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Satish Jegathkumar International College of Business and Technology

1.0 Introduction

1.1 British Red Cross

The British Red Cross was formed in 1870, from the International Red Cross and Red CrescentMovement. It is part of a global voluntary network, responding to conflicts, natural disasters and

individual emergencies. The British Red Cross is a volunteer-led humanitarian organization that

helps people in crisis, whoever and wherever they are. They enable vulnerable people at home

and overseas to prepare for and respond to emergencies in their own communities. When the

crisis is over, we help people recover and move on with their lives.

Mission - "The Cayman Islands Red Cross aims to protect human dignity by helping vulnerable

people in crisis."

Vision - "To uphold the principle of humanity - to protect life and health and ensure respect for

the human being"

Objectives

The British Red Cross, as part of the International Federation of Red Cross and Red Crescent

Societies, has mounted a massive effort to face the challenge head-on and is continuing to

expand its response. At the end of 2006 the Red Cross and Red Crescent HIV and AIDS Global

Alliance was formed. The Global Alliance is a framework that ensures we are able to effectively

mobilize our resources and skills to meet our objectives.

Our three objectives are:


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Objectives of Marks and Spencer

y The main objectives of marks and Spencers are as follows:

- P rofit maximization

- Increase sales

- Market leadership

- Offering high quality service

- Growth

- Reward shareholders

British Red Cross 2009. (2009). Introduction


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2.0 The influence of Stakeholders to an organization

Stakeholders in an organization can be defined as all the parties who are interested in a particular

business organization. Stakeholders can be any party in the society. The reader of this report can

have a better idea by reviewing the following diagram which explains about the stakeholders of

an organization.

Stakeholders can be a member of an organization, volunteer, staff, management, board member,

founder or a contracting body, client, community of interests such as locality or grouping of

people who might benefit. Every business organization has a range of stakeholders, including:

The objective of the company establishes are based on blending the various interest of these

stake holder groupings.

Furthermore there are two types of stakeholders in an organization,

Internal stakeholders External stakeholders

2.1 Internal stakeholders

The parties who are interested in the business organization within the same particular business

organization are called as internal stakeholders.These can be managers, employees and directors and so on. It is a fact to realize that almost any

of the organizations in the world have both internal stakeholders and external stakeholders


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2.2 External stakeholders

External stakeholders are the people or the party who are interested in a particular organization

externally. This includes all the external parties and people who are eying or interested in the business organizations activities. For example we can take the entrepreneurs who are engaging in

business activities, Shareholders, distributors, Sole proprietors, Managers and the crew or staffs

of other organizations

Furthermore there is another group called multiple stakeholders, This can be explained as

follows.

2.3 Multiple Stakeholders

Voluntary organizations often have a wider range of stakeholders those who have interest in

business activities. Commercial businesses generally are limited to shareholders or other funders,

staff, and possibly customers/Clients could have,

Trustees/Committee members who may relate more to members Members as a group in themselves who may also be users P ossibly user groupings in their own right P artner organizations whether business which are contributing volunteers

specialists, expertise, or other charities with common or complimentary interests,

or government agencies

Finally after analyzing certain magazines and researchers through the websites and our text

books I figured out that stakeholders are often people, who are, Will be impacted by a strategic plan Have information, experience, or insight that will be helpful in developing the plan. May be in s position to either support or block progress of your plan Have a vested in interest in their work


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Are final decision makers or people who should approve the plan Will implement any aspects of the plan

3.0 How the Stakeholder objectives are achieved?

Stakeholders in an organization whether they are internal or external stakeholders have certain

methods are ways of achieving their organizational objectives. The following are some methods

used by the stakeholders in order to achieve their goals efficiently and effectively.

Through interaction with stakeholders Some stakeholders achieve their targets by

interacting and by getting together and making new organizations and achieving certain

goals and objectives.

By efficient and effective planning Stakeholders plan on how to achieve their

objectives efficiently and they achieve their goals through effective planning.

By competing with the other similar organizations (profit maximization) Certainentrepreneurship organization achieve their objectives by innovation and competing with

the similar line of products and product assortments and trying to achieve a higher profit.

