Exploring the Interplay between Business Environment and Performance

The provided content includes a range of academic papers and online sources that discuss various aspects of international political economy, business environment, management, and entrepreneurship. The papers cover topics such as the role of small and medium-sized enterprises (SMEs) in environmental businesses, the impact of work environment on business results, and the importance of dynamic capabilities and trust in family businesses. Additionally, the sources explore issues related to trade policy, management accounting, and performance evaluation in various industries and contexts.

BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1..........................................................................................................................................1
A) Public Sector:...............................................................................................................3
B) Charity Sector:..............................................................................................................3
C) Cooperative Sector:......................................................................................................4
1.2..........................................................................................................................................4
1.3..........................................................................................................................................6
TASK 2............................................................................................................................................7
2.1..........................................................................................................................................7
2.2........................................................................................................................................11
2.3........................................................................................................................................13
TASK 3..........................................................................................................................................14
3.1 Price and output decision determining market structure ..............................................14
3.2 Market forces shaping organizations response .............................................................15
3.3 business and cultural environments shape the behavior of a selected organization......17
Business environment shaping organization response....................................................17
Culture shaping organization response ...........................................................................17
TASK 4..........................................................................................................................................18
4.1 the significance of international trade to UK business organisations............................18
The importance of international trade .............................................................................19
4.2 The impact of global factors on UK business organizations.........................................19
4.3 The impact of policies of the European Union on UK business organizations.............21
CONCLUSION .............................................................................................................................21
REFERENCES..............................................................................................................................23

INTRODUCTION
Just as an environment surrounds anything, Business environment is that which surrounds
a business. Business environment means all of the internal and external factors that affects how
the company functions including stakeholders and business regulations (Harrison, 2013). Here
consider the Primark company to explain business environment, the company is a global
company in garment sectors. In the case considers the selected company and the public sector's
vision, mission and objectives. The case is about responsibilities of the organization and towards
the different stakeholders also. In the case describes that how the economic systems, fiscal and
monetary policies and competition policies are impact to the business environment of Primark
organization. In the case elements considers that how the market structures determine the pricing
and output decisions of products and services of the organization. Here analyzing about the
international or global markets that different significance of international trade union to UK
business organizations and What are the different impacts of the global factors which affects to
the organization in the marketplace (Hamilton, and Webster 2015). So, the case is based on the
economic environment where how the different environmental factors impacts to the Primark
organization.
TASK 1
1.1
Primark is a private sector organization, which is operating in UK, US, Ireland and
Europe countries. The main purpose of Primark behind carrying out its operations is to provide
its customers with quality products and services at convenient prices. Furthermore, it also aims at
communicating the fact that if the products are cheap then it is not necessary that they are made
up of low quality. It was founded and headquartered in Dublin, Ireland. Primark is a subsidiary
of international food; ingredients and retail group Associated British Foods. Primark offers a
diverse range of products, including new born and kids clothing, women's wear, men's wear,
home ware, accessories, footwear, beauty products and confectionery.
Vision of Primark:
The vision of the organization is to be the most widely spread neighborhood center covering the
entire country, offering retail facilities that cater to the most immediate, