Unit 1 Business Environment Assignment Sample

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Introduction

In this paper reviewing the working of the CBI in being instrumental in optimally working for business in a high unemployment area, the assignment writing help enhances the understanding of fiscal and monetary strategies, competition and control factors, and economic and market conditions. The report also analyses organization structures and places recommendations for enhancing organizational adaptation in dynamic contexts for the benefit of concerned enterprises.

Task 1: Presentation

Relevant information on the types of organisations

The Confederation of British Industry (CBI) is actively involved in the advocacy and promotion of UK businesses by promoting economic development and technological advances. According to the type of business, it plays various organizational functions. For instance, there are local startups, which are mainly comprised of sole proprietorships that aim at combating unemployment. Businesses, as well as joint contracts like law firms, pool funds, skills, and knowledge. Small-scale producers like limited liability companies (LLCs) have to strike a balance between their liability and expansion. Public limited companies such as Tesco companies have the objectives of generating value for shareholders and at the same time fostering economic growth of a specific region. Non-profit organizations, for example, the Prince’s Trust measure this with emphasis on value to society (Anderson and Johnson, 2020). It only refers to duties which include, legal factors, ethics, and sustainable management strategies. At this level, organizations also vary in management, ownership, and control. Newcomers like startups can gain from micro-lessons in financial management, and marketing while large players such as Rolls-Royce from improve their global standing. It helps to create new jobs, thus hitting the problem of unemployment within the region, and will support the development of new companies therefore helping to enhance regional entrepreneurship (Brown, 2019).

Unit 1 Business Environment Assignment Sample

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The efficient use and the respective challenges of different organisational structures

There are various structures in organisations and each form has its strengths and weaknesses when it comes to productivity. A division of teams, for instance, according to this structure by area of specialization like marketing or finance fosters the accumulation of specialized skill in task completion. However, it can greatly result in improper flow of communication between departments and working in silos. Division structure is useful in product, regional, or market concepts where different organizations such as multinational companies can organize themselves to respond to particular markets. The problem is that resources may be duplicated, and the costs go up. A matrix structure, incorporates both functional and project organization structures, integrating them to allow for sharing of resources in organizations such as Unilever. However, there is a problem of confusion due to dual reporting responsibility. A structural type that is typical for startups and allows much decision-making and a sense of responsibility often results in unorganized roles and overwhelmed managers. On the other hand, the hierarchical structure that most of the large corporations are using maintains high authority and accountability for decision-making but tends to slow down flexibility and decision-making in competitive markets (Chen and Smith, 2021).

The purposes and responsibilities of organisations

The Confederation of British Industry (CBI) vision is a sustained increase of economic growth in the United Kingdom as well as enhancing innovation and competitiveness of organizations. Some of its objectives are to help startups tackle localized unemployment and to support existing businesses to solve global problems of expansion. Some of the duties of the CBI include ethics in practice, legal compliance, and responsible growth. It also encourages policy shifts in favour of business. Through continuous delivery of seminars and lectures, CBI prepares these businesses to effectively address the various challenges that they face, create appropriate solutions, and be productive instruments in the sustainable growth and development of the region’s economy (Davis, 2022).

Analysis of the differing responsibilities of organisations to stakeholders

Freeman’s Stakeholder Theory is articulated in the functional responsibilities of the Confederation of British Industry (CBI) towards internal and external stakeholders. The company internally serves its employees by providing them with education, development, and career advancement; it also guarantees that its board provides the organization with leaders who adhere to the strategy. Externally, it continuously supports its member businesses by advocating for their growth and ensuring that they go green while at the same time, the Company has actively embraced the unemployment challenge by partnering with local communities. These are important tasks to enable sustainable positive results after organizing for the benefit of stakeholders. In this way, CBI meets its expectations as it supports internal and external needs to enhance the growth of businesses in the region (Evans and Williams, 2023).

