INTRODUCATION
Organization does not exist in isolation. They ar part of the society (or even, societies) within which they operate and, as such, exit within a complex web of relationship which from their environment. And that is always changing indeed, the pace of change appears to be spending up and the modern world is characterized as much by its turbulence as by any nation of stability.
This turbulent environment presents both threats and opportunities to business. The threats are that the organizations current ways of operating and or the goods and services they produce will no longer be viable under new conditions in the future. The opportunities come from the possibilities of new ways of operating and the production of new goods and services which will be successful in the change conditions.
So, business organization constantly has to come to terms with the changing nature of the forces acting upon them within their environment. They need to understand how to national and international economic and political situation affects them, what influence social attitudes and structures have on them, how theology affects their activates and operations, what the legal formwork within which they operate requires of them, and how they work in context of the broad ecological concerns of the modern world.

DEFINITON OF BUSINIES ENVIORNMENT
The combination of internal and external factors thatinfluence a company's operating situation. The business environmen can include factors such as: clients andsuppliers; its competition and owners; improvements intechnology; laws and government activities; and market, social and economic trends.

efinitionSave to FavoritesSee Examples

A person, group or organization that has interest orconcern in an organization.
Stakeholders can affect or be affected by the organization'sactions, objectives and policies. Some examples of key stakeholders are creditors, directors, employees,government (and its agencies), owners (shareholders),suppliers, unions, and the community from which thebusiness draws its resources.
Not all stakeholders are equal. A company's customers areentitled to fair trading practices but they are not entitled to the same consideration as the company's employees.
An example of a negative impact on stakeholders is when a company needs to cut costs and plans a round of layoffs. This negatively affects the community of workers in the area and therefore the local economy. Someone owningshares in an business such as Microsoft is positively affected, for example, when the company releases a newdevice and sees their profit and therefore stock price rise.
See also corporate governance

Definition of or A social unit of people that is structured and managed to meet a need or to pursue collective goals. All organizations have a management structure that determines relationshipsbetween the different activities and the members, and subdivides and assigns roles, responsibilities, and authorityto carry out different tasks.

private limited company

DefinitionSave to FavoritesSee Examples

A type of company that offers limited liability, or legalprotection for its shareholders but that places certainrestrictions on its ownership. These restrictions are defined in the company's bylaws or regulations and are meant to prevent any hostile takeover attempt.
The major ownership restrictions are: 1. shareholders cannot sell or transfer their shareswithout offering them first to other shareholders for purchase, 2. shareholders cannot offer their shares to the generalpublic over a stock exchange, and 3. the number of shareholders cannot exceed a fixed figure (commonly 50).

ganization (NPO)

DefinitionSave to FavoritesSee Examples

Associations, charities, cooperatives, and other voluntary organizations formed to further cultural, educational, religious, professional, or public service objectives. Theirstartup funding is provided by their members, trustees, or others who do not expect repayment, and who do notshare in the organization's profits or losses which are retained or absorbed. Approved, incorporated, or registered NPOs are usually granted tax exemptions, andcontributions to them are often tax deductible. Most non governmental organizations (NGOs) are NPOs. Also callednot for profit organization.

Different Stakeholders in Business

by Neil Kokemuller, Demand Media [pic]
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Hiring for employee diversity has become more common in the early 21st century.

Stakeholders are different groups of people that have an interest in the operations of a business. Shareholders are a prominent stakeholder group for a publicly-owned company. However, customers, communities, employees and business partners are stakeholder groups that have taken on more significance in the early 21st century business environment in which social responsibility is more expected of businesses.
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Customers and Community

The early 21st century business environment has led to more emphasis on building long-term relationships with core customers. Companies more often view this as the driver of business viability and long-term profitability. Ethical responsibility to customers and giving back to communities through community involvement and charitable donations are more common. Straightforward, honest communication and transparent accounting are among common expectations of customers and communities.
Related Reading: What Are the Stakeholders' Objectives in an Organization?

