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Contents
Task 1..................................................................................................................... 3
1.1 purposes different types of organizations including Ryanair...........................3
Sole proprietorship organization.........................................................................3
Partnership organization..................................................................................... 3
Company organization........................................................................................ 3
1.2 Description of the extent to which Ryanair is meeting the objectives of its
different stakeholder.............................................................................................. 4
Shareholders:..................................................................................................... 4
Employess:......................................................................................................... 4
Suppliers:............................................................................................................ 4
Customers:......................................................................................................... 4
Competitors:....................................................................................................... 4
Government:....................................................................................................... 4
1.3 responsibilities of Ryaniar and strategies employed to meet them.................5
1.4 Ryanair strategies for finding solution.............................................................5
2.1 Attempt of economic systems to allocate resource effectively........................5
Traditional economic systems:............................................................................6
Planned economic systems:...............................................................................6
Mixed economic systems:...................................................................................6
Free market econimis systems:..........................................................................6
2.2 impact of fiscal and monetary policy in the business organizations and their
activities in UK....................................................................................................... 7
Fiscal policy........................................................................................................ 7
Monetary policy.................................................................................................. 7
Fiscal policy of UK Government:.........................................................................7
2.3 impact of competition policy and other regulatory mechanisms on the
activities of Ryanair............................................................................................... 7
3.1 expalnation of how market structure determine the pricing and output
decisions in the businesses and Ryaniar in particular............................................8
Perfect competition:........................................................................................... 9
Monopoly:........................................................................................................... 9
Monopilistics:...................................................................................................... 9
Oligopoly:............................................................................................................ 9
3.2 illustration of the way market forces shape organizational responses showing
some example:...................................................................................................... 9
supply:.............................................................................................................. 10

Demand:........................................................................................................... 10
3.3 judgement of how the business and cultural environments shape the
behavior of a selected organization in context of Ryanair...................................10
4.1 significance on international trade to UK business organization including
Ryanair airline...................................................................................................... 11
International trade............................................................................................ 11
4.2 impact of global the factors on UK business organization including Ryanair. 11
Political factors................................................................................................. 12
Economical factors:.......................................................................................... 12
Social factors:................................................................................................... 12
Technological factors:....................................................................................... 13
Ecological fractors:........................................................................................... 13
Legal factors:.................................................................................................... 13
4.3 Evaluation of the impact of of policies of the Uropean Union on UK business
organizations and Ryanair in particular...............................................................13
Fisheries Poliocies............................................................................................. 14
conclussion.......................................................................................................... 14

Business environment
Introduction
Every business organization is surrounded with some external and some internal factors.
These factors create a great impact in the activities of the business firm. These surrounded
factors are called business environment. The managers need to have a proper idea about the
environment to run the business properly. Business environment helps the manager to have a
great forecast about the business and also assists to take proper action in a particular situation

Task 1
1.1 purposes different types of organizations including
Ryanair
Every organization is set up to gain some purposes. The purposes of the business organization
depend on what types of business organization it is. There are different types of organization
and each organization has different purpose. Some types of organization and their purpose are
described below.

Sole proprietorship organization

An organization which is owned and operated by only one person is called sole proprietorship
organization. In the case of sole proprietorship business organization all risks and
responsibilities are taken by the owner. There are some purposes of this organization. These
includes

Not being liable to anyone

Making decision quickly
Being the only owner of profits and loses
Being owner independent business

Partnership organization
Partnership organization is organization which is owned and operated by two or more
persons. Partnership organization is formed under the basement of partnership agreement.
Agreement is the main theme of partnership business organization. It has also some purposes
such as
It is larger than sole proprietorship business organization
Risk and responsibilities can be shared
It has much more capital than sole proprietorship

Company organization
A company organization is formed under some rules and regulations by some shareholders.
Shareholders are the main owner of the company organization. It is established to generate
more profit. A airline company named Ryanair which has 83,139,699 shares on capital. The
purpose of company organizations includes
Collecting capital from shareholders and investors

 Government helps are easily available

Risk can be divided
Company organization can be separated into two sectors public and private limited company.

1.2 Description of the extent to which Ryanair is

meeting the objectives of its different stakeholder
Stakeholders are those investors who have actual curiosity on the organization. Stakeholders
includes an individual person, groups, government or other members. There are different
types of stakeholders in Ryanair. Ryanair meets the objectives of different stakeholders.
These stakeholders are:

Shareholders:
Shareholders are those individual who own some share of a company. Ryanair has also many
shareholders who participate in stoke offerings, profit, selecting board of directors and other
function in the firms. The net profit of Ryanair company in 2012 was 374.6 million and it is
good news for its shareholders (Shleifer, &Vishny, 1986).

