Understand the nature of the national environment in which businesses Essay

Understand the nature of the national environment in which businesses operate - Essay Example Understand the nature of the national environment in which businesses operate Moreover, these organisations are able to meet the market demand effectively. P&G complies with all the state and federal laws including the Honest Leadership Act, Lobbying Disclosure Act and Open Government Act. Effective environment funding helps the organisation to avoid political challenges. Economical The recent financial crisis and global economic recession have affected the economic environment of the country. The organisation tries to implement a competitive pricing strategy to support the low purchasing power of people. On the other hand, infrastructure development supports the FMCG industry. The infrastructure followed by the company supports the industry. The target of the company includes growing the organic sales from 1% to 2% at a faster rate than that of the market and delivering the highest earnings per share. It also targets to generate free cash productivity of free cash flow of 90% or greater. Social The organisation tries to introduce healthy goods to target healt h-conscious people. For example, UNICEF and Pampers are working together to maintain good health of babies. The company follows good governance and contributes for the benefit for the society. They have offered healthier products for the health conscious society and the targets set by the company for the future are always in line with the objectives of societal benefits. Technological Leading global business organisations try to implement advanced technology in business process to enhance their business performance. P&G uses latest and developed technology to attract customers. Moreover, random technological innovation has provided P&G with a significant competitive advantage. The company uses latest technology in order to attract the customers. The company offers tremendous competition to other competitors in the market. The degree of competition is backed by use of advanced technologies. Environmental The organisation has developed several business operation objectives in order to reduce the level of carbon emission. They try to reduce the level of GHG emission in order to bring sustainability into their business operations. The goal of the company includes building at least 550 billion in cumulative sales in the product category of sustainable innovation. This category of products follows an improved environmental profile. Legal The organisation maintains health, safety and environmental standards to avoid legal chaos. The customers are becoming more and more aware of the health and safety requirements and hence try to opt for the products that are healthier and safer. The company maintains the regulations existing in the countries of operation. P2. 1 The United Kingdom is one of the largest global economies. The UK economy is a mixed one. Over the last two decades, the strength of public ownership has been significantly reducing. The United Kingdom is known for the Industrial Revolution in the 18th century. Slowly and gradually, the economy of UK has shift ed towards the service sectors (Lipsey and Chrystal, 2011, p.16). Tourism, banking, insurance and other business services are considered as the major growth driver of the UK economy. A mixed economy presupposes a unity of public and private control. It reflects the characteristics of both command economy