Assignment on Business Environment

Name: Abdullah Al Mamun

ID NO: 32422841484

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Table of Contents

Introduction.................................................1

Task 1.......................................................1

1.1 Background, Mission and Vision of Armani...............1

1.2 Identify the key stakeholders of Armani................2

1.3 Strategies it adapts to meet their needs and expectations...............................................3

Task 2.......................................................4

2.1 Advantages and Disadvantages that organisations would handle in a dissimilar economic system.....................4

2.2 Impact of fiscal and monetary policy...................5

2.3 Impact of Govt. rules including competition policy.. . . .6

Task 3.......................................................7

3.1 Market structures based on the Price and Output........7

3.2 Focusing market forces shape organizational responses using examples.............................................7

3.3 Business and Cultural Situations form the character.. . .8

Task 4......................................................10

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4.1 Importance of International Trade and Globalisation.. .10

4.2 The role of World Trade Organisation (WTO) emerging markets BRIC countries....................................11

4.3 Impact of policies of the European Union on UK business organisations.............................................12

Conclusion..................................................12

Reference(s)................................................14

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Introduction

Everything exists in the world in environment and the effect

of environment of Business much more important to make profit

and make law relating business. It also called which factor

influence the business as well as organization are considered

as business environment that formed through formal and

informal variance. Business Environment can be mention as

internal and external. In this assignment, I try to present

the Environment of the Business with providing criteria.

Task 1

1.1 Background, Mission and Vision of Armani

Giorgio Armani S.p.A. is the name of an Italian brand and

fashion house founded in 1975 by Giorgio Armani which make

sure designs, productions, distributes and retails of

attractive men's suits as well as women's wear which has been

really an amazing.Growing up in Italy Armani worked very hard

to create his name as known to all. Giorgio Armani started

working in stores and steady jobs just like everybody else but

he knew he had an idea and wanted his idea to be recognized.

At last 1975, Armani started over a business with Giorgio

Armani Junior, Underwear, Swimwear, Accessories and Occhiali.

Overtime he made contact and agreement with various companies

like Gruppo FinanziarioTessile (Textile Finance Group), Luxottica

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Group, EMAAR Hotels & Resorts and so one to extend his

business. In 1999, this company came under e-commerce business

in USA. At present Armani has 5000 staff, 13 factories, 500

exclusive retailer in 46 countries worldwide. Armani worked

hard that put his position of todays. It is thought that

Armani is the most valuable fashion designer’s in the present

time. It is happening because of his dream. He works now seven

labels that had been noted below familiar to all over the

world. The sort time object of this company is earning profit

but long time object is welfare of mankind so that it raised

the Global Fund in the fight against AIDS in Africa in 2006

(Steward, 2012). According to Yahoo Finance (2015) it is a

private company from beginning but has licence agreement with

various company or business group.

Alexion Pharmaceuticals is a biopharmaceutical company that

are engaged in the innovation, development, and

commercialization of life-transforming therapeutic products

for treating patients. The basic different between Armani and

Alexion Pharmaceuticals is noted below.

Alexion Pharmaceuticals is Medicine Company having global fame

whereas Armani is a brand company deals with luxurious

product. The main consumer of Alexion is patient but Armani is

fashionable man. Alexion is related with basic human need on

the other hand Armani is subsidiary need. The ownership of

Alexion is Public but Armani hosted with Private Company

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keeping ownership Giorgio Armani. The brand value of Alexion

is 30.73 Billion Dollar whereas brand value of Armani is 3.1

Billion Dollar (Forbes, 2015).

