Global Business Environment - Sample Assignment
Added on 2020-12-29
16 Pages5009 Words318 Views
BUSINESS ENVIRONMENT
TABLE OF CONTENTSINTRODUCTION ..........................................................................................................................1TASK 1............................................................................................................................................1TASK 2 ...........................................................................................................................................4TASK 3............................................................................................................................................6TASK 4............................................................................................................................................9(a) Pros and cons of UK leaving EU (Brexit).............................................................................9(b) UK's business challenges and global environment impact on future of businessdevelopment..............................................................................................................................10CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13
INTRODUCTION Energy efficiency is defined as the use of energy sources efficiently so that the growingneeds of population can be meet as well as their impact on environment can be minimized. Theseenvironmental concerns are not only associated with the usage of these energy sources such asoil, coal and natural gas but is also linked with the extraction process of these sources. For oiland gas companies it is becoming challenging ensuring the increasing demand of these productsdue to their limited availability. As a result there is significant rise in oil prices and otherdemands of energy (Shove & Walker, 2014). However, with the limitations of cost andavailability different countries and energy companies can deal by exploring new technologiesand variety of energy sources. The report will discuss the supply and demand theory used by organisations withinenergy provisions. It will also evaluate the role of government interventions on price elasticity inenergy. The document will also describe the interests and perspective of various stakeholderstowards fracking development through case example of Cuadrilla Resources. This organisationdeals in production and exploration of gas and oil and has its headquarter in UK. The study willalso evaluate the business environment of the above mentioned organisation. Further the reportwill give a critical analysis of EU membership of Britain. TASK 1Cuadrilla Resources is one of the leading supplier of oil and gas and is well known for itsefforts to explore advanced techniques such as hydraulic fracturing and fracking to extract thenatural gas from shale plays. As compare to other manufacturing or service industries the supplychain of Cuadrilla Resources and other energy related organisations is quite complex. Supply and energy demand theory in energy sector: The supply and demand theory helps organisation to analyse the interaction between theavailability and requirement of any product or services are linked with price. For instance ifCuadrilla Resources keeps higher prices for prolong period then it is possible that most of theconsumers will avoid vehicles which are fuel inefficient or they may shift to sharing or lessdriving so that consumption of these resources can be minimized. Thus, it will reduce thedemand of the energy (Seyfang & et.al., 2014). 1
If there are high prices or limited availability of the energy resources then CuadrillaResources can also seek to explore new resources which can increase the supply. For thispurpose business organisation can use fracking and other popular drilling approaches. On theother hand when prices of oil are very low in the national and international market then CuadrillaResources may shut down its projects to balance the profit goals (Friedman, 2017). Such approaches reduce the supply of oil and gas to a great extent. The millions ofconsumers of Cuadrilla Resources have very limited power authority to influence the prices ofoil. Thus, it also leads to another concept in supply demand theory of above discussedorganisation. The higher prices of oil or gas can encourage Cuadrilla Resources to increase itsproduction and supply because due to higher prices marginal production cost is also enhancedand this is beneficial for the company. (Source:The Return of UK Fracking and What It Could Mean for the Climate, 2017)Along with the availability of energy resources, the amount or supply of the oil is alsodependent upon price so that Cuadrilla Resources can cover up its marginal cost. The economic2Illustration 1: Supply and demand theory of gas
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