Analysis of Ryanair Essay Example for Free

Analysis of Ryanair Essay Ryanair established in 1985 carrying more than 5,000 passengers between its route Waterford Airport in Ireland to London Gatwick during its first year. The company expanded by 1989 had 350 employees, 14 aircraft and carrying more than 600,000 passengers a year. In 1997 there were dramatic changes in the European airline industry with deregulation of European Union air transportation allowed airlines to open new routes into Europe. The European Low fares association reported that low fares airlines are carrying more passengers than before with an increasing number of destinations in Europe set to increase from 38% to 53% in European travel (elfaa. com, 2011). Ryanair took advantage from the deregulation with routes from London Stansted to Stockholm, Oslo and Paris. By 2001 Ryanair launched its own travel website and within 3 months received 50,000 bookings (Ryanair.com, 2011). The report will focus on the low cost industry environment by identifying the opportunities and threats as well as five forces of the external environment. The report will also identify the strengths and weaknesses of Ryanair. Part 1: Low cost Airline industry The low cost airline industry has become the most profitable with all segments in the market with low prices and high load factors. This strategy has been challenged since the 1990s with the liberalization of services allowing new entrants to compete for business (Economist.com, 2011). The low cost airline industry operates all activities by reducing costs in order to gain strategic success and competitive advantage. This approach has a lot of opportunities as well as threats. Political Governments in the UK have the highest tax compared to Germany with a $1.3bn departure tax and Austria’s similar $119m duty tax (Independent.co.uk, 2011). The threat of passengers paying higher prices as a result of increased tax for their airline tickets can lower profits for airlines. This can affect low cost airlines such as Ryanair and Easyjet as the higher taxes cut profits for the company for example Easyjet stated they had lost  £21m of its  £153m in 2011 (IATA.com, 2011). Acts of terrorism can also be a major threat to the airline industry. Initiating further routes is an opportunity for low cost airlines to other destinations in Europe with its growing economy and additional 15 EU countries that joined in 2004 such as Lithuania, Poland, Slovakia, Latvia can offer new opportunities for new routes to increase the number of passengers(Delfmann, 2005). There has also been a threat with the plans to sell Stansted airport, the main location for low budget airlines after the Competition Commission to reduce its dominance in the market. This will bring greater competition to low cost airlines and benefit passengers with more low fare airlines from regional airports such as Gatwick and Stansted competing more (Telegraph.co.uk/travel, 2011). Economic The threat of rising oil prices caused global airlines to lose $16 billion in profits which did rebound in 2010 with higher traffic. The threat continues with oil prices averaging $110 a barrel and estimated to further increases in the industry’s fuel bill which will rise from $10 billion to $176 billion (Bangkokpost.com, 2011). This threat has also been warned by Willie Walsh, the chief executive of British Airways and Iberia who cautioned that European carriers have to bear the impact of the high fuel costs with some operators having to go out of business (Guardian.co.uk, 2011). The recession in 2008 resulted in travelers seeking cheaper fares and led to growth in sales for budget airlines. This opportunity during recession allows budget airlines to take advantage and of more travelers seeking low fares with budget airlines rather than more expensive airline tickets. With the higher oil prices, natural disasters in Japan, discontent in the Middle East, North Africa and can force competitors in the airline industry to increase prices and fuel surcharges which pose major threats to airlines profits and survival of airlines. Social The growth in demand for passengers seeking low cost airlines for cheaper fares is an opportunity for budget airlines. People are living a better standard of life with declining inequality of incomes made up mostly of middle class income people. People are also more well-travelled, experienced and seek new destinations with the growth of vacation property (Goeldner and Ritchie, 2009). This is an opportunity as budget airlines frequently service short haul destinations for short trips or weekend trips for leisure or business purposes offering more destinations and new experiences to people with low fares. Migration has also made commuting a factor with people seeking employment opportunities and education as a motive for travelling as well as the rising quality standards has shown to expect growth for low cost airlines (Gross and Schrà ¶der, 2007). There are significant opportunities for low cost airlines that can benefit from the demand of