Meeting Global and Local Needs - Coursework Example

Business Environment - Meeting Global and Local Needs Table of Contents Task 3 2. Describe the Extent to Which an Organization Meets the Objectives of Different Stakeholders 4 1.3. Explain the Responsibilities of an Organization and Strategies Employed To Meet These Responsibilities 5 D1. Critically Evaluate the Responsibilities of Siemens to Meet Stakeholder’s Objectives 6 Task 2 6 2.1. Explain How Economic Systems Attempt To Allocate Resources Effectively 6 2.2. Assess the Impact of Fiscal and Monetary Policy on Your Chosen Business Organizations and Their Activities 7 2.3. Evaluate the Impact of Competition Policy and Other Regulatory Mechanisms on the Activities of a Selected Organization 7 M2. Assess the Current Monetary and Fiscal Policies Impact on Siemens Performance 8 D2. How Can Siemens Successfully Perform Their Business Activities In Current Regulatory System? 9 Task 3 9 3.2. Illustrate the Way in Which Market Forces Shape Organizational Responses Using a Range Of Examples 10 3.3. Judging How the Business and Cultural Environments Shape the Behaviour of a Selected Organization 11 M3. Explain How Market Structures Determine the Pricing and Output Decisions of Siemens 11 Task 4 12 4.2. Analysis of the Impact of Global Factors on UK Business Organizations 13 4.3 Evaluation of the Impact of Policies of the European Union on UK Business Organizations 13 D3. Demonstrate the Impact of Global Factors on Siemens Business Actions 14 References 15 Task 1 1.1. Identify the Purposes of Different Types of Organization There lay varied sorts of organisations that include government as well as non-government organisations, commercial, charitable, co-operative and partnership based organisations. The purposes of these organisation types have been listed below. Government: One of the prime purposes of government organisations is to protect individuals from any sort of conflict and maintain law as well as order. The responsibilities of this organisation type in recent years have extended to public service (Fletcher, 2005). Non-government: These organisation types basically work for the purpose of serving people without having the intention of making profits (Fletcher, 2005). Commercial: A commercial organisation is a firm or a company, which is integrated to conduct businesses to attain significant profit (Fletcher, 2005). Charitable: Charitable organisations are basically non-profit in nature. The main purpose of this organisation type is to serve the community as a whole and delivering public benefits (Fletcher, 2005). Co-operative: It is a type of organisation, which performs varied functions democratically and owned by its shareholders (Fletcher, 2005). Partnership: It is such an organisation type, which mainly comprise two or more partners in order to conduct a business. In this organisation type, the partners involved utilise the available resources and thereby share profits equally or proportionately (Fletcher, 2005). 1.2. Describe the Extent to Which an Organization Meets the Objectives of Different Stakeholders It is quite obvious that different stakeholders possess diverse needs along with objectives. An organisation mainly works towards meeting its predetermined goals along with the objectives of the stakeholders. It can be apparently observed that organisations mainly create a business plan, which helps in complying with the objectives of diverse stakeholders by a certain degree (Morris & Baddache, 2012). It is strongly believed that the stakeholders can be benefited only when organisations provide value added products to the customers. This will certainly make the stakeholders to obtain substantial profits and help them to obtain high dividends. Apart from these, the aforesaid aspect will also provide the employees with better salary. Furthermore, this will also boost the productivity of the organisations to meet customers’ demand and thereby serve the stakeholders effectively. The organisations can meet the objectives of the stakeholders by satisfying customers’ requirements, enabling such organisations to observe rise in profit margin. Thus, the formulation of an effective business plan will help the organisations to meet stakeholders’ objectives by a certain extent (Boutelle, 2004). 1.3. Explain the Responsibilities of an Organization and Strategies Employed To Meet These Responsibilities One of the imperative roles along with responsibilities of an organisation is to serve customers in accordance with their respective demands and preferences. An organization must work under the boundaries of law. In this regard, the belief as well as the reputation of an organisation frames a vital part (Heslin & Ochoa, 2008). It is worth mentioning that an organisation must possess the capability to make proper financial control owing to the reason that inadequate finance will certainly make it to suffer huge and might result in losing its position in the business markets wherein it operates. Observably, corporate social responsibility (CSR) is mainly described as one of the vital parts of corporate business. The notion CSR mainly signifies that the organisations must adhere to varied ethical, environmental along with legal standards when performing diverse business operations. Furthermore, business