1.2 Identify the key stakeholders of Armani.

As Armani is a private company Founder Giorgio Armani who is

the only one owner of Armani Brand. Researcher does not seek

on Armani’s profit estimations, there is absent of insane

board of directors who doesn’t consider reality while they are

collecting retainers and there is no employees scramble over

each other’s' backs, being optimistic that stock decision will

be top before stock market. Without public offering, financial

bodies and profound capacity Armani hosted only product. By

eradicating the surplus, emphasising reliefs and recognising

sophistication of easiness, Armani brand has been exposed as

style for women as well as for men. Armani’s elegant, non-

centralised coats for profession females changed the rigid

that is entitled as dress for success suits that imitation

what manufacturers naturally dress in. Beautiful fabrics were

presented by Armani and also indirect tailoring, ensuing his

brilliances rather than a rigid fashion formula (GUGGENHEIM,

2000).

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Business objectives are the ends that an organisation sets out

to achieve. The objectives and plans of an organisation create

and determine by stakeholders in the organisation. As Armani

is a private business so the work of stakeholder done by one

person. An Organisations create a hierarchy of objectives like

as market share, customer satisfaction, employee satisfaction,

cutting pollution, reducing waste and so on (Business Case

Studies, 2004).

1.3 Strategies it adapts to meet their needs and expectations.

Stakeholder Stakeholder

Interests

Assessment of

Impact

Potential

Strategies

x

y

Stander stakeholder analysis matrices have to display each

person interest to change, where interests meeting, the smooth

of influence, and person who have a steps in the new

improvements. Stakeholder analysis matrices can be favourable

at the outset of new projects. There are some great cases of

stakeholder analysis matrices out there. Each part of the same

four of the boxes as a band altering of a distinct request,

this won’t be difficult when Armani should control with the

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Fig: Stakeholder

person to contact first: person number one having high impact

and position or another once having high stimulus and

importance. If possible it is helpful to compute objectives.

It needs being perplexing. It is difficult to achieve goals or

objectives. It would be achievable and that should not be

vague. It also have to be easy making out that can be too easy

to communicate. By setting up goals, market chain of Armani

shear has been intensified 20 percent to 80 percent in three

years. Armani adopted numerous ways to create his complete

noted. In 1980’s there was unforeseen amendment in apparel

industry. The demand for modern product was high. And this was

the time once this complete came into existence with numerous

sorts of merchandise. Armani used the acknowledged

personalities or super stars and model to market his product.

He created promotional schemes offers to induce his

merchandise renowned. Armani conjointly organized campaigns to

market his merchandise and build it renowned in people’s eyes

(Business Case Studies, 2004).

Task 2

2.1 Advantages and Disadvantages that organisations would

handle in a dissimilar economic system.

A free economic system known as capitalism, is an economic

system where a person has the freedom to build business and

conduct economic activity with little or no government

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interference. Command economy system knows as Socialism or

Communism, is an economic system where government control over

all major parts and economic production. Armani started

business in free market economic system and the potential

buyers of that good or service determinate the price. The

value of product is depending upon market supply and demand.

But in command economy value is determinate by government. In

free economy system the owner is rewarded all the profit

achieved in business but in command economy the price and

profit is public property because government is the

responsible to bear its citizen. Production is depending on

owners willing but government definite mode of production in

command economy. One of the most important advantages of the

free economic system is the flexibility of the economy where

is rigid to command economy. All the character of free

economics system found in Armani. The Production level,

profit, economic supply and Flexibility depend on owner

Giorgio Armani. At the starting Armani deals with few product

but at now their service and area of business so gigantic

(Synonym, 2010).

Political environment influence Armani very much. Political

environment includes philosophy of political parties, ideology

of government or party in power, nature & extent and so on.

Government interfaces are the Government legislations, laws,

regulations and restrictions on trade. Population is the

important in business reforming. Armani is fashion brand where

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main customer of their product is the modern people. The

trading partner of Armani are Textile Finance Group,

VestimentaSpA, Deanna S.p.A, EMAAR Hotels & Resorts LLC and so

on (Slideshare, 2013).

2.2 Impact of fiscal and monetary policy.

Metcalf (2013) defines that Aggregate demand can be noted as

total production of goods or services in given certain time.

