hnd business assignment help

hnd business assignment help

Exploring the Role of Business in the Modern Economy

1. Introduction to the Business Environment

Furthermore, a knowledge of the business environments will expose you to various service groups or industries which exist in today’s complex business world. You will move from primary production through manufacturing to tertiary production. The resulting impact of the tripartite production process is increasing the contribution of service organizations in national income and this, in turn, has significant effects on the economy. Hence, your should be a total and long-term commitment to ensuring that whatever is taught leaves an indelible record in your minds.

The business environment is one of the multidisciplinary courses that you will have to study in business school and some of the related schools. As the competition is becoming tougher than it was before, you have to take this course as seriously as you can to get the skills and knowledge required to compete effectively in the business environment. Industrial attachments and seminars organized by your academic department could help to bridge the gap between theory and practice. Though, acquisition of sound knowledge is still paramount.

2. Key Concepts and Theories in Business Studies

Companies, also known as joint-stock companies, are artificial, legal entities, which can sue or be sued. The shareholders, or members of the company, have limited liabilities. The company is governed by a board of directors, comprising both executive (day-to-day managers) and non-executive (independent, part-time) directors. Company profits are distributed to shareholders in the form of dividends, which vary according to the prosperity of the business. However, companies are relatively stable forms of business organization. They can continue to operate after the death or withdrawal of one or more shareholders, and the ownership of the company can be changed from time to time without disrupting its operation.

The term business encompasses many forms of organization including sole traders, partnerships, companies, public corporations, and producers’ and consumers’ cooperatives. The two key forms of organization are the sole trader and the company. Sole traders are individuals who own and manage their own businesses. They can employ staff, but they work on their own account. The liabilities are unlimited, but it is usually possible to insure the business’s activities against such risks as fraud, bad debts, accidents, and theft. Accountants, solicitors, hairdressers, garage mechanics, electricians, and newsagents are typical examples of sole traders.

3. The Impact of Business on Society and the Economy

What does it do? Who are its stakeholders? One of the most famous features of corporations is their dependence on markets. Under the dominant “shareholder value” paradigm, corporations are seen as creatures that have a single, overriding purpose—to enrich shareholders. Far from being an inherent property of the corporation, this focus on shareholders’ interests is of relatively recent origin, having reached prominence within the Western world in the 1970s. This shift not only has reshaped business practices but has also heightened ongoing debates regarding the proper role of the business corporation in society. The language of these debates is typically instrumental, with much emphasis on empirical claims about the capabilities of corporations. While some advocates believe that public corporations can and should do well by doing good, others worry that corporate social responsibility is “anti-capitalist in tone.”

Introduction: In this chapter, we examine questions about the role of business in a market economy. We begin by looking at one of the most important developments of the twentieth century, the rise of the modern business corporation. In developed countries, most of the goods and services produced are sold for profit by corporations that buy inputs from other corporations. This raises questions about the proper role of business and the relationship of business to other parts of the economy. But before we can answer these questions, we need to recognize that business is multifaceted. Business fills many needs and plays many roles in the economy and in society. Although its most familiar role is to produce goods and services and sell them in the market, corporations also employ people, help cities grow, sponsor community events, and lobby about laws that support or hinder business operations. What is the corporation anyway?

4. Challenges and Opportunities in the Business World

It is not reasonable to expect business to reorganize society so that business leaders can both operate and reap great benefits in liberty while using our lives as stakes in their games. Nevertheless, leaders of business firms, presiding over large accumulations of economic power in the modern state, are agents in a social system that, under stress, does not work well. They can change with the times and contribute to further change through enlightened or judicious positions. They do so by making decisions somewhat more responsive in the public interest and by seeking to minimize the distractions. Businessmen could also greatly aid their companies and their economies by more productively defining corporate goals, thus avoiding disruptive entanglements with frustrating contemporaneous issues.

Processes for economic, social, and political changes in modern society have necessarily been left largely to business, labor, politics, and the nonprofit sector. None are adequate for the assignment. The influence of business corporations on democratic governance is overall larger than is beneficial. The goals of corporate decision-making are diverse, like the life of the corporation’s members. Their goals are not properly expressed or taken into account in the larger society. Big corporations now control much of the ‘commanding height’ of our economy. They affect the public well-being considerably. They have failed to contribute as productively as they might to American and other social goals. They have been unwilling, and sometimes lack the power, to respond intelligently to the new demands likely to be made on them.

5. Conclusion and Future Trends in Business

Business is an indispensable part of a modern society. The role of business is to produce and distribute goods and services that people need and will purchase. Business is the economic institution that does more than any other to create wealth for the citizens of a modern society. It cannot be successful over time unless it provides goods and services that the public wants. Societal well-being and business performance are, in the long run, inextricably linked. Businesses can have all the good intentions in the world, but their plans will amount to little if people don’t spend sufficient money and time on their products. Without that simple but fundamental connection with consumers, a company cannot succeed. Societal values must guide this ongoing exchange, businesses must produce the products and services that people want and need, respectfully the laws and ethical standards of society, and be willing to bear the full costs and risks of their actions, especially when their choices run counter to the interests of others. Only a business that truly focuses on its customers and abides by society’s rules can generate the profits that are essential for developing new technologies and innovations to improve the quality of life for all of society.

Business has so completely penetrated human life that market relationships have become the bonds that tie society together. It is even difficult to conceive of a policy issue on which business does not have something to say, or to which businesses do not want to be invited to contribute. What, then, is the proper role of business in a modern economy? That business should focus on providing goods and services that people want and need, and do so as efficiently and effectively as possible. This, almost certainly, is a necessary condition for a modern economy to be vibrant and dynamic. The corollary, of course, is that in a well-functioning market, the most successful firms are, by definition, those that are doing the most about satisfying the consuming public. This unique connection between what the companies deliver and what the public wants makes social relevance of business an important, yet often overlooked, issue of corporate responsibility.