Business and Their Environment

Question 1

Space X attribute to success?

Answer 1

A strong understanding and implementation of their business concept. Their mission statement is to revolutionize space technology with the ultimate goal of enabling people to live in another planet. SpaceX success can be attributed to the fact that the team members work in tandem

Question 2

Describe the Concepts of Business?

Answer 2

3 P’s Concept :
1. People
An organization has to have impact (both positive and negative) on their most vaulable assets which is stakeholders.
2. Planet
An organization affect the economic and natural environment. It’s their responsibility to reduce carbion footprint and to use resource effectively
3. Profit
An organization has impact (both positive and negative) in macroeconomic and microeconomic. This include job creation, inflation, wealth creatin and tax generation

Question 3

What is the Major Economic Systems in the world? Explain and give example!

Answer 3

Capitalism, Communism, Socialism and Mixed Economy System
- Capitalism (free market): is based on the premise of competition within the marketplace. It guarantee three economic rights:
1. the right to make free choices
2. the right to compete
3. the right to own property
- Communism: the economic system is centralized and is predominantly run by government. Typically, they own most resources and control the market. This includes controlling measureswithin the marketplace, such as types of goods and services that will be produce, where production will occur, and where the goods will be sold.
Ex: Soviet Union (collapsed in 1991), China, Russia Eastern European Country but then all moved to free market
- Socialism: basic industries are owned by the Govt or the private sector under strict Govt control.
Ex: Denmark, France, Israel

Question 4

What is mixed Economy System?

Answer 4

On the spectrum of real world economic systems, the majority fall somewhere in between the extremes of pure capitalism and sosialism. The US leans towards a pure economic system; however, they have governmental policies intended to keep economic stability, stimulate growth, and appropriately distribute funds. ideally, these funds are reinvested back into the economy where it is needed.

Question 5

Explain the definitions of Macroeconomics and Microeconomics

Answer 5

Macro: is the economic study of the marketplace, and it uses aggregate data for large groups of people, businesses, companies, and products.
Micro: is the economic study of households and firms.
Ex: Tesla may utilise both when deciding whether to introduce a new line of vehicles. Tesla would consider macroeconomic viewpoint factors such as the national aggregated level of personal income, unemployment data, interest rates, fuel costs, and the national level of sales within the automotive industry. From a microeconomic viewpoint, Tesla would analyse customer demand for new vehicles versus the existing supply, competing brands, material availability, and labor costs. They would also examine current prices and sales incentives.

Question 6

How many sub-environments are part of business environment?

Answer 6

8 Business Environment: Economic, Political and Legal, Demographic, Social, Competitive, Environmental, Global and Technological (PESTELDCG)

1. Economic:
   ex: economic stability, GDP growth, purchasing power, taxes etc.
2. Political and Legal:
   ex: form of Govt, political stability, domestic & foreign policy
3. Demographic:
   ex: age, gender, race, ethnicity, and location
4. Social:
   ex: values, ethics, culture, attitude towards work & progress
5. Competitive: actions of competitors
   ex: Samsung and Apple
6. Global: international economic conditions, natural disasters, political unrest
7. Technological:
   ex: level of technology, innovation, available infrastructure, skilled labor
8. Envornmental: climate change
   ex: CSR and sustainability

Question 7

What is the meaning of the war of talent?

Answer 7

The competition among organizations to attract and retain the most able employees. Talent matters & that companies who are successful on the market are those who are the best with locating, assessing, recruiting & keeping the most talented people. More & more companies start to “fight” for the most talented people & become competitors on the labor market as well.

Question 8

Describe the legal difference if Tesla want to conduct their business in USA and Germany!

Answer 8

Tulis