The Economic And Legal Environment Business Essay


Introduction to business is a course designed to introduce the students to the principles and functions of business. Also, it is to provide the students with a basic overview of the business environment. Others than that, it is used to introduce the students to the concepts and terminology of business and economics. Analyzing and studying also will be assisting by the students with a providing background. Besides, it is to acquaint the students with the various functional areas of the firms: economics, management, marketing, human relations, finance, business law and how these interact.

2.0 Introduction to Business Environment

Business environment consists of the factors surrounding that either help prevent the development of the business. It takes a person of life, natural resources and places and things that exist. The sum of all these factors and forces called the business environment. There are five elements in the business environment, the economic and legal, technological environment, the competitive environment and the latter is the global environment. Marco is the power and institutional environment outside the organization that potentially can affect the performance of the organization come under the external business environment consists of economic demography, forces of nature, culture and politics.

2.1 The Economic and Legal Environment

Lady using a tablet
Lady using a tablet


Essay Writers

Lady Using Tablet

Get your grade
or your money back

using our Essay Writing Service!

Essay Writing Service

The economic and legal environment the part of the entrepreneur's risk involves in the economic system and how the government works with or against business.

2.1.1 What can government do?

Government can do a lot to lessen the risk of starting, businesses and thus to increase entrepreneurships and wealth. Also, another way for government to actively promote entrepreneurships is to allow the private ownership of business. Nowadays, government is selling those businesses to private individuals to create more wealth. The best thing the government to develop the country is to minimize interference with the free exchange of goods and services. In addition, the government can reduce entrepreneurial risk by passing laws that can be enforced in court. The government can also create one currency is traded in the world market. That is, we can buy and sell goods and services anywhere in the world using the currency. The system relies on the honesty, integrity and high ethical standards, and it is easy to see the damage caused by poor moral behavior and ethical business number.

2.2 The Technological Environment

Since prehistoric times, human have left the need to create tools that make their jobs easier. Few technological changes have had a more comprehensive and lasting impact on businesses than the recent emergence of information technology (IT) that are computers, modems, cellular phones and so on.

2.2.1 Technology and Productivity

Technology means everything from mobile phones and computers, the various software programs that will make business processes more effective, efficient and productive. There are many effective ways to produce the desired results. Efficiency means producing goods and services using the least amount of resources. Productivity is the amount of output you generate a given amount of input. Technology affects people in all industries, including agriculture. Because, they have access to technology, it allows then to be more productive and make more money working.

2.2.2 The growth of E- Commerce

Apart from this, a recent change in the most important environment is the growth of e-commerce, buying and selling goods on the Internet. There are two main types of transactions E-Commerce: Business-to-consumer (B2C) and business-to-business (B2B). (B2C) is a business that produces a product to sell directly to consumers and (B2B) is a business that produces a product to sell directly to other businesses. (B2B) E-Commerce is at least five times as large as (B2C) E-Commerce. The rises of the internet marketing are come so fast and furious that it attracts hundreds of competition into the fray.

2.2.3 Responsiveness to customers

The way of traditional retailers can respond to the Internet revolution is to use technology to become more responsive to customers as a business marked the items with UPCS Product Code (bar code) Universal, their series of lines and numbers you see in most of the packaged consumer goods. The database is an electronic storage file where information is stored. Use a database to store large amounts of information about the user.

2.3 The Competitive Environment

Lady using a tablet
Lady using a tablet


Writing Services

Lady Using Tablet

Always on Time

Marked to Standard

Order Now

Competition among businesses has always come out, but it has never been greater than today. Competitive advantage has been found by a number of companies with a focus on quality. The goal for many companies is zero defects no mistake in making the product. To offer value to customers, companies need to offer both high quality products and excellent service at competitive prices.

2.3.1 Customer driven Organizations

Customers nowadays are very demanding and they do not just want good quality at low prices, but they also want great service as well. Big businesses and small businesses rely on their customers back and as a result should come out the way to make customers feel as they are the kings of them, and theirs will and needs to be emphasized. Successful organizations now need to listen more closely to customers to determine their wants and needs, and then tailor products, policies and practices of the firm to meet their demands.

2.3.2 Employee Empowerment

Empowerment is meeting the needs of customers; firms must give their frontline workers the responsibility, authority and freedom to respond quickly to customer requests. The businesses must reorganize to help their employee's become more effective than they are now. Also, empowered employees need to be treated as partners in the firm.

2.4 The Social Environment

Demography is the study of human population statistics with regard to density, size and other characteristics such as income, gender, race, and age. The U.S. population is undergoing major changes; affect how people live, where they live, what are they buying and how they spending their time on what task.

2.4.1 Managing Diversity

The managing of diversity is an important concern for business people. Businesses are concerned about having a diverse, workforce for two main reasons. First, a business can better serve customers with a diverse workforce. Second, a diverse work environment brings about new, fresh ideas and perspectives. All this affect each of everyone because each of us need to work with people of various ages, races and backgrounds in order to be successful where we work.

2.4.2 Aging consumers

Another social issue and concern is the fact that the baby boomers are getting older, and as they retire there will be more jobs than qualified people to fill those jobs. Businesses that cater to aging baby boomers will have opportunity to exceptional growth in the near future.

2.4.3 Two- income families

Dual- income families play a role in the societal changes. One result of this trend is a host of programs that companies have implemented in response to the demands of bust two-income families. With more dual-income families, in the workforce, many employees provide child care benefits of some types. Many companies are increasing the number of part-time workers which the children can earn income.

2.4.4 Single parents

The rapid growth of single-parent households has had a major effect on businesses as well. Many single parents struggle with the work-life balance, and they have encouraged businesses to implement programs such as family leave and flextime.