Fiscal policy is the way by which a government regulates own

spending levels and tax charges to observer and effect a

nation's economy. These effects impose on commercial division

in two stages. The First level is legislation related with

overall economy and the second level is targeted legislation

related with definite segments of a business. To accumulating

the economy, Govt. might authorised act that bring money from

everyone’s' pockets to government pocket. Government

expenditure programs directly influenced to a business that

profited gained or impact on government greatness. In this way

we can say that for this development of government, the

business become beneficial. This development is like build

rail way, high way, Power plant and so on.

Monetary Policy is the system to control over money for

inflation from market by increasing bank rate. The central

bank has obligation to control over the money supply for

checking inflation and financial issues. The primary effect is

increasing interest rate after cost of money. The subsequent

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result of that money supply become broad than before, large

number of investment occurring in domestic economy. On the

other hand to control over money, government increase the

interest rate (Metcalf, 2013).

AD = C + I + G + (X-M) in where C is consumption (we called

it, Customer expenditure) = ac + bc(Y - T), Y consider as

income and T noted as taxes, I listed Investment, G means

Government spending, NX = X - M exposed Net export, X for

total exports, and M means import = am + bm(Y - T). If the

level of income tax is fallen then Armani T is decrease means

consuming tax for that the sell become increased means C

increased. If the value of pound increases then the rate of

goods and services become lower. If the time of falling

interest rates the rate of goods and services become higher.

On the time of large increasing in the level of Government

expenditure, government increase their tax rate then Armani

gain low profit and C become lower.

2.3 Impact of Govt. rules including competition policy.

According to Competition Policy International (2007) Most of

the business in the world have negative impression on

government systems and their unhelpful behaviour. In the cite

note we can mention the small business that has tiny time and

strength, government legislative necessities have alleged,

besides shifted and disorder situation happening during 20

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century because of imposing illogical income tax and non-

tolerable laws were first build.

Competition Law in Italy is set out in 1990 that controls

preventive performs, misuses of leading places and

applications, in a manner noticeably duplicate to the European

rules. Restrictive practices mentioned on Article 2 related to

the exclusion of contracts, determined performs and judgments

of suggestions activities, that is the goal of avoiding.

Abuses of dominant position suggest on Article 3 related to

the law of forbids abusive comportment from the portion of

domestic, more than one endeavours in an important position

and offer dissimilarities. The concept of the Italian law

focus on Articles 5, 6, 16, 17, 18, and 19 of the Law. These

make a concentration that is noted as when i) more than

include the marge; ii) who is in undertaking also undertaking

for all; or iii) More than twos works as Joint company of

business. Armani follows all the regulation of government. The

few act of that is tough to any business organization that

also for Armani. They do not have any record of breaking the

government regulation. Though the time of lunching was

different but they adopt the regulation (Investopedia, 2011).

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Task 3

3.1 Market structures based on the Price and Output.

Market structure is a concept by which formats with the

combination of buyers and sellers. The Price of a goods and

services depend upon the access and number of buyer and seller

presenting. In a market we found few types of structures like

Perfect Competition,

Monopoly:

Oligopoly.

Perfect Competition is a market structure where are existed

more than one sellers who contain same product then the price

of the production depend on the existence of another business.

In this market buyer essentially define the price of product &

the business takes the decisions comparing with other

predictor because every company bear a tendency to offer low

price to their customer and increase their market shear (UK

Essays, 2013).

Monopoly structure formed various business into one business

where control themselves price to their customer. The customer

has to pay the price of the product, but not choose willingly.

Besides Firm produces with full effort because they will be

bound to fulfil the demand as a whole for their products (UK

Essays, 2013).

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Oligopoly market structure formed various seller with same

production where sellers in the component to define the price.

Large sellers make themselves as a unit where customer has no

option and buyer are compel. Seller has change the price and

the promotion of goods are not frequently happening, in

oligopolistic market organisations take verdict of output in

the light of the request from their consumers towards their

goods(UK Essays, 2013).

3.2 Focusing market forces shape organizational responses

using examples.