increasing passenger from various destinations and purposes. Many people also seeking new destinations is a good opportunity for budget airlines to increase passenger numbers and revenue by providing different destinations of regional airports. Technological The increasing popularity of information technology is an opportunity for low budget airlines as they don’t use travel agents to sell tickets and allows consumers to be informed about schedules, compare prices and itineraries as well as flights with other airlines (Pease etl al., 2007). The new ‘saddle seat’ which is designed to allow 23 inches of legroom compared to 30 inches on a normal seat space and shaped to sit at an angle increase the number of seat for an airline (Telegraph.co.uk/travel, 2011). The seats offer an opportunity for low budget airlines such as Ryanair and Easyjet to allow more storage space and more passengers in a plane which can increase revenues. The opportunities in technology allows airlines to take advantage of potential revenues with the internet offering direct marketing for customers and value added service by bringing offers to the customers directly. The opportunities for of the new seats can offer planes to fit more passengers and is a further potential a growth in revenue for budget airlines. Legal The airline industry has considerable regulations with issues concerning legislation and guidelines. For example low cost airlines have aggressive advertising campaigns to emphasize low fares which have become an issue with consumer protection legislation. Separate details of surcharges such as government tax, airport tax and fuel surcharge have to be included so that it does not consumers are not misinterpreted and misunderstood when buying a ticket. This is a threat to low cost airlines as it disregards the concept of low fares with all the taxes passed on by governments and aviation authorities. Low cost airlines can be substantially threatened with EU regulations and laws which can lower profits and damage the reputation of an airline with a negative image. Environmental Natural disasters such as the 2010 Iceland Volcano which caused 14,000 Ryanair flights cancelled. Costs of the 2010 Iceland disruption to the global airline industry soared to  £1.1bn according to estimates from the International Air Transport Association (Iata) (Guardian.co.uk, 2010). This threat to the airline industry faced by natural disasters such as the Iceland volcano can occur at any time and stop people from travelling costing airlines major disruptions with delays or cancellations. Emissions used by the airline industry have been increasingly growing rapidly over recent years, increasing 98% between 1990 and 2006 with predications of further increases to another 88% by 2050. This threat to the aviation industry enforcing airlines to pay for carbon dioxide and lower profits (Ftadviser.com, 2011). Porter’s five forces Porter points out the five forces which consist of bargaining power of suppliers, buyers, threat of potential new entrants and threat of substitutes to the industry. A company can adapt to the forces in order to increase chances of gaining sustainable competitive advantage and profitability. In understanding the strategic decisions a company has to make, it can be useful to look at the five forces of rivalry amongst the firm, substitution, new entry, the power of customers and the power of suppliers. Figure 1.1: Porters five forces Source: (Fouris and Oswald, 2006) Barriers of entry: to obtain aircrafts is extremely expensive and acquiring a basis at airports is also difficult (Gross and Schrà ¶der, 2007). With the success of Southwest airlines and deregulation and liberalization of the airline industry has allowed 40 budget airlines in the airline such as Easy Jet. This level is high as a result of these factors. Substitution- for the short haul flights, the substitute products include car, train and boat services. Travelling by train is clearly a substitute choice for travellers as it is high speed or travelling by car with the many motorway links available can have an impact. Technology can also be a substitute, for example business travellers may choose to conference skype calls over the internet. This level is moderate as flying is the main method of travelling long distances at a shorter time. Bargaining power of buyers: consumers can now purchase their own tickets from low cost airlines and can choose airlines with for higher level of quality, better service and lower price. Customers have the power to easily switch to another product that have lower prices with the ease of the internet (Hitt, et al, 2008). This popularity of comparison internet sites allows passengers to compare flight prices and choose the lowest cost airline of their choice. Therefore to survive with these intense factors airlines have to provide lowest fares to attract customers which is important for budget airlines and as a result the power of buyers is high as they consumers choose lowest fares causing risk of survival to an airline. Bargaining