Foundation of business journal questions Essay Example

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    Business
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    Undergraduate
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10Foundation of Business Journal Question

Foundation of Business Journal Question

Foundation of Business Journal Question

Introduction

The business environment is defined by external and internal factors. Most businesses operate as separate legal entities from owners and each is faced by challenges as well as opportunities to expand. Globalization and market diversification together with competitiveness define business environments. There are also obligations to businesses such as corporate social responsibility that management observes to ensure business success. This paper illustrates journal exercises with an aim to explore the context of businesses.

Module 1: The context of business-Toggle

    1. Getting down to business

      1. The government, consumer trends, economy and corporate citizenship are the four external factors that influence every business. These effects are greater in businesses like Wal-Mart and Ford which deal in fast foods. These companies and others in fast food industry make decisions that will display them as good corporate citizens like for instance taking care of environment by eradicating food containers that cause pollution. People must have money to access food and services offered by the businesses which are controlled by government and its agents. Other than the strong economy, consumer trends define the business continuity.

    2. What is economics?

      1. A business that manufactures surfboards would require factors of production like Labor, both physical and mental, entrepreneurship, raw materials like wood and capital including buildings, equipment and finance so as to realize production.

Qualified skilled and unskilled labor is sourced from the surrounding society while entrepreneur to provide skill and creativity is the founder. Raw materials can be acquired through subcontracting suppliers. Structuring a savings is one of the ways of attaining finance and acquiring loan at favorable rates from bank or financial institutions.

      1. Economists attempt to answer the question of consumer satisfaction and what goods or services meet the needs, the question of procedure and input in producing these goods and services and the question of resource allocation of produced goods. Answers differ for economists in United States and those in Cuba because of the difference in economic systems in operation.

    1. Supply and Demand

      1. Major factor affecting supply of oil worldwide is prices which are influenced by the environmental concerns of entities.

      2. The price of oil would reduce if suppliers found additional oil reserves. This is because the supply of oil will increase and increased availability forces a decrease in prices.

      3. Price is likely to increase when suppliers extract from more costly wells. This is because, the cost of production will go up and producers will pass this cost to consumers in form of high prices.

      4. If China’s economy expands, the price of oil is likely to increase due to increased demand since people’s purchasing power will increase, thus increasing demand for oil.

      5. Gas is likely to be cheaper if drivers in the United States start favoring fuel-efficient cars over SUVs due to decrease in demand for the gas used in these particular cars.

      6. Oil producers will be able to meet the increasing demand for oil related products such as gasoline if they understand market trends and since more oil reserves and producers are discovered each day.

    2. Monopoly and Oligopoly

      1. Monopoly, Monopolistic, oligopoly and perfect competition differ. Perfect competition is caused by factors of demand and supply for example organic food market and monopoly involves one seller who controls market prices for example Microsoft and windows a and DeBeers and diamonds in Australia. Oligopoly competition involves few sellers for example ANZ in Australia banking sector and Coles group in grocery retailing while monopolistic competition is characterized by differentiated products sold by a wide range of sellers for example coffee and Australia’s stock exchange.

Module 2: Business ethics and social responsibility

2.1 Corporate ethics

2.1.1 Behaviors like cheating during exams or witnessing such activities and failing to report are unacceptable in school routine and violate academic integrity.

2.1.2 Repercussions of academic dishonesty include expulsion or discontinuation of a student, suspension from studies and cancellation of exams.

2.1.3 Reporting to administration or authority in charge and stopping the act at the very point are some of the steps to take in case of witnessing academic dishonesty incident.

2.2 The individual approach to ethics

2.2.1 Ethical dilemma involves a choice that has to be made between two or more morally right events for example, having to make a choice to respond to protect an employee of a company without harming company reputation. Ethical decision involves making decision between a wrong and right action for example choosing between laying-off a worker due to misconduct and fraud and retaining them in the organization.

2.2.2 Unethical lapsinvolve an instance where decision made is unethical or illegal or both for example deciding to dump company waste in the surrounding community in a way that is not safe to the public.

2.3 Identifying ethical issues

2.3.1 It is not unethical for employees to use work computers for personal activities. These activities must be beneficial and morally right.

2.3.2 Monitoring computer usage is ethical since it is for everyone’s best interest.

2.3.3 Yes I have legal right to monitor computer usage.

2.3.4 Computer usage must reflect morality, diplomacy and honesty. Computer usage must be put at the best interest of the company and no personal activities should be done during work hours using work computer. Yes I will enforce

2.4 The organizational approach to ethics

2.4.1 Reason to perceive the late Steve Jobs, founder of Apple Company as an icon in ethical leadership was his connection to juniors and staff all through the company subsidiaries and communication on expectations and policies of ethics. He was focused on reducing chances to unethical behavior and was looked upon by many yet he dint fail them in terms of ethics.