Employees

A changing viewpoint of employees is a primary consideration of the prominent corporate social responsibility(CSR) business ideology. According to the As You Sow Foundation, CSR-adherent companies treat employees as their most valued assets. They provide fair working conditions and a non-discriminatory work environment. Additionally, employee involvement has become increasingly prominent, and many employees want a voice in important business decisions.

Business Partners

Many businesses rely strongly on partners that help them provide the best value for their customers. Retailers have become increasingly reliant on strong supplier relationships to provide the best quality products at the optimal price points for their customers. Supply chain partners often collaborate on transportation and logistics, distribution processes and environmental preservation. Companies not only have business accountability to partners, but often have ethical responsibilities toward them.

References (3)

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About the Author

Neil Kokemuller has been an active writer and content media website developer since 2007. He wrote regular feature articles for LiveCharts for three years and has been a college marketing professor since 2004. He has four years of additional professional experience in marketing, retail and small business, and he holds a Master of Business Administration from Iowa State University.

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What Are the Stakeholders' Objectives in organisation

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[pic]The stakeholders of an organization have diverse objectives and interests.
An organization's stakeholders are the individuals or groups that influence or have an interest in the firm's actions and decisions. The major stakeholders in a company include shareholders, government, employees, customers and creditors/bondholders. They have different objectives and goals based on their diverse interests in the firm. Objectives are what the stakeholders seek to achieve. Each stakeholder looks to protect his own interests by ensuring his objectives have been met.

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• [pic]Organizational Responsibilities
• [pic]What Are the Duties of Stakeholders?

Shareholders

o Shareholders have a stake in the firm through their share ownership. A company's managers act as custodians of the firm on behalf of the shareholders. They either earn capital gains through the sale of shares or earn dividends declared by the firm. Their objectives therefore include but are not limited to share price growth, growth in dividends and growth in the value of the shares.

Employees

o Employees are the workers employed by the firm. Employees include both management and subordinate staff. They directly influence the profits of the firm since they are involved in the day-to-day operations. Among their top priorities in return for their services include job satisfaction, remuneration, job security, motivation and self-actualization. They are also interested in the company's survival and growth as their jobs depend on it.

Government

o The government is a major player in any business environment as it plays a regulatory and supervisory role. The government aims to ensure that all companies abide by the existing legal provisions. Matters such as tax payment, licensing, standardization and protection of consumer welfare form part of the objectives of the government with regards to companies.

Customers

o Customers keep companies in business by purchasing their products and subscribing to their services. They are important players, thus every business should ensure that it does not compromise their needs. Customers want to achieve value for their money through quality products, reliable services, good customer care and fair prices, among other factors.

Creditors/Bondholders

o Creditors provide financing to the company by issuing loans and buying corporate bonds. They are important as they help to meet the firm's capital budgeting needs. Their objectives include receiving repayment on loan amounts and interests earned. The firm's credit rating is also of their primary concern, as they need a guarantee that their money is secure.

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Related Searches • Financial Objectives • Stakeholders • Business Goals Objectives • Organization • Management by Objectives
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References

• "Financial Management"; Pandey I.M; 2003 • "Intermediate Financial Management"; Brigham E.F, Gapenski L.C; 2006 • NHS Employers: Stakeholder Analysis • 12 Manage: Stakeholder Analysis • Photo Credit Comstock Images/Comstock/Getty Images
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Economic system

From Wikipedia, the free encyclopedia
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Circulation model of economic flows for a closed market economy.
An economic system is the system of producing and distributing of goods and services and allocating resources in a society. It includes the combination of the various institutions, agencies, entities (or even sectors as described by some authors) and consumers that comprise the economic structure of a given community. A related concept is the mode of production.
The study of economic systems includes how these various agencies and institutions are linked to one another, how information flows between them, and the social relations within the system (including property rights and the structure of management).