By utilizing limited resources to fulfill unlimited human wants wants vary from person

to person and some stakeholders find themselves new ways in utilizing resources in an

efficient manner than of competitors and achieve profit maximization and achieve their

goals and objectives.

By utilizing the opportunities they get in to business opportunities Some stakeholders

turn environmental opportunities into business opportunities and achieve their own

objectives.


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Through innovation and generation of new ideas Some stakeholders such as managers

innovate and generate new ideas of product development and ideas related to their

objectives in order to achieve them efficiently and effectively.

Engaging in activities through the latest of technologies The world is become a global

village now due to the intervention of certain technological equipment. P eople can satisfy

their wants form any place in the world through the internet and certain technological

equipment. So stakeholders try to take the maximum advantage from these opportunities.

Stakeholder influence

Current and future strategies of the organization are affected by:

y External pressure from the market place, including competitors, customers, suppliers,

shareholders, pressure groups threatening a boycott, the government (through taxation

and spending).y Internal pressures from existing commitments, managers, employees and their trade

unions.

y The personal ethical and moral perspectives of senior managers.


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3.1.1 Organizational responsibilities of Marks and Spencer

Profit Maximization is often the main aim of the private sector business. This can be achievedwhere the difference between the total revenue earned by the business from selling its products

and the total cost of the products is the greatest. So you could say that Marks and Spencers are

aiming for as much profit as possible. In the UK retail the turnover and operating profit before

exceptional items were 6.3 million, in 2000/2001 compared to last year 1999/2000 is 6, 4

million, so at the moment Marks and Spencer UK retail business is not so successful at profit

maximization.

The objective of increasing sales is very important for Mark and Spencer. In order to increase

sales they must meet and satisfy customers wants and needs. Marks and Spencer also have to

attract new customers, they must target the younger market, and this could help to boost their

sales. Marks and Spencer also wants to attract new customers, so that the UK sales increase. I

think that Marks and Spencer are on their way towards being successful in meeting their

objective for increasing sales; I still think that they are more successful in the international retail.

The reason why I think that Marks and Spencer are on their way towards being successful is that

on the 6th of November they had their Interim results. Marks & Spencer has reported a 20%

increase in profits for the six months to the end of September. The retail giant made 220m, a

figure at the top end of analysts' expectations. The profit boost reflects the trading statement

released by Marks and Spencer last month, which showed an overall rise in sales of 2.8.

Marks and Spencer also have the objective of gaining market leadership . In order to be

competitive. Marks and Spencer has not achieved its objective to be successful in market

leadership, I think it will take some time for marks and Spencer to recover back to be market

leadership; they are improving the way they work.


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Marks and Spencer also have an objective for providing high quality service . They are also well

known for their quality. Marks and Spencer claim that no one cares more about quality it is said

in their annual review report. I think they meet their objective for providing high quality service,

Growth is an important objective of marks and Spencer. Many businesses pursue growth as their

main objective. Business people argue that the firm must grow in order to survive; failure to

grow might result in a loss of competitiveness. In the U.K. retail Marks and Spencer have 303

stores at the end of March 2001. This also includes three outlet stores, which opened during the

year. Marks and Spencer also has their franchise business, which operates 125 stores in 26

countries. If Marks and Spencer are able to grow, they could dominate the market, in the future it

may be able to enjoy some monopoly power and raise its price. If they do well they could be able

to exploit economies of scale, if they grow large enough. I think that Marks and Spencer aresuccessful in growth, and also think that they are meeting their objective. The number of people

they employ can be used to measure the growth of Marks and Spencer also at the end of March

2001 it had a selling space of 12.4M sq. ft.

3.1.2 Organizational Responsibilities of British Red Cross

British Red Cross personally thinks that they should do any type of a project with the full

commitment. So when they are here, they just want to hang out with other young people and

enjoy themselves. And they are the friendliest bunch its lovely to see them running around and

having fun, and British Red Cross always think its worth doing any project.

4.0 Strategies used by organizations to meet its responsibilities

As we learnt earlier there are certain responsibilities of organization towards its internal and

external parties. And to achieve those organizational responsibilities there are some rules and

regulation or else we can call it certain strategies used in order to achieve them properly with


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good code of conduct. The following are some strategies used by firms or organizations in order

to achieve its responsibilities fairly and efficiently.

