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

Business milieu - Assignment ExampleIn other cases, reduction of tax on consumer goods encourages growth of primary industries and increases consumer get power. This gives supermarkets and other retail shops a chance to sell more products and increase their profits. These profits can then(prenominal) be reinvested back to the economy. Low taxes argon also meant to encourage the growth of overbold firms. This is because young businesses are battling with disputation and thus low taxes help them retain most of their profits. Likewise, spending by the government assists fresh firms. The government is able to give out revenue by redistributing it to those new organizations through subsidized loan, grants, or other forms of spending which are driven towards expanding businesses. For instance, a Supermarket research organization may be awarded national or state loans and grants in order to start up new stores of supermarket (Frascona 18). Fiscal and monetary policies go through a di sadvantage because they take a lot of time for the anticipated economic effects to apply. disdain this, the policies are helpful to the economy because they help increase aggregate demand where it is lacking and also press it (Fishman 11). The Impact of Competition Policy and Regulatory Mechanisms on an Organisation Competition policy and regulatory apparatuss move over various impacts on business organisations such as companies and partnerships. These policies affect various types of businesses differently. For ensample, a supermarket such as Traders Joe is a large business that was affected differently by competition from other forms of businesses. The supermarkets sales, in 2008 were affected by unhealthy competition from other retail chains. Consumer freedom to choose what to consume from this supermarket was throttle by an advertisement that portrayed it as selling inferior goods. This made customers not buy goods from it. This is an example of how advertisements can limi t consumer freedom (Lewis 10). Other activities that can lead to unfair competition may find from supermarkets that have large presence in an area. These supermarkets may raise and lower prices as they wish in order to meet their profit targets. Such supermarkets may also be in a prepare to buy products from manufacturers at very low prices. This means they will pass the same product to nett customers at low price compared to other supermarkets (Frascona 18). A supermarket may be also having a salubrious brand name which makes it to be considered as one of the most successful retailers. According to Lewis, the government should secure such supermarkets by taxing them more money than other supermarkets (9). This will ensure healthy competition that increases efficiency and efficient use of resources. The government may also come up with regulatory mechanism on certain products. For example, the government completely making it illegal for supermarkets to sell manufactured or tou ch foods to ensure that its citizens are healthy. The government may also have a zero tax on infants foods and clothing to encourage population growth in advance countries of the world that shows diminish population trends (Frascona 18). Effects of market structures on the pricing and output decisions of a business The forces of demand and yield are at times not the only determinants of market price. Market structures such as oligopoly and monopoly crack up the normal forces of