power of suppliers: Airlines rely heavily on the inputs for the company to survive which would be fuel, materials for the planes, services and manpower. Airlines either use Boeing or Airbus together with high maintenance fees, training staff. Additionally with the increase of cost for fuel to $50bn in 2011 resulted in travelers paying higher prices for tickets (Reuters.com, 2011). Therefore these inputs have high bargaining power over airlines as it can affect profits of an airline substantially. Competitor rivalry: may occur from price competition, product differentiation, advertising against other competitors is likely to affect the business (Bowhill, 2008). The intense rivalry occurs between low fares carriers are Ryanair, Easyjet and the carriers that provide ‘frills’ service with lower fares are British Midland Airways. Rivals also have to invest high capital investment and have a unique selling point to attract a large majority of customers and offer significant discounts and special offers. According the annual reports of Ryanair and Easy Jet, in 2010 Ryanair carried over 66 million passengers in comparison to Easy Jet carrying just 34 million. Therefore the airline’s low cost model delivers increased revenue and passenger growth as customers seek cheaper flights and benefit from price wars between airline fares. However budget airlines are still affected by rivalry with Ryanair and Easy Jet competing for customers flying with no frills airlines and the level of competitor rivalry is moderate. Conclusion Finally the analysis has demonstrated the attractiveness for the budget airline based on the ease of entry regulations and with the low expenditure costs lower than charter airlines that provide more service. The unstable environment has led to an increase in fuel costs with airlines paying heavily for their supply and in contrast the unpredictable economic environment has caused consumers to spend less and look for cheaper travel and prefer budget airlines such as Ryanair. Even though there is intense rivalry between airlines, budget airlines have an attractive strategy with more airlines using the low cost model to compete for passengers. Part 2: Internal analysis The internal factors of Ryanair’s concerns strengths and weaknesses to assess the extent to which the strategies for the airline in order to be successful, these summarizes the internal business environment and the capabilities (Johnson et al., 2002). The strengths of Ryanair are: The company has a successful low cost model benefitting from low expenses by using staff to clean the plane, passengers have to pay to print boarding pass reducing the need for staff at check in desks and take advantage of the internet to sell tickets. Ryanair’s low fares are aimed at encouraging demand especially with price sensitive leisure and business travellers that might choose alternative forms of transport method. Ryanair have set fares on the basis of demand on particular flights with higher fares on flights that have the highest demand for bookings booked nearer to the date of departure. Ryanairs competitors also do not operate on comparison sites and save commission or fees to other comparison websites. The company loses fewer bags and with 88% punctual flights compared to competitor’s ant explains why the company is a favorite airline for customers with over 73 million passengers in 2010 (Ryanair.com, Annual report 2010). Flights to secondary airports: the company offers point to point service on short haul flights to secondary and regional airports around the major hub centers and cities. The point to point routes rather than hub airports allow the company to provide direct nonstop flights and avoid the costs of providing services through connecting passengers, baggage transfers and transit passenger assistant costs. By choosing secondary locations allows convenience for a large majority of the population and is generally less crowded than in major airports. This has also resulted in on time flights, faster turnaround times, less terminal delays as well as more competitive airport access and handling costs or operating restrictions that can reduce expenses (Ryanair Annual Report, 2010). Low operating costs: Ryanair maintain low operating costs as a low budget airline company and aims to reduce costs in main areas which include: aircraft equipment, personnel productivity, customer service costs and airport access and handling costs. Weaknesses Ryanair have been negatively perceived as arrogant as the company does not take into consideration the competition by putting other low fares airlines out of business creating a bad image with negative media. Ryanair is viewed as not caring too much about customer needs or problems which reflect O’Leary’s opinion that customers pay low prices and get a good deal therefore should expect low standards. There have also been complaints for the extra payments for fees and taxes as well as paying higher prices for stowing luggage and onboard food and beverage. The company has also come across as having a