The Business Environment

Abstract
Business is the economy and the livelihood for living. There are five key dimension of business environment. For-profit and nonprofit organizations are businesses with two different objectives. Fiscal and monetary policies have been on a rollercoaster ride for the past several years. When will Americans get another tax break? Lately the impact of these polices have affected all working Americans and the economy as a whole. Global marketing is as accessible as going to your local grocery store. Ever wonder where that cool toy was manufactured. How much did it cost to produce? Organizations take on social responsibilities that impact schools, colleges, communities, workers, families, citizens, and churches.

The Business Environment
Business in the Economy Business is the heart beat of the economy. The role of business is the economy. With out small and larger businesses the economy wouldn’t exist. Business in the economy is the circle of life. Businesses promote growth; provide jobs for citizen who intern feed the economy with their earnings. When an individual spends supporting other business the boomerang effect takes place. Businesses pay government taxes which allow the government to support the common good of the people. Businesses also tend to make charitable donations to offset some of the tax burden; this is another means of affecting the common good of society. The government creates different programs to promote the growth of small and large businesses such as SBA. Also using the tax dollars to supports unemployed individual, provide healthcare and other necessary amenities. Many banks provide start up loans for businesses with good ideas. The entrepreneur spirit and the willingness to take a chance on the idea drive businesses and businesses drive our economy.

No business can be successful alone. Outside factors play a vital role in determining whether an individual business succeeds or fails. These successes or failures are often determined by five key dimension of business environment. • Economic Environment
Factors which have their affect on the working of the business
I.e. taxes, tariffs, overhead, interest rates, benefits cost, and insurance cost • Competitive Environment
The dynamic system in which a business competes with similar businesses
I.e. the number of businesses that provide the same goods and services in your area and the cost at which they sell these goods and services • Technological Environment
Tools that businesses can use to become more efficient and effective
I.e. computer software, hardware, and machines that allow a business to produce good or service customers more efficiently • Social Environment
Cover the demographics, or measurable characteristics of a population
I.e. appealing to a niche like surfboard manufactures or appealing to the masses like PC manufactures • Global Environment
Promotes the free market; funds projects to improve global environments
I.e. Global trade that allows both parties to benefit in some manner is usually beneficial for both economies.
Each of these key business environment points affects both individual businesses and the economy as a whole.

For-profit and Nonprofit According to Chuck Bean, Executive Director of the Nonprofit Roundtable they are not in the business for financial gain instead they are in the business of doing good. The for–profit organizations are in it for the financial gain. Although nonprofits still operate as a business, their main focus is to improve the quality of life in society. They employ people, take in revenue, produce goods and service, and contribute in a major way to our economic stability and growth. In order to keep a nonprofit business a successful organization it has to rely on individuals or groups to donate money, time and resources. For example Goodwill a non-profit organization that survives off the donation of individuals or groups, in turn, the sales of these donationed goods help to fund job training programs, employment placement services and other community-based programs. People who have disabilities, lack education, job experience, or face employment challenges, benefit from Goodwill business model. For-profits organizations are in it for the money. They sell their goods and services for profit to benefit the company rather than the people. For example Wal-Mart is a for-profit organization who sells their goods and services to the consumer. In turn they take some the profits and reinvest in the company, opening new locations and investing in the free market trades. The more successful a for-profit company is, in theory, the greater there ability to employ larger numbers. This has shown to greatly benefit an economy by creating more consumers. This is also shown to develop a higher standard of living in a society.
Discuss the impact of the current fiscal and monetary policy on the economy

To understand the current fiscal and monetary policy one must know the meanings. Fiscal policy refers to the government efforts to influence the economy through taxation and spending decision which are designed to encourage growth, and boost employment, and curb inflation. Monetary policy refers to the actions that shape the economy by influencing interest rates and the supply of money. The current fiscal policy has impacted each working American that pays payroll taxes. This year increase by 2% is a reversal of the 2011 decrease that was implemented to help boost the economy. Now at 6.2%, this translates to about $700 on average per worker annually. Every year the government must create a yearly budget. This financial plan outlines taxes, fees, revenue, and expected spending. Monetary policy benchmark rates then guides all interest rates. When interest rates are high, the money supply contracts, the economy cools down, and inflation is prevented. When interest rates are low, the money supply expands the economy heats up, and a recession is avoided -- usually. The U.S. monetary policy is managed by the Federal Reserve known as the central bank of the United States. Although the federal government runs the Federal Reserve they don’t own it. Instead, they’re owned by the member commercial banks in their individual districts. The current monetary policy impact the economy by lowering interest rates making it more appealing for consumer to borrow and spend.

Outline strategy for accessing global market In creating an outline one must first identify your target market. The product I choose is educational video games. The target market for the product is kids. In today’s society the younger generation is more advanced when it comes to electronic devices. An educational game is a way to teach your child the benefit of learning and retaining information. This product will be offered as an affordable option in comparison to the competition, in the same marketing and service groups.
The educational video games allow your child to have fun and learn at the same time.
Product features: • Teaches sign language • Foreign language (English, Spanish, French) • Basic Algebra • History • Internet interaction with teacher and students • Plus, more innovative features The strategy for globalizing the product will be internet advertising, Cable T.V (popular kid, and family channels), magazine ads, and billboard advertising. These ads will focus on the testimonials of successful improvement of product use. We will create an affect website to promote the product. Find different online companies that offer ads space in return for them to use our website to promote their business. Another venture will be setting up kiosks in local malls for demonstrations and information of our product. This will spread word of mouth sales. Offer free demonstration of product to schools in less fortunate countries. This will help market the product to a wide range of countries and boost the moral of the company.
Social Responsibility on stakeholders Waste Management Inc is perfect organization to discuss the impact level of social responsibility on a stakeholder group. They are the North America’s leading waste collector, serving over 20 million residential, industrial, municipal and commercial customers. In 1992 Hillsborough County, Fl instituted a program named “Keep Tampa Bay Beautiful”. Keep Tampa Bay Beautiful is the local affiliate of Keep America Beautiful, which is nation’s largest volunteer-based community organization. Along with several other companies, Waste Management partnered with the county to offer special services for families living in Hillsborough County. WM provides drop off sites through-out Hillsborough for resident to dispose of their unwanted bulk items. The residents are responsible to haul there items to the location, but once there the county provides staff to assist residents in loading items in the dumpster. WM provides these dumpster, the hauling and disposing of the refuse at no charge to the residents or Hillsborough County. WM does not pay the disposal charges on these loads, but they still have to pay employees and fuel used on these special collection days. By donating there time and resources WM impacts communities by allowing residents to dispose of these items. These items often are illegally disposed of by residents in wooded areas or along roadsides. This co-op between the county and Waste Management has a huge social and environmental impact. Through the responsible disposal of these items such as paint, used tires, furniture and appliances WM helps keep Tampa Bay Beautiful. As a citizen of Tampa community I am thankful that these eye-sores and environmental hazard are mitigated by Waste Management’s involvement in such a program.

References
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