Employess:
Employees are those individuals who assist in achieving organization competitive advantage.
In Ryaniar there are 8992 employees whose skill, knowledge, abilities and responsibilities
make a great contribution to the success of the company. To provide a better performance
employees need a better working condition.

Suppliers:
Suppliers are those persons who provides products, raw materials for the production of the
company. Company needs to build a good relationship with suppliers. Ryaniar also maintains
a good relationship with suppliers in exchanging these items (Ragat, Handfield & Scannell
1997).

Customers:
Customers are the main focusing point of the company. They are the main source of the
organization. Each company needs to follow some strategy to make a good relationship with
customers. Ryanair also does the same.

Competitors:
Competitors are also an important part of shareholders. Ryanair also makes some strategy for
the competitors

Government:
Government is the most important part of stake holders. They set rules and regulation that
create impact on the company

1.3 responsibilities of Ryaniar and strategies employed

to meet them
The main responsibilities of an organization are to full fill the customer demand and
serve them when they need. The stakeholders have some responsibilities .these
responsibilities are :
Stakeholders have responsibilities toward employees. They are liable to ensure the
safety and health of the organizations people.
The organization need to ensure equal employment opportunity for all applicants.
They have to ensure equality for all the employee
The organization has also responsibilities for providing goods and services at lower
cost.
o Strategies followed by Ryaniar
o Some strategies has introduced by Ryaniar to meet the demand.
These demands are
Different marketing strategies implementation
Enabling the company to survive in the competitive market place
Trying to manage staff cost and productivity
Providing special importance on time to time departure
Ensuring maximum aircraft utilization

1.4 Ryanair strategies for finding solution

Strategies means having some particular actions that help an organization to take place in the
competitive advantage. For running business Ryaniar usually faces some problem and they
solve that using some strategies. These strategies includes:
Low fair: it is a big strategy of Ryaniar to attract customer responses
Point to point flight: Ryanair has frequent point to point flight that helps to get standard
customer feedback
Low operating cost: it is another strategic plan of Ryanair. They tend to reduce operating cost
such as aircraft equipment cost, personal expense, customer service cost and airport access
cost
Maximizing the use of internet: most of the transaction of this company are done by using
internet

Task 2

2.1 Attempt of economic systems to allocate resource

effectively
Economic system is the study of how a society choose to use scare resources and use them to
produce goods and services to face customer needs and wants. Each country follows some
economic systems. These economic systems help a society to use the resources effectively.
The different types of economic systems are described below:

economic
systems
tdaditional
economic
systems

planned
econmic
systems

mixed
ecomic
systems

free market
economic
systems

Each economic systems has some different benefit

Traditional economic systems:

A traditional economic systems include tradition, customs, beliefs that form the goods the
product for the society. Basucally some rural and farm based countries use this economic
systems. It is also called sub-system economy. Some parts of India use this type of economic
systems.

Planned economic systems:

Planned economic systems is kind of economic systems in which most of the factors of
production are operated by government. Government try to impact the almost every
organization of the country. Under this economic systems governmnt tries to allocate the
resources equally
Some benefit of this systems are :
It is a stable economic systems
Resources are distrubute equally
Important factors are orgad correctltnize

Mixed economic systems:

According to (BENNER & Hoomissen 1991) a mixed economic systems is systems where
both private and public authority operate the whole systems. Under this ecomic systems most
of the important factors are government owned and others are privately owned. Individual
can make decision and also government also plays an important role in allocation resources.
This economic systems has also some benefitv. These are:

Everybody can run their own business

Customer has many choices
It has les income inequality
Everybody can participate in distrubuting resources

Free market econimis systems:

It is a systems where individual can estabilish their business area and the government
influences are not exist. Under this economic systems buyers and sellers intigrate to meet
their business function. Some advantages of this systems are given below:
Government has no control in this systems
Individual can make their own decision
Buyers and seller can intigare properly

2.2 impact of fiscal and monetary policy in the business

organizations and their activities in UK

Fiscal policy
Fiscal policy is the policy which is used to adjust its expense level and tax rate in order to
impact a countrys economy. Using fiscal policy the government try to control economic
situations. The governmeny also tries to hanle inflation,stabilization of business cycle.