enterprises focusing on developing CSR responsibilities must work and earn profits in such a way, which will help in fulfilling the hopes of the societal members. Every business should adhere to the social values and norms within a specific business setting (Amato & et.al, n.d.). In addition, maintaining sound environment, providing quality products and responding to customers’ complaints will certainly help the organisations to build a renowned position in the competitive business markets. M1. Identify and Find the Mission and Objectives of Siemens Based on the Siemens case study, it can be asserted that the mission of the company is to expand its business worldwide. The company has come up with new ideas and concept to improve the quality of life and the way an individual works. The company has managed to serve the society and have significantly increased the number of employment in various sectors. This certainly made the company to mark a prominent place in the market. Siemens serving the healthcare, transport and energy market worldwide desires to serve the global market and also to perform well. The company also desired to form as well as maintain long-term relationship with both the public as well as the private sector organisations. The company has managed to successfully grow and expand its business along with complying with the demands of the growing market. D1. Critically Evaluate the Responsibilities of Siemens to Meet Stakeholder’s Objectives From the provided Siemens case study, it can be apparently observed that the organisation has managed to meet the objectives of the stakeholders by a certain degree. Siemens have greatly expanded its business, which clearly reflects that the organisation is serving well in the business markets. The trend of providing excellent service has made the stakeholders to attain substantial profits. The success of Siemens can be witnessed as it marked a dominant position in the field of Information and communication. The excellent services and the growth of Siemens imply that they have been able to fulfil the objectives of is stakeholders at large. Task 2 2.1. Explain How Economic Systems Attempt To Allocate Resources Effectively In an economic system, organisations desire to meet the growing demands of the customers. It also takes into concern the fulfilment of the aforesaid objective through the production of quality products and/or services. The production of goods and/or services primarily depends on the availability of workforce, capital and valuable resources (Gupta & Steenburgh, 2008). The absence of these aspects within the organisations will certainly make these to suffer. Thus, it is quite necessary to understand the proper distribution of resources as it will help the organisations to meet the growing demands of the consumers worldwide (Green & et.al, 2000). The proper allocation of resources within the organisations will help in providing quality products to the final customers. 2.2. Assess the Impact of Fiscal and Monetary Policy on Your Chosen Business Organizations and Their Activities Fiscal policy mainly takes into concern the changes made in taxation polices. This mainly asserts that lower the income tax, higher the income of an individual can be witnessed. This will then make the business to invest more and organise resources efficiently. On the other hand, monetary policy relates to the fluctuations of the interest rates that eventually create problems for various organisations (Kretzmer, 1992). It is worth mentioning that the lowered interest rates will provide the organisation i.e. Siemens to expand its business in diverse nations. However, both the fiscal along with monetary policies may form complexities or problems, hindering the organisation to develop its operational processes at large (Dahan, 1998). The imbalances of these policies within Siemens may greatly affect the workflow at large. 2.3. Evaluate the Impact of Competition Policy and Other Regulatory Mechanisms on the Activities of a Selected Organization The impact of competition policy and other regulatory mechanisms on the activities of Siemens can be judged mainly through acquiring various opportunities relating to entry barriers into the competitive market. It can be affirmed from a broader understanding that competition within the markets will result in enhancing the economic performance of any country (The World Bank Group, 2010). This will substantially increase the productivity of Siemens, resulting in raising business opportunities within the markets wherein it operates. Apparently noted, competition policies and other regulatory mechanisms impose considerable favourable impact in the form of fostering innovation as well as making considerable growth in economy. The competition within the market results in lowering the price and provides better deal to the firms. Moreover, the competition prevailing in the respective market raises the productivity of the organisations, making them to survive in the markets wherein they operate (Faure & Zhang, 2011). M2. Assess the Current Monetary and Fiscal Policies Impact on Siemens Performance From the case study of Siemens, it can be apparently observed that the revenue of the company greatly increased with the passage of time. The performance of Siemens reflects that the company is