negative reputation by having underpaid staff that are disciplined for any mistakes, work long hours and unhappy staff with staff (itfglobal.org, 2011). The company also charges  £5 for every purchase using bank card,  £40 for printing a boarding pass at the airport and  £100 for changing the name on the booking. Therefore customers often have to pay a lot more than they expected which makes Ryanair’s image appear dishonest (Ryanair.com, 2011). Porters value chain The generic strategies are concerned with the strategies of the company and at the micro level by exploring Porters model of the value chain. The value chain classifies the activities of the company and divided into primary and support activities used to identify the cost leadership strategy as illustrated in appendices b. The core competencies of Ryanair consist of maximizing revenues whilst providing a no frills low cost strategy and keeping logistics simple. This is maintained by Ryanair’s capability to lower operating costs such as aggressive online booking reducing the cost of staff and operate in secondary airports using Boeing 737-800. Through simple services and investing less on employees, Ryanair core competencies provide effective and efficient resource management. The primary activities involved in the inbound logistics of Ryanair consist of its 272 Boeing 737-800 planes that can carry 189 people and agreements to secondary airports. Ryanair have contract agreements with these large aircrafts with the ability to fly long hours and do not charge fuel surcharge (Ryanair.co.uk, 2010). Operations: Ryanair have lower unit costs as part of its operation and save costs through lower handling fees, landing fees in secondary airports and fast turnaround times with the capacity to utilize the aircraft at a shorter time. Ryanair operate in 1,110 routes and 1,400 flights a day from 44 bases. The efficiency of its operation supports the low cost strategy position with fast turnaround times, no meals on board and improved employee productivity (Ryanair.com, 2010). Financial analysis The strengths of Ryanair are quite clear. The company has been profitable with an increase in profits of 26% to â‚ ¬401m and operating profit increase by 28% to â‚ ¬516.2m in 2011. The figure below illustrates how the company increased passengers by 8% and revenue 16% by 2010. Figure 2.1: Summary Table of results (IFRS) in Euro Source: (Ryanair.com, 2011) Figure 2.2: Summary table for EasyJet Source: (Easyjet.com, 2011) As seen from the tables above it can be clear to differentiate the profit revenues. Profit after tax for Ryanair in 2010 was â‚ ¬138 million and for Easyjet was just  £121 million. Revenue for Easyjet in 2010 was  £2, 973 million in 2010 and  £2, 66 million in 2009 compared to Ryanair’s revenue in 2010  £18 million and  £16 million in 2009. According to Ryanair’s annual reports, revenues rose by 16% to â‚ ¬896.8m due to an 8% rise in traffic and a 5% increase in average fares in 2010. Ryanair has been able to gain a growth in revenue even during the financial recession which had a significant effect on other major airlines resulting in bankruptcy and closure. Due to its cost efficient methods through increased passenger traffic with its new routes and low prices Ryanair has been able to uphold its place as the number one low cost carrier. This difference also shows in Ryanair’s current ratio at 1.79 in 2010 compared to Easy jet only gaining 1.33. Conclusion From the internal analysis it is clear to see Ryanair’s low costs strategy means it is less affected than its competitors with its cost leadership. This has required the company to gain a large market share whereby it has purchased large quantities of planes and low cost operations has made shown that cost leadership is the only way to work for the future and globally. Ryanair has built a low cost culture however still needs to pay close attention to the external environmental factors including governmental policies and increased cost of fuel. The core cost savings mentioned has made the company highly successful with its short haul routes with standardized no frills services, higher seating density and its ticketless reservation system. Ryanair have succeeded by becoming a successful airline in Europe with the Southwest airline model and managed to grow its market segment of price sensitive customers through its no frills service. Bibliography Afuah, A. (2009) Strategic Innovation: New Game Strategies for Competitive Advantage. New York: Routledge. Beech, J. and Chadwick, S. (2006) The business of tourism management. 