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

Business Environment - Essay Example There are two distinct types of Business Environment (Kew and Stredwick 2005). a) Internal environment b) External environment The internal environment includes money, machinery, man, material and management, which are usually based under business control and the changes upon the performance of the enterprise or organizations. The external environment consists of factors that are beyond the manipulation of the enterprise and entails the governmental and legal factors, political factors, socio-cultural factors among other factors. External environment could be micro or operating environment or macro or general environment. Scenario 1 Working for Stepping Stones education publishing LTD involves the need to expound on the economic chapter of the Business Environment. Task 1; Book Chapter: Any ultimate decision that is made by a manager must always involve price and output. The price –output decisions are surrounded by three factors. These factors include cost, demand and market structure (Henry 2008). Market structure refers to competitive environment whereby any enterprise manages and dictates on how cost and demand should be featured in decision making. Although various firms operate within different market structures, there are five basic market structures namely: monopoly, duopoly, oligopoly, monopolistic and perfect competition. A market operates under perfect competition if it persuades numerous firms, freedom of entry and exit, homogenous output and perfect information. A market economy has competition between huge numbers of buyers and sellers who search for a chance to buy and sell goods and services (Kapstein 1996). Competition among sellers dictates that prices will always be on the lower side and that of the buyers dictates that prices will never be very low hence making a major impact on the market equilibrium. The element price is very essential in the market. Its prime purpose is to ensure that there is a clarification in the economic market . In addition, price contributes to market analysis with regard to the demand curve (Krugman 1996). A demand curve is the relationship between the price of the good and the amount or quantity the consumer is able or willing to part with in regard to its purchase in a specified period of time with consideration to income, tastes and prices of similar goods. The graph above explains the Supply /Demand curve in relation to production of Oil in Libya. In essence, the demand for crude oil increases when the price is low causing the supply for the product to decrease. According to Kew and Stredwick 2005 argues that pure monopoly ensures that there is the only one supplier in the market, there is no close replacement to the output good plus no threat of competition. Monopoly means that there is only one firm that is ruling the market. This kind of domination is not competitive because it is the only supplier in the market hence it as a downward sloping demand curve as it has the freedom to choose its prices and quality in the market. Duopoly is a market dominated by two firms, which are large enough to influence prices in the market. In addition, oligopoly is dominated by a small number of firms, which are large enough to manipulate prices in the market. A market structure that is monopolistic constitutes of several producers with various real or perceived difference in products. A perfect competiti

Analysis of the Pepsis and Bacardi Limons Advertisement Essay

Analysis of the Pepsis and Bacardi Limons Advertisement - Essay Example This "Analysis of the Pepsi’s and Bacardi Limon’s Advertisement" essay outlines differences between two drinks' ads. The first advertisement carefully projects the image of Pepsi as a fun drink that all members and all age groups enjoy. The men hold Pepsi bottles, as also the girls. The pepsi bottles in the picnic box further heighten the impression that it’s a drink meant for outings and is even better than beer. Another significant detail is the Pepsi icon in the shape of a ball, where the text states: â€Å"it’s the cola†, further reinforced by the football nearby on the picnic table, which further heightens the impression that this is a drink associated with fun and games. The heart shaped carving on the tree with â€Å"Pepsi and BBQ† engraved within it is a useful little detail that implies Pepsi is made for such outdoor occasions. The second advertisement is set in a bar/disco/party setting, which conveys an impression that the drink be longs in a more adult, sensual setting. The words in the advertisement convey the mood: â€Å"Mischievous, mixable, magical†. This is substantiated by the image of the sexy woman reflected in the glass of the man who holds it, implying that it’s the drink that has brought her into the palm of his hand – a magical experience. The use of mirrors, the shiny clean bar, the sparkling crystal bottles and glasses, all contribute to the impression of a magical kind of dating environment, where the drink appears to be the prop that aids the man in capturing the woman he desires.