Monetary policy
The monetary policy is used to control money supply, target influence rate by the authority of
a country.l and
Every business organization are influenced by these fiscal and monetary policy. Both fiscal
and monetary policy have same objectives but they are acheved in a fifferent way. Most of
the business organizations long term plan are made considering these fiscal and monetary
policy. There are some advantage of these policy such as

Economic growth stability

Price level stability
Reducung unemployment rate
Increase the use of balance of payment

Fiscal policy of UK Government:

UK government is tryng to control the fiscal and monetary policy . the fiscal policy is
important when government spends more. The government spends to build roads, building,
and bridges for the country. Business organization tends to have more sales while they need
to pay less to the tax sindicate.
Besides the fiscal policy is hard because the government invest less than it receives different
organization

2.3 impact of competition policy and other regulatory

mechanisms on the activities of Ryanair
Competition policy
Each organization should follow some competition policy and some regulatory mechanisms
to handle competition in the business area. The UK government also tryes to impact the
activities of most cmpany such as Ryanair. Each company needs to study in competition
policy in UK. The company must have some power to control the policy of the organization.
There are some great impact of competition policy and other regulatory mechanisms on the
functions of Ryanair. To accomplish these policy Ryanair follow some startegy. These
strategy includes:
Differentiation strategy: this strategy is used to provide a different idea ,service and
product in the market place. It is the conesequence of competition policy
Negative impact: Ryanair is also trying to reduce the negative impact of the policy
and reulatory machanisms with a view to create some strategic results.
Ryanair is also adopting some common strategy that are the result of competition
policy such as
o Providing lower fare
o Following niche strategy
o Expanding some another strategy

There are also some other regulatory mechanisms that are used by the other company. Both
internal and external customer are satisfied by these activities

Task 3

3.1 expalnation of how market structure determine the

pricing and output decisions in the businesses and
Ryaniar in particular
Market structure refers to the interlinked characterstics of the market where a number of
related buyers and sellers are imtigrated. The market structure determines the parcing of the
product or services. In the case of Ryanair industry several factors determine the market
structure that creates
Impact in the pricing and output decisions.
Different types of market structure:
Company usyally follows some different types of market structure. There are four main
market structure. Such as

Perfect competition
Monopoly
Monopolistic
oligopoly

market
structure
perfect
competitio
n

monopoly

monopolisti
cs

oligopoly

Perfect competition:
Perfect competition occurs when many firms of an area intruduce the identical product or
services. The price are controlled by the business firm. individual seller or buyer can not
impact the market. (Wilson 1977).
All the prices are maintained by the demand and supply of the organization. New
organization can enter the market easily.

Monopoly:
A monopoly market structure is a structure where a single firm or organization dominate the
whole market. In a monopoly market systems new firms face bariers to enter the market. The
pricing system of the market is very high (Walczyk & Bombelli 2010).

Monopilistics:
It is a market structure where different firms produce the same product. It has an imperfect
market competition.

Oligopoly:
Oligopoly is market structure where some large firms dominate thw wholw markwt share.
New firms can enter in this market facing difficult stage (Bulow, Geanak & Klemperer 1985).

3.2 illustration of the way market forces shape

organizational responses showing some example:
there many market forces shapping firms responses. These market forces has also some
impact on demand and supply. Some forces includes:
production inspiration
efficiency ad quality improvement

 attitude of buyers and sellers

the lenders and borrowers
some market forces are describe bellow with example

supply:
supply means the quantity of firms product that sellers are willing to sell in the market with a
partucular price ( Lesjean & Savine 2001).
For example: Ryanair arranging 3500 seat for the people is the supply of this company

Demand:
demand is the quantity of product or service that buyers are willing to buy.
customer and seller behavior:
the seller and customer behavior also force the market. Giviing emergency ticket to the
customer when necessary build a good customer relation.

3.3 judgement of how the business and cultural

environments shape the behavior of a selected
organization in context of Ryanair.
there are different kinds of environment that has a great impact on the business firm. Business
and cultural environment is most important one. There are also some factorssuch as political,
economic,legal and social ation.
In most business planning,culture is the most influencing factor.So,bussiness and cultural
factor impact Ryanair airnine company.

to face these critical factorRyanair use some tools. among these tools Total Quality
management is the one.
Total Quality Management (TQM) : Raynair uses total quality management in order
to satisfy the internal and external factors intigraying some business environment. it

also includes improvement, gorwth, advancement to change the culture of the

organization
the airline company takes some important step to improve the whole function of
TQM. BY doing this the compnay became able to recognize the concept of
improvement.
the cultural and other environment also impact the customer satisfaction. It is the main
forcing factors of quality improvement. Raynair follow some quality role to
implement the total quality management ,operation and activity.

different country has different culture. these culture has the main impact on the activaities of
Raynair airline company.
Each organization needs have some strategies to perform the activities of the organization
properly.