D evelopment of code of conduct laws related to the specified organization

Most of the organizations have the code of conduct laws of its own in order to increase

the efficiency of the organization and to achieve the organizational objectives.

Government laws and acts towards the well been of the organizational employees &

Corporate governance

The government has developed certain laws in order to the well been of the organizations

employees. There are a number of rules and regulation laws implemented by law but the

most important and the famous ones are the Employee P rovident fund act (E P F) and TheEmployee Trust fund act (EFT). These acts were developed by the government to

minimize frauds and discriminations to the employees of the organization.

Implementing Induction periods for the employees who are been recruited newly

This is actually a good strategy used by firms to educate the newly recruited employees

of the organization about the organizational activities and how they should be done and

when they should be done properly. In the current situation most of the organizations use

the induction periods in order to make increase the overall performance of the

organization. Normally most of the organizations use to give an induction period of

around 1-2 weeks to make sure that the newly joined employees are ready to work.

Introduction of employees to get feedback from the customers of the organization

This is also a newly developed strategy in order to gain knowledge about the customer

preference towards the organization. This strategy is still building up but its not yet been

popularized. These employees get feedback and complaints from its customers and come

and report it to the specified authorities and then the authority calls up extraordinary

meeting which are been held to discuss important factors and make certain conclusions to

achieve the organizations objectives.


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Increase the supervisory activities in the organizations

Having strict supervisory about the activities of the organization helps to identify the

weaknesses of the organization and to increase the productivity or the organization.


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Learning outcome 2

5.0 Explain how Economic System attempts to allocate and make effective useof resources

An economic system is comprised of the various processes of organizing and motivating

labor, producing, distributing, and circulating of the fruits of human labor, including products

and services, consumer goods, machines, tools, and other technology used as inputs to future

production, and the infrastructure within and through which production, distribution, and

circulation occurs. These processes are over determined by the political, cultural, and

environmental conditions within which they come to exist. In comparative economic

systems, these economic systems are usually defined within determinate political

boundaries.

United Kingdoms Current economy

On 5 March 2009, the Bank of England announced that they would pump 75 billion of new

capital into the British economy, through a process known as quantitative easing. This is the first

time in the United Kingdom's history that this measure has been used, although the Bank's

Governor suggested it was not an experiment.

The process will see the Bank of England creating new money for itself, which it will then use to

purchase assets such as government bonds, bank loans, or mortgages. Despite the misconception

that quantitative easing involves printing money, the Bank of England are unlikely to do this and

instead the money will be created electronically and thus not actually enter the cash circulation

system. The initial amount to be created through this method will be 75 billion, althoughChancellor of the Exchequer had given permission for up to 150 billion to be created if

necessary. It is thought the process is likely to occur over a period of three months with results

only likely in the long term.


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W elfare of Marks and Spencer

Marks and Spencer continues to play a leading role in extending animal welfare criteria into non-food products. During 2007 we introduced a fixed cutoff date for all of our 1000 beauty

products, and since then have further extended this to all of our household products, Marks and

Spencer has won the RS P CAs award for animal welfare leadership in fashion for the third

consecutive year.

W elfare of British Red Cross

y Helping children deal with their trauma through counseling and organized recreationaland cultural activities.

y Re-integrating children into society by providing them with education and vocational

training to give them greater independence, increase household income and improve

living conditions for them and their families or their own children.

y Creating child-friendly communities by increasing awareness of childrens rights and

other issues leading to a reduction in sexual violence, improved health and social

welfare.

y Supporting projects that will increase families and communities self-sufficiency, by

strengthening their ability to earn a living.

CSR of British Red Cross

The Chartered Institute of P ersonnel and Development recommends a strong corporatesocial responsibility (CSR) policy as a powerful tool for recruiting and retaining staff. A

partnership with the British Red Cross provides an excellent way to demonstrate your

company's commitment to CSR to your employees and gives them the opportunity to get

involved as well.


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6 .0 Evaluate the impact of macro Economic Policy measures and the influence

of the global economy on UK based organizations and Stakeholders.

