Bayer Company – Behavior of organisations in market environment

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Select an international business organization operating in any commercial industry to examine the key elements highlighted in the following figure, which actually reflects on the correlation amongst the market forces, structure of the market, business and cultural environment; international trade policies and regulations imposed by the relevant authorities and global influences, within that particular industry; and
provide a detailed analysis of the impact of those factors on the decision making, behavior and performance of that organisation.

Structure & Forces of the Market
(i) Number of firms
(ii) Product differentiation
(iii) Entry/exit conditions
(iv) Mobility of resources
(v) Dissemination of information
(vi) Supply and Demand
(vii) Business and Cultural environment
International Trade Policies & Regulations
Global Influences
Conduct/behavior of the firm
(i) Strategic decisions
(ii) Market Research and Analysis
(iii) Pricing policy
(iv) Product decisions
(v) Operational decisions
(vi) Resource planning
(vii) Research and development
(viii) Company’s Code of Conduct
(ix) Human Resource Policies
Performance of the firm
(i) Profitability
(ii) Growth
(iii) Market share
(iv) Competitive ability
(v) Sales turnover

QUESTION 1:
Discuss correlation of Number of firms, Product differentiation, Entry/exit conditions, Mobility of resources, Dissemination of information and the firm’s Pricing policy, Operational decisions, Sales turnover, Profitability and the Competitive ability of the business organisation.

QUESTION 2:
Explain how the dynamics of Supply and Demand affect the organisation’s Strategic, Product and Operational decisions as well as the Market share, Growth and Competitive ability.

QUESTION 3:
Explain how the business and cultural environment within which the organisation functions would shape up the firm’s Strategic decisions, Research and development, Product and Operational decisions, Market Research & analysis and Resource planning,

QUESTION 4:
Discuss the importance of International Trade for the business organisation in terms of Growth and Profitability and also analyse how the Global influences, International Trade Policies and Regulations imposed by the relevant trade authorities’ impact the firm’s Human Resource Policy and Company’s Code of Conduct.

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