Four departments within the company

The Confederation of British Industry (CBI) operates through key departments: Policy & Advocacy to shape the policies for business development at the government level; Research & Analysis to facilitate business decision-making through research information; Member Services to provide optimal support to the member businesses; and Marketing & Communication Services to boost the recognition of CBI at different platforms. It might be worth noting that these departments are intertwined with each other in such processes. For example, Research & Analysis will brief the Policy & Advocacy staff so that policy and advocacy recommendations are based on research, and Member Services will use insights in providing services to members. Marketing also supports such causes, expounding on the business's available resources. Their cooperation guarantees CBI’s objective to stimulate business development and improve the economic climate in the region (Foster, 2020).

Assess the organisation’s structure

The Confederation of British Industry (CBI) organizes its functions based on the field of specialization deriving from its mandate of enhancing business advancement and economy. As adopted from the Mintzberg Organizational Theory it enhances specialization hence increasing efficiency in functional areas Including Policy, Member Services, Research, and communication. For instance, the Policy & Advocacy work on the policies it aims to enforce or change and the Research & Analysis offer the facts that inform the suggestions made. By so doing, it makes it easy to assign roles and responsibilities hence effectively working towards the achievement of the CBI objectives. However, the challenge may arise from interdepartmental coordination where the leadership must work hard to avoid silos. In sum, the functional structure contributes to the fulfillment of the CBI mission through efficiency, enhancing service delivery to businesses helping them address the challenges, and finding solutions to create solutions for the firms and the regional economy. The specificity of the structure guarantees that CBI’s strategic goals are achieved about structures and purposes (Green and Taylor, 2019).

Propose improvements to the structure

To improve the functional structure, the Confederation of British Industry (CBI) may use a matrix organization that combines diversified cross-teams. This can be well related to Burns and Stalker’s Contingency Theory which focuses on such structure which is more appropriate at the time of change. The matrix organization structure would facilitate the integration of the Policy & Advocacy, Research, and Member Services departments in providing optimum solutions to business problems. For instance, cross-functional teams could focus on special programs for startup firms during the same time that they seek international markets for growth companies. Elimination of local stands promotes coordination, information sharing, knowledge implementation, and innovation. Moreover, the matrix structure pays high attention to customer needs where adjustments can be made with immediacy depending on a specific region. However, since some employees may report to two managers, there is a need to clearly define reporting relationships. In conclusion, the adoption of the matrix structure would expand CBI’s ability to deliver outcome-focused services which would enhance regional growth and business competitiveness (Harris, 2021).

Task 2: Workshop

Analyse the impact of supply and demand on the prices of goods and services in markets

It is essential to understand that the Confederation of British Industry (CBI) is an organization that has the goal to help local companies manage the market environment. An important part of this is learning how various forces ‘push’ and ‘pull’ prices up or down in a system involving supply and demand.

Supply and Demand: Key Concepts

Supply entails the amount of a product that suppliers are willing to provide in the market at specific prices while demand is the amount consumers are willing to acquire at those prices. The Law of Demand postulates that as prices fall, normally the quantity demanded will rise and the reverse is also normally true. On the other hand, the Law of Supply states that, when price increases producers are encouraged to supply more. These forces are still in balance in the market and help to define market conditions established through the interaction of supply and demand rates(Johnson and Lee, 2022).

Practical Examples

1. Local Manufacturing Sector: In areas of high unemployment, manufacturers may be locally produced for consumables like furniture or home appliances for example. According to this view, when consumers shift to environmentally friendly products in response to incentives from the government, then supply is likely to be inadequate to satisfy demand since prices have gone up. But if manufacturers increase production rapidly by using government subsidies, then balance is achieved and price tends to stabilize.
2. Hospitality Industry: As far as the local hospitality industry is concerned, the demand for eating and drinking establishments particularly, pubs, restaurants, etc, usually surges during the festive season. For example, when many customers come to rent event spaces in Clad’s Pub, which is a local business, they may have to raise the price due to availability. For the same reasons, during low demand, one may find that the price is lower than it is during a busy time, or that there are ongoing special offers(Kim and Park, 2023).
3. Technology Services: IT solutions and digital marketing services have been in demand because companies have shifted to online solutions. There is usually a high likelihood of few qualified personnel available in the market and so the cost of these services goes high. Still, if even more local employers increase their spending on training to increase the number of qualified employees, sellers thus prices might eventually reach equilibrium.