2.5 Corporate social responsibility

2.5.1 University of Canberra

Students- Protect students and offer the best to them, academically, socially and in other sectors

Staff – Fair compensation of staff including teachers and involved in staff personal development

Parents- Respond to parents concerns on students’ performance and other needs like school fee.

Community- Give back to society through employment and sponsoring privileged students.

2.6 Environmentalism

Module 3: Business and global environment

3.1 The globalization of business

3.1.1 John has an absolute advantage in both writing report and preparing presentation.

3.1.2 Both John and Jennifer have comparative advantage I preparing presentation.

3.1.3 John should concentrate on writing report while Jennifer prepares presentation so that the client is served faster.

3.1.4 John has comparative advantage in report writing. If not working with Jennifer, presentations can be a better option; otherwise, he should specialize in report writing.

3.1.5 Jenifer should specialize in preparing presentations.

3.2 Opportunities in international business

3.2.1 Importing – purchasing of goods from another country for resell in your own country.

Exporting – selling products to another country.

Licensing- an agreement that allows a foreign company to trade the goods of a producer in return for royalty fees.

Franchising- an agreement that allows a foreign company to use the brand name of another in as well as sell its products. Franchising because the franchiser provides services like advertising, training and new product assistance thus relieving the franchisee of these costs.

3.2.2Domestic labor costs are expensive therefore outsourcing helps cut down on these costs.

3.3 The global business environment

3.3.1The Australian engineering firm is at a disadvantage if section 70.2 of the Criminal Code Act 1995 (Cth) forbids the company from making any payment to foreign official to enlist their help in getting the Job. Section 70.2 should not be repealed because it reflects the values of Australian society and it discourages corruption.

3.3.2.1 Multinationals have decided to help control AIDS in their workforces since it affects productivity so as to boost productivity.

3.3.2.2 Difference in culture and values is a reason why some multinationals have failed to help

3.3.2.3 From the humanitarian business perspective, helping in control of AIDS among workforces is right.

3.3.2.4 Helping out to the company’s capability is right in case of conducting operations in a country where the government is unwilling or unable to control spread of AIDS.

3.4 Trade controls

3.4.1 Companies that outsource manufacture of their apparel in U.S would increase production as a result of elimination of quotas by US government.

3.4.2 Productivity in China will increase and this might lead to dominance in the textile industry. Indonesia and Mexico are likely to be pushed out of market manufacturers like china. Supply of textile in the United States is likely to exceed demand due to excessive supply. American consumers are likely to acquire textile at cheaper prices but later affected by low quality due to dominance of some countries.

3.5 Reducing international trade barriers

3.5.1 NAFTA is The North American Free Trade Association which was formed to bring liberation in trade sector among Canada, United States and Mexico. The organization has brought about comparative advantage among the partners, making them best trade partners.

3.5.2 European Union is a group of more than forty countries within Europe which was started with the aim of bringing together communities in Europe. It has facilitated cooperation both socially and politically.

4.1 What is an entrepreneur?

4.1.1 It sounds like me.

4.1.2 Yes, I have attributes of an entrepreneur. Yes, I can be a successful entrepreneur because it is always my aim to start small and build business through personal efforts.

4.2 What industries are small businesses?

4.2.1 Most small businesses are found in service producing sector because mot service ventures require lesser capital. Small services producing businesses include cleaning companies like Georgia, Kansas and Lowa, MiniLuxe Salon and Karma Day spa. Small goods producing businesses that I patronize frequently include Long John Silver’s, Wal-Mart, Chicken Little, McDonalds andBurger Baron.

4.3 Starting a business

4.3.1 Starting a new business involves many risks like loss of capital and lack of market, however, it has potential to grow and expand to higher heights. Acquiring a business has an advantage of already established market base; however, it might also be risky in case the previous owners engaged in vague business operations. Franchising also has the advantage of established market and business model, however, the disadvantage is the party that a company is leased to might interfere with its image during leasing period. Starting a new business is a better option because I will own the idea and explore my creativity and knowledge in the business. I would start a business in fast food industry.

Conclusion

Businesses are not independent entities from the society and other external factors such as government and authority. Ethics and corporate social responsibility are among the elements that businesses are subject to. From the journal exercises, the business environment offers opportunities that can be explored by businesses in the midst of challenges through globalization.

References

University of Canberra. (2007). Foundations of business. Canberra: The University of Canberra

Kew, J., & Stredwick, J. (2005). Business environment: Managing in a strategic context.

London: Chartered Inst. of Personnel and Development.

Wienen, I. (2002). Developing international business in the context of culture and ethics in

transformation: The example of China. Frankfurt am Main: Peter Lang.