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CHAPTER 2 CAUSES OF MENTAL HEALTH AND THE BURDEN ON THE POOR Lack of awareness has made mental illnesses appear mystical. Some people suffer from mental disorders since birth(mental retardation) while some develop the disorders overtime(mental illness).Mental illnesses result from complex interactions between the mind, body and environment. Factors like long-term and acute stress, biological factors such as genetics, chemistry and hormones, use of alcohol, drugs and other substances, cognitive patterns such as constant negative thoughts and low self-esteem, social factors such as isolation, financial problems, family breakdown or violence are the scientific causes of a mental illness. (http://www.mentalhealth-matters.com.au/resources/ID1367819089.pdf) But rural people in India in general and tribal populations in particular, have their own beliefs and practices regarding health. Some tribal groups still believe that a disease is always caused by hostile spirits or by the breach of some taboo. They therefore seek remedies through magico-religious practices. (Current health scenario in rural India, Ashok Vikhe patil, K.V.Somasundaram and R.C. Goyal) This is an inevitable consequence of the barriers in seeking timely and effective treatment for mental illness in rural India: unavailability of mental health services, low level of literacy, socio- cultural barriers, superstition stemming from traditional and religious beliefs, stigma and discrimination associated with mental illness. About 75% of health infrastructure, medical professionals and other health resources are localised in urban areas where 27% of the population live. The poor penetration and the basic nature of rural health is also attributed to lack of health litera... ...urden increasing to 15% by Disability Adjusted Life Year( DALY) * (Mental health services in rural India : challenges and prospects by Anant Kumar) Mental illness constitutes nearly one sixth of all health-related disorders. With the population on a rise, altering values, life-style, unemployment and frequent instability in incomes, lack of social support and increasing insecurity, it is predicted that there would be substantial increase in the number of people suffering from mental illness in both urban and rural areas. In order to get rid of the vicious cycle of poverty feeding into mental illness, there is a need to think of mental health as a development priority instead of just a concern of public health and human rights. †¢ * DALY – it is a measure of overall disease burden, expressed as the numbers of years lost due to ill-health, disability or early death.

Deprived of education Essay

From a very early age I have cherished a desire to work for the betterment of children. I hail from Iran and in my life I have witnessed many instances where children are deprived of education and even necessary means of sustenance. Most of these children do not get any emotional support while they are forced to lead a challenging life amidst a harsh social environment. Within my home country social organizations lack sufficient power so they are unable to make much difference to the lives of those children who have been adversely affected by some unprecedented events. Not many opportunities exist in Iran for some one who is dedicated to making child care a career so I have come to the U. S. A in order to gain academic skills that can be applied to the betterment of children, whilst I am pursuing my studies I intend to gain some practical hands on experience in various fields related to child care and child development. I possess some prior work experiences which have some commonalities to the internship programme of the Family Stress Centre. I have worked as student assistant at Santa Monica University. Amongst the various responsibilities that were given to me I was assigned a task which required me to help children learn with the aid of computer software. I am presently working at preschool as a an assistant teacher, at the preschool I have worked with children in the age group of 3 to 5 years, I have also worked with disabled children. I have been working at the preschool since January 2008. My superiors at my present and previous organizations have approved of my work. I am fully committed to constantly improving my performance at work and I ensure that any work that is delegated to me is completed to the satisfaction of the clients and my superiors. I have graduated from Santa Monica College; at college I have done courses such as Child Development Professional, Family and Consumer Studies, Play and Human Potential, Music and literature for children etc. I have found that these courses had enormous practical implication and I have successfully applied my theoretical knowledge in my work. The Family Stress Centre will offer me opportunities to acquire new skills and enable me to practice the theoretical skills that I have acquired as a part of my Child Development Professional course at CSUN. I already possess people skills that are necessary for a position such as this. Additionally I have prior experience of worked with children I have also worked with physically challenged children. Since Family Stress Centre offers counseling services my experience as an assistant teacher will help me to quickly acquire counseling skills.. I am confident of the fact that if selected for the internship I will work with dedication and commitment because I have dedicated my life for the betterment of children.

