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A business can be described as a dynamic and ever-changing environment that constantly
expands. It is the multinational corporations and other publicly listed firms that provide the fuel
for the global stock markets and the local businesses that are the drivers of our economy.
Entrepreneurship is advancing at an incredible pace, boosting global economies and reshaping
our communities. A business is any activity that involves providing products and services to
make a profit. That sector is essential to our economic well-being because it allows for the goods
and services we use, the employment we perform to make a living, and the taxes that
governments collect to run our nations (Wiedmann et al., 2018). There are four primary
resources known as factors of production that are used to power all enterprises. Natural resources
are among the elements of production because they must be harvested, processed, or harnessed
before they can be employed as the fundamental building blocks of enterprises. The second
aspect that contributes to the growth of a firm is the Capitol, which comprises equipment, tools,
buildings, information, and technology. Human resources are the individuals who do the physical
labor of generating and contributing to the workforce. They are the third factor of production,
known as the labor force (Cepel et al., 2019). The fourth element is entrepreneurship since firms
would not be as successful as they are today if they did not have the vision and determination to
start a business and grasp an opportunity.
Evaluate the broad approaches to organization and management
Managers can define departmental groups using five primary methodologies: functional,
divisional, matrix, team, and networking. All of the structures are fundamental frameworks to an
organization that may be personalized to accomplish particular demands of an organization. All
five techniques incorporate components of mechanical and organic architecture in varied
proportions. The functional structure divides roles into work units based on tasks, abilities,
knowledge, and resources related to one another. Production, marketing, finance, and human
resources are examples of functional groupings found within an available structure (Moller et al.
2020). As a result, specific departments may be developed to aid managers in huge organizations
who may find it challenging to keep the path of things of all of the items and activities associated
with their firm
The departments are organized into classes depending on their produce. Such divisions
include divides created to distinguish between geographical categories of customer service and
production, just a few instances of them. Divisional structure is the term used to describe this
arrangement of departments. The matrix structure blends functional specialization, emphasizing
a divisional structure to create a unique organizational structure (Cepel et al., 2019). This
organization uses a permanent cross-functional team to integrate functional knowledge with
divisional concentration. The team structure is a way of combining various functions to achieve a
common purpose. These cross-functional teams bring together people from many departments to
discuss challenges and explore options (Boukhatem and Moussa, 2018). The objective is to
reduce departmental, functional barriers and improve teamwork to solve chronic issues.
Understand the economic environment of business
The economic climate in the United Kingdom has been beneficial for companies, with
GDP growth being steady in recent years. However, the economy is currently beset by
uncertainty. The present Brexit negotiations and the anticipated increase in future trade costs are
all factors to consider. The COVID-19 epidemic, Brexit, and other events have all contributed to
a rise in the inflation rate, which had been dropping as recently as 2017. According to the
International Monetary Fund, systematically returning to WTO trade regulations would result in
long-term output losses in the United Kingdom. Although the political atmosphere in the United
Kingdom was pretty beneficial for businesses, the government of the United Kingdom has
increased corporate taxes to 19% (Ward and Harriet, 2020). It was claimed that the rate would be
lowered to 16 percent by 2020. This element may lead to an increase in product pricing. The
national minimum wage has been raised to £8.72, which is an upsurge of 2%.
The consumer market in the United Kingdom is substantial. The laws and policies of the
government are overwhelmingly in favor of defending consumer rights and environmental
regulations. It is expensive to run a business in the United Kingdom. According to the
Department of National Statistics, births remain to outpace deaths, and the population is
predicted to reach 74 million by 2039, according to the figures given (Cherunilam, 2021). The
population is becoming of an elder age, and it will have more ramifications in the long term.
Additionally, it will impact the job economy and health care. Although there are still billions of
chances for various organizations to meet the requirements of the aging population, the
population of the United Kingdom is diverse.
Examine the nature of economic activity in the business market
According to World Bank, the economic growth rates of the United States throughout the
1990s were competitive with other major industrialized nations. This has resulted in a fall in
manufacturing's impact on GDP, accounting for around one-fifth of overall GDP, with services
accounting for the vast bulk of growth. Over time, the United Kingdom's primary trading
partners rose to justify for not less than a part of its total physical product trade by the early years
spanning from nations of its former empire to other members of the European Union. America
remained a critical investor and trading companion; nevertheless, Japan emerged as a significant
stakeholder in the country's domestic manufacturing sector (Cherunilam, 2021). Companies from
the United States and Japan have always picked the UK as their European headquarters.
