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Assignment on Business Environment
Unit - 01
Assignment-1: Organizational purpose and environment of business operation.
- Organizational purpose and environment of business operation.
Crown cement is the latest addition export cement in Bangladesh. Crown cement starts their business in 1991. Crown cement is a private sector and its factories are located in Dhaka, Chittagong and Mongla. Total production capacity of crown cement is about 3.8 million tons in a year.
Crown cement mission is to be design and develop the manufacture to the market specific product line for sale on the basic of certain distribution channels in particular geographic areas, crown cement mission is to provide high quality cement for solid foundation of its physical intra-structure in Bangladesh.
Crown cement vision is to contribute to the nation by creating opportunities in the areas of industrial growth and development.
Crown cement values is to governing the operation of the business and conduct or build a relationship with society at large, customer supplier, employee, local community and other stakeholders.
The objectives of Crown cement are to element explicity state of the business in terms the result its needs or want to achieve in the medium or low term. To achieve the regular topic profit (expressed as return on stakeholder’s funds) our company objectives should relate to the expectation and requirement of all major stakeholders including employees and should reflect and underlying reasons for running the business.
Crown cement goal is to achieve the ultimate time-based measurement by implanting the strategies in pursuit of the company. They focus on the market (size and share) product, finances, profitability, utilization and efficiency.
Crown cement has been pursued by considering its customer demand and satisfaction, the demand of quality cement is being increasing gradually in different construction works in home and abroad. Crown cement is serving the customer with the unique and best services and become the more profitable business, days by days their demand and growth are increasing.
Crown cement profit margin is very high. The amount of cement now annually in Bangladesh is about 5 million tons and 3 million per year met through imports. Per capita consumption of cement in the country (38 kg) is fairly low compared to India (89 kg), Indonesia (127 kg), Malaysia (582 kg) and Thailand (642 kg).
Sinali bank is the largest and leading nationalized commercial bank by proclamation. Sonali bank was established in 1972. Sonali bank has been converted to public limited company with 100% ownership of the government. Management of the bank has been given required autonomy to make the bank. It is competitive and its run its business effectively. Sonali bank is governing by eleven board of director. The bank is headed by the chief executive officer and managing director, who is a well known banker and a reputed professional. The corporate head quarter of the bank is located at Motijheel, Dhaka, Bangladesh.
Sonali bank mission is to dedicate to extend a whole range of quality product that support divergent needs of people aiming at enriching their lives.
Sonali bank vision is to be a socially committed leading banking institution with global pressure.
Sonali bank wants customers trusted partner in innovating banking.
Sonali bank objectives is to provide all kind of commercial banking services to its customers including accepting deposits, extending loans and advances, discounting and purchasing bills, remittance, money transfer, foreign exchange, transaction, guarantee and commitments.
Sonali bank goals are to socially committed as a leading banking institution with global presence.
Sonali bank growth is very good as their strengthen the capital base of the bank and the ability to arrange business expansion. The fund rises through public issue that generally used for leading and investment.
Sonali bank profit increase every year, the services contribute more than 10% of the total revenue. The chart of profit is given below-
Interest Income (gross)
- The purpose / objectives of different stakeholders.
Definition of stakeholders:
A stakeholder is a person, group or organization that has an interest in the organization. Stakeholders have needs and expectations and can be internal or external to an organization.
Among the stakeholder of Crown Cement:
- Managing director
- Independent director
- Other stakeholder (customer).
As a stakeholder chairman look after the whole company, as Crown cement is well known cement company and they are doing their business for 40 years in these line. Crown cement look after the quality of the line, accurate weight and excellent services.
Director represents non-executive position on the board particular those selling direct to customers and households to take steps to reflect customer’s interests on the board.
Managing director wants high profit not only lead to good dividends but also wants greater investment retailed in the business.
Independent director led to developing recommendation for a harmonized and up-graded regulatory regime of the stock exchange in the foreign department.
Other stakeholder (customer):
They participate of share ownership amongst all employees and help align interests of stakeholders and employees.
