Business Environment Essay Example | Topics and Well Written Essays - 1750 words

occupation Environment - Essay ExampleThere are ii distinct types of Business Environment (Kew and Stredwick 2005). a) Internal environment b) External environment The internal environment includes money, machinery, man, material and management, which are usually based downstairs business control and the changes upon the performance of the enterprise or organizations. The external environment consists of factors that are beyond the manipulation of the enterprise and entails the governmental and legal factors, political factors, socio-cultural factors among other factors. External environment could be micro or operating environment or macro or general environment. Scenario 1 working for Stepping Stones education publishing LTD come tos the need to expound on the economic chapter of the Business Environment. Task 1 news Chapter Any ultimate decision that is made by a manager must always involve price and output. The price output decisions are surrounded by three factors. These factors include cost, want and mart structure (Henry 2008). Market structure refers to competitive environment whereby any enterprise manages and dictates on how cost and demand should be featured in decision making. Although various firms operate within different foodstuff structures, thither are five basic trade structures namely monopoly, duopoly, oligopoly, monopolistic and perfect competition. A market operates under perfect competition if it persuades numerous firms, freedom of entry and exit, homogenous output and perfect information. A market economy has competition between huge numbers of buyers and apportioners who search for a chance to buy and sell goods and services (Kapstein 1996). Competition among sellers dictates that prices will always be on the baseborner side and that of the buyers dictates that prices will neer be very low hence making a major impact on the market equilibrium. The element price is very essential in the market. Its prime purpose is to ensur e that there is a clarification in the economic market. In addition, price contributes to market analysis with regard to the demand worm (Krugman 1996). A demand meander is the relationship between the price of the good and the amount or beat the consumer is able or willing to part with in regard to its purchase in a qualify period of time with consideration to income, tastes and prices of similar goods. The graph above explains the Supply /Demand curve in relation to production of Oil in Libya. In essence, the demand for crude oil increases when the price is low causing the supply for the product to decrease. According to Kew and Stredwick 2005 argues that pure monopoly ensures that there is the wholly one supplier in the market, there is no close replacement to the output good plus no threat of competition. Monopoly performer that there is only one firm that is ruling the market. This kind of domination is not competitive because it is the only supplier in the market hence i t as a downward sloping demand curve as it has the freedom to choose its prices and quality in the market. Duopoly is a market dominated by two firms, which are large enough to influence prices in the market. In addition, oligopoly is dominated by a crushed number of firms, which are large enough to manipulate prices in the market. A market structure that is monopolistic constitutes of several producers with various real or perceived difference in products. A perfect competiti