Assignment

On

Business Environment

Index
1
1 economic system it UAE using examples
employs...................7 of the businesses in
1.1 Research and
2.2 Explain and the overview.........10
identify four
assess the impact 3.3 Judge how the
different types of
of GDP, structure, business
organisation in
population, labour and cultural
Dubai for
force and balance environments shape
information to be
of payments on the behaviour
able to offer advice
business of one of the
to student
organisations you organization in
members.................3
selected in Task 1 overview...............11
1.2 List the
and how this will in
stakeholders for 4
turn impact their
one of the examples
activities in the 4.1 Discuss the
you provided in
UAE..........................7 significance of
Task 1.1 and
2.3 Evaluate the international trade
describe the extent
impact of that has influenced
to which the
competition policy Debenhams and its
organisation meets
and other growth...................11
the objectives of
regulatory 4.2 Analyse the
those different
mechanisms on the impact of global
stakeholders..........5
activities of the factors on
1.3 Explain the
organisations you Debenhams...........12
responsibilities of
selected...................8 4.3 Evaluate the
your selected
impact of policies of
organisation and 3
the European Union
the strategies
3.1 Explain how on Debenhams
employed by the
market structures stores in the UK.. .13
company to meet
determine the
those C
pricing and output
responsibilities......6 Conclusions..............14
decisions of
2 businesses..............9
3.2 Discuss the way in
2.1 Discuss how the
which market forces
UAE allocates its References
help shape
resources now and
organisations in the
explain the type of 15

2
 Task-1

1.1 Research and identify four different types of organisation in Dubai

for information to be able to offer advice to student members.

the four Dubai based organization which I chose to advice student are :

1- RTA

2- UAE Red Crescent

3- Almarai

4- Deyaar

RTA: RTA stands for roads and transport authority . It is a government based

organization, in vast increasing economy like Dubai it needs a updated

system for traffic, roads, transport with in Dubai and between other states of

United Arab Emirates. RTA purposes include to portrait a smart Dubai

develop and enhance better transportation solution to make people happy by

providing the products according to their needs and making public

transportation that much facilitated so everybody use it which negates the

status quo issues . As roads and life style of Dubai is so fast accidents are
becoming a major issue RTA tries to implement that kind of system which is

environmental friendly and decreases fatal accidents issues as lower as they

can. They make it financially bearable by making partnerships with private

sector, maximizing and spreading revenues. (R, 2017)

UAE Red Crescent: this organization works to help the authorities in peace

time and in the times of war. The main purpose of UAE Red Crescent includes

when its peace time they bring notice on the general social issues, first aid,

providing awareness programs , and also taking care of people who are

needy in problems and also taking care of the victims of accident and

tragedies. In actual war times UAE red crescent provide shelter to the

homeless, provide protection and first aid to the wounded people and find the

missing persons reunite them with their family. (chang, 2016)

Almarai : Almarai is a famous name which comes to your mind when you

think about beverages their famous laban , dairy products, now they also

enter in the market of poltry and bakery products. Their sole purpose is to

provide high quality products in to economical prices so the every consumer

can enjoy it . Till this date Almarai fulfil almost 48000 customers needs. They

have diversified their product by geographical expansions and also merging

with PepsiCo. (john, p. 2017)

Deyaar: Deyaar is a corporation which main purpose it so establish and ale

properties and at the same time generate maximum revenue to maximize the

comfort of its customers and tenants. (pintro, 2017)

1.2 List the stakeholders for one of the examples you provided in

Task 1.1 and describe the extent to which the organisation meets the

objectives of those different stakeholders.

the stake holders of Rta includes

Customers: this is the main stakeholder for any service or product

providing organization because these are the people who generate

demand on that basis we produce the products. The customers of RTA

includes individual like the citizen of UAE, the employees who are on

work permit in the country, the customer with special kind of needs

and the tourist as UAE is hub of tourist this is one of the main

stakeholder as to provide them quality , user friendly secure

transportation is the main purpose of RTA. Other customer for RTA

includes construction companies who are registered to gain

construction related services so as the commercial companies and

media companies.