Additionally, several quickly expanding East Asian nations with economies on export-oriented
listed the open market of the United Kingdom as one of their most important export markets,
according to the World Bank.
United Kingdom structured financial markets are integrated through a sophisticated
network of exchanges. Global stock exchanges include the International Stock Exchange, which
compacts in publicly traded stocks and shares and stocks; the Unlisted Securities Market, which
deals in smaller enterprises; and the third market, which sells in small, unlisted trades (Moller et
al. 2020). Money market operations include the certificates of deposit, short-term deposits
trading of bills of exchange, trading of sterling commercial papers, and short-term deposits.
Identify and understand the main reasons why countries benefit from engaging in
international trade with each other.
International trade between nations is crucial in providing jobs, increasing living
standards, and allowing customers to pick from a more extensive choice of goods and services
than they could otherwise afford. Although international commerce has existed since the
beginning of civilizations' trade, it has gained importance in recent years. A more significant
proportion of GDP is devoted to exports and imports than in prior years. It is widely
acknowledged that international trade has a considerable influence on the development of living
standards and eradicating poverty. Throughout the vast majority of the country, it accounts for a
significant share of its gross domestic output (GDP) (Cherunilam, 2021). In our contemporary
economic environment, international trade may be considered the backbone of the system.
Producers from various nations, rather than being constrained to selling exclusively inside their
borders, are attempting to enhance their earnings by expanding their market reach as much as
possible. Some elements that help international trade include lower manufacturing costs,
specialized sectors, a lack or surplus of natural resources, and client preferences.
As a result of international trade, each country may maximize the use of its natural
resources to the maximum extent feasible. Each country can concentrate its efforts on
manufacturing items for which its natural resources are most suitable. It helps to guarantee that
resources are not wasted in any way. A country can also receive things that it cannot
manufacture or that it is not producing owing to high costs by importing them from other
countries where the cost of production is cheaper than in its own country. Throughout the globe,
nations can sell goods that they have in excess on the world's international marketplaces (Belas
et al., 2019). It eventually leads to large-scale manufacturing, and the benefits of large-scale
production may be enjoyed by all countries worldwide. Consumers worldwide benefit from
increased efficiency and advantages as a result of international commerce. The inhabitants of
various nations come into contact with one another regularly. The interchange of ideas and
cultures occurs due to commercial transactions between nations throughout the world. It fosters
international collaboration, understanding, and social connections between different countries.
An organization's capacity to recognize its vulnerabilities and prospective threats is
dependent on the firm's business environment. Depending on the conditions, a corporation may
be dominant in some sectors while being weak in others, or vice versa. An internal audit should
be carried out by the organization to identify and address any weaknesses or threats as soon as
possible. As a result, an organization's operations and product development risk are reduced, and
the organization's overall risk is also reduced. A procedure for the creation of new products To
establish the external environment, methods like PEST analysis and Porter's Five analysis are
used. To determine the internal environment of a company, tools such as value chain analysis
and SWOT analysis are utilized. The direction in which an organization is traveling, how it could
achieve an objective and competitive advantage, the fulfillment of stakeholders' expectations,
and the reaction to the environment are all aspects of strategy. Because every business operates
in a different context, each organization has developed its system for success to adapt to that
Belas, J., Belás, Ľ., Čepel, M. and Rozsa, Z., 2019. The impact of the public sector on the quality
of the business environment in the SME segment. Administratie si Management Public.
Boukhatem, J. and Moussa, F.B., 2018. The effect of Islamic banks on GDP growth: Some
evidence from selected MENA countries. Borsa Istanbul Review, 18(3), pp.231-247.
Cepel, M., Belas, J., Rozsa, Z. and Strnad, Z., 2019. Selected economic factors of the quality of
the business environment. Journal of International Studies.
Cherunilam, F., 2021. Business environment. Himalaya Publishing House Pvt. Ltd.
Möller, K., Nenonen, S. and Storbacka, K., 2020. Networks, ecosystems, fields, market systems?
Making sense of the business environment. Industrial Marketing Management, 90,
Ward, Jenna, and Harriet Shortt, eds. Using arts-based research methods: Creative approaches
for researching business, organization, and humanities. Springer Nature, 2020.
Wiedmann, T. and Lenzen, M., 2018. Environmental and social footprints of international trade.
Nature Geoscience, 11(5), pp.314-321.