Business Environment

Scenario 1.2 (for task2)

The business landscape is rapidly becoming more global. This is largely due to improvements in communications. Globalization is dramatically impacting on the way business is managed and transacted, even on local level.
A number of countries are competing to become key exporters of health services. In particular, the growing phenomenon of health tourism appeals to many developing countries where clinics servicing foreign clients flourish. An increasing number of countries offer attractive surgery, recuperation and rejuvenation holiday packages – from South Africa or Costa Rica to Thailand or India (World Bank, 2009).
Smart Regulation is a top priority for the UK Government. Well-designed legislation
helps businesses to operate effectively in the market in order to create jobs and growth in health services. Many people became aware of the influence of Europe on the NHS following the introduction of the European Working Time Directive (EWTD). As the NHS searched for a coordinated and managed response to the EWTD it became clear that the debate in Europe had moved from whether European Union (EU) rules applied to the NHS, to how they applied. For clinicians, managers and health policy analysts this was a new challenge. Both the momentum and reach of the EU has grown rapidly in the health sector, and the NHS needs to be alert to these issues; and be capable of responding coherently and at a strategic level (NHS Confederation, 2010).

For tasks 2 you will need to write a report detailing the answers to each question. This should be in a report format and should show evidence of the research you have carried out. Make sure to clearly explain all of your answers and the rationale behind them. The clarity of your reasoning and logic, as well as the analyses that leads to the conclusion, is crucial. Your report will be more effective if you explicitly integrate the theoretical and practical concepts learned from your course. You must conduct additional research to find answers for these tasks.
Refer scenario 1.2 to answer your task 2.

Task 2
Explain how the current market types (perfect competition, monopoly, monopolistic competition, oligopoly, duopoly) have determined the pricing and output decisions of NHS.
Provide examples of how NHS and the British Red Cross have responded to market forces (e.g. supply and demand, customer perceptions and actions, pricing decisions; cost and output decisions.)
Discuss how the business and cultural environments shape the behaviour of one of the organisations (NHS or British Red Cross).
Your answer must clearly address the following environments:
 Business environment (political, economic, social, technical, legal, environmental)
 Cultural environment.
Discuss the significance of international trade to the UK NHS organisation from the trade in health services aspect; and what kind of market opportunities can the NHS gain from international trade?
Analyse the impact of global factors on the NHS. You must clearly explain how these factors impact on the NHS�s operations (e.g. competition, growth, employment, education, economics and finance, environment, science and technology, regional labour movement, workforce skills, exchange rates.)
Evaluate the impact of policies of the European Union on the UK health organisations and service sector, including the NHS.
-End of Task2-

Task 2 covers assessment criteria 3.1, 3.2, 3.3, 4.1, 4.2, 4.3

LO3 Understand the behaviour of organisations in their market environment
3.1 Explain how market structures determine the pricing and output decisions of businesses
3.2 Illustrate the way in which market forces shape
organisational responses using a range of examples
3.3 Judge how the business and cultural environments shape the behaviour of a selected organisation

LO4 Be able to assess the
significance of the global
factors that shape national
business activities
4.1 Discuss the significance of international trade to UK business organisations
4.2 Analyse the impact of global factors on UK business organisations
4.3 Evaluate the impact of policies of the European Union on UK business organisations.

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