Contractor: As the organization the other stakeholder for RTA is

contractors. Organization provides them timely money for their

services by entering them in to the exclusive contract so they can work

close to the organization.

Suppliers: RTA is a huge organization so the suppliers are the main part

of this organization .RTA has to keep up the pace of supply and

demand so they have to make happy supplier by providing them the

contractual amount of money as they provide services.

Upper management : in RTA upper management is not only about the

money incentives it is about the responsibility becoming the face if

organization is a huge deal as because of best upper management RTA

is providing excellent services and wins awards for It as well. On

17/1/2017 RTA won Hamdan bin Mohammed award for Smart

 Government Flag and also won The Best Government Service via

Mobile Phone worldwide in the Transport & Infrastructure Sector.

(kracky, 2017)

1.3 Explain the responsibilities of your selected organisation

and the strategies employed by the company to meet those

responsibilities

the responsibilities of RTA includes

providing high quality products and services to achieve the RTA vision

safe and smooth transport for all

to achieve this responsibility RTA make strategies like Commitment to

continually improve RTA products& services in acquiescence with the

obligation of QMS ISO 9001:2008 & Dubai Government Excellence

Program (DGEP) to confirm its efficiency within the frame work of quality

products, making flexible products to achieve customers demand and

satisfaction, implying all technical specification in order to provide latest

services and products by keeping all the security measures intact.

RTA is responsible to meet customers demands and provide them

satisfactory services and keep their information secure with them like

if customer do some online transaction then RTA cant leak their email

id or IP address unless it is ask by UAE high agency or law organization

.
RTA considers effective asset management as dynamic to the

achievement of its plans, which include development, operation and

maintenance of automated and integrated transport systems across

 the road, rail and marine modes, so that it is safe, dependable,

available and maintainable for the advantage of current and future

groups.

RTA will adhere to the following core principles in its approach to asset

management and encourages all its stakeholders to adopt these principles:

Complete, Risk Based, Optimum, Integrated, Knowledge Based, Maintainable

,Systemic ,Whole Life Based and social responsibility Social Responsibility.

Task - 2

2.1 Discuss how the UAE allocates its resources now and explain the

type of economic system it employs

UAE is mixed free market economy system it has basic income that comes from

oil and gas production it is also a free market which is consist on the rule of

supply and demand they demand increase they trade with any country to brings

those services and products in the market. In past two decades , the rise of UAE

economic diversification program has invited several non-oil sectors that

contribute in great amount of the UAE GDP such as :manufacturing (12.6

percent), commerce and hotels (11.4 percent), real estate (9.1 percent),

construction (8.6 percent), transportation (7.3 percent), and finance and

insurance (6.4 percent). The UAE also developed a re- export sector,

Government services account for nearly 11 percent of GDP. Industrial growth is

consist on free markets like Jebel Ali in Dubai. (den, 2015)

2.2 Explain and assess the impact of GDP, structure, population, labour

force and balance of payments on business organisations you selected

in Task 1 and how this will in turn impact their activities in the UAE.
The effect of fiscal and monetary policy on business is important. The reach of

these policies are different but the goa of these both are same. Main reasons

behind these monetary and fiscal policies are to have steady economic growth,

the steadiness of the price level(inflation),the stability of payments, high

employment rate.

Fiscal policy is a maintenance policy by the federal government designed to

regulate the economic cycles. By that means government of UAE tries to stabilize

the economy by switching the outcome and incomes of the budget of state. The

key tools of fiscal policy are remaining (net) of taxes and goods and services

purchased by government. When the country is facing recession the government

of UAE can also increase purchases or reduce taxes and when country is in

economic growth, the government of UAE decrease purchases or increase taxes.

