& Law /
ASSIGNMENT FRONT SHEET
Student Name (Print):Certification : I certify that the whole of this work is the result of my individual effort and that all quotations from books, periodicals etc. have been acknowledged.
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Programme : BABS/Fd/HNC / Year/Level : 1/4
Academic Year : 2011/12 / Semester : 1
Module title : Business Context / Assignment no. : 1
Module code: BUS407 / Word guide: 2500 ± 10%
Percentage Weighting of this assignment for the module: 50%
Issue date : October 2011 / Return date : November2011
Lecturer : Dr. L. Davies / Second marker :
Notes for students:
- Staple a hard copy of assignment in the top left corner and submit to the Undergraduate Office.
- Electronic copy of assignment should be submitted through the Turnitin software.
- 10% of marks are awarded for satisfactory use of language and/or good presentation.
- 5% of marks are awarded for satisfactory referencing and/or presentation of a bibliography where either is required. Note that all
- referenced work should be obtained from credible sources.
- Students should ensure that they comply with Glyndwr University’s plagiarism policy.
- Students should make correct use of the Harvard referencing method.
Learning Outcomes Tested in this Assignment :
- To apply analytical models to examine and interpret the business environment
Overall Comment : /
Would students please note that achievement of the learning outcomes for this assessment is demonstrated against the assessment criteria shown below (which are not necessarily weighted equally). All marks/grades remain indicative until they have been considered and confirmed by the Assessment Board
Assessment Criteria / Marks Available / Marks Awarded1 / Business context
Knowledge of levels of analysis and associated analytical models.
Ability to structure a report in a professional manner with good level of content and discussion to a standard useful to a line manager or decision maker with respect to content and logical discussion. / 25
2 / The fundamentals of business life in modern times are built on a macro foundation. An appreciation of this and the reasons for government intervention to be noted followed by the mechanism of interference and for what reasons. / 25
3 / Define, describe and illustrate stakeholder theory in relation to the selected business. Identify expectations and conflicts in an organizational setting and how these may be managed. / 15
4 / Evaluation of the concept of demand and supply in a market economy. How the ability to use price changes in a competitive environment is influenced by the elasticities of these curves / 20
5 / Presentation and use of Harvard referencing. / 15
Undergraduate Modular Programme Level 4 / Foundation Degree /HNC
Business Context – October 2011
Answer all questions
Reference your research sources as appropriate and in Harvard style
“In order to operate successfully businesses must be able to respond effectively to factors in their environment that affect them. The environment may be seen as presenting a range of threats and opportunities. A successful business will be one that is able to deal effectively with threats and take advantage of opportunities or, at least, is able to do so as well as or better than its competitors.”
(Wetherley and Otter 2011:21)
Part 1
- Select an organisation for analysis, perhaps one with which you may be familiar, and apply appropriate theoretical models to give a succinct but relatively detailed report on business conditions at relevant levels for autumn 2011.
(25 marks)
Part 2
- Governments around the world adopt macro economic policy to achieve their objectives:
i)Why should governments interfere in a free market economy?
ii)State and critically discuss the macro economic objectives government may be trying to achieve. Discuss the argument surrounding the prioritisation of such objectives.
iii)What are the principal aggregate demand management tools the government may use for achieving these objectives? Identify and discuss any problems you see in such utilization.
A central issue in macroeconomics is whether or not markets, left alone, automatically bring about long run economic equilibrium. If the free operation of market forces eventually resulted in a full employment level of national income with stable prices and economic growth, there would be no need for government intervention in the macro economy - no need for fiscal monetary exchange rate and supply side policies. The reality is that all governments intervene through their macroeconomic policies in a bid to achieve certain policy objectives and improve the overall performance of the economy.
Main Objectives of Government Economic Policy
Sustained economic growth
Stable prices (low inflation)
A high level of employment
A rise in average living standards
Sustainable position on the balance of payments
Sound government finances
i)Why should governments interfere in a free market economy?
A free market is a competitive market where prices are determined by supply and demand. However, the term is also commonly used for markets in which economic intervention and regulation by the state is limited to tax collection, and enforcement of private ownership and contracts. Free markets differs from situations encountered in controlled markets or a monopoly, which can introduce price deviations without any changes to supply and demand. Advocates of a free market traditionally consider the term to imply that the means of production is under private, and not state control or co-operative ownership. This is the contemporary use of the term "free market" by economists and in popular culture; the term has had other uses historically.
A free-market economy is one within which all markets are unregulated by any parties other than market participants. In its purest form, the government plays a neutral role in its administration and legislation of economic activity, neither limiting it (by regulating industries or protecting them from internal/external market pressures) nor actively promoting it (by owning economic interests or offering subsidies to businesses or R&D).
