The Nature of Business and its Role in Society in Changing Business Environment.

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The nature of business and its role in society in changing business environment.

Executive summary:

The secret of business is to know something that nobody else knows”[1]. The aim of this report is to summarise the possible aspects of the nature and the role of business and how different it is in society what is changing about it in the business environment.

This is shown there the aspects of:

  • Role of business (such as the nature of business)

-producing goods and services

-profit, employment, incomes, choice, innovation, entrepreneurship, risk, wealth and quality of life

  • Influence in the business environment

-External influences- economic, financial, geographical, social,legal,political,institutional,technological,

Competitive situation, markets

-internal influences-products, location, resources,management,and business culture

Nature of business:

The nature of business plays an important role in Australia today. Today we see the business as any activity that is undertaken by an individual or group to produce a product or services. The reason people begin their businesses is to make profit through satisfying customers’ needs and wants .

Businesses are established, organised and operated through the different roles played throughout life. Businesses, through many goods and services make and sell, and this is happening during our everyday life.

The importance of the role of in our changing business environment is shown through :

  • Wealth and creation
  • Quality of life
  • Entrepreneurship
  • Innovation
  • Choice
  • Income
  • Employment
  • Profit

Basically this shows that business runs in our everyday life, they need to be established and organised and operated well so people do buy from the shop or business. The nature of business therefore plays a crucial role in today’s society. Also this can all give a good image to the Australian economy because Toyota is to follow Holden and ford and close its Australian operation by the end of 2017. Australians don’t want Toyota to run here anymore because its to much for the government to pay for the company which is coming out of our we are paying for and lots of employees have lost there jobs.

Producing goods and services:

To satisfy needs and wants of its customers, a business has to produce products the customers demand. When producing goods and services products may be finished or semi-finished goods. Intermediate goods (still need to work on it) for example when we are shopping we are choosing a range of finished products (ready for customers to buy and use). Production is the process by which people undertake by the business that combine the resources to create products that satisfy customers’ needs and wants. For example Shepparton business under review amid Ardmona doubts they can’t compete in the Australian economy as the market due to the high influx of imports from overseas. (Newspaper article).

Functions of businesses include: are the importance for providing millions of people in a business. As well as the products offered for sale provide customers with a vast selection from which they choose. Therefore, the total output of all businesses adds considerably to the economic wealth and wellbeing of Australian. And may other roles as all outlined in the mind map. Also returns or reward, that business owners receive for producing products that customers’ needs and wants sector for example.

Employment: businesses provides about 80% all private sector jobs.

Choice: consumers have freedom of choice and opportunity to purchase products at competitive prices.

Income: businesses provide income to business owners/and employees.

Profit: this is the return or reward that a business owners receive for producing products that consumers need and want.

Business Quotes - BrainyQuote. 2014. Business Quotes - BrainyQuote. [ONLINE] Available at: http://www.brainyquote.com/quotes/topics/topic_business.html. [Accessed 10 March 2014]. 1

Role of business lesson 2: the role of business

An example of this is shown in the “Qantas job cuts speculation “ where the company has agreed to cut about 3000 job speculation. Qantas is also unable to compete with international airlines and local air lines. Qantas need to look for avenues to reducing their cost. One of the reasons for cutting jobs is because they served Qantas our national employees. Therefore is cutting about 3000 job speculation. Qantas is finding it very tough to manage with the customers this is a negative factor for the value of the business to the Australian economy and therefore will also be an issue affected as they are asking the government for money. This a business issue as it deals with the customer’s profit: that will not operate enough profit. Instead of wining employers they begin to get less employers they start to loss them .And what is happening to them, is the income they get less paid and begin to loss there jobs.

Business with the wall street journal,3000 qantas job cuts just speculation’ the Australian, Sydney FEBRUARY 22,2014 3:30PM. http://theaustralian.com.au/business/3000-qantas-job-cuts-just-speculation/story-e6frg8zx-1226834633132 p1[2]

Changing business environment

The changing business environment is the external business environment which is always changing. Changing in the businesses environment has many factors towards it such as the customer’s needs and their requirement changes they include better and cheaper products. The future of any organisations is influenced by the understanding of economic, social, technological challenges and how they have affect business environmen . There are many ways of our society today of defining and analysing changing of the business.

External influences on business and internal influence on business:

The external influence on the business environment are those factors over which the business has very little control on. Changes in the environment make it necessary for managers to make adjustments to business operations. Some may include the introduction of new government regulation they require business to make adjustments: for example, a change in taxation laws or the economic effects of the global financial crisis in 2008-2009. Figure 3.3 outlines the main external influences on a business:

For example the markets, when buyers and sellers come together to conduct a transaction that results in the sale of goods and services. Such as those in Australian industry markets are those that provide materials to assist with the production of various goods, e.g. soft drink manufacturer will purchase plastic bottles, water, ingredients, and packaging materials to manufacture its products.

Also the Social influence is another type of external factor: is influenced by those factors that reflect changes in society behaviour in respect of beliefs and attitudes. These changes are also reflected in areas such as changing role and status of women, multicultrilism, shift to casual and part time work, and other quality of life consideration.

Economic influence in the external environment is the level of economic activity that is included and the prevails within the economy and the characteristics that apply to times. Example if business is operating in a robust or boom economy it will experience higher rates of employment,interest,economic growth, stronger business and consumer confidence,inflation,and higher exchange rates.

Business studies in action:preliminary course/3 edition s.chapman,N.Devenish,2011 queensland.p.g 7,8,10,11,12,13,14,15,16,18,19 [3]

Internal influence on business ,relates to the specific factors within business that will effect its operation. Theses factors are:

An explanation towards these internal influences are Products internal influences in the business environment include the products made by myriad of business in the economy. The range of products is influenced by a businesses in the economy. Products provide are influenced by a number of factors and theses are size of business, market in which it operates. Resources is another example that includes their cost and availability for a business which includes: if it’s good for business to be located near suppliers because of the bulky nature of it raw materials. Management it managers people who get things done through others, then they will see the basic of firms competitive advantages. Moreover the mangers will have ability to incorporate number of skills: peoples skills, communication of a vison,self managers.

Business studies review 2011, Michael Doherty page 1 [4]

Conclusion:

In concluding these factors that have been discussed have been proven that they have changed in our society today and what people think of it .the importance of business is to know firstly how it works and conducts what aspects people need to look at when it comes to businesses.

Lesson 60 writing a business report ,paramonount education/preliminary business studies workbook page 171.[5]

Changing markets and business environment | KPMG | GLOBAL . 2014. Changing markets and business environment | KPMG | GLOBAL . [ONLINE] Available at: http://www.kpmg.com/global/en/topics/changing-markets-business-environment/pages/default.aspx. [Accessed 10 March 2014].[6]

Changes in the business enviornment - Responding to an Emerging Market - Portakabin | Portakabin case studies, videos, social media and information | The Times 100. 2014. Changes in the business enviornment - Responding to an Emerging Market - Portakabin | Portakabin case studies, videos, social media and information | The Times 100. [ONLINE] Available at: http://businesscasestudies.co.uk/portakabin/responding-to-an-emerging-market/changes-in-the-business-enviornment.html#axzz2vY9VjN3J. [Accessed 10 March 2014].[7]

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