Understand The Organizational Purposes Of Businesses Business Essay

There are various kinds of organizations which categorize according their reason for creation, their goals and aims, and their passions. Some organizations are manufactured to earn profit, some are designed to aid mankind in form of jobs, and some are non-profit organizations who work for some good cause (Coe, 1999, P 110-23). Let us discuss some different types of organizations with the targeted aims and purposes that they can be found.

Legal structure:-

It is a type of organization whose mission or goal is to provide help to individuals in getting justice. They ensure regulations and rules in a society.

Private company:

This type of organizations has different mission and vision assertions such as to become market leader or to produce quality products effectively at low priced. However they have only 1 real goal which is to earn money (Jossey, 1999, P 325-35).

Public company:

This type of organizations whose purpose of living is to provide jobs and other advantages to open public of the population. These organizations typically controlled by government but a good ratio of these organizations share are owned or operated by individuals of society where it works.

Government

Government organizations are always ruled by the federal government officials. The purpose of existence of this type of organizations is to provide money to the government so that it can perform their function effectively and serve peoples of world with economic development and variety of jobs (Bruns, 1993, P 101-113).

Voluntary organization:

These organizations work voluntarily for federal government or once and for all cause. Their goals will vary but purpose is to provide help to other organizations in order to effectively work.

Charitable corporation:

These types of organizations have only one purpose to aid individuals who cannot work or poor in riches. They based on the charity distributed by government or other stable organizations for helping mankind or for just about any other good cause.

Describe the scope to which an organization meets the goals of different stakeholders

Stake holders play an essential role for a business. They are the individuals or organizations that have some interest in the business of organization. Preferably all organizations wants to gratify the needs of each stake holder completely, but practically it is impossible to achieve full satisfaction of the stake holder anticipated to political, interpersonal and environmental ramifications of culture on business of corporation (Jossey, 1999, P 325-35). Therefore, it is an important to fulfill the needs of stake holders for any business up to maximum level. The scope to which a business fits the needs of the stake holders is basically an sign that decides organizations performance in their business. Those organizations that performed well and show excellent performance can certainly meet the targets and needs of stake holders up to maximum level (Duncan, 1989). Therefore, there should be an optimize level when obtaining needs or meeting aims of stake holders accompanied by the organization to make group successful with excellent and satisfied performance.

Explain the duties of a business and strategies used to meet them

Organizations doing business in a culture must have to understand their obligations related to the modern culture, towards the culture peoples health, safe practices and prosperity in order to meet their basic needs by using business as different kinds of stake holders (Ammons, 1995, P 37-47). Furthermore with this, there's also some other responsibilities of group related to the country or region in which it operate their business which include its effect on global warming and on environment of modern culture. Every organization must have to consider and gratify their responsibilities to avoid any discord and risk (Boone, 1996, P 10-12).

There are extensive strategies open to meet these responsibilities according to the severity of responsibility or stake holders whose duties are concerned. To fulfill responsibility towards environment of society or region, group must have to signal and utilized environmental legislation (Overman, 1994, P 193-96). In the same way an organization must employed health insurance and safety legislation to fulfill responsibility related to population peoples health and safety. Furthermore with this, certain other strategies such as employee legislation, customer legislation and conformity legislations have employment with the organizations to make sure that business fulfills its responsibility towards society honestly and completely (Newcomer, 1997, P 5-13).

How financial systems try to allocate resources effectively

Economic system of a country determines its structure, how a country allocates its resources and how it ensures economical activities within the united states or land (Bloom, 2003). You will find three types of economical systems which include mixed economy, market current economic climate and centrally planned market (Wallace, 1990). In centrally planned economic system all the resources and constructions of the nation are rules and manipulated by the government itself without allowing others to interfering in these issues. This system fails in growing good economic value, providing enough bonuses, achieving fast expansion, and also in gratifying need of consumers (Jorgenson, 2006). Inside a combination of managed and free economic system commonly known as mixed monetary system, all the resources are allocated by joint venture of federal government and private sector organizations. This is the impressive and largely used financial system around the globe especially in Europe (Vig, 1999).

In this system resources are divided equally between two regulating parties. This technique is also called privatization. Last type of economic system is market market in which administration has not rules any resource and all governing privileges are sent to private sector. Mainly countries employed combined financial system to allocate resources within the country as it includes governing of authorities which is really ruler and private organizations that can invest and provide different effective ways to make monetary system successful (Man, 2009).

Impact of fiscal and monetary insurance plan on business organizations and their activities

Fiscal and financial policy determines the movement of capital and repayment methods for different economic activities. The main thing that impacts immediately business organizations and economic activities within the country is the interest which depends upon these plans. As interest is an essential factor for an industrialist of business man to run their business within the boundaries of any country; therefore, fiscal and monetary policy can affect negatively as well as favorably to the business enterprise of organizations. These plans are specifically made to enhance the economical cycle operating within the business and ensure that money must regulate between the peoples; therefore, fiscal plan as well as financial regulations always considered by the organizations management prior to starting business in any specific region or country (McFall, 2002).