Market forces is making confided that define a price of a

product in economy. It is the combination of Demand, Supply,

Employees, Customers and Suppliers. A business is bound to

provide priority with demand that is vacillating of products

like increase and decrease. In the time of increase demand the

business situation become enrich with a lot of staff engaged

with production. On the other hand, decreasing demand the

production become so low and bring a little profit. An

organization respond negatively to their workers (UK Essays,

2013).

Like the demand supply is related with two things in

production. In the time of high demand the supply would be

less whereas low demand of a production the supply is raising

and the products need becomes lower. A business response on

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this crucial moment to intensify the supply and remove supply

shortage.

Employee may be consider as blood of an organization who can

change the organization with the behaviour. Had the government

announced not to provide minimum salary, the worker joins

another company by leaving present job.

Every organization has tendency to make satisfied their

consumers through producing goods. If any organization produce

their fashionable product without considering the time

situation with the teat of their customer, then they loss a

large amount of customer who is in believe in present fashion

or modern one. The cause behind that is customer can’t meet

their requirement. As Armani is a fashionable brand, it has

regular customer connection. They provide customer support

whole day long with 24/7 support (UK Essays, 2013).

Every organization is much more relies on supplier and also

called that the supply is the first step of gaining profit and

without it production is impossible. The relation between

supply and raw materials is positive. If the prices of an

organization are elastic, the raw materials also would elastic

price. If the product price is rigid and varying, there is no

change of demand that’s why product would be cheap and demand

would be change.

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3.3 Business and Cultural Situations form the character.

In Business and Cultural Environments, there are few shapes

that are important to adopt the business. Those feature

mention below:

Political: This alludes to the administrative arrangement like

as government interruption in what administrations and

products to create, which firm to support and so forth.

Ethical judgments additionally have an impact on business

exercises, for example, wellbeing and training for works and

the framework of the economy. Armani is a well-known brand of

Italian. It has more than 5000 direct staffs. They take after

Italian business regulation built-in 1990. They bolster their

staff with world class standard. All the new law and

regulations by the administration influence Armani.

Economic: Economic elements may be noticed the financial

conditions overall. These elements incorporate swelling, the

rate of interest, trade and monetary advancement and so on.

Armani started business and spade all over the EU, USA and

other countries. Day to day the economic activities increase

and popularity. Their sale also increases much more and they

guess that sales of the company were around $1.69 in the end

of 2005. Many people engage with employment in Armani. Armani

have to be conscious of all such conditions being organised to

accomplish them well.

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Social: It means the cumulative of human being consist of

different family. That may be included changing pattern of

taste, changing level of income, modification of style etc.

Every single concept have the power of shifting demand for the

product. These are normally occurred with Luxurious and style

merchandises. Armani surf their product according to customer

want and choice. The test of choice China and USE are not

same. By thinking that they arrange fashionable product to

those criteria base outlet. It is the example of social

services.

Technical: This means a modification and improvement in the

way of production with the help of technology that improved

the feature of products, increase in productivity etc. Armani

apply technology the way of production. They use different up

to date the way of production. They also lunch online shopping

system and automatic price tag and so on.

Legal: It means government makes new law to run the business

on the specific time interval. Government licenses distinctive

fresh rules after every positive time retro which rises

expense of the organizations. Such acts may incorporate age

separation, development in the lowest pay permitted by law and

so forth. In 1990 the new business law create and it is

continued today.

Environmental: It is the important factor of a business.

Various business in the world based on thus factor. The

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production of specific goods, supply, and demand and so on

depend on it. Tourism business, agricultural production and

like that are mostly depend on the environment.

Cultural: Attitude, behaviour and the knowledge are the

cultural production. We found two types of culture. Internal

culture may be include normal culture what we are and external

culture is the culture of business oriented. Armani has both

of the cultural features.

