Business Environment Iceland Supermarket- doc

BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Purpose of different organizations.........................................................................................1
1.2 Extent to which Iceland meets objectives of different stakeholders......................................2
1.3 Various responsibilities of Iceland and the strategies employs to meet them.......................4
TASK 2............................................................................................................................................4
2.1 Different economic systems to allocate resources effectively...............................................4
2.2 Impact of fiscal and monetary policies on Iceland supermarket and their activities.............5
2.3 Impact of competition policies and other regulatory mechanism on the activities of Iceland
supermarket..................................................................................................................................6
TASK 3............................................................................................................................................6
3.1 Market structure determining the pricing and output decisions of business including
Iceland supermarkets...................................................................................................................6
3.2 Way in which market forces shape Iceland supermarket responses using examples............8
TASK 4..........................................................................................................................................10
4.1 Significance of international trade to Iceland supermarkets................................................10
4.2 Impact of global factors on Iceland Supermarket................................................................11
4.3 Impact of European Union policies on Iceland Supermarket..............................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

TABLE OF FIGURES
Figure 1: Different stakeholders of organization............................................................................3
Figure 2: Types of market structure................................................................................................7
Figure 3: PESTLE analysis.............................................................................................................9

INTRODUCTION
The overall business environment can be defined as a combination of both external as
well as internal factors. Companies can easily maintain their dominant market share with the
help of effectively managing its business operations. By adopting some of the most successful
marketing strategies, firms can easily enhance their market contribution (Teece, 2010). Within
this concern, the present study is based on the scenario and working operations of Iceland
supermarkets. It is a subsidiary company of Associated British Food having their 238 branches
across the UK as well as Europe and Ireland. It is British supermarket chain which emphasis on
the sale of frozen foods as well as fresh prepared food (Iceland supermarkets, 2016). This
supermarket is famous for its quality services as well as products related to the frozen and non-
frozen items. This study gives profound insights about the purpose of different organizations as
well as nature of the national environment in which business operates. This study carries out the
proper understanding of the business, cultural, economic and regulatory environment in which
Iceland operates.
TASK 1
1.1 Purpose of different organizations
Private sector firms: This is a privately owned sector where individual works firm with
the motive of personal growth. It can also run through the partnership under which equal amount
of profit can be gained. Here, it can be stated that by undertaking privately owned firms,
companies can easily increase their overall growth. Iceland supermarket is a private retailing
company which has approximately 1.8% share of UK food market (Cherunilam, 2010). These
types of firms are formed by the group of people who are sharing profits and liabilities among
each other.
In addition to this, KFC (Kentucky Fried Chicken) is also another example of private
sector firms. However, it is a subsidiary company as they have their parent company as well.
This organization functions to comply with the laws and rules developed by its parent company.
However, there is no such existence of constant interferences of that parent company in the
working of business entities such as KFC as they present with its own existence. KFC is a
subsidiary of fast food chain in the world.
Public sector firms: These types of companies provide benefit to the whole community.
1