Source (fiscal-and-monetary-policy-define, 2009)

Monetary policy is equilibrium tool designed to regulate money supply in the

state by Central banks. The central banks of UAE design the money supply by

change the interest rates or the reserve requirements by the operation of open

market. Banks other important instruments include:

By changing the rate of interest has huge impact on the supply market. In

the case of recession the rates goes down. Low rates make people to

increase the spending of money that increase the demand and it result in

recovery of economy.
Controlling money supply can be done by another method that is

purchasing and selling of government bonds in open market. At the time

of growth Central bank sells bonds to commercial Banks in that way the

amount of money is reduced in market on the contrary in recession

 central bank buy bonds from the bond holders that result in increase of

money and decrease in rates.

2.3 Evaluate the impact of competition policy and other

regulatory mechanisms on the activities of the organisations you

selected
The main purpose of competition policy is to drive businesses compete.

It stimulates the effectiveness of business towards their customer and it

also makes business reduce costs and concentrate on quality more.

Impact of competitive policy and regulatory mechanisms of RTA, almarai,

deyaar and UAE red crescent are as follows.

When there is competition in the business market decrease prices make

competitors motivate to improve their quality of product and services to

attract more customer and have high market share .in a competitive

business environment business provides the best combination of price and

quality of product to customers in order to achieve that combination

business need to use innovation in the models of their product always

offer something new kind of skills , product plan and latest manufacturing

procedures to lower the cost that will bring them the higher share in the

market . (Samuelson P Economics, 2001).

The use of Economic regulation and strategy is to inspect the influence on

performance of business and to contribute both to developed performance

of economy and to decrease of poverty . the role of better regulatory

policy is to contribute in regulation of improve performance of economy

and improvement in poverty.

Task 3
3.1 Explain how market structures determine the pricing and

output decisions of businesses.

Market structure is consist on group of factors, that are used to determine

the genre of the interaction among companies. Those factors include:

Number of firms present in the industry and the size of those firms
 What kind of products produce by the company.
The chances of new firm to enter and exit in the industry .T
there are four main types of market structure:
Perfect competition
Monopoly;
Monopolistic competition;
Oligopoly.

Marriot hotels come under oligopoly market structure , that consist on a

large firm of small number , some firms regulate large shares of market

.in this type of market structure the enrty if new firm is possible but its

very expensive . the competition does not depend on the price rather its

based on technical innovation, quality of product and services and product

consistency
Carrefour is Monopolistic competition market structure. A number of firms

produce the same products but they all have separate brand names.

(Weatherston, 2011))
3.2 Discuss the way in which market forces help shape

organisations in the UAE using examples of the businesses in the

overview.
Market forces can be define as conditions that has impact on supply

and demand in the free market by defining prices, the behaviour of buyers

and sellers, lenders and borrowers, encouraging upgrading the

production, growing efficacy and excellence of work.

Supply can be define as the quantity of products or services present in the

market
Demand is number of buyers available in the market which would like to

buy that product

Free market has huge impact of demand and supply. The main rule of

free market is the interaction of supply and demand decides the prices of

goods. Like Carrefour if the supply is increasing than demand so the

prices will decrease they are inversely proportional to each other. if the

prices are low then organizations has to bring some new ideas put some
innovation in there products so people buy them to have diversification. If

the demand is increasing than supply it will increase the prices .

3.3 Judge how the business and cultural environments shape the

behaviour of one of the organization in overview.

Nowadays the rule is if one organization is successful in one market it is

going to put lots of efforts and money to be successful in other market

most of the time they fail. The impact of business and cultural

environment on organization is huge . Business environment consist on

political, legal, economic conditions. Excluding the political and economic

system what ever is remaining is consider as social cultural environment.

In order to enter another market organization should familiarized with

other markets culture demographically. Like if McDonalds wants to enter

the Asian market it has to do a lot research about the culture , because if it

wants to open in UAE or any other Muslim countries they cant serve pork

because in Muslim countries pork is banned if they serve it then it is

political, legal cultural and economic issue and it going to lose its

credibility in Asian markets.

