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The Business Environment

In: Business and Management

Submitted By oliverrs88
Words 830
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Assignment 1: The Business Environment
Lisa Oliver
May 7, 2013

The cornerstone and prosperity of any society depends on business. Through business, companies create resources that enable social development and welfare. Because we have a capitalistic economy, business is the main component of it. Business is in every corner of every sector of the market. Most everything you can possible think of that relates to the economy is business. Retail, services, agriculture, manufacturing, health care, even political campaigning all involves business. Even when civilizations were based on an agricultural type of economy, business transactions occurred.
Businesses provide goods and services that our daily lives depend on and also create employment. It is through business that the government is paid taxes from, to make it function. Business helps to develop, produce and supply goods and services to people (customers) who need it. This is done with a view of creating profit. Business helps people to fend for themselves by focusing on producing product or by expertise. Business also helps society to create jobs for customers, distributors and suppliers. It helps to develop new goods and services and to supply goods and services that customers may not produce.

For-profit organizations are those organizations established mainly for profit purposes. These organizations are important in the economy for they involve research and development. This leads to better and dynamic efficiency. Organizations, such as oil exploration, are for-profit, and without them the economy can become stagnate. They also contribute to tax revenues from the government while result in profits getting saved to provide for during unexpected downturns. They also result into awards of shareholders leading to people buying shares.
Nonprofit organizations are those organizations that, in the course of their business, can generate income, but are restricted on the amount of income that is distributed in comparison to generated. Non-profits organizations are those firms that provide essential goods and services, but not for profit purposes. Thus, they are organizations for mutual benefits or for charities. Organizations like health centers supported by the government are not for-profit as they provide essential services to all people regardless of their status. Nonprofit organizations have a role to play in efficiency to meet clients’ needs at the lowest possible price. Through nonprofit organizations, the government can correct failures in the stock market.

Every major market trend has some underlying economic factors, like declining employment, rising GDP, or inflation. Fiscal policy is an economic policy instigated by the congress or the president through taxation and government spending. Increase of taxes means less disposable income for consumers, thus, little money to spend. Turning to the U.S., there has been a slow economic recovery from 2008 and, thus, we have a weak job creation, although expansionary fiscal policy seems to have averted a deeper recession in 2010.
Monetary policy means that the Federal Reserve of the U.S. controls the supply of money within the country’s economy. Thus, by affecting the cost of money, it affects the amount of money spent on businesses by consumers or by businesses. Maintaining a supportive monetary policy should be encouraged to help the slow pace that has been experienced during the recovery.

Wal-Mart is a U.S. leading retail store chain that has a global presence serving more than 200 times a week at more than its 8,000 retail outlets in 15 countries under different banners. First established in 1962, the retail chain has grown to be one of the biggest employers in the world. The company’s retail stores are operated in diverse designs dividing the business into 3 main segments, namely: Sam’s club, Wal-Mart Stores and International stores.
Wal-Mart was focused on establishing large discount stores within small towns during its early years of operation; this ensures that low prices are guaranteed for each transaction and attract potential customers. Consumers always expect Wal-Mart to sell lower than its competitors and, as always, Wal-Mart delivers, thus, making the business highly recognizable. This interaction between the business and the customers gets established through trust. The potential strategy has seen Wal-Mart grow in its global businesses. Corporate Social Responsibility (CSR) involves the acts that are undertaken by corporate organizations in addressing a wide array of stakeholder concerns. Thus, the organization expands its business activities to a new and different dimension by involving the society as a whole. CSR, therefore, enhances its value from few community members to the whole world.
Coca Cola believes that it has a duty not only to contribute to the community, but also to target initiatives that will have a maximum impact on the environment. In Great Britain, Coca Cola has identified to cooperate with the public, NGO and government to seek solution to the environment problems. Coca Cola is committed to take actions that result in minimizing negative environmental impact and it strives for constant improvement that seeks to provide leadership in energy and water efficiency and eliminate solid waste.

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