Contents The impact of fiscal and monetary policy

Acknowledgement 2
Introduction 1
Task 01: Identifying different types, organizational objectives and responsibilities which lead for organizational success. 2
Task 1.1: identifying different types of organizations in the U.K. 2
Task 1.2: vision, mission and values of the Ford Company 5
Task 1.3: objectives of stakeholders 6
Task 1.4: Responsibilities and strategies to meet the responsibilities of Ford Company. 7
Task 02: Evaluate the concept of economic, social and global environment. 9
Task 2.1: How economic systems attempt to allocate resources effectively. 9
Task 2.2: The impact of fiscal and monetary policy on business organizations and their activities. 10
Task03: Behaviour of organizations and the market environment 11
Task 3.1: How market structures determine the pricing and output decision 11
Task 04: 12
Conclusion 13
Reference 14


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Mr Harsha Nugawela
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Task 01: Identifying different types, organizational objectives and responsibilities which lead for organizational success.

Task 1.1: identifying different types of organizations in the U.K.

A business is an organization where producers produce goods or services to fulfil human needs and wants as a profit or non-profit seeking activity. In the economy, there are different types of organizations. Private companies, government organizations, corporative organizations, charities, not for profit organizations are some types of organizations in the UK.

• Sole trader businesses
A man who is the elite proprietor of organizations qualified for keep every one of the benefits after assessment has been paid however at risk to for all misfortunes is known as a sole broker specialist. There is less legitimate work to do so as to fire up a business. There is more autonomy to the proprietor contrasted with alternate sorts of organizations.
There are favourable circumstances and drawbacks in sole trader organizations. They are,

Favourable circumstances
? Easy to begin and close down the business
? Possible assessment preferences
? Can make his/her own particular choices
? There is no sharing of benefits
? Flexibility

? Unlimited liabilities
? Less capital
? High possibility of settling on wrong choices
? Limited administration abilities
? Lack of congruity

• Limited liability partnership
Partnership is a type of business organization in which two to twenty (20) individuals get together, invest capital, skills, knowledge and other resources to create a partnership to fulfil customers and their requirements. Here the partners have to have their agreement. It can be, verbal, written or implication. Partners share their profits and losses, salaries, interest and other things according to the agreement which is agreed and signed by all the partners in the partnership business.
There are some advantages and disadvantages in partnership businesses. They are,
? Partners can be specified in different tasks or departments
? Can collect more capital compared to sole trade businesses
? Less legal restrictive
? More creative ideas and decision can be made

? Profits has to be shared
? Partners may have conflicts which affect the business
? Partners decisions is legally binding
? Partnership may dissolved if a partner dies

• Private limited company (Plc.)
Public limited company is a privately held business which is larger than sole trade and a partnership businesses and smaller than a public limited company. In this types of business entities, limits owner’s liabilities to their shares. Public limited companies have minimum 2 shareholders to 50 shareholders also, these businesses cannot get shares through selling publicly through share market, they have to sell shares by using their personal contacts like their close relatives, friends etc.
There are some advantages and disadvantages in public limited companies. They are,
? More capital can be raised compared to sole trader and partnership businesses
? Shareholders have limited liabilities
? Business continuity ensures
? Cannot lose control to outsiders

? costly to start
? consume more time
? more legal work is needed
? transferring shares is difficult

• Public limited company (Plc.)
A company where securities are traded on a stock exchange and can be bought and sold by anyone. Public companies are strictly regulated and are required by law to show the true and complete financial statements, so that investors will be able to make their correct decision.
Public limited companies sell shares to increase their capital. Investors invest in a company by purchasing these shares. Investors receives a dividend from the profit which is made by the organization. Dividend is the share of profits among the shareholders. Shares has two values, nominal value and market value.
Nominal value, price which is given by the company to a share,
Market value, prices which is given by the market to a share.
There are some advantages and disadvantages in Public limited Companies. They are,

? Can collect more capital to the organization.
? Have a high chance to dominate the market due to financial capacity.
? Shares can be sold and bought easily

? setting up cost is extremely high
? outsiders can take control over the business
? More rules and regulations to adhere.
Task 1.2: vision, mission and values of the Ford Company

Henry Ford’s first vehicle rode was on 1896. It was with four bicycle wheels, powered by four- horsepower engine with two front gears and no reverse gear and instead of steering wheel, the Quadricycle had a tiller.
In 1903, the Ford Company was incorporated by twelve (12) investors and 1000 shares. Ford Company sold its first ford model A in July 23rd 1903 by investing $ 28,000 and by October 1st, the company makes a profit of $37,000.
After years of performance, today also there is recognition for the ford motor vehicles in the market. It is because the company has a clear vision, mission, values and objectives.
• Vision: people working together as a lean, global enterprise for automotive leadership.

