venture. In order to do this you will need to investigate and research the business environment that will influence this venture, the local business environment, the customers and customer needs you are likely to serve and the proposed start up and operation of the business. You will also need to appraise your own skills and experience as part of a personal development plan. 

You can use whatever sources of relevant information to help you that you can access. References, including personal communications, to the sources of information that you use should be included in your evidence.

Task 1: The organisational purposes of businesses

Customers are those people who will buy the service and any products that you offer. Plan a survey of your target customers (youngsters, aged between 16 to 30) to find out their present and future requirement for the product. You need to design appropriate customer survey questions and employ appropriate collection and data analysis techniques. Undertake your customer survey and analyse the data collected.

You need to ensure that your survey is sufficient to gauge a valid representation of customers. You will be observed during your survey and assessed on your effectiveness. Include this information in your business plan and use it to inform your marketing requirements.

As a project manager you have to propose the type of organisation suitable for the venture.

1. Explain the different types of organisations along with their purposes.

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

3. Explain the responsibilities of an organisation and strategies employed to meet the objective of the stake holders.

Task 2: The nature of the national environment in which businesses operate

You will be required to present your business plan to stakeholders. You must include in your introduction the relative importance of the environmental factors of the Indian and global economy. You will have to present your business plan to relevant stakeholders within 30 days. Ensure that you are prepared to present your plan effectively to answer questions on it too. For example you may be asked to clarify any areas that your audience has not understood. You will be assessed on the effectiveness of your presentation.

4. Explain the challenges to economic systems to allocate resources effectively.

Consider:

Basic economic problems for different types of economies.

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

6. Evaluate the impact of competition policy and other regulatory mechanisms on the activities of an organisation.