Government influences any organization through micro and global economic policies in order to

monitor organizations properly. This influence can also affect stakeholders in a company

including employees, shareholders and customers. Government adopts many policies in order to

achieve this and monitory policy and the fiscal policy are some of the main policies that are used.

Monetary policy

Monetary policy is the manipulation of the money supply, interest rates and the supply of

credit in order to influence the macro economic variables in the economy. The central bank

implements monetary policies on behalf of the government. The main instruments of

monetary policies are the bank rate, variable reserve ratio, and the open market operations.

Monetarist economist believes that monetary policy is a more powerful weapon than fiscal

policy in controlling inflation.

6 .1 How does monetary policy affect UK?

The U.K monetary policy affects many financial decisions for people and, since it is the

biggest economy in the world, it also impacts other economies in other countries. The object

of the system is to influence factors like inflation, economic output, and employment by

affecting demand (the public's willingness to spend on goods and services). The system is

conducted by the Federal Reserve System and it influences demand mainly by raising and

lowering short-term interest rates. How is the Federal Reserve Structured? The Federal

Reserve (the nation's central bank), called the fed for short, was established by congress in

1913 and consists of the Board of Governors in U.K and twelve Federal Reserve District

Banks. Although the fed is accountable to congress and structured by law, it is totally

separate from the departments that manage the country's spending decisions. The governors


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are appointed by the president for terms of 14 years. The appointments are staggered so no

one single president could load the board with his own people.

F iscal policy

Fiscal policies or public finance policies are the attempt to achieve stability through government

budget. Taxation, government expenditure and government borrowings are the instruments of

fiscal policy.

6 .2 How does F iscal Policy affect UK?

These are all factors we need to take into account in our interest rate decisions. Ultimately it is

domestic monetary policy not the state of the global economy which will determine the UK

inflation rate. The challenge for the M P C therefore is to adjust interest rates to ensure that globalinfluences do not create prolonged and significant deviations in inflation from its target. It was

the failure to do that in response to the oil price shocks of the 1970s which resulted in high

inflation in many countries in that decade. The challenges which the world economy throws at

monetary policymakers are many and various. Deciding the appropriate response to global

developments has been recurrent theme of discussions within the M P C throughout the past

decade. And the past year while I have been a member has been no exception.

6 .3 How the global economy affects UK inflation

There are a wide variety of ways in which global economic developments impact the UK

economy and hence influence our rate of inflation. The whole process of globalization has

structural effects on the UK economy, including the impact of labour migration, which I do not

plan to discuss in detail this evening. Rather, in this speech I will focus on the main channels of

influence from the global economy to UK inflation in the shorter term.

The second channel of influence from the global economy is via demand. Strong growth of

demand whether it originates at home or abroad allows profit margins to expand and can put

upward pressure on costs, particularly when the economy is operating close to its capacity limits.


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By the same token, weak demand exerts a dampening influence on cost and price increases.

Influencing demand conditions through interest rates is one of the main ways through which the

Monetary P olicy Committee controls UK inflation.

Global economic developments affect demand conditions in the UK both directly and indirectly.

The direct influence comes through changes in the demand for UK exports of goods and

services, which make up around a quarter of the output of UK businesses on average.


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Learning outcome 3

7.0 Explain how market structures in practice deviate from the model of

perfect competition?

Competition in a market refers to actions of incumbents in an established market and those

potential entrants who would like to sell the same product. The instruments of competition would

be price or capacity (quantity competition) and other non-price instruments like advertising etc.

This involves erecting entry barriers, product differentiation, vertical integration etc.

W hat type of a market does Marks and Spencer and British Red Cross practice?

Marks and Spencer falls into a market of monopolistic competition market, because

market that features one, if not all, of the traits of a monopoly such as high price levels, supply

constraints, or excessive barriers to entry. Because this type of market would be comprised of

one supplying firm, consumers would have no choice but to purchase solely from this firm.

Marks and Spencer charges a higher price, because they produce high quality goods and services.

This type of market stands in contrast to a perfectly competitive market. I would like to conclude

saying that they should be a threat to the other competitors in the market.

British Red Cross doesnt fall in to any category since its a charity organization.


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7.1 Use range of examples to illustrate the relationship between market forces and

organizational responses

Supply and D emand Together

Equilibrium Price: The price that balances supply and demand. On a graph, it is the price at

which the supply and demand curves intersect.