The vision statement says about the global enterprise. It means, that Ford Motor Company wants to become the top player in the international automotive market. As well vision statement says about automotive leadership. It explains, automotive leadership is measured by the satisfaction of the customers, employees, investors, dealers, suppliers and communities.
• Mission: One Team. One Plan. One Goal

Here one team shows, People working together as a lean, global enterprise for automotive leadership, one plan shows, aggressively restructure to operate profitably at the current demand and changing model mix, accelerate development of new products our customers want and value. And one goal shows, an exciting viable Ford delivering profitable growth for all.
• Values:
? People: source of strength, corporate intelligence, determines Ford’s reputation and vitality.

? Products: how the products are viewed, the end results of the company efforts.

? Profits: a measure of how the company provides its products to fulfil customer’s needs.
Task 1.3: objectives of stakeholders

Stakeholders are the individuals and groups who can influence and who are influenced by the organization.
Customers, employees, owners, investors, managers, competitors, suppliers, society, government are some of the stakeholders of an organization.
For each and every organization, there are stakeholders. For example, Microsoft Company there are stakeholders. Customers, shareholders, employees, owners, managers, competitors, suppliers, sellers, society, government, environment are some stakeholders of the company.
Through the company, there are more benefits to the stakeholders. Some of them are,
? Shareholders are the investors of a company. They are interested in the profits they earn. To increase they are trying to satisfy the customers by giving them what they need. Therefore, here customers get the benefit too.
? Employees get their payments well, job security, benefits from the company, as well a good reputation within family and friends.
? customers who purchase their products are benefited by getting the quality products, after sales services, prepared as the customers need, for example, gaming computers for people who are interested in gaming, super computers, etc. this products makes users works easier, and many more benefits.
? For competitors, there are benefits as well they have threats too. If Microsoft is not performing well, it will be a benefit to the competitors. But if Microsoft is doing well, it will be a threat, but competitors can innovate new technologies and try to provide a better service to their customers.
? Also the government benefits through the Microsoft Company, therefore government too is a stakeholder of Microsoft. It is because the government is getting the taxes from the company. If the organization have more profits and benefits, then the government also will be getting more tax amount.
Above are few benefits which are gained by the Microsoft Company to its stakeholders. Microsoft was found in
customers are interested in high quality and user friendly products for a reasonable price. To archive the customers need the Microsoft continues the iinnovation process using the latest technology to to make their products user friendly and m

Task 1.4: Responsibilities and strategies to meet the responsibilities of Ford Company.

A commitment or sense of duty regarding pleasantly perform or complete an errand (doled out by some person, or made by one’s own particular certification or conditions) that one must fulfil, and which has a subsequent discipline for disillusionment can be known as a responsibility. Everyone in the world has responsibilities. For example parents have a responsibility on their children, job, and etc. children has responsibilities on parents and studies. As well organizations also have their responsibilities.
Some responsibilities of organizations are as bellow,
? Consumer protection
? Job protection
? Disability discrimination
? Health and safety
? Stakeholders and protecting legal responsibilities
? Wider responsibilities including ethical environmental, ethical practice, etc.
? Diversity and equal opportunities.
? Responsibilities to the society
Responsibilities of Ford Company
Ford motor company tries their very best to achieve its vision, mission and goals. As well they haven’t leave their responsibilities. They do their very best to fulfil their responsibility towards the whole society. Company first satisfy their employees before they get work done out of the employees.
To help the representatives to do things the correct way, organization look to give the workers the data they require, when and where they require it. To help them to convey on this guarantee, the Corporate Compliance Office is creating imaginative preparing and specialized devices that make consistence with corporate approach and the law as simple as could be expected under the circumstances.
When the employees are trained and given the easy methods to do their work, employees will not hesitate to complete their given work. This will help the organization to improve their quality of the products as well get closer for what customers demand.
As well the ford company has fulfil the corporate social responsibilities.
Both comprehensively and locally, the organization have a continuous sense of duty regarding aiding and supporting the groups that the organization work in, better understanding natural issues and putting resources into our general public.
The organization characterize corporate social obligation as being willing to help other people, being ecologically cognizant and socially tolerant. Because of those controlling standards, the organization planned an exceptional program to advance resilience and equivalent openings, and effectively bolster social and natural insurance programs.
Additionally Ford Britain Trust give gifts to subsidize nearby training and other not-revenue driven undertakings. Passage was the primary auto maker to acquire ISO 14040 affirmation, a universal natural standard, for every one of the offices of the organization around the world.