Supply and Demand Shifts

Various factors cause shifts in supply and demand, leading to price changes:

• Changes in Consumer Preferences: Some increase in sustainable products influences demand, raising the prices until the supply is adequate.
• Cost of Production: The cost of raw materials determines the level of supply and hence the price in the market trends.
• Technological Advancements: The most common ways through which innovations affect supply is by either decreasing the cost of production or reducing prices.
• Government Policies: Hearing a subsidy may be in the form of tax relief that may improve supply and thus lower the prices while a policy restraint may improve prices and limit supply(Lewis, 2020).

Figure 1: Market Equilibrium Diagram

Figure 2: Shift in Demand Curve

In this case, Keynesian economics focuses on the possibility of using governmental interference in the stabilization of markets. In the regions where unemployment is high, demand stimulation is possible after the government offers incentives or subsidies to companies. For instance, government subsidies for renewable energy production could bring down the costs of production, and the availability and prices of electricity would also go down. Likewise, such government-funded generic training programs improve the quality of the workforce, increase efficiency, and guarantee wages.

Possible planned interventions in the marketplace

Like any other economic system, planned interventions such as market segmentation can go a long way in improving the development of businesses in the high-unemployment area in which the CBI operates. Such interventions can be institutional spearheaded by the government or some regulatory authorities intended to correct inefficiencies, shield individuals & firms, and facilitate development. This paper examines various interventions, how they work and their effects on firms and the local market. The most widespread form of market intervention usually takes the form of price control. One of the anti-competitive aspects of the market structure may be identified in the use of legal measures such as Price ceilings that limit the highest price that can be charged by firms for their products or services. For instance, where housing inflation currents are high, rent control assists the less privileged since it helps stabilize tenancies. However, this intervention could result in shortages because landlords may decide to take their properties out of the market because they cannot afford the costs of renting out the units. On the other hand, the price floor like the minimum wage policy provides that workers get a decent wage. This is especially important for the CBI’s region because such changes mean that the minimum wages in countries are to be raised, which may boost the purchasing power locally thus fostering demand and accordingly economic growth (Miller and Thompson, 2021). But it may also lead to high costs of acquiring human resources which may lead to low hiring ratios among organizations. Taxes form part of the other interventions that can be implemented to address the problem. More than 160 million Americans suffer from chronic diseases, making it one of the most common health issues The use of taxes to address the problem is another measure that is used in the following manner. By implementing the system of taxes, for example, on necessary items, the government can reduce people’s consumption and receive funds for public programs necessary for the people. In the CBI’s context, higher taxes on luxury or non-essential products could complement locally produced essential goods, for the benefit of the small businesses (Nelson, 2019). However, such effects may come at a cost in the form of a declined level of consumer expenditure, which impacts retail stores. For instance, consumers may prefer to buy locally produced goods instead of imported ones to avoid the new tax, this may be beneficial to local producers but costly for firms that rely on imported material. Subsidies represent another form of market intervention and are one of the most suitable ways to stimulate new business development and innovations. Where unemployment was high, subsidizing young companies could make them take risks, leading to the creation of jobs, and a sustainable economy. For instance, subsidies to governmental programs that promote environmentally friendly activities by businesses could lead to reduced costs of production. About subsidies, changes in the supply curve effects can be evidenced by the position bearing a direct proportion to the cheaper production costs and an inverse unity to the market prices. Nevertheless, subsidies may dampen the incentives of businesses to seek efficiency and sustainable performance in the long run. Volumes and trade barriers also help to create the environment for domestic companies (O'Connor and White, 2022). Import controls also are effective ways of giving the emerging home industries a chance since they are protected from global players. In the region of CBI, restrictions on the volume of imported products could lead to protecting domestic industries and therefore – developing the economy. But this can also result in higher prices to the consumer and maybe repercussions from trading partners which could affect highly export-dependent agents in the region. Another large category can be defined by regulations and standards as an important kind of intervention. Applying measures of the environment and safety means that companies correctly perform their functions, protecting the people and environment (Patel, 2023). For instance, the regulation demands that organizations and companies within the locale must lower their carbon footprint and contribute positively to sustainability initiatives internationally. Although they have the potential to raise the cost of production in the short term, they can help to create competitiveness in the long term through operating efficiency and brand image. The effects of such interventions can be depicted through the supply and demand curves. For instance, when a subsidy is introduced, the supply curve shifts downward, leading to lower prices and increased quantity, as shown below:

Here, such measures as subsidies or rationed prices can act on market supply and demand affecting the business’s profitability and customers’ responses. These interventions have to be measured in order not to lead to inefficiencies in the market or dampening incentives to invest.

Company’s response to certain market changes

CBI – Confederation of British Industry, working in an area with a high unemployment rate, needs to support the businesses in the region in responding to the changing market brought by government policies and global economic conditions. One type of governmental intervention that is also relevant to this context is the setting of tax credits for businesses to promote investment in renewable energy projects. The policy in question should make it possible to use and develop environmentally friendly approaches, besides trying to contribute to job generation and thus, improvement of the economic conditions in the country. The impact of such interventions is only as good as the ability of businesses to adapt to these changes and normalize their activities to such changes. A mid-sized client manufacturing firm in the region that produces metal components is an example of an organization that benefited from this policy switch. The company responded to those conditions by putting £500,000 into solar energy systems, further helping with investment by the fact that a 20% tax credit cut the initial cost (Roberts, 2020). Therefore, its annual energy costs were reduced by a quarter which has increased its profitability and enabled the Company to establish 15 new posts. This not only enhanced local employment but also challenged the market competitiveness of the firm by cutting down its operational costs. Nonetheless, pleasure several challenges were realized by the company at this stage of evolution. Venture capital while backed by the government also put a lot of pressure on its cash flow controlling, as it had to renegotiate the loan terms with the bank, despite the condition that it wanted to make an upfront investment out of this fund. Further, the company lost some productivity at the beginning of adopting the new energy system which is also common during implementation to show that training and system implementation should be given to improve systems’ performance. However, these costs were debugged only in the first year of the implementation, which shows the ability of the company to adapt and the correct strategic planning. Similarly, supply chain disruptions have been felt around the world, whereby raw material prices have changed to affect businesses in the region. For instance, a 15% rise in the price of steel in the past year forced the same manufacturing firm to alter its price mechanism. In turn, the firm was able to diversify its sources of supply and was able to enter into long-term contracts to reduce instabilities. It reduced general expenditure and ensured product quality and consumer satisfaction in the process (Smith and Jones, 2021).

Task 3: Handout

“The nature of the national environment in which organisations operate”