Free markets contrast sharply with controlled markets or regulated markets, in which governments more actively regulate prices and/or supplies, directly or indirectly, which according to free-market theory causes markets to be less efficient.[2] Where substantial state intervention exists, the market is a mixed economy. Where the state or co-operative association of producers directly manages the economy to achieve stated goals, economic planning is said to be in effect; when economic planning entirely substitutes market activity, the economy is a Command economy.
In the marketplace, the price of a good or service helps communicate consumer demand to producers and thus directs the allocation of resources toward satisfaction of consumers as well as investors. In a free market, the system of prices is the emergent result of a vast number of voluntary transactions, rather than of political decrees as in a controlled market. The freer the market, the more truly the prices will reflect consumer habits and demands, and the more valuable the information in these prices are to all players in the economy. Through free competition between vendors for the provision of products and services, prices tend to decrease, and quality tends to increase. A free market is not to be confused with a perfect market where individuals have perfect information and there is perfect competition.
Free-market economics is closely associated with laissez-faire economic philosophy, which advocates approximating this condition in the real world by mostly confining government intervention in economic matters to regulating against force and fraud among market participants. Some free-market advocates oppose taxation as well, claiming that the market is more efficient at providing all valuable services of which defense and law are no exception, that such services can be provided without direct taxation and that consent would be the basis of political legitimacy making it a morally consistent system. Anarcho-capitalists, for example, would substitute arbitration agencies and private defense agencies.
In social philosophy, a free-market economy is a system for allocating goods within a society: purchasing power mediated by supply and demand within the market determines who gets what and what is produced, rather than the state. A free market may refer narrowly to national economies, or internationally; specific reference to international markets is referred to as free trade (for goods) or lack of capital controls (for money). Early proponents of a free-market economy in 18th century Europe contrasted it with the medieval, early modern, and mercantilist economies which preceded it.
(25marks)
Part 3
- Using the selected organisation in part 1, present stakeholder theory to explain and illustrate,the primary interests of the stakeholder groups and identify any areas of potential conflict. How might stakeholder mapping help the organisation reduce such conflict?
(15 marks)
Part 4
- using the concept of equilibrium analysis:
(i)Define and explain demand and supply and illustrate graphically how they determine price. Differentiate between a movement along the curves and a shift of the curves.
(ii)Explain what you understand by the term price elasticity of demand and how it helps businesses make decisions on type and volume of products offered for sale. (20 marks)
Presentation and written English(10 marks)
Referencing / use of Harvard system (5 marks)
Grading & Marking Criteria – Undergraduate level programmes80 + / Outstanding work of exceptional merit which is original in content or approach allowing a novel perspective, going beyond what is available in the literature.
70 – 79 / Work which is clearly articulated and well substantiated, based on extensive reading, and demonstrates an authoritative grasp of the concepts, methodology and content appropriate to the subject and to the assessed task. There is clear evidence of originality and insight and an ability to sustain an argument, to think analytically and/or critically and to synthesize material effectively.
60 – 69 / Work which demonstrates a very good level of understanding of the concepts, methodology and content appropriate to the subject and which draws on a wide range of properly referenced sources. There is clear evidence of critical judgment in selecting, ordering and analyzing content. The work demonstrates some ability to synthesize material and to construct responses which reveal insight and may offer some occasional originality.
50 – 59 / Work derived from a solid basis of reading and which demonstrates a grasp of relevant material and key concepts and an ability to structure and organize arguments. The performance may be rather routine but the work will be accurate, clearly written and include some critical analysis and a modest degree of original insight. There will be no serious omissions or irrelevancies.
40 - 49 / Competent and suitably organized work which demonstrates a reasonable level of understanding with minimal analysis and interpretation. It covers the basic subject matter adequately but is too descriptive and insufficiently analytical. There may be some misunderstanding of key concepts and limitations in the ability to select relevant material so that the work may be flawed by some omissions and irrelevancies. There will be some evidence of appropriate reading but it may be too narrowly focused.
30 - 39 / Work lacks evidence of knowledge relevant to the topic and/or significantly misuses terminology. There is either no evidence of literature being consulted or irrelevant to the assignment set. Inaccurate or inappropriate choice of theory. Unsubstantiated/invalid conclusions based on anecdote and generalization only, or no conclusions at all. Lacks critical thought, analysis and reference to theory.
0 - 29 / Insufficient level of understanding and knowledge base unacceptably weak. No evidence of logical structure and poorly presented. Referencing is unsystematic or absent.