1:- Understand the Organizational purpose of the business.
1.2 Describe the extent to which an organization meets the objectives of different stockholders.
1.3 Explain the responsibilities of the organization & strategies employed to meet them.
2 Understand the nature of the national environment in which businesses operate.
2.1 Explain how economic systems attempt to allocate resources effectively.
2.2 Assess the impact of fiscal & monetary policy on the organizations & their activities.
2.3 Evaluate the impact of competition policy & other regulatory mechanisms on the activities of the selected organization.
3 Understand the behavior of the organization in its market environment.
3.1 Explain how the market structures determine the output & pricing decisions of the businesses.
3.2 Illustrate the way in which market forces shape organizational responses using a range of examples.
3.3 Judge how the business & cultural environments shape the behavior of the selected organization.
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 the UK business organizations.
4.2 Analyze the global factors on the UK business organization.
4.3 Evaluate the impact of policies of the European Union on UK business organizations.
The business environment is a set of factors surrounding the business which affect the activities like production & distribution of goods and services in earning profit and these surrounding factors are such as natural, economic, political, etc. These all have a great impact on business activities & can influence any business decisions. Every organization takes into consideration these factors & take decisions according to these so that these things can’t affect the businesses negatively & taking advantage of the factors, companies can increase their market share & their competitive strengths. So it is seen that the business environment is very vital for any business and we will see how these factors affect all activities of the businesses in the domestic market as well as in the international market.
1:- Understand the Organizational purpose of the business
1.1 Identify the purposes of different types of organizations
There are different types of organizations running their business activities in the business world and each of them has some specific objectives and achievement motivations. Business organizations like sole trader ships, partnerships and companies mainly are popular in the recent world. But the company has the highest advantages that’s why people prefer the organization to others. Primark is one of the renowned Irish companies in the UK and also some countries in the world. The organization is famous for its fashion designing since its inception in 1969. Let’s observe some of the purposes of the private company (Peh, E., 2009):-
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Profit-seeking:- The main and foremost objective of any business organization is to earn a profit. For the primary objective, the owners take a risk and take up the initiatives to manage all of the business activities. So Primark also has the same purpose.
Growing the business:- After attaining the short term objective of earning a profit, then the businesses look for continuing the profit in the future and growing their businesses. As we know Primark is an Irish company. Now with the growth, the company is also operating its activities across the world.
Maximizing owner’s wealth:- The business organizations mainly are concerned with the maximization of owners’ wealth through business activities. So the Primark isn’t the opposite. It also wants to maximize the wealth of its shareholders and it’s doing so by earning profit through successful business activities.
Doing welfare to the society:- There are some not for profit organization that works for the welfare of the people of the society and even the profit-seeking organizations also help by donating to the organizations for the social welfare. So Primark also helps society to live in the best way by building several infrastructures like schools, colleges, and hospitals, etc………………