Hnc Marketing Assignment
Business Environment | Unit 4 – Assignment 2 | |
December 2008
Contents
December 2008 1 Assignment 2 3 Unit 4 – Business Environment 3 Introduction 3 Section 1 – Investigate the economic, social and global environment in which organisations operate. 4
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Assignment 2
Unit 4 – Business Environment
Introduction
This assignment covers outcomes 2 and 3 of unit 4 – The Business Environment
The learning outcomes are:
Section 1 – Investigate the economic, social and global environment in which organisations operate.
1.a Explain how economic systems attempt to allocate and make effective use of resources. As part of your discussion, make reference to the Planned / Free market and Mixed economies.
Rodrigue (2008) states that economic s systems deal with the relationships between production (supply) and consumption (demand). Four elements define production: * Manufacturing – the process of utilising raw materials and making them into finished goods. * Regulation – production systems are controlled and regulated by governments. * Circulation – the transportation of finished goods and the communication link between all parties * Distribution – goods and services made available to the consumer by retailing.
Factors of production include land and natural resources, capital and labour, with enterprise considered to be the fourth factor as the main purpose of the organisation.
Resources are available to every individual depending upon their personal wealth or income. Income can be exchanged for goods and services which enable us meet our own particular needs or wants.
Resources are usually in three or four categories, as illustrated below:
Figure 1 – Economic Systems
Types of Economic Systems
Xxx
The centrally planned economy – this type of system which is associated with the post-Second World War socialist economies of Eastern Europe, China and Cuba. The central planning authority makes all
December 2008
Contents
December 2008 1 Assignment 2 3 Unit 4 – Business Environment 3 Introduction 3 Section 1 – Investigate the economic, social and global environment in which organisations operate. 4
|
Assignment 2
Unit 4 – Business Environment
Introduction
This assignment covers outcomes 2 and 3 of unit 4 – The Business Environment
The learning outcomes are:
Section 1 – Investigate the economic, social and global environment in which organisations operate.
1.a Explain how economic systems attempt to allocate and make effective use of resources. As part of your discussion, make reference to the Planned / Free market and Mixed economies.
Rodrigue (2008) states that economic s systems deal with the relationships between production (supply) and consumption (demand). Four elements define production: * Manufacturing – the process of utilising raw materials and making them into finished goods. * Regulation – production systems are controlled and regulated by governments. * Circulation – the transportation of finished goods and the communication link between all parties * Distribution – goods and services made available to the consumer by retailing.
Factors of production include land and natural resources, capital and labour, with enterprise considered to be the fourth factor as the main purpose of the organisation.
Resources are available to every individual depending upon their personal wealth or income. Income can be exchanged for goods and services which enable us meet our own particular needs or wants.
Resources are usually in three or four categories, as illustrated below:
Figure 1 – Economic Systems
Types of Economic Systems
Xxx
The centrally planned economy – this type of system which is associated with the post-Second World War socialist economies of Eastern Europe, China and Cuba. The central planning authority makes all
Bibliography: BPP (2004) HNC/HND Business Environment Course Book, Walsall, W M Print Newbould and Luffman (1979) Successful Business Policies, London, Pearson Education www.onmediaia.com NHS pension change could cause staff exodus [14/12/08]