Evaluation of Market Structures - Free Essay Example

Sample details Pages: 8 Words: 2548 Downloads: 6 Date added: 2017/06/26 Category Marketing Essay Type Narrative essay Did you like this example? Evaluation of Market Structures 2.1 Explain how Economic Systems Attempt to Allocate Resources Effectively: Economic system definition: I will define Economic system as, A system in which a nation allocate its recourses and distribute good and services in the national community to satisfy the needs of the society. The element of economic system is people. government, different sector and different markets, this system answer the three basic economic questions. What to produce? How to produce? For whom to produce? Effect of economic system of business: Business now a days is virtually effected by Economic, Social, Legal, Technological, and political factors collectively form business environment. Don’t waste time! Our writers will create an original "Evaluation of Market Structures" essay for you Create order Rate of interest set by the central bank may affect business. Per capita income which has a huge impact on business environment by changing their consumption behavior. The government economic policies also effect business. The foreign investment in a country also effect business in the country. Instability in the economy due to bad political condition in the country effects the business environment. The inflation, Unemployment, interest rates also effect business. Allocation of recourses to business Pakistan ranks forty to fifty 1)Electricity: Pakistan have extensively energy recourses including fairly, sizable natural gas recourses, coal recourses and a large hydro power potential. these all they help in electricity production which are necessary for business. 2)Gas: Pakistan is a world leader in the use of compressed natural gas, The recourses of gas in Pakistan is so wide. These recourses are primary need for business. 3)Water: The water management system in Pakistan is well developed, Any organization needs can be satisfy in this regard. 4)Technology: Pakistan has huge potential for technology industry, which include software development and electronic manufacturing. For software development the government of Pakistan initialed many projects. 5)Construction: After the devastating 2005 earth quack Pakistan has initiated stricter builder codes. The demand of cements has increased. Business may approach for this with the help of Pakistan government to Dubai ports words etc. 2.2 Assess the Impact of Fiscal Monetary Policy on Business Organizations their Activities: Fiscal Policy: The policy by means of which a government is able to identify and monitor its expenditures and rates of taxes and can have a check on its effect on the nationà ¢Ã¢â€š ¬Ã¢â€ž ¢s economy. Monetary Policy: This policy means the management of supply and managing the growth of supply. These objectives are to maintain price stability. Monetary policy is away the government can impact the economy. Impact of Fiscal Monetary Policy: The fiscal and monetary policy if you used it correctly they have similar results in both simulating our economy and slowing it down when it heats up. At the point when our legislature uses its using and burdened forces to have an effect on the economy. The mix and connection of government uses and income accumulation is fragile adjust that obliges great timing and a smidgen of fortunes to take care of business.. The immediate and aberrant impacts of financial arrangement can have its impact on individual costs capital using, trade rates, deficiency levels and even investment rates, which are normally connected with fiscal strategy. The fiscal arrangement can likewise be utilized to burst into flames or ease off the economy yet it is controlled by the national bank and Federal Reserve with a definitive objective of making pain free income environment. At distinctive times in financial cycle, this could conceivably be genuine yet fiscal strategy has secured to have specific effects on the economy and value and settled salary markets. 2.3 Evaluate the Impact of Competition Policy Other Regulatory Mechanisms on the Activities of a Selected Organization: The impact of competition policy and other regulatory mechanisms is activates for the selection of organisms. the commission of competition is establish on 2 October 2007 in Pakistan, its is establish for that reason that it provide legal framework to create a business environment where healthy competition improving economic efficiency and establish base of business which is required for Pakistan and bring up Pakistan business to the top level and the youngster have a chance to prove himself. Task 3: 3.1 Explain How Market Structures Determine the Pricing Output Decisions of Businesses: Monopolistic competition: Imperfect competition are those competition in which one product or service is sold by a number of firms, companies or organization. In this type the every one set his own price of the product. In this type the market is dominated by a large number of firms. Monopolistic competitionis a type ofimperfect competitionsuch that many producers sell products that aredifferentiatedfrom one another as goods but not perfectsubstitutes, such as from branding, quality, or location. For Example: The restaurants is a monopolistic competition. It is because every where there is as much or many restaurants present. In which everyone want to earn profit so in thatà ¢Ã¢â€š ¬Ã¢â€ž ¢s point of view every one fixed its own prices. And the numbers of restaurant