2.5 The Global Environment

Two important environmental changes in recent years have been the growth of international competition and increasing of free trade among countries. Free trade is the reduction of trade barriers, such as the elimination of tariffs on goods brought into other countries. Cooperation among businesses has the potential to create rapid growing global market that can generate prosperity beyond the expectations of most people. It is very important to note that all size businesses compete in the global market.

2.5.1 Entrepreneurship vs. Working for others

There are two ways to succeed in a business, one is to work for others, get experience and skills, and rise up though the rank, the other riskier path is to start your own business.

Working for others businesses: As you graduate from college and choose a company, large or small, to work for; you may be happy to know that the earning power of a college graduate far outpaces that of less- educated individuals. Once you have the experience, you will have the ability and opportunity; you can start your own business.

Lady using a tablet
Lady using a tablet

This Essay is

a Student's Work

Lady Using Tablet

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Examples of our work

Entrepreneurial challenge: Millions of people from all over the world have taken entrepreneurial challenge and succeeded. Woman also have the same opportunity to engage in entrepreneurship is an attractive career path for an increasing number of women.

2.5.2 Nonprofit organization or Government agency

Nonprofit organization: A non-profit organization is an organization that goals do not include making a personal profit for the owners or organizers.

Government agency:Government Agencies is an organization responsible for overseeing the functions of the government clarity. Concepts and principles that are making businesses are more efficient and are used in government agencies and nonprofit organizations as well.

3.0 Conclusion to Business Environment

As my conclusion, the business environment consists of five elements which each have different factors of developments.

4.0 Introduction to Entrepreneurship

An entrepreneurship is for anyone that wants to start a business. It is a great way for everyone to apply their own business skills to make a business out of a hobby and also can turn a passion into a business. It takes to be an entrepreneur because of the issue that facing is the need to create more jobs. There are some common characteristics that entrepreneurs have in common; self-directed, self-nurturing, action-oriented and tolerant of uncertainty. Besides that, there are many people decide to take the risk of becoming an entrepreneur because of the opportunity, profit, independence and challenge.

4.1 Types of business ownership

There are three major forms of business ownership; sole proprietorships, partnerships and corporations.

4.2 Sole Proprietorship

A sole proprietorship is the easiest kind of business to start and someone who starts is an entrepreneur. The owner of a sole proprietorship is called a sole proprietor. The sole proprietor is obligated to cover any payments resulting from the loans but does not need to share the business profits with creditors. They must exhibit strong leadership skills be well organized, and communicate well with employees.

4.3 Partnership

A business that is co-owned by two or more people is referred to as a partnership. The co-owners of the business are called partners. There are several types of partnerships: general partnerships, limited partnerships and master limited partnerships.

General partnership:A partnership in which all owners share business and financial obligations of the business. All partners have unlimited liability.

Limited partnership:Is a partnership with one or more general partners and one or more limited partners.

Master limited partnership (MLP): Corporation that acts like a corporation and is traded on the stock exchange but it is taxed like a partnership and thus avoid the corporate income tax.

5.0 What should I prefer?

I prefer sole proprietorship because a sole proprietorship is an unincorporated company owned by a single individual. Also, it is fairly easy to establish and the process of running then is fairly simple. It does not need to share the business profits with creditors. Besides, sole proprietors must also will to work flexible hours. They are on call at all the times and may even have to substitute for sick employee. They must exhibit strong leadership skills, be well organized and communicate well.

5.1 Advantages of Sole Proprietorship

The sole proprietor forms of ownership have the following advantages over other forms of business ownership:

Easy of starting and ending the business: If you want to start a sole proprietorship is to buy or lease the needed equipment and put up some announcements saying in the business. Also, it is also easy to get out of business if you simply stop it. There is no one to consult or disagree with the decisions making.

Pride of ownership: People who own and manage their own business are entitled to pride in their work. They deserve all the credit for taking the risk and provide goods or services required.

Leaving a legacy: Business owners have something's to leave behind for future generations.

Retention of company profit:The pleasure of knowing that you can earn as much as possible and don't have to share that money with anyone else except for the payment to the government of the taxes.

Lower taxes:Because the earnings in a proprietorship are considered to be personal income, they might be subject to lower taxes than those imposed on some other forms of business ownership.

Total decision-Making Authority: The sole proprietor is in total control of operations, so it can let the person can respond quickly to changes, have the freedom of fast, flexible decision making, which is an asset in a rapidly shifting market.

6.0 Conclusion to Business ownership

As my conclusion, the sole proprietorship is easy to be organizing because the legal requirements are minimal. Also, the earning all are goes to the sole proprietor because the owner doesn't need to share the firm's earnings with others. For partnerships, it is a business that co-owned by two or more peoples. There are many types of partnerships. For general partnership, all partners have unlimited liability. For limited partnership, a firm that has some limited partners.

7.0 Conclusion

As my conclusionfor Question 1, the business environment consists of those factors such as strengths, weaknesses and etc. There are two types of environment that are internal factors and external factors. The environment refers to all external forces, which have a bearing on functioning of business. The business environment poses threats to a firm of offers immense opportunities for potential market exploitation. The solution of the environment business will give way to the environment business opportunities. There are five elements in the business environment; the economic and legal environment, competitive environment, technological environment, global environment and social environment.

As my conclusion for question 2, firstly, we have to know that to success in starting a new business is to understanding how to get the resources you need and also find others ways of obtaining money. The way to form your business can be success for long-term that is using the major forms of business ownership. One of the major forms is sole proprietorship, which it can be easy to get started in your own business. It is a business that managed by one person and retraining all the profit. There are no special federal taxes to worry about. Another major form is partnership. It is defined as a legal form of business with two or more owners. It has more financial resources and pooled knowledge in the business. But, the conflicts among partners and unlimited liability for each general partner will happened.