Because of progressing endeavours Ford Motor Company has been perceived as one of the world’s most moral organizations by Ethisphere Institute, a main business think tank. Portage is one of just a 100 worldwide organizations – and the main car maker – to be incorporated into the rundown.
This shows that the ford company fulfil their responsibilities towards all who the company is responsible for. Employees are treated well, created a suitable environment inside the organization, and the job security of the workers. As well when the employees are trained and treated, they produce quality goods. Therefore the customers of the company is satisfied. In order, the profits of the organization rises. Then the shareholders benefit and invest more on new researches as well the organization grows. And when the company grows, they do corporate social responsibility projects. Through them, the society too benefits.
Task 02: Evaluate the concept of economic, social and global environment.

Task 2.1: How economic systems attempt to allocate resources effectively.

There are three types of economic systems as, command economy, free market economy and the mixed economy. What to produce, when to produce and in what quantity to produce are answer by the economic system in an economy.
Command economy, is an economy which is controlled by the central government. All the decisions are made by them. As well all the production factors are owned by the government. In this economy, demand and supply is also being controlled by the central government.
There are five characteristics in a command economy. They are,
? There is no competition in the economy,
? The government creates law, regulations, and directives to enforce the central plan which is created by the central government.
? Businesses are not run to make profits
? Change can occur easily
? There is little individual freedom
Free market economy,
This is an idealized economic system in which the prices of goods and services are determined by the open market and customers demand and supply. This is free from any intervention by a government. Proponents of the concept of free market contrast it with a regulated market, in which a government intervenes in demand and supply through various ways. Some of them are, tariffs. Tariffs are used to control the imports and protect the economy from trade malpractices. Here the process of goods and services are set by the forces of demand and supply and they are not restricted by any policy. Here all the resources are controlled by the private sector. Therefore the produces will use them in an inefficient way, and the social welfare will be gone down.
Mixed economy,
This economy consist of both free market and command economy. Here the government and private sector plays different rolls in the economy. Private organizations run their businesses to earn profits, but the government intention is to provide goods and services which the private organizations don’t provide and also to protect the customer from trade malpractices.
For example, private businesses will not fix street lamps or start a security firm for free of charge, because private organizations are profit oriented. Therefore, for to solve this types of problems the government should intervene. For some products the government fix the price floor and the price ceiling in order to protect the customer. Therefore, out of the three economic systems, the mixed economy is the best economic system for the customers as well the society.
Task 2.2: The impact of fiscal and monetary policy on business organizations and their activities.

Monetary policy,
Monetary policy has a direct relevance with the country’s money supply. Amount of spendable money in the economy at a given period of time is the money supply of a country.
Monetary policy consist of the action of a central bank, currency board or any other regulatory committee that determine the size and rate of the growth of the money supply in the country which in turn affect the interest rates. Through monetary policy, government tries to discourage people in savings and make people to spend more. Therefore, there will be more money flow in the economy
Monetary policy is maintained through actions such as, open market operations, bank rates, maximum interest rates, statutory reserve ratios, etc.
Fiscal policy,
Fiscal policy is directly related to the changes of government’s income and expenditure. By increasing or decreasing the tax rates and fees charged from people and businesses, the government can alter their income. Through fiscal policy, government controls their income and expenditure.
The government uses contractionary monetary policy and expansionary monetary policy to control their income and expenditure.
Contractionary fiscal policy
Contractionary fiscal policy is when the government either cuts off its spending’s or raise taxes. This contracts the money flow in the economy. This policy reduces the money available in the economy and it will reduce the businesses and consumers spending less.
Expansionary fiscal policy
Task03: Behaviour of organizations and the market environment

Task 3.1: How market structures determine the pricing and output decision

Market structure in free economies as depicted by Adam Smith is frequently qualified or talked about as far as examples of market association which serve the purchasers and venders in a specific type of the commercial centre. A few kinds of market structure might be depicted utilizing a few repetitive sorts of expressive authoritative component which could possibly overwhelm a specific market after some time or at specific focuses in time. Four types of market structures are, monopolistic competition, oligopoly, monopoly and perfect competition.
Monopolistic competition
Monopolistic competition, a sort of blemished rivalry with the end goal that numerous makers offer items or administrations that are separated from each other (e.g. by marking or quality) and subsequently are not impeccable substitutes. In monopolistic rivalry, a firm takes the costs charged by its adversaries as given and disregards the effect of its own costs on the costs of other. This market structure exists when there are various venders who are endeavouring to appear to be not the same as each other.

Oligopoly, in which a market is controlled by few firms that together control most of the piece of the overall industry.
Monopoly, where there is just a single supplier of an item or administration.
Normal imposing business model, a syndication in which economies of scale make effectiveness increment constantly with the span of the firm. A firm is a characteristic imposing business model on the off chance that it can serve the whole market request at a lower cost than any mix of at least two littler, more specific firms.
Perfect competition
Perfect competition, a hypothetical market structure that highlights low obstructions to section, indistinguishable items with no separation, a boundless number of makers and buyers, and a splendidly demand curve.
Task 04:


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