Task 4
4.1 Discuss the significance of international trade that has

influenced Debenhams and its growth.

Due to modern techniques of production, advanced multinational

corporations and evolving transportation system international trade has a

huge growth in recent years. due to international trade system, any

company like Debenhams can function in other countries with or without

small barriers (Heizer and Render, 2003).So, international trade has avery

important impact on the Debenhams as it is has already operating in

different international countries especially in the EU countries where the

business operations are free without any barriers. If the international trade
was not present in UK then the finances of firms like Debenhams would be

on no use it wont have any revenues. Because of the international trade

Debenhams can increase its business activities and operations efficiently

and effectively by decreasing the cost and increasing the quality. So

company get benefits with international trade as said by David Ricardo in

his competitive advantage theory that defines that one country get the

benefits by the specification and other gets benefits by the cost reduction.

(Galloway,et al., 2000)

4.2 Analyse the impact of global factors on Debenhams

Global factors are important and huge issues for organization that are

operating internationally as compare to organization that are home

based (Denison & Daniel, 1990). These are the Global factors that have

impact on Debenhams.

International competitiveness: as Debenhams conduct its

business globally as well as home based it has to consider other

competitor organizations like Demon Tweeks .if the level

competition is high then its tough for Debenhams to compete

internationally. Its whole concentration would be in home based

operations in that case they will lose one market whether its

global or home market.

International Business environment: main factors of

international market are Political, economic, social,

technological, environmental and legal known as PESTEL . these

factors impact Debenhams directly so before entering in the

international market it has consider these factors and keep

 renewing their policies about them as with changing global

factors.

Tariff and tax: tariff and tax of the global market plays important

role in international trade if these are high then Debenhams can

face problem in conducting international trade and compete in

international environment as it can increase the cost of products

which is not good in a high competitive environment.

Exchanger rates: exchange rates work as threat cause it can

directly affect Debenhamss revenue generation it is one global

factor that can cause problem for organization as it can change

suddenly .

4.3 Evaluate the impact of policies of the European Union on

Debenhams stores in the UK.

EUROPEAN UNION (EU) consist on some rules and regulations that every

organization that is part of EU has to maintain while conducting business in

home market and global market as well . organization like Debenhams (B.burns,

2000)

EU policies include:

1 Employment policy
2 Regional policy
3 Inflation policy
4 Education and training policy
5 Taxation policy
6 International policy
7 Establishing the 'rules of the game' policy
The member countries have direct impact of these policies on all the business

activities. So while conducting business in other countries Debenhams has to

consider all these policies to regulates by EU otherwise company with be faced

the common law of violating he agreement with EU member countries . these

policies just not provide fines but also benefits as well (al, 2000)

Conclusions
This assignment emphases on the use of the business environment and the

important role plays for the UK governments and plan for environmental

improvement .It is a process of starting and developing a business and help to

create an inspiring business environment This report also focus and analyse

different organization it is a understanding that organization should consider all

the internal external factors before entering any international market because

these factors as huge impact on the business practices . by closely studying the

organization Debenhams it is understood that it has make all the decision wisely

and meeting all the objectives of its stakeholders by making strategies like

diversification, innovative products, good customer service etc .As the UK

market is full of competitors the organizations has to fluctuate there Fiscal or

monetary policies according to it.

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(2009, 06). Retrieved from fiscal-and-monetary-policy-define:

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(2000). Operations Management in Context. Butterworth . In G. L. al.

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Dynamics, 5.

chang, m. (2016). Retrieved from Our Objectives:

http://www.rcuae.ae/Partners_en.aspx

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www.nationsencyclopedia.com/economies,2015)

john, f. (n.d.). Retrieved from A proud heritage, a positive future and a relentless
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https://www.rta.ae/wps/portal/rta/ae/about-rta/explore-rta

pintro, z. (2017). Retrieved from VISION MISSION AND VALUES:

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