is uncountable. Duopoly: A trueduopolyis a specific type ofoligopolywhere only two producers exist in onemarket. In reality, this definition is generally used where only two firms have dominant control over amarket. In the field ofindustrial organization, it is the most commonly studied form of oligopoly due to its simplicity. Oligopoly: Anoligopolyis amarket formin which amarketorindustryis dominated by a small number of sellers. A general lack of competition can lead to higher costs for consumers.Because there are few sellers,. The decisions of one firm influence and are influenced by the decisions of other firms. For Example: The telecommunication industry is a large number of firms in the industry but the industry is dominated by a very large producers. The telecommunication industry is dominated by a few because in Pakistan this type of firms is 5 in numbers. So thatà ¢Ã¢â€š ¬Ã¢â€ž ¢s why it is an oligopoly and the competition between them is in control. Monopoly: Amonopolyexists when a specific person orenterpriseis the only supplier of a particular commodity Monopolies are thus characterize by a lack of economiccompetitionto produce thegoodorserviceand a lack of viablesubstitute goods.The verb monopolize refers to theprocessby which a company gains the ability to raise prices or exclude competitors. In economics, a monopoly is a single seller. In law a monopoly is a business entity that has significant market power, that is, the power, to charge high prices.Although monopolies may be big businesses, size is not a characteristic of a monopoly. A small business may still have the power to raise prices in a small industry or market. For Example: It is a monopoly because its exchange product are present in the country but the competitor of these industry are not present and the one firms of these organization dominate the whole market. In reality, rarely there is some forms of substitute are available in the market 3.2 Illustrate the Way in Which Market Forces Shape Organizational Responses Using a Range of Examples: Market force: Market force is define as The behavior of buyers and sellers affects the levels of prices and wages without any influence from the government. Ingeneralexcess demandcausespricesand quantity ofsupplyto rise andexcess supplycauses them to fall. Market force response to business: Business strengths represent the cooperation in the middle of supply and interest with in a business sector. Authoritative reaction is the response given by an organization or business to a temperate or business condition and an association reaction to market strengths is enter in any situation as it will have an immediate effect on the organizations benefits and dishonor. As far as supply and interest the best organizations will have fitting statistical surveying and examination set up to guarantee that they find themselves able to supply an item or administration to meet the requests of its clients. In the event that an organization has judged the business sector interest for their item accurately th en they will keep their clients content by guaranteeing they supply the item or administration asked for by their clients in the proper amounts. It will likewise build benefits as the organization will have judged their edges effectively to have the capacity to supply and offer however much of their item as could reasonably be expected. 3.3 Judge How the Business Cultural Environments Shape the Behaviors of a Selected Organization: Business environment: The external and internal environment influences that operating system of a company is called business environment. This include clients, investors, suppliers, competitors, and owners. There are two types of business environment. 1)Internal environment/micro environment: Internal environmental factors are events that occur within an organization. These factors are related to the specific company or firm and are included as a part of total marketing system of company. 2)External environment/macro environment: External environmental factors are events that take place outside of the organization and are harder to predict and control. Organizational culture: The culture of the organization depend on a unique and very good culture, a culture of talented people guided by shared principles, who are committed to providing our people with a helpful and empower workplace. There are four type of culture which follow by the organization Power culture Role culture Team culture Person culture power culture: A corporate culture which stresses the role of the person or persons in power. Role culture: Role culture is a style of corporate culture which assumes that all employees are rational beings and that role can be defined and discharged in a clearly defined procedure. Organizations are divided into different functions and each employee is assigned a duty to undertake. Role culture in any organization helps to stabilize its operations since employees focus on their activities hence increasing productivity. Team culture: Team culture is concerned with how the team operates including its selection procedures and power structure, how rewards are give, practice procedures, game protocols, acceptable behavior and dress code. Team culture often depends on the traditions or lack of them of a team. Person culture: Person culture is one in which activity is strongly influenced by the wishes of the individuals who are part of the organization. 