Equilibrium Quantity: The quantity that balances supply and demand. On a graph it is the

quantity at which the supply and demand curves intersect.

Excess Supply: When the price is above the equilibrium price, the quantity supplied exceeds the

quantity demanded. I.e., excess supply or a surplus. Suppliers will lower the price to increase

sales, thereby moving toward equilibrium.


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Excess D emand : When the price is below the equilibrium price, the quantity demanded exceeds

the quantity supplied. I.e., excess demand or a shortage. Suppliers will raise the price due to too

many buyers chasing too few goods, thereby moving toward equilibrium


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8 .0 Explain the behaviour and competitive strategies employed by an organization

and discuss the role of the competition commission and regulatory bodies.

Following a wide-ranging and detailed strategic review of its business, the Board of M&S

announced in March 29 of 2001 significant changes to the Group strategy and structure. The

highlights of this new plan are:

The Company will return to selling only own brand products and brands exclusive to M&S so it

can guarantee customers the quality, value and service they have come to expect. Central to the

recovery plan is the delivery of significant improvements in product appeal, availability and

value thereby rebuilding the relationships with core M&S customers.

Recovery plan for Clothing

The Company has plans to regain the confidence of its customers in the quality

and fit of its clothing. It will sharpen pricing by rebalancing the price architecture, extending the

range of entry-price merchandise and communicating this clearly to customers.

Expansion in growing product areas such as Food, Home and Beauty

M&S Foods continues to perform well and has earned customers' trust for providing quality,

innovation and convenience. The business is a key platform for future growth and the Company

is considering opportunities to expand its reach through new locations and selling channels.

The Home business is growing strongly, with home furnishings and gifts the fastest growing

product areas. Beauty, albeit relatively small, is also growing rapidly. Both of these areas offer

promising opportunities for development and will be expanded.


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Acceleration of store renewal programme

Accelerate Store Renewal P rogramme: M&S will accelerate the rollout of the successful

elements of its new concept format under a plan to refurbish more stores faster and at lower cost.

Two-thirds of its retail space (120 stores) will be completed by the end of the coming financial

year, benefiting the majority of M&S's customers.

More intensive use of space

Selling space will be reallocated to higher growth product areas to maximise returns per square

foot. In total, 600,000 sq ft will be reallocated within the year to areas such as the new Clothing

range supplied by George Davies, Home, 50 new Beauty Shops, and 30 new Coffee Shops.

Being closer to the customer

In order to be more customer oriented, some stores in big cities will be opened 24 hours per day.

By other hand, 125 stores in the UK will be modernised in order to create a more attractive, easy-

to-shop environment for our customers. These stores represent two thirds of total UK stores.

Modernisation investments will amount 100 million.

With all changes, the company expects to raise the operating profit in the UK by 10%

approximately (40 million) per year.

8 .1 Role of the Competition Commission and regulatory bodies

The Competition Commission (CC) is one of the independent public bodies which help ensurehealthy competition between companies in the UK for the benefit of companies, customers and

the economy.


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They investigate and address issues of concern in three areas:

In mergers - when larger companies will gain more than 25% market share and where a merger

appears likely to lead to a substantial lessening of competition in one or more markets in the UK.

In markets - when it appears that competition may be being prevented, distorted or restricted in

a particular market.

In regulated sectors where aspects of the regulatory system may not be operating effectively or

to address certain categories of dispute between regulators and regulated companies.

When we take a look at Marks and Spencer, which is a multinational organization, will need tofollow certain rules, this will actually help Marks and Spencer to protect their innovations and

new ideas against patents. This will also help Marks and Spencer to have a healthy competition

within the other competitors.

8 .2 UK Regulatory Bodies:

1. Department of Trade and Industry

The Department of Trade and Industry is the government department responsible for the

development of telecommunications policy and the promotion of the telecommunications

industry.

2. Radio Communications Agency:

The Radio Communication Agency is an executive agency of the DTI, with responsibility for

management of the radio spectrum throughout the UK. The main functions of the RA areformulating policy on the planning and management.

