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Business Environment Sample


Economic systems are majorly significant for the organizations for operating in an effective manner. An economic system directly consists of different measurers of structuring and organization. Particularly within UK economy, organizations have directly contributed towards finding an appropriate business environment which would the economies operating in the marketplace. Changing level of unemployment within UK over last 10 years is attached to microeconomic and macroeconomic policies generally associated to companies.

Considering the different roles associated with the operations present in the economic forces several companies like have looked on methods for motivating employees and reinforcing production linked to different functions of effective system. Consumer goods, machinery and other resources and equipment and developing technology directly focus on various factors which are leading the organization towards efficient production.

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Economic systems operating within UK economy:

Economic systems particularly deliver distinct aspects altogether defined allocation and provides for effective utilization and working towards these activities (Das, 2013). Basically the countries adopts three general types of economic system which are free market, planned market and mixed markets and while operating in these markets, monitoring and supervision is done by the government. Through taking policies which are generally formed through the centre, these possess minimum impact on the markets and control of economic resources with the private sector (Davies, 2010). Goods and other services supplied are directly determined through price mechanism. Within UK, market structure present looks on flow formed from these decisions. UK Unemployment has been also looked on for supply and demand functions.

With relating to free system , issues comes out concerning different pictures like production of goods and service and required infrastructure which is mainly composed of neutralizing the needs associated with growing population (Caulkin, 2003). Due to impact of global recession and looking on to increasing population of UK has also been related to free systems and issues directly coming out from concerning different aspects of organizations and ultimately relating to infrastructure being mainly associated through with neutralized needs mainly associated with growing population. Planned economy basically consists of broader aspects reflecting the dominant role attached with government in formulation of policies. Planning out for economical activities are basically linked with private sector having major involvement in the other accumulation of economies assignment writing services.

Planned economies and their impact:

With economies related to Europe following more of planned economies being related to countries associated to UK. These economic systems looks on more broader advantage which present gap related to employment and consistently providing into implementation of policies and through other resource which are directly aligned on with increasing needs and expectations of people (Verbeke, 2013). Mixed economies basically consist of mixture of all the other systems operating. Factors covering both socialism and capitalism are included within such economic systems. Directly working on the global scenarios, many countries present are employing these systems. Mixed economic system directly focuses on dividing the resources of country with the needs of both government and private sector. Participation of private sector through continuous encouragement and effective utilization of resources directly focus on gaining the economic profits attached to the whole country. Countries such as UK are adopting on mixed systems (Rogers and Sedghi, 2013). Benefits generally associated to these present systems links on effective co-ordination directly delivering private and public sector through maintaining economic balance of country.

Microeconomic and macroeconomic theories and models:

In this part includes impact of Microeconomic and Macroeconomic Theories and models of Business Environment.

The most familiar method of measure economic through per capital income . which is simply national income .if high and rising level of per capital income then national income is also high and well being. On the other hand if per capital income is low then national income is also low.

Govt. always try to reduce unemployment rate of nation but some direct and indirect factors are effects:

Direct Effect –

Fall In National output : workers belong to production (Walter and Sen, 2011). If supply is low then workers of company are effected thus result is rise the unemployment just because of fall in output of nation.
Loss of personal income : those person who are not working anywhere they lose living standard just because of less income and loss their personal income for expenses. Unemployed persons have less purchasing power.

Indirect Effect-

  • Negative Multiplier effect: unemployed persons not able to spend money on goods and services and therefore supply and demand will not rises of company in the market and company don’t want to hire new employees in the company for production and management.
  • Loss of Tax Revenue: If income is low or nothing then people not come in tax limit and Govt. not earn taxes from company so the Govt. changes the rules in tax deduction on direct taxes or indirect taxes on company and individual also . So unemployment will rise n rise from the taxes also (Frank and Bernanke, 2004).


Microeconomic and macroeconomic concepts related in understanding economic changes and other defined human resources for their allocation related to employment within companies. Models discussed in respect of current economic scenario operating with directly aligning altogether different measures that relates proper utilization and growth of human resources. Unemployment within UK has directly attached with affecting national growth.

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  • Bolton, G.E and Croson, R.T.A., 2012. The Oxford Handbook of Economic Conflict Resolution. Oxford University Press.
  • Boyes, W.and Melvin, M.,2012. Microeconomics.edi.9th.Cengage Learning.
  • Burling, J.and Lazarus, K., 2011. Research Handbook on International Insurance Law and Regulation. Edward Elgar Publishing.
  • Calandro, J and Lane, S, 2006. "An introduction to the Enterprise Risk Scorecard", Measuring Business Excellence. 10(3). pp.31 – 40.
  • Carroll, A.and Buchholtz, A., 2008. Business and Society: Ethics and Stakeholder Management.7th ed. Cengage Learning.
  • Das, S.C., 2013. "Corporate social reporting and human resource disclosures: experiences from insurance companies in India". Social Responsibility Journal. 9(1). pp.19 – 32.

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