4.1) Discuss the significance of international trade to UK business organizations? International trade: International trade is the exchange of goods and services and the exchange of goods and services along international border. In most countries such trade represent significant share of gross domestic products. Impact of international trade: 1)Industrialization 2)Advance in technology transportation 3)Globalization 4)Multinational corporations 5)Out sourcing Economic integration: Economic integration is the union of economic policies between different states through the unfinished or full finish of tax and non-tax limits on trade taking place among them past to their integration. The aim of economic integration is to reduce costs for both consumers and producers, and as well as to increase trade between the countries taking part in the agreement. Global Market: Global market is the activity of buying and selling of goods and services in all countries of the world, global marketing is the process of turning over a final product or service, with the hopes of success international marketing population. global marketing has the ability of a company to the next level by implementing some marketing strategies based on the region. 4.2 Analyze the Impact of Global Factors on Pakistan Business Organizations: The buying and selling of goods and services across international borders is known as international trade. The need for trade with other countries arises because no country is self sufficient. The production of different kinds of goods and services requires different kinds of resources. Resources are unevenly distributed throughout the world. If the Pakistan exports something from EU then first of all the Pakistan has to pay in euro so convert from rupee to euro. Because in Pakistan the currency use is known as rupee. Then the trade barr ier is also imposed by the government. The most common type of trade barrier is tariff. Trade between two nations took place when removal of trade barriers is resulted. A shift in manufacture from higher cost of manufacture to lower cost of manufacture take place. Trade interruption result in use shifting from lower cost of production to higher cost of production. Trade formation is clearly beneficial to businesses of UK and trade change is not. 4.3 Evaluate the Impact of Policies of the European Union on UK Business Organizations: European union: An economic and political union established in 1993 after the approval of the Maastricht Treaty by members of the European Community and since expanded to include many Central and Eastern European nations. The establishment of the European Union expanded the political scope of the European Economic Community, especially in the area of foreign and security policy, and provided for the creation of a central European bank and the adoption of a common currency euro. There are 28 countries which are the members of the European Union. It is economic and political union. The core purpose of the European Union is to help other countries economically and religiously. They discuss other countries in their meetings for the expenditure of their businesses. They also provide aids to those countries that are facing problems. Example when flood comes in Pakistan they provide us heavy aids. (European Union, 2014) EU impacts business in Pakistan: Fighting poverty and helping the country on its path towards inclusive and sustainable growth are the overarching aims of EU support to Pakistan. These goals will only be achieved if founded on political stability, social unity, the creation of productive and decent work opportunities, human and social development, the rule of law, and diversification of economic activity. Pakistans 150 million population has the highest growth rate in South Asia. especially those connecting to baby people, child underfeeding and primary school enrolment. Social sectors require more resources and major environmental problems include serious water shortages caused by demographic pressure, deforestation and poverty, Social unfairness and power are further issues to be addressed. The economic growth of recent years appears to have had little impact on poverty, which affects over a third of the population. A country level to natural disasters, the 2005 earthquake followed by floods in 2010 and 2011c aused well-known damage. Hurdle for Pakistan to enter in EU: There are many hurdle for Pakistan to enter in EU. but the major hurdle from my point of view the currency. because Pakistani currency is Rupee and EU currency is Euro. Euro is stronger than rupee so for business you have to change currency first rupee into Euro, its a first hurdle. The second hurdle the problem of language in Pakistan the national language is Urdu but without that there is 36 other language speak in Pakistan so people who are well qualified he know Urdu, and same as the case EU have English language so the who dont speak his national language how they speak English, the third hurdle the product of EU is very expensive, so people of Pakistan cant buy it , In Pakistan 10 to 12% of people who affords these product, there are many more hurdle that Pakistan cant enter in EU. The advantages are lower transaction costs, less exchange rate volatility, more incentives for cross-border trade and investment, and potentially lower long-term interest rates. With the Rupee, trade within the Rupee area has increased and that, inside the Pakistan, Pakistani trade with the rupee area and Pakistani national income could, over the long term, increase significantly. so money exchange is a big problem for both of country. EU trade in Euro and Pakistani change their currency to euro.