not highly impacted by current monetary and fiscal policies. The expansion of Siemens has made it to touch the lives of several individuals. On the other hand, the current monetary as well as fiscal policies imposed considerable impact on the performance of Siemens, which can be reflected in the form of meeting the customers’ demands along with their preferences keeping income tax rates quite lower. It will be vital to mention that the lower tax and interest rates have influenced Siemens to improve its performance across different sectors. D2. How Can Siemens Successfully Perform Their Business Activities In Current Regulatory System? The success of Siemens reflects that the company does not face any restriction from the government side. The company follows the trend of providing quality services to the customers. In the current regulatory system persisting within the UK, Siemens can successfully perform its business activities through following certain lawful guidelines as well as norms as frame by the government of the nation. Moreover, the company can successfully perform its varied business activities in the current regulatory system in the form of acquiring a brief idea about the prevailing business market conditions and identifying the outcomes through following the governmental norms or lawful regulations. Task 3 3.1. Explain How Market Structures Determine the Pricing and Output Decisions of Businesses It is quite obvious that the market structures impose certain level of impact on pricing of a particular firm. It will be vital to mention in this similar concern that the firms belonging to this modern day context does not remain much free towards setting their own prices of they desire to reap maximum profits (Srivastava, n.d.). Generally, sales output and pricing of products are interdependent to one another, excluding the case of perfectly competitive market. It can be apparently noted that in perfectly competitive market, a particular firm appears to be quite small as compared to the entire market, wherein the prices does not get affected (Davis & Garces, 2009; Dwivedi, 2009). In almost every market structure, there lays a control in pricing. In relation to the case of oligopoly market, the firms take into concern the prices set by their competitors, which is not seen in the case of monopoly market. The monopolists possess the power of changing the prices, as they are the sole provider of the goods in the respective markets wherein they operates (Davis & Garces, 2009; Dwivedi, 2009). 3.2. Illustrate the Way in Which Market Forces Shape Organizational Responses Using a Range Of Examples An organisation mainly works towards reaching its business goals. Specially mentioning, the forces that mainly influence the buyers along with the sellers in a market include supply along with demand (Chang, 2005). It is the demand of the products in the market, which causes their price to rise, whereas excess in product supply may result in lowering the product price. On the other hand, market forces shaping organisational responses can be well understood through discussing various elements of Porter’s five forces. Threat of New Entrants: An organisation prospering well may find that the entry of new firms may decrease its profit margin. Threat of Substitute Products and/or Services: The presence or the availability of huge quantity of products ultimately makes the customers to switch to other alternative products that might be due to the factor of price differentiation (Magretta, 2013). Bargaining Power of Buyers: it is a situation wherein customers acquire a brief understanding about the market situations and thus put pressure on lessening product prices or improving the product quality. Bargaining Power of Suppliers: This mainly relates to the influence of setting price of a product in the respective business markets. Rivalry among Existing Competitors: Rivalry within the industry players can influence profits through various significant factors like innovation, promotion and providing quality products to the customers (Magretta, 2013). 3.3. Judging How the Business and Cultural Environments Shape the Behaviour of a Selected Organization The business and cultural environments play an imperative role in shaping the behaviour of a selected organization. It is worth mentioning that these aspects help in proper functioning of an organisation such as Siemens. This proper functioning eventually helps in attaining the desired business goals of an organisation in the form of raising profitability and developing productivity. It can be affirmed from a broader understanding that the business as well as the cultural environments will shape the behaviour of Siemens through various ways. These ways include identifying the current market trends, monitoring the preferences along with the needs of the customers, making effective decisions and utilising the accessible resources effectively. Apart from these, the proper follow of information may also aid in shaping the organisational behaviour of Siemens at large (Cojocaru, 2011). M3. Explain How Market Structures Determine the Pricing and Output Decisions of Siemens Siemens possess a perfectly competitive market structure. The diverse activities that perform by Siemens have made it possible for the company to meet the