Impact Analysis: Tesco Plc and EU Policies
Added on 2019-12-03
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Business Environment1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3TASK 2- UNDERSTANDING THE NATURE OF NATIONAL ENVIRONMENT IN WHICHBUSINESSES OPERATES.............................................................................................................3(2.1) How economic systems attempt to effectively allocate resources ....................................3(2.2) Assess the impact of fiscal and monetary policies on chosen business organization’sactivities .....................................................................................................................................4(2.3) Evaluate impact of two macroeconomic policies and how influence your UKorganization and global economy ..............................................................................................5TASK 3- UNDERSTANDING THE BEHAVIOR OF ORGANIZATIONS IN THEIRENVIRONMENT AND ASSESSING THE SIGNIFICANCE OF GLOBAL FACTORS THATSHAPES NATIONAL BUSINESS ACTIVITIES..........................................................................63.1 Three different types of market structure and determining pricing and output decisions oforganization.................................................................................................................................63.2 Ways your organization behaves is shaped by market forces...............................................73.3 How your chosen organization is shaped by the business strategies....................................84.1 Significance of international trade on the selected UK business organization.....................94.2 Impact of two global factors that impact on UK based organization..................................104.3 Evaluate the impact of two European Union policies on chosen UK based organization.11CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................132
INTRODUCTIONBusiness Environment consists of different external and internal factors that directly andindirectly affect the operations of business organization. In the contemporary marketplace,enterprise needs to analyse both the factors as it would help the organization to sustain in thecompetitive scenario. In the globalized economy, business environment plays crucial role inalmost all the enterprises as it will help in understanding the internal, external environment aswell as it will also understand the current marketplace under which organization is operatingtheir businesses (Ahmed, 2012). For conducting the present report selected organization is TescoPLC, one of the leading British multinational grocery supermarket chains in the UK. Tesco PLCis a public limited company and the business allows public to invest in its shares for properfunding. This company is mainly affected by the business environment as they operate theirbusiness in the different countries and region that affect their operations too. Present report will focus on understanding the main purposes of organization to exist inthe competitive scenario thus, by understanding the nature of market environment in which theyare operating their business. The report will also understand the major impact of monetary andfiscal policy on the internal environment of the business as well report will also access the affectsof competitive policy and several other government mechanism on the businesses. Lastly, reportwill able to assess the significance effects of global forces on those organizations that operatebusiness in UK. TASK 2- UNDERSTANDING THE NATURE OF NATIONALENVIRONMENT IN WHICH BUSINESSES OPERATES(2.1) How economic systems attempt to effectively allocate resourcesA number of economic systems have been explored that helps in allocating resources inadequate manner; thus such economic systems are free market economy, centrally plannedeconomy and mixed economy and they effectively allocate different resources within theorganization. In the free market economy, resources are privately owned by the individuals andoften decisions regarding the manufacturing is also taken by the individual itself. The mainmotive of organizations operating in free market economy is to earn maximum profit and grow3
their business in the different region (Bansal, 2012). Under this economy resources are beingallocated through identifying different market aspects. What should bedeveloped:Based on needs and demands of customers How it should bedeveloped: On the basis of seller's profit acquiring powerFor Whom it should bedeveloped:Based on purchased ability Another economic system includes centrally planned economy under which governmentplays a central role in taking decisions and allocating scare resources in their ways. According tothe demography and demand government distribute and allocate resources in the economy. What ought to beproduced:On the basis of preferences given by government The way to develop it: It depends on the availability of workforce at government officesFor Whom it isdeveloped:Based on preferences of ruling bodiesLast type of economic system includes Mixed economy under which individual andgovernment collaboratively takes the decisions regarding allocating different resources. Sucheconomy is based on different private sectors where allocation of resources is based on marketforces as according to the demand of customers for instance, grocery sector of UK economy(Camacho, 2012). While, in public sector resources are allocated by government. What needs to beproducedPartially by customers aspects and on government basis The ways to produce:Based upon producers aspects as how they look for profits and to acertain extent by government For Whom it should beproduced:Often on the basis of customers and government (2.2) Assess the impact of fiscal and monetary policies on chosen business organization’sactivities Fiscal policy and monetary policy affects the performance of Tesco PLC as well as ontheir activities. Government of UK has the authority to determine Fiscal policies as that helps tocontrol the level of economy through altering taxation and government spending. For instance, ifUK government increases the tax rates then Tesco will have fewer funds to invest and employ(Frischtak, 2001). Thus, it affects the Tesco PLC in charging higher prices for their products and4
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