Among existing economic systems, distinctive methods of analysis have developed, such as socialist economics and Islamic economic jurisprudence. Today the dominant form of economic organization at the global level is based on capitalist market-oriented mixed economies.[1]

Economic systems is the category in the Journal of Economic Literature classification codes that includes the study of such systems. One field that cuts across them is comparative economic systems. Subcategories of different systems there include:

• planning, coordination, and reform • productive enterprises; factor and product markets; prices; population • public economics; financial economics • national income, product, and expenditure; money; inflation • international trade, finance, investment, and aid • consumer economics; welfare and poverty • performance and prospects • natural resources; energy; environment; regional studies • political economy; legal institutions; property rights.[2]

Contents

[hide] • 1 Components • 2 Types o 2.1 Types of socialist systems o 2.2 Types of capitalist and mixed economies o 2.3 Types of anarchist and libertarian economies o 2.4 Other aspects • 3 Evolutionary economics
4 Co • • ntext in society • 5 List of economic systems • 6 See also7 Further reading • 8 References • 9 External linksComponents[edit]

There are multiple components to economic systems. Their interaction may be coherent or result in instability. Decision-making structures of an economy determine the use of economic inputs (the factors of production), distribution of output, the level of centralization in decision-making, and who makes these decisions. Decisions might be carried out by industrial councils, by a government agency, or by private owners.

Every economic system represents an attempt to solve three fundamental and interdependent problems:

• What goods and services shall be produced and in what quantities?
Every economic system represents an attempt to solve three fundamental and interdependent problems:

• What goods and services shall be produced and in what quantities? • How shall goods and services be produced? That is, by whom and with what resources and technologies? • For whom shall goods and services be produced?? That is, by whom and with what resources and technologies? • For whom shall goods and services be produced? That is, who is to enjoy the benefits of the goods and services and how is the total product to be distributed among individuals and groups in the society?[3]
Thus every economy is a system that allocates resources for exchange, production, distribution and consumption. The system is stabilized through a combination of threat and trust, which are the outcome of institutional arrangements.[4] An economic system possesses the following institutions:

• Methods of control over the factors or means of production: this may include ownership of, or property rights to, the means of production and therefore may give rise to claims to the proceeds from production. The means of production may be owned privately, by the state, by those who use them or be held in common. • A decision-making system: this determines who is eligible to make decisions over economic activities. Economic agents with decision-making powers can enter into binding contracts with one another. • A coordination mechanism: this determines how information is obtained and used in decision-making. The two dominant forms of coordination are planning and markets; planning can be either de-centralized or centralized, and the two coordination mechanisms are not mutually exclusive and often co-exist. • An incentive system: this induces and motivates economic agents to engage in productive activities. It can be based on either material reward (compensation or self-interest) or moral suasion (for instance, social prestige or through a democratic decision-making process that binds those involved). The incentive system may encourage specialization and the division of labour. • Organizational form: there are two basic forms of organization: actors and regulators. Economic actors include households, work gangs and production teams, firms, joint-ventures and cartels. Economically regulative organizations are represented by the state and market authorities; the latter may private or public entities. • A distribution system: this allocates the proceeds from productive activity, which is distributed as income among the economic organizations, individuals and groups within society, such as property owners, workers and non-workers, or the state (from taxes). • A public choice mechanism for law-making, establishing rules, norms and standards and levying taxes. Usually this is the responsibility of the state but other means of collective decision-making are possible, such as workers’ councils.[5]

Types[edit]

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Marxist-Leninist Communist states (red) and former Communist states (orange) of the world.
There are several basic questions that must be answered in order for an economy to run satisfactorily. The scarcity problem, for example, requires answers to basic questions, such as: what to produce, how to produce it, and who gets what is produced. An economic system is a way of answering these basic questions, and different economic systems answer them differently. Many different objectives may be seen as desirable for an economy, like efficiency, growth, liberty, and equality.[6]

In a capitalist economic system (capitalism) production is carried out to maximize private profit, decisions regarding investment and the use of the means of production are determined by competing business owners in the marketplace; production takes place within the process of capital accumulation. The means of production are owned primarily by private enterprises and decisions regarding production and investment determined by private owners in capital markets. Capitalist systems range from laissez-faire, with minimal government regulation and state enterprise, to regulated and social market systems, with the stated aim of ensuring social justice and a more equitable distribution of wealth (see welfare state) or ameliorating market failures (seeeconomic intervention).