demands of its consumers. The company has gained a better reputation in the UK business market. Siemens have made it possible to provide quality products to the consumers by forming its market structure in accordance with their respective choices and preferences. The performance and the quality products provided by the company have supported it to globally expand its business. The demand of the services, which the company provides reveal that the price does not greatly affect the market. It is worth mentioning that the services provide by Siemens reflect one of their core competencies, which largely determines its pricing along with output decisions at large. Task 4 4.1. Discuss the Significance of International Trade To UK Business Organizations The significance of international trade to the business organisations of the UK can be judged through various ways and the benefits that reap by such organisations. It is ascertained that due to the conduct of international trade, the business organisations of the UK can visualise wide variety of goods and services with a reasonable price. It is worth mentioning that without the international trade, the business and the economy of various countries could not cope up with the competition on the global platform (Great Britain National Audit Office, 2009). The notion of international trade has provided various UK based business organisations to expand their respective businesses globally and also to cope up with the competition prevailing in the international level. Clearly mentioning, with the influence of international trade, the business organisations of the UK and other European nations have certainly attained the benefits like cheaper rate for the resources, labour and many related elements from developing nations like India and China (Great Britain National Audit Office, 2009). 4.2. Analysis of the Impact of Global Factors on UK Business Organizations The global factors that impacted the UK business organisations have been discussed in the following. Political Factor: It is worth mentioning that the political factors greatly affect the business process across the UK. The business organisations operating in the UK business markets have to follow the policies and the regulatory norms of the UK government (Zakic & et. al., 2008). Social Factor: This mainly relates to the changes of perception, taste and buying behaviour of the customers. It also relates to the function of business, which determines how much the business organisations of the UK attract their customers. The positive social environment prevailing in the UK has attracted several firms, as they have been able to meet the demands of customers globally (Zakic & et. al., 2008). Economic Factor: This relates to the changes made in the economic policies globally. This also relates to the living standards of the people residing within the UK based on which the products are marketed by the organisations. It is worth mentioning that the factors affecting the economy of the UK include inflation rate and interest rate (Zakic & et. al., 2008). 4.3 Evaluation of the Impact of Policies of the European Union on UK Business Organizations The impact of the policies of the European Union on UK business organisations have been clearly demonstrated in the following. Employment Policy: The governments of various nations play an imperative role in providing employment. The present role of the government in the UK encourages international trade. This will certainly generate ample job opportunities in the nation(Hug, 2013). Regional and Inflation Policy: European Union has attempted towards raising funds and made these available to support the regions wherein there exists high unemployment. The government took certain steps in order to make sure that there does not lay sudden increase in price. The Monetary Policy Committee of the Bank of England helps in setting interest rates with the belief that the policies relating to inflation can be controlled by a considerable extent (Hug, 2013). D3. Demonstrate the Impact of Global Factors on Siemens Business Actions From the case study of Siemens, it can be seen that the company has suffered more in the international business markets. The fluctuations in the currency have greatly affected the company. The rise in the value of Euro against Dollar has affected its overall performance. This certainly changed the perception of the customers towards the company. However, the company i.e. Siemens endeavoured towards offering top class services to the customers. The increase in the interest rates has certainly made the company to invest substantial amounts in searching the suppliers providing cheaper raw materials. Thus, it can be affirmed that the global factors including fluctuations in the currency rates and raise in the interest charges have impacted the business actions of Siemens at large. References Amato, A. D. & et. al., No Date. Corporate Social Responsibility and Sustainable Business. A Guide to Leadership Tasks and Functions. [Online] Available at: http://www.ccl.org/leadership/pdf/research/CorporateSocialResponsibility.pdf [Accessed July 04, 2014]. Boutelle, J., 2004. Understanding Organizational Stakeholders for Design Success. Who Stakeholders Are And Why They Matter. 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