Features of Business Management and Organization

Features of Business concern and OrganizationBusiness Environment Individual1.0 Introduction to memorial put overt1.1 What is an institution?Managers be the unrivaleds who operate in ecesis. Organization is an individual or separate of volume that collaborate to achieve certain commercial goals that its members would be ineffective to reach by themselves. Every organization have a focus structure that de preconditionines relationships between the several(predicate) activities and themembers, and subdivides andassignsroles,responsibilities, andauthorityto carry out differenttasks. Organizations ar open systems in that they affect and argon affected by the environment beyond their boundaries. So according to that organization should have hobby features.VisionA statement of what a comp each wishes to accomplish in the course of its operations. It is a declaration of a companys goals for the midterm or long- unfreeze futureE.g.- Apple Corporations Vision-To make a part to the world by making tools forthe mind that advance homokind.MissionA statement of the purpose of acompany,organizationorsomebody, itsreason for existing.E.g.- Unilevers mission-To add Vitality to life. We meet everyday require for nutrition hygienics and personal c be with brands that help people look keen, feel good and get more out of life.ObjectivesA specificresultthat apersonororganizationaimstoachievewithin a m frame with availableresources.E.g.- Unilever quarry is to increase their profit by 35% end of the year 2014GoalsAn observable and measurableend resulthaving one or moreobjectivesto be achieved within a more or less fixed timeframe.E.g.- Unilever goal for 2020To improve health and well-being, reduce environmental impact and source 100% of our agricultural raw materials sustainably and enhance the livelihoods of people across our value chain.ValuesValue statements define the organizations basic philosophy, principles and ideals . they overly answer the ethical tone for the institution.1.2 Organisation categories there argon various ways to categories the organizations. We can divide organizations in to cardinal compositors cases as characteristics, legal form and by size (Figure 01). (Figure 01- Organization Categories) sole traderA blood owned by one person is a sole proprietorship. In a sole proprietorship, the owner invests capitol, makes every(prenominal) decisions, and receives either dough. Owners in a sole trader however whitethorn have more difficulty than handsomer organizations obtaining loans. More solidly, sole traders argon personally liable for their debts if their businesses fail. A purpose of a Sole Trader is to provide a service for a client and lade for that service. coalitionPartnership is the relation between the persons who have agreed to share the profits of a business carried on by all or any of them acting for all or a business owned by two or more people also can be a associateship. The partners share the responsibility for financing, operating and managing the business. Usually profits are divided in proportion to the amount of money that each partner has invested in the business.Private bound companyPrivate companies main objective is maximize the profit these organizations are owned by shareholders by purchase company shares, there can be minimally one shareholder and maximally fifty shareholders in the company. Profit and loss lead be shared between shareholders at the company general meeting. The company should be named their company name along with (PVT) Ltd term.2.0 Stakeholders of an organizationThe persons and organizations that have an following in the strategy of the organization are called stakeholders. Stakeholders normally include shareholders, customers, staff and the topical anaesthetic participation.(Figure 02- Stakeholders)2.1 Stakeholders of the D-MAC Bookshop2.3 Stakeholder AnalysisWhat is stakeholder analysis?Stakeholder analysis is methodology of systemat ically aggregation and analyzing qualitative information to determine whose intimacys should be taken in to billhook when developing and /or implementing a polity or program. And this can be done by using the stakeholder mapping.Stakeholder mapping2.4 Identifying the key stakeholders of D-MAC BookshopManagers game salariesProfit maximizationBon maps logical argument securityStatus and growth of the businessEmployeesHigh payJob securityPleasing the customersPromotion prospectsJob satisfaction and motivationCustomersSafe and reliable productsValue for money conception result availabilityCustomer serviceSuppliersA long term relationship with the firmPrompt paymentFrequent and regular orders striking size and value of contractsGrowth of the businessCompetitorsTo compete by all lawful meansTo differentiate its productsKeeping up with innovationIf an organization has to achieve the goals and objectives with efficiently and efficaciously, first of all the organization have to put thr ough the objectives of stakeholders. So organization has to do something to achieve it. Those as follows,EmployeesSpeak to them respectfullyMake attract full remuneration packagesBy giving premium and early(a)(a) allowancesBy introducing medical and entertainment allowanceProviding job securitiesCustomersBy providing quality products.Providing products regularly.By giving truthful information about their products.By giving discounts and gifts.Providing other customer services. organisationBy paying taxes other payment correctlyAnd provide some helps to politics sector3.0 Responsibilities of an organization4.0 economic systems sparing system is an organized way in which a state or nation allocates its resources and apportions goods and services in the national community a world in which all humans wants are at a time fulfilled is hard to imagine. Productive resources are limited while human wants are unlimited. Scarcity occurs because human wants exceed the amounts of outturn possible with the limited time and resources that are available. Because of the scarcity every country needs a system to determine how to use its recourses productively. in that location three basic questions that needs to solve by any stinting system.Three basic economic problems-What to nurture? what kinds of goods and services should be producedHow to produce? what productive resources are utilise to produce goods and servicesFor whom to produce? who gets to have the goods and servicesThe way a society answers these questions determines its economic system. There are tree economic systems. command EconomyFree Market Economy mingled Economy4.1 summons or planned EconomyEconomic system in which the brass largely decides what goods and services will be produced, who will get them and how the sparing will grow. Where the means of production are stake controlled and the allocation of resources are managed by centralization.What to produce? The goods and services produced in a command scrimping are those which the giving medications pick to produce to produces.How to produce? The presidential term recognises the method of production it can direct resources including labor, to whatever