Task 4

4.1 significance on international trade to UK business

organization including Ryanair airline
International trade
International trade involves distributing or selling product and service out side market of the
country. Through international trade business firm spreds out its activities in other country.
International trade is also a procedure to maintain a good relationship with other counhtrys
organization. Most of the Uk organization increase the sale of products outside country. There
are some specific reason for internatianal trade. These includes :

Increasing sale of product and services

Increasing profit
achieving world class recognition
increasing competitive advantage

Rynair is also engaged in performing these international trade activities. Rynair usually get
influenced when it start international trade and related activities. Through this system it has
started som foreign policy about the service the provide. It is also increasing comparative
advantage. Comparative advantage means one company is performing better than others.
Through this advantage company can make sure about their international performance.

4.2 impact of global the factors on UK business

organization including Ryanair
All of the business organization are influenced by some global factors that are crucial for
them. The economy of uk are dependable to global changes. Global change create an

impacting situation for all the business organization. so Ryanair airline company are also
influenced by some of these global factors. These factors inclludes

p
g
le
c
a
s
r
o
t
m
in
f
h

These factorr are analyzed below.

Political factors
Political factors are the most important factors in busuness culture and environment. An
organization depend much on pollitical factors largely for running its activities properly.
Raynair is also face some political issue and has to face them properly. It also includes:

The level global political stability

Thye level of bureaucracy international affair
Freedom of media
Tarrif of uk and other countries
Intelectual property, patent

Economical factors:
There are some economical factors that might efffect the business orgenization directly. The
economical impact of the culture are:

Insatisfaying economic globalization

Economic crisis of the world
World bank impact and other wto organization
Outsourcing and offshoring importance

Social factors:
A organization is also a kind of social centre. So some social factors also impact the function
of business firm. Some social factors includes:

Changing of Sociial cuture, value and belief

Change in social factors, family status etc
Frequent movement of social classes
Getting concerened to monitor siciety

Technological factors:
Technologfical factpore are most impactive factors of organization. An organization overall
change depend much on technology.

Technological structure of the world

Specific use of technology
Technological background of the industries
Use of advance technology

Ecological fractors:
Ecological factors includes:
Global warming tendicies
Environment such as air water pollution
Global environment saving organization activities

Legal factors:
Legal factors are also an important factors for the organization. Each law of a country has
some rules that are needed to follow. Legal factors includes the featires such s=as
data saving rules and regulations
Environment polution rules
Labor rules and working condition rules
These global factors of the organization are very effective in the activities of the organization.
So each company needs to consider these factors.

4.3 Evaluation of the impact of of policies of the

Uropean Union on UK business organizations and
Ryanair in particular.
Ueoropean Union has a vital role in inmfluencing UK business organizations in many ways.
Only one procedure to influence a business organization is not so easy. Eoropean Union
follows some way to ionfluence the business organizations. There are some speciality of
eoropean Union thgose are so much efficient in checking trade and activities such as
investment to the countries external the Union. Form so many procedures, Eoropean Union
follows only 2 ways to maintain the trade around the eouropean Union. Such as:

Agricultural Policies
Fisheries Policies

Agricultural Policies

Agricultural policies on of the policies that controll the export of the domestic agriculture
product by applying some law assessed by the government. So the agricultural policy has a
great impact on the Eoropean Union business organizations.

Fisheries Poliocies
It is another policy to controll the export of the fish industry to the outside of the Eoropean
Union. Eoropean Union provides a outline to controll the fish industry in improving also.
The policies assessed by the eoropean Union has a great impact on Ryanair airlines as they
ready some foods such as lunch packages, dinnes packeges and appetizers for the passengers,
they need to follow the agricultural policies according to the law assessed by the Eoropean
Union.

conclussion
business environment and its factors are the most effective for all the organization. if
influences the internal and external activities of a business firm. Each business organization
has each strategy to meet some problem and a particular situation. Ryanair is also follow the
same strategy to provide proper services. They also ensure the customer loyalty and expand a
large area of a business. By doing these startegies Ryanair maintain a good relationship with
the customer in the competitive world.

Refrence:
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Political Economy, 461-488.

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suppliers into new product development. Journal of product innovation management, 14(3),
190-202.

4. BENNER, A., & Van Hoomissen, T. (1991). Nonprofit organizations in the mixed
economy. Annals of public and cooperative economics, 62(4), 519-550.
5. Wilson, R. (1977). A bidding model of perfect competition. The Review of Economic Studies,
511-518.
6. Walczyk, D., Bombelli, F. B., Monopoli, M. P., Lynch, I., & Dawson, K. A. (2010). What the cell
sees in bionanoscience. Journal of the American Chemical Society, 132(16), 5761-5768.
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substitutes and complements. The Journal of Political Economy, 488-511.

8. Lancaster, K. (1980). Intra-industry trade under perfect monopolistic

competition. Journal of international Economics, 10(2), 151-175.
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