3. Office of Telecommunications:

The Office of Telecommunication was established by the T act to support the director general of

telecommunications in the performance of his duties.


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Learning Outcome 4

9.0 Importance of International trade, economic integration and global

markets to UK

International trade is the exchange of goods and services across borders and different

geographical regions. It constitutes a large share of the gross domestic products of the worlds

various countries.

Advantages and D isadvantages of International Trade

Advantages

y Exploit international trade technology

y Increases sales and profits

y Gains your global market share

y Reduce dependence on existing markets

D isadvantages

y Hire staff to launch international trading

y Modify your product or packaging

y Develop new promotional material

y Incur added administrative costs

Internationalization of Marks and Spencer

The Internationalization of Marks & Spencer (M&S), a giant British retailer. In the late 1990s,

the company suffered a series of misfortunes, both at home (Britain) and abroad: company saleshave dropped, stock prices and market capitalization are substantially reduced, and overseas

profits have declined. In January 2009, following a terrible earning announcement, the company

announced that it had formed a marketing department, forcing the company to become more

proactive and market driven. For years, M&S' marketing philosophy was simple: produce high


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quality products under a recognized brand name at affordable (but not cheap) prices, and

advertise through word-of-mouth.

9.1 The impact of two policies of the EU on UK organizations

Monetary policy

Monetary policy is the process by which the government, central bank, or monetary authority of

a country controls

(i) The supply of money,

(ii)

Availability of money, and(iii) Cost of money or rate of interest, in order to attain a set of objectives oriented

towards the growth and stability of the economy Monetary theory provides insight

into how to craft optimal monetary policy.

Monetary policy is referred to as either being an expansionary policy, or a contractionary policy,

where an expansionary policy increases the total supply of money in the economy, and a

contractionary policy decreases the total money supply.

F iscal policy

Fiscal policy can be contrasted with the other main type of economic policy, monetary policy,

which attempts to stabilize the economy by controlling interest rates and the supply of money.

The two main instruments of fiscal policy are government spending and taxation. Changes in the

level and composition of taxation and government spending can impact on the followingvariables in the economy:

y Aggregate demand and the level of economic activity;

y The pattern of resource allocation;

y The distribution of income.


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10.0 Explain the economic implications for the UK entry into EMU

EMU officially stands for Economic and Monetary Union. Other countries also use EMU to refer

generally to the European Monetary Union. EMU is the agreement among the participating

member states of the European Union to adopt a single hard currency and monetary system. The

European Council agreed to name this single European currency the Euro. The European states

decided that the EMU and a single European market were essential to the implementation of the

European Union, which was created to advance economic and social unity among the peoples of

Europe and to propel Europe to greater prominence in the international community.

Economic and monitory union was composed of the governors of the European committee.

Economic and monetary union replaced national currencies with the euro. At present all but two

members are obliged to join, one of the country is United Kingdom. In conclusion of this study

are based on the assumption thats if the UK were to join EMU, it would do so on the basis of

sustainable and durable convergence. If this were not the case,UK business sectors would be

faced with an environment of greater macroeconomic instability and over the longer term,

potentially lower output and the employment than would otherwise be the case. These issues are

considered further in the assessment of the five economic tests five economic tests for EMU

entry

So it can easily join with EMU.


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Conclusion

Finally, I would like to conclude this report by giving a small summary of the whole report. Well

basically it contains all the information about the organizations like its responsibilities, aims

stakeholder and how the responsibilities and aims are met. Also the market forces that effect the

company.

Well, I would like to say that using many resources and facts I have been able to solve the less

knowledge about Business Environment.

And finally I would like to mention the fact that more and more of these types of assignments

will help not only to develop our knowledge, it will actually help us get the exposure of things

should and are been done within organizations and most importantly the students like us will get

a practical knowledge of how to practice the theoretical factors which we learn in lectures and

deal and achieve our own goals accurately and efficiently.


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Referencing

1 . British Red Cross 2009. (2009). Introduction. Available:http://www.redcross.org.uk/TLC.asp?id=75758. Last accessed 28/2/2009.

2. 2009 Marks and Spencer plc. (2009). Student information. Available:http://corporate.marksandspencer.com/aboutus/student_info. Last accessed 28/2/2009.

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