The Ibusiness and its environment

Purpose

The purpose of this assignment is to provide evidence of your understanding of different organisations, the influence of stakeholders and the relationship between businesses and the local, national and global environment within which they operate.

Learning Outcome/Assessment Criteria

LO 1 P1.1 identify the purposes of different types of organisation

LO 1 P1.2 describe the extent to which an organisation meets the objectives of different stakeholders

LO 1 P1.3 explain the responsibilities of an organisation and strategies employed to meet them

LO 2 P2.1 explain how economic systems attempt to allocate resources effectively

LO 2 P2.2 assess the impact of fiscal and monetary policy on business organisations and their activities

LO 2 P2.3 evaluate the impact of competition policy and other regulatory mechanisms on the activities of a selected organisation

LO 3 P3.1 explain how market structures determine the pricing and output decisions of businesses

LO 3 P3.2 illustrate the way in which market forces shape organisational responses using a range of examples

LO 3 P3.3 judge how the business and cultural environments hape the behaviour of a selected organisation

LO 4 P4.1 discuss the significance of international trade to UK business organisations

LO 4 P4.2 analyse the impact of global factors on UK business organisations

LO 4 P4.3 evaluate the impact of policies of the European Union on UK business organisations

LO 1 M1 identify and apply starategies to find appropriate solutions

LO 3 M2 select /design and apply appropriate methods /techniques

LO 4 M3 present and communicate appropriate findings

LO 4 D1 use critical reflection to evaluate own work and justify valid conclusions

LO 3 D2 take responsibility for managing and organising activities Assignment

LO 2 D3 demonstrate convergent/lateral/creative thinking.

The Business Environment of Dubai: An overview

There were spectacular developments in Dubai’s business environment over the last few decades. Dubai has become a major business centre with a dynamic and diversified economy. Dubai enjoys a strategic location and serves as the biggest re-exporting centre in the Middle East. World class leaders in trade, logistics, financial services, hospitality and tourism, real estate, construction and manufacturing make up over 90% of business activity.

This diversification, along with its world class infrastructure and ease of business philosophy make it the natural choice for local and international organisations to do business. The global reputation of Dubai as a wealth generator and investment stronghold continues to drive the city’s growth.

Scenario

The Hamdan Innovation Incubator is an initiative of Dubai Economic Department to stimulate and foster innovative entrepreneurial projects in Dubai. You are appointed as a project consultant in the organisation and assigned with preparation of a briefing paper on different types of business organisations and their purposes. The briefing paper will be distributed to the participants of an entrepreneurial seminar to be held during the forthcoming National Day celebrations in Dubai.

Task 1

Prepare a briefing paper highlighting the different types of business organisations and their purposes which can help the participants of the seminar to set up their new business units.

Task 2

2.1 Examine the strategies adopted by business organisations and how they work to meet the stakeholders’ needs using examples from Emirates Airlines.

2.2 Analyse the efforts taken by Emirates airlines and assess the extent of their success in meeting its social responsibilities 

Task 3

3.1 Discuss the features of resource allocation in three different economies, planned, mixed and free market systems with suitable examples taken from the world economic scenario.

3.2 Assess how monetary and fiscal policies impact on business organisations and their activities.

Task 4

Evaluate the impact of competition policy and other monetary regulations in the UK on the business activities of British Airways.

Task 5

Discuss how each type of market structure and its features determine the pricing and output decisions of businesses by giving examples of selected business organizations from the UAE. .

Scenario

When a cold snap hits Florida, the price of orange juice rises in supermarkets throughout the United States. When the weather turns warm in New England every summer, the price of hotel rooms in the Caribbean comes down. When a war breaks out in the Middle East, the price of gasoline in the United States rises, and the price of a used Cadillac falls.

The above scenario shows the working of supply and demand known as market forces in economics. Supply and demand are the forces that make market economies work. They determine the quantity of each goods produced and the price at which it is sold. Let us examine a simple example of the supply and demand for ice creams at one of the outlets at the DIAC food court.

Ice cream Type Unit Price Demand Supply
Chocolate Brownie Sundae AED 19 100 20
Brownie A La Mode AED 15 80 40
Banana Caramel Crunch AED 32 60 60
Creamery Chocolate Devotion AED 20 40 80
Hot Chocolate Fudge Grand Sundae AED 31 20 100

Task 6

2.1 Describe the changes in demand i.e. extension and contraction in demand.

2.2 Illustrate the changes in demand by preparing a diagram of demand curve on a graph.

2.3 Describe the changes in supply i.e. extension and contraction in supply.

2.4 Illustrate the changes in supply by preparing a diagram of supply curve on a graph.

2.5 Describe the market interaction by showing the market equilibrium on a graph.

Task 7

Examine how the four environmental factors, political, economic, social, technological and legal, affect the business activities of Burj Al Arab restaurants.

Task 8

Discuss the importance of international trade to UK businesses and the economy.

Task 9

Select any four topics from the list below and analyse their influence on shaping the business activities in the UK economy

Employment

Education

Environment

Science and technology

Labor movement

Workforce skills

Task 10

Evaluate how EU policies influence the business markets in the United Kingdom.