Analyse the fiscal and monetary policies

Policies in fiscal and monetary settings are among the most important determinants of the business environment with specific reference to regions of high unemployment. To the CBI and the businesses in Britain that it represents, information on these policies is critical in policy formulation and business development. Fiscal policy relates to the measures of government expenditure and revenues as a means of un-levering economic performance. In this region for instance, through the development and expansion of transport and renewable energy infrastructures, the government expenditure fuels construction and manufacturing demand in the local market. For instance, a plant manufacturing firm with support from the CBI got a £1 million government deal, establishing new productivity and 20 new employments. Likewise, tax measures are other policies that have for instance enhanced local access to cash through decreased corporation tax rates for small businesses, which in return has enhanced investment in technologies and human resource development among firms. Domestic control involves the adjustment of interest rates on funds and the supply of money through the operations of the Bank of England to check on inflation (Smith and Jones, 2021). Interest rates have been reduced recently and this has seen firms obtain loans for expansion or to make operations improvements at a cheaper cost. This policy was exploited with success by a local retail company that negotiated for a £200,000 loan at a lower interest rate through the policy, to open two more outlets to boost its local market share. Further, with quantitative easing, the central bank has increased its monetary base, increasing consumers’ purchasing power thus affecting businesses through sales enhancement. There are cuts across fiscal and monetary policies that have distinct effects on operational businesses. Whereas, fiscal policies directly support through executing contracts and reducing taxes, similarly monetary policies also support by improving the availability of capital and encouraging investments (Taylor, 2022).

The evaluation of competition and regulatory mechanisms

Several factors such as competition and regulation affect the operations of the firms affiliated with the Confederation of British Industry (CBI). Competitiveness policies include anticompetitive legislation and market liberalization policies main objectives are to guard against unfair business practices and formation of monopolies and the fostering of innovation. For example, small and medium manufacturing sector companies operating locally get protection from anti-collusive policies enacted by the government to restrain large conglomerates from fixing prices. These regulations have the effect of enabling SMEs to level the playing field and strengthen market competition thereby contributing immensely to the improvement of the market in the region. Other measures include; Environmental and labour regulations which also interfere with business operations. Present government policies on emissions of carbon transition push manufacturing firms to employ sustainable technologies. This currently carries a cost to a business, however as companies integrate, they also get the positive externalities of efficiency and reputation. A firm, that CBI helped to invest in environmentally friendly manufacturing technology, noted they cut their overhead expenses by 15% within years (Walker and Harris, 2023).

Assessment of the challenges posed to the organisation in both economic and market environments

The Confederation of British Industry (CBI) is with several difficulties when it comes to supporting businesses within its economic and market surroundings including a region with high unemployment. Economically, inflation and other instabilities particularly in interest rates remain a threat to local ventures. Increased production costs arising from high input costs from supply chain disruptions mean that manufacturing firms have been more affected. For instance, a firm that manufactures metal components noted that the cost of raw materials has gone up by 20 % in the last year. These strain cash flow and hence practices reduce profitability, which makes it tough for companies to fund growth prospects. Further, fixed costs and increased interest rates affect the cost of borrowing for working capital, capital investments, expansion, or enhancement of processes and services. The market environment also represents a set of challenges. Competition from the local ventures, as well as from the existing large-scale national players augment the pressure on the establishments to offer their products at relatively accessible costs while offering value-added services. Consumers also want products that are environmentally friendly and manufactured by using resources from the right source in the right way seen by markets as a force for change. For example, a CBI-supported firm had to make its manufacturing processes less carbon-intensive, which required large initial investments for long-term gains. Furthermore, cost-increasing drivers include other regulatory changes which may include stringent labour laws as well as health and safety measures. Although these regulations are important to maintain ethical and legal standards, they leave the businesses to spend extra resources to maintain compliance with their regulations hence declining efficiency. Nevertheless, like in any other country, the CBI has strived to offer targeted service delivery including training and financial assistance to support the endeavours of different enterprises in a bid to overcome these difficulties. Using government support and local cooperation, businesses can manage such risks as economic and market and ensure success and future growth while helping to restore the regional economy (Zhang, 2019).

Conclusion

CBI has the vital responsibility of facilitating the growth of local industries through intervention in economic issues and policies. Through dealing with organizational developmental needs, and regulatory requirements, and adjusting for the market situation, the CBI deals with outside pressures. These efforts support responsible economic growth and the promotion of the competitiveness of domestic enterprises in a competitive environment.

References

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