- The responsibilities of an organization and strategies employed to meet them.
According to the power matrix grid-
Chairman of Crown cement stands at B, which is high power, high interest, decision maker and they can influence the outcome of the company. Chairman look after the quality of the line and accurate weight and services.
Director stands at A, which is high power and low interest. They need to be satisfied even if they have no interest in the project. Director represents non-executive positions on the board particular those selling direct to the customers and households.
Managing director stands at B, where high power, high interest matrix, the decision makers and they can influence the outcome of the company. Managing director wants high profit not only leads to good dividends but also wants grater investment retained in the business.
Independent director stands at C, where low interest and low power. Independent director led to develop recommendation for a harmonized and upgraded regulatory regime of the stock exchange.
Other stakeholders stand at D where the people in the high interest and low power quadrant should keep informed by the project team. They participate of share ownership amongst all employees and help interests of shareholders and employees.
2.1. Wants and scarce resources.
Wants: Wants is which will buy us the things we want rather than the thing we need which provide the motive for economic activity.
Scarce: Resources are scarce when they are insufficient to satisfy people wants. Scarcity is a relative concept. It relates the extent of peoples want to their ability to produce goods and services.
Economic: Economy is the study of the production and consumption of goods and the transfer of wealth to produce and obtain those goods. Economic explain how people interact within market to get what they want or accomplish certain goods.
Command economy: Command economy is centrally planned economies; the state owns and controls the economics resources, which are allocated according to a national plan.
Free market economy/ market economy: Market economy resources are privately owned. Markets are free from government control and market prices have a great influence on the ways in which economic resources are used.
Mixed economy: Mixed economy is which both the state and private sector direct the economy.
- What to produce?
- How to produce?
- For whom to produce?
In mixed economic there are no pure command or pure market economy. Therefore, non-government firms and individuals decide what to produce.
In command economy, the government makes the decision on what to produce, how to produce and gets it.
2.2. The impact of fiscal and monetary policy on business organizations and their activities.
Definition of fiscal and monetary policy:
Fiscal policy is the government spending politics that influence macroeconomics conditions. These policies affect tax rates, interests and government spending in an effort to control the economy.
Fiscal policy is involves adjusting government spending on goods and services like transfer payment and taxes. Sonali Bank uses expansionary fiscal policy where it helps to increase aggregate demand by increasing government bank spending, increasing transfer payment, unemployment compensation or welfare payment and decreasing tax.
Monetary policy is maintain through actions such as increasing the interest rate, on changing the amount of money banks need to keep in vault.
Monetary policy can be use lower interest rate, which help the customer to spend more and make borrowing less expensive boost demand. Sonali Bank uses monetary policy to fall exchange rate, which cause imported inflation, which may increase consumer spending on imported goods and services. Customer can saves more and borrow less where foreign exchange rate of the national currency may rise, which makes import less expensive. Customers are able to buy more instead of home goods. Therefore, bank can cut output and employment because of the lower demand bank will pay more to borrow.
2.3. Data protection tax 1998.
Rights of appeal:
According to the act 1998 Crown cements follows the law rights of appeal.
- A person on whom an enforcement notice [F1 an assessment notice] F1, an information notice or a special information notice has been served may appeal to the tribunal against the notice.
- A person on whom an enforcement notice has been served may appeal to the tribunal against the refusal of an application under section 41 (2) for cancellation or variation of the notice.
- Where an enforcement notice [F2 an assessment notice] F2, an information notice or a special information notice the company contains a statement by the commissioner in accordance with section 40 (8) [ F3, 41B (2) ] F3, 43 (5) or 44 (6) then, whether or not the person appeals against the notice, he may appeal against-
- The commissioners decision to include the statement in the notice. Or
- The effects of the inclusion of the statement as respect any part of the notice.
- A data controller in respect of whom a determination has been made under the company section 45 may appeal to the tribunal against the determination.
- Schedule 6 has effect in relation to appeal under the section and the proceeding of the tribunal in respect of any such appeal.
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