Evaluate the impact of competition plan and other regulatory mechanisms on the activities of a decided on organization

Like other procedures of an organization, competition policy also performs a essential role in their expansion as it explains how organization heading to compete with other organizations present in the same market. There's a huge impact of competition plan on operations and working of a business. The ideal aim of competition insurance policy is to provide competitive advantage to the organization so that it can simply and effectively be competitive in any market (American Economic Association, 1991). Let us consider the previous exemplory case of Tata Nano to evaluate the impact of competition policy for this organization of Tata motors. In the case of Tata Nano, competition insurance plan of Tata motors is based on price competitiveness to provide Tata motors competitive benefits for this car. Competition insurance plan uses by Tata motors becomes successful in case of Tata Nano which gives this company a boost in their earnings and demand of this car. The insurance plan for competition of Tata motors also add a step of starting and start development of the car from two different locations in Singapore and India. From India they make an effort to fulfill demands of Asian countries and from Singapore they try to fulfill requirements of Western european market (Justin, 2009, P 1-3). In this manner, Tata motors successfully implements their competition coverage through offering Tata Nano from two different locations at really cheap rate to attain competitive benefits. The insurance policies of Tata motors for Tata Nano are considered as a landmark in competition plans history due to its success rate (Palley, 2009, P 35-39).

Explain how market constructions determine the prices and end result decisions of businesses

The costs and creation or result decisions derive from the market composition. This means that if the market has low competition then price may establish high and vice versa (Naylor, 1983). Likewise if the marketplace is highly competitive then price depends on quality of product and current position of product on the market. If customers prepared to buy product at high price due to its quality, then high price is ok, otherwise price must be down to contend with other products effectively.

In addition with above factor of competition in the market, there's also various other types of marketplaces which also be a part of pricing of something. Included in these are market where organizations product can promise competitive benefit, high growth likelihood in the market and a perfect competitive market (Gibson, 1991). In most importantly mentioned markets on which pricing and output decision matters, everyone organization would like competitive benefits and low competition in market so that they can claim high income on its product.

Illustrate how market forces form organizational responses utilizing a selection of examples

Market forces are the only parameters or factors define response of a business which is also a smart need. This is need because those organizations who structured their reactions such as croping and editing their policies related to marketing or related to customer satisfaction, can effectively control their organizations to get considerable progress within limited time (March, 1985). Market pushes such as supply and demand facts and figures are very critical indicators. These factors assists with deciding production rate, resource rate and demand rate, and also rate at which marketing will be achieved for respective product. In this manner through providing some factors, these market makes shapes establishes response of any organizational response. Let us consider an example of Tata Nano which can be an ultimate low price car of Tata motors. When Tata motors launches this car they face a significant crises of low development. In cases like this, the market make of high demand of the car makes Tata motors to give response in a way to raise the production plus they finally increase their development from 100 cars to 1200 automobiles per month which really is a very big change created by market force of popular (Ogilvy PR Worldwide, 2009, P 27-31).

How the business and cultural environments shape the habit of a preferred organization

Culture of any organization is vital not only to ensure its stability but also to ensure its development. It helps business to handle and package with new problems. It also helps to develop and change organization for any needed and required change. Business and ethnical environment must be diversified and effective so that it cannot discord with organizational goals and objectives (Katz, 1987). Cultural diversity is vital factor that helps individuals from different social backdrop in their working and invite them to just work at the same place effectively. If a business fails in attaining variety or if a business cannot integrate diversity in its culture then it may ruin complete procedure for sharing information or training within the business. The reason of this serious result is the fact variety reduces and removes communication spaces between employees which have an impact on training and learning procedure for employees and these impact will mess up the organizations development.

Significance of international trade to UK business organizations

International trade is very beneficial and profitable for just about any company either it is within UK, USA or in virtually any other country. It allows the organizations to sell their products at a good rate to earn extra and substantial profit which cannot be earned after advertising products at local size or local level. Due to this way or extreme profitable great things about International trade, most of the organizations want to conduct business at international level instead of offering product or doing business at local or national level (Wohlmeyer, 2002). For UK business organizations it is also a good approach as it offers some extra profit to them for the same service or product they offer. In addition with this, there are also other benefits that may be achieved with this approach. These benefits include low labor cost, low materials cost and low travel cost. These benefits can't be achieved during running business at national level (Litterer, 1993). If UK business organizations start conducting business at International level they can easily reduce cost of their products after keeping huge cost of carry that they pay before to accumulate raw materials from different parts of the world. In the same way, if UK business organizations take this step they can also achieve good thing about competitive and useful buying of raw material for their organization.

Impact of global factors on UK business organizations

There is an enormous impact of global factors on UK business organizations like other countries organizations that operates business at International level. Likewise there is also a huge set of factors that affects the business of organizations in UK. These factors primarily include International trade and the united kingdom overall economy, market opportunities, global growth, World Trade Company (WTO), emerging market segments, global essential oil prices, global terrorism and others (Cascio, 1999). Furthermore with this, there are also many factors that have a good effect on UK business and UK business organizations. If some market opportunities can be found in any area of the world, then like other countries, UK organizations also make an effort to avail that opportunity to gain increasingly more profit. Likewise other factor such as global expansion and terrorism are some factors which not only impacts UK business organizations but also impact all the firms running all over the world. In addition with this, another important factor that affects the UK business most is the balance of Euro and money where the trade is performed between UK organizations and other organizations located outside UK.

Impact of policies of the European Union on UK business organizations

Every European Union policy plays a very important role in defining and identifying the business enterprise or organizations doing business within the united kingdom. Like any other Western country, UK is also damaged by their insurance policies as European Union guidelines are always designed to promote the business relationship with in the European countries and to ensure economic development all around the European countries (Helpman, 1991). The decision take by the European Union related to the trade done by the or between the European states is dependant on the social, economical, politics and environmental conditions; therefore, these decisions not only affect the revenue but also affect the marketplace of the businesses. For instance, if EU after considering polluting of the environment decides to allow only electric vehicles or hybrid automobiles to run inside European countries, then it is the ability for Hybrid car manufacturers but it is damaging media for regular automobiles manufacturer. Therefore, European Union policies have a very clear and dominating effect on UK business as it based on different facets which affects Europe.

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