Task 4

4.1 Importance of International Trade and Globalisation.

According to Economy Watch (2010) International trade has

prospered over the year’s cause of the numerous advantages it

has offered to distinctive nations over the globe. Global

exchange is the framework where trade of administrations,

creation and capital inside different nations and locales,

without much interference. The universal exchange accounts

consider as domestic product. It is also one of significant

sources of revenue for a developing country. All of this

happening with the assistance of advanced generation methods,

propelled transportation facilities, international

partnerships, outsourcing of assembling and administrations.

The compensations of universal exchange have been the primary

drivers of development for the last 50% of the 20th century.

Worldwide exchange like Armani has gotten to be thriving and

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has the ability to controller the world economy. The overall

exchange can turn into one of the boss suppliers to the

decrease of neediness. Armani conduct their business globally.

Armani extend its brand to USA, UK, EU, Russia, China and

Japan. That is the example of International trade and

globalization. It becomes more beneficial. Some important

benefits that have get Armani noted below:

Increases the national competitiveness.

Receives benefit of worldwide employment technology.

Rise the size of deals and revenues.

Spread sales capacity.

Control cost compere in domestic market.

Improve capacity developing business.

Achievements of an international marketplace share.

Decrease dependency.

Alleviate periodic market.

4.2 The role of World Trade Organisation (WTO) emerging

markets BRIC countries.

The BRICS stands for India, Brazil, South Africa and China.

The members make commitment within a few topics in the meeting

that includes: planning a methodical method responding at

every promote economic declines international economy,

foundation budgetary participation, working with multilateral

strategies, verify practical improvement, coming back to the

basic difficulties of urbanization and nourishment qualities,

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and co-working for acknowledgment of social insurance and

solutions among others. Requirement for building economical

organizations together for multilateral exchange gatherings at

WTO; create option wellsprings of innovation; build business-

to-business contacts and upgrade vitality security and so on.

The BRIC countries work together for development of their own

economy. They believe themselves as a product life cycle

processor that China is known as domestic production, whereas

India known as the place of services, and raw materials sector

enriched in Russia and Brazil (Metcalf, 2013).

By working all in one they can be more effective than the west

in the structure. But in real sense the relation between USA,

the EU and consensually are further significant, but doing

substance we can watch the development between BRIC nations to

notice if they work together collaboration. This superior

essential depending on the international dealing system rises

consequent of new settlement of centres of financial standing

in the world. The fundamental test we confront today is the

way to perform the modification from the present period that

affiliations these monstrous varieties in the global scene to

a period that will bring better synergistic and supportive

business implies over various countries. This will oblige a

multilateral exchanging framework. The impact on economy,

education, employment, competition exists in the market.

Armani already run their business to those BRIC countries. By

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Following the rules and regulation created by WTO, they extend

their business also another developing country.

4.3 Impact of policies of the European Union on UK business

organisations.

The term policy may be noted as the system where makes a

decision and the initiative to make it successfully. It works

as a process. Policy is support the capability within European

Union on UK business organization in there action is laudable

and have an expectation to seniors. Policy instruct the

getting the success and achieve the aims (Clark, 2009). It

also help to gain special decision and support to senior to

conclude the activities. In policy, objective are operated.

The influence of policies of EU especially to UK organization

are in listed –

The impacts of strategies are secured to stay away from

destructive conduct that gets positive advantages the UK

business association. Business getting arrangements help

associations to surrender negative impacts. Organizations have

approaches that actualized through gaining methodology. The UK

business made an impact to enhanced possession through

arrangement. Arrangements meddle the situations that

strategies seek after to effect on governments, humanities,

substantial business is to rolling out an approach

improvement. Government is the producer of arrangement choice

to expand charges from business. The strategy making method

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contains a test to evaluate approach impact that arrangement

is shocking punishments (Welford & Gouldson, 2003).

Conclusion

In conclusion we can say that business environment discusses

for the UK government and the plan of moderate. It is the way

of success in promoting from current situation to develop one.

Business environment is the most important factor in the time

of forming business to manage. The advancement of social

obligation is adding to making business development. It is

fundamental for prosperity to centre of political

consideration.

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