Section A Question 1 Q.1.1) The Macro-Environment is the most external environment the business can operate in. It has uncontrollable factors on which the business cannot control. There are six variables that are going to be discussed. • Technological Environment. - Change in the environment is generally a manifestation of technological innovation. This originates in research and development by the main facilities, Businesses; Universities and Government. These technological innovations bring many great new, machinery, products, processes, methods, services and approaches to management. But unfortunately Johnson will need to keep up to date with this change as he mentions if someone or some competitor innovates and designs a new product that decreases the demand for a catalytic convertor that can lead to the liquidation of the business or decrease in demand for the product. • Economic Environment. - This relates to the factors that can have an affect on the flow of money into the business. These effects can be inflation rates, interest rates, exchange rates and consumer income. Johnson Matthey had a huge economic problem in 2008 when the banks had a crisis and major banks started to fail which lead to major organizations, small businesses and consumers not being able to obtain loans for investments or to buy cars which had Johnson’s product in them leading to a decrease in demand. Showing how powerful the economic environment is because with out finance there is no purchasing or expanding, which can lead to the failure of the business. • Social Environment. - This is the environment that is most subject to the influences of other variables mainly technology and the economy. Humans are the main products of society and being... ... middle of paper ... ...siness to raise huge amounts of financial resources. • Limited liabilities. This means only the financial liability of each shareholder is affected so that of his or her share is only effected and only what was bought under the business is liable for debt claim. • Transferability of shares allows the shareholder to sell his or her share easily and allow them to not be part of the business share if they do not want to. • There is unlimited space for growth in a public company due to the allowance of unlimited shares being sold allowing that money to be injected into a capital fund to help with the expansion and growth of the business. • The management of a public company is democratic and for that fact the shareholders are able to vote off directors and elect directors. The minority shareholders are protected under the companies act for domination and mismanagement.
It is important to recognise the main features that affect a business in view of the macro and micro-environmental factors.
Discerning the spatial patterns of biodiversity and understanding their ultimate (why) and proximate (how) causes is very dear to biogeography and is one of the key concepts of Macro ecology. Some places on earth contain more species as compared to others. All species occurring at a given space and time either originated (speciated) there or dispersed and arrived from another place and settled there. Biogeographers try to understand the past and current distributions of species by incorporating historical, evolutionary and ecological factors. Earlier biogeographers or the ‘naturalists’ in their sacred quest to serve ‘the creator’, travelled to various parts of the world and imparted valuable knowledge about the diverse patterns and processes of nature. Linnaeus (1743), on the one hand, hypothesized that early Earth was filled with water except for it’s highest mountain top i.e., Mount Ararat which was known to be the site of paradise and as the sea level dropped the exposed land was colonized by plants and animals that migrated down from high elevational zones of Mount Ararat whereas Willdenow (1805) hypothesized that within each geographical region of the earth, plants and animals were first placed and later survived the great flood on many mountain ranges (Lomolino,2001). Von Humboldt and Darwin in the South American Andes and Wallace Southeast Asian islands noticed the decreasing trend in elevational species richness patterns (McCain and Grytnes, 2010). Later work done by Grinnell (1917), Whittaker (1952), Terborgh (1977, 1985) on elevational species richness became accepted and set a established pattern for all species for more than two decades (McCain and Grytnes, 2010). However current researches on elevational gradients are...
This case focuses on corporate obstacles to pollution prevention. Pollution prevention can complex especially for large corporations. There are many different forms of pollution prevention including emissions control devices and incremental changes in existing technology. The author reviews the impact of emissions controlled devices, however the focus of the case study is on incremental changes in existing technology. Incremental changes include substituting one or two steps in a production process or relationship changes between production steps. One example of incremental changes that was provided by the author was eliminating chlorofluorocarbons and saving energy by replacing a refrigeration process with a heath exchanger that can exploit waste cooling from another part of the process. There are three critical decision-making stages for incremental changes; identifying a pollution prevention opportunity, finding a solution appropriate to that opportunity, and implementing that solution. The author discusses the three aspects of an organization (culture, ability to process information, and its politics) and how they impact the decision-making stages.
This paper aimed to show how both macroeconomics and microeconomics plays a role in the overall success of an organization. The key decisions confronting the firm right from inception to operation to growth are themes business, economics can explore and which are useful for entrepreneurs and business leaders. With increasing globalization, the fact that firms now operate in a global arena means that they must have the knowledge of how macroeconomic trends affect macroeconomic decisions.
Overall, humans impact the global environment in multitudinous ways whether positive or negative. While creating issues such as overpopulation, pollution, biomagnification, and deforestation they also intrude into many other factors such as environmental, social, political, and economic. Problems caused by society itself are leading up to solutions to fix these environmental problems and may also just benefit the world as a whole.
Environmental – External environmental factors are forces or trends that can affect a business whether it is an opportunity, threat, or constraint. They can be divided into three interrelated subcategories of remote, industry, and operating environments. The remote environment includes factors beyond a company’s operating situation such as the economic, social, political, technological, and ecological factors. The industry environment includes factors that have more of a direct influence on a company’s business such as entry barriers, competitor rivalry, the availability of substitutes, and the bargaining power of buyers and suppliers.
The components of the macro environment are the political-legal environment, the economic environment, the socio-cultural environment, and the technological environment in which Euro Disney operates.
Common stock ownership has the benefit of allowing its shareholders to vote on the organization's board of members. Usually, one share of common stock equates to one vote. Companies sell common stock through public offerings, and it's traded among investors on the secondary market. Share...
Everyone is doing it. Since the beginning of time sex has been a part of life. In the biblical reference, Adam and Eve were the first people to commit this “scandalous crime”. People, animals, and plants are hardwired to seek sex. Plants were the scientific start of sexual reproduction leading into what sex is now, billions of years later.
Holders of these shares would hope to share in the prosperity of the company by way of increased dividends
Macro Environment: The macro environment consists of larger societal forces that affect all the factors in the company’s micro environment. Examples of Macro-environment are
Technological innovations change our life-cycle in anywhere and at anytime and it is a way to help us to do better through saving time and convenience. base on fast pace of technological changes, the effect is huge to community at large and also shock in marketing mix which impact on product, price, promotion and place(distribution) respectively.
The concept of limited liability promotes recklessness and irresponsible risk taking. The argument for the return of unlimited liability is also an argument for separate legal personality to be taken less seriously. It is believed that, should it happen, would “eradicate the problem of corporate irresponsibility and unaccountability by identifying corporations more closely with their shareholders, encouraging a shift towards the older concept of ‘the company’ as an aggregation of
The business environment that firms operate in can be divided into the internal environment and the external environment.
The owner has the ability to grow or contact its operation at will with no need to consult with a boss or board of directors