In socialist economic system (socialism), production is carried out to directly satisfy economic demand by producing goods and services for use; decisions regarding the use of the means of production are adjusted to satisfy economic demand, investment (control over the surplus value) is carried out through a mechanism of inclusive collective decision-making. The means of production are either publicly owned, or are owned by the workers cooperatively. A socialist economic system that is based on the process of capital accumulation, but seeks to control or direct that process through state ownership or cooperative control to ensure stability, equality or expand decision-making power, aremarket socialist systems.

The basic and general economic systems are:

• Market economy ("hands off" systems, such as Laissez-faire capitalism) • Mixed economy (a hybrid that blends some aspects of both market and planned economies) • Planned economy ("hands on" systems, such as state socialism or communism, also known as "command economy") • Traditional economy (a generic term for older economic systems) • Participatory economics (a system where the production and distribution of goods is guided by public participation) • Gift economy (where an exchange is made without any explicit agreement for immediate or future rewards)
Barter economy (where goods and services are directly exchanged for other goods or services)

Treaditional eco Very few traditional economies exist in the developed world, and those that do now include some aspects ofmodern technology in their methods of food production and manufacturing. A traditional economy is defined as one where the community uses primitive tools for food production. Members are still likely to hunt for and gather food, and this form of economy is usually found in rural regions of the world

Advantages tde

• One advantage of a traditional economy is that its members are close-knit and, by necessity, support each other. This reduces feelings of hostility that arise from competition for resources. The people feel secure because their roles are well-defined, giving them a psychological stability that other economic forms often lack. Also, everyone in the economy is employed in some activity. With full employment, there is little, or no, criminal activity. Food production is tailored to meet demand, but surplus food is never wasted and is used for trading.

Disadvantages tde

• One of the main disadvantages of a traditional economy is resistance to change. Members tend to cling to methods of production that have been used for generations and feel that what was good enough for their ancestors is good enough for them. As a result, production is lower than it could be, and this holds back the society's development. It may also affect development in the rest of the country. The members have a lower standard of living than in other economies. Also, the negative aspect of everyone having an allocated role is that some members may not like the role they have, and this lack of choice leads to lower productivity.

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• Business & Finance > • Investing > • Reference Question
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What are advantages and disadvantages of a market economy??

• Hannah N asked 6 years ago please help. i need 3 of each
Answer
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Best AnswerAsker's Choice

• presidentofallantarctica answered 6 years ago
Advantages:

1) Capital flows to where it will get the greatest return, expanding the total size of the economy to its maximum level.

2) Supply and demand are closely linked: Someone who has a good idea or product can quickly put it into the market so that it is available to those who want it. Conversely, when a certain type of product is desired by enough people, it is a simple matter for someone to provide it.

3) In a market economy, it is easier for someone with initiative and virtue to create a better life for themself and their family; economic freedom makes it eaiser to transform hard work and perseverance into material wealth.

(It is hard to think of any actual disadvantages, but here goes:)

Disadvantages:

1) Because the free market is a quasi-mirror of nature, those who are stupid, lazy, or just tragically unlucky are often relagated to poverty and misery. To redress this, it is necessary to create institutions outside of, or in addition to, the market so that the least valuable people do not become so poor and desperate that they drag down the rest of society.

2) A market economy promotes trust and openness, which leaves a society possessing it vunerable to enemies who wish to take advantage of that society's good will. it is the responsibility of the government to be watchful against such subversion even when the general public is not.

3) With a market economy and the freedom of choice it brings, people are able to make choices that are harmful to themselves. When parents do not teach their children to make inteligent choices, the total level of moral and physical disease, and vice in general will increase in a society. Each person can be their own worst enemy, and in a market economy, every citizen must be on guard against personal foolishness and irrationality, if they do not want to suffer the negative consequences of wrong action.

•