activity it choosesWhom to produce? The output of thrift is distri hardlyed in what the government sees fit. E.g. it may try to distribute goods and services as in order to minimize inequality.4.2 Free Market EconomyEconomic system in which decisions about what to produce and in what quantities are refractory by the foodstuff, that is , by buyers and venders negotiating equipment casualtys for goods and services. Where the competitive interaction of many manufacturing businesss and consumers without any disturbance of by government, provide the forces of demand and supply which allocate resources through the price mechanism.What to produce? Generally there is an economic incentive for the firm to choose to produce the most profitable goods and services and the se will be those which are in higher demand.How to produce? There is an incentive for firm to choose the production method which is the least costly and therefore is the most profitable.Whom to produce? The people who get the goods and services produced in a free trade are those who are will and able to pay the price for them.4.3 Mixed EconomyEconomic system in which allocation of resources is made by the market and some by the government. Where resources are allocated by a compartmentalization of free markets and government intervention. Simply in such a type economic there is the presence of private economic freedom and centralise planning with a common goal of avoiding the problems associated with both economic systems.5.0 Government of UKEconomy of UK changes every year. According PWC publication in United body politic their economy has grown high in the past year and they are expecting to keep that growth in 2014 as well. The government of UK controls the economy in diffe rent ways. Firstly through a legal standard military issue by parliament that creates new laws. Another way is through battle array of subsidies that create goods and services for people. And thirdly through taxation.5.1 UK Government PoliciesEvery government have their own aims and objectives to carry out their economic system. mains objectives in UK government are increase the economic growth, to maintain full employment, to stabilize transfigure rates, control the lump and to improve the standard of living of people in the country. To achieve these main objectives the government uses two main strategies.Fiscal insuranceMonetary insurance5.2 Fiscal indemnityFiscal insurance policy is the use of government spending and tax policies to stimulate or contract macroeconomics activity. This includes taxation and how government adjusts its expenditure. fiscal policy changes in the taxing and spending of the national government for purpose of expanding or contacting the level of a ggregate demand.5.3 Monetary PolicyThe actions central edge, currency board or other regulatory committee that determine the size and rate of growth of the money supply and interest rates. This includes interest rates and credit controls.5.4 The impact of Fiscal and Monetary policy on business organizationsIn United Kingdom monetary policy is controlled by the Bank Of England. According to Bank of England monetary policy called as monetary stability. Monetary stability means stable prices and confidence in the currency. Stable prices are defined by the governments inflation target, which the intrust seeks to meet through the decisions delegated to the monetary policy committee, explaining those decisions transparently and implementing them effectively in the money markets.In England fiscal policy is called as fiscal stability. Financial stability entails detecting and reducing threats to the financial system as a whole. This is pursued through the banks financial and other operat ions, including lender of last resort, oversight of key infrastructure and the surveillance and policy roles delegated to the financial policy committee.In UK mostly fiscal policy and cautionary policies have an influence on organizations. By fiscal policy government is influencing organization by receiving tax.E.g.- income tax, vat, BTT,By monitory policy the central bank will increase the interest rate for the deposits, then government will get more and more money, then they will increase the interest rate for loans, then organizations will not going to barrow loans from the bank likewise government influence the organizations, and some of social responsibility also will influence an organization.6.0 Types of Market StructuresMarket structure is used to delineate the number of buyers and sellers operating in a market. The extent to which the market is difficult in the hands of a small numbers of buyers and/or sellers and the academic degree of collusion or competition between buyers and/or sellers. We can distinguish four types of market structures1) Perfect Competition Perfect competition is a market structure where competition is at its greatest possible level. There are large number of buyers and sellers, and none begin influence prices.2) Monopoly- a firm that is the lone producer of a good for which there are no close substitutes.3) Oligopoly are industries dominated by a hardly a(prenominal) firms whose decisions are strategically linked barriers to entry tend to be significant4) noncompetitive Competition requires easy entry and exit in to industries in which many potential suppliers compete vigorously with makers of close, but not sinless substitute for their brand- name productsAccording to the above information following table can be describe the types of market structure.PerfectCompetitionMonopolyOligopolyMonopolisticCompetitionNo. of FirmsinfiniteonemanyfewProduct TypeHomogeneousUniqueHomogeneous or markDifferentiateFreedom of EntryUnr estricted cut back or blockedRestrictedunrestrictedControl overPriceNoneTotal satisfyingSomeSize of FirmsSmallLargeSmallVery largeProfitNormalEconomic profit.Short long run losses to normal economic in short long runEconomic in short run normal over long runImplicationsFor demand curveHorizontal(price taker)Downward sloping more inflexible than oligopolyDownward sloping relatively inelasticDownward sloping but relatively elasticPossible consumer demand extremely elasticHighly inelasticInelasticElastic6.1 Pricing and output decisions of market structures generic wine office supplies, most agricultural and few relatively homogeneous goods are produced by Perfect Competitive markets. Each buyer or seller is too insignificant to single handedly affect the total demand or supply of the goods. There acting as price takers in this market they have no choice but to accept the price set in the market. The demand is perfectly elastic in perfect competition. The producer tires to sell goods for a high price he wont be able to sell because other competitors also selling for the equal price. The demand curve of monopoly market slops down prices will be inversely related to quantity demanded. Any firm with market supply must lower its price to sell more if it can charge only one price at time. Market power is a firms ability to alter the price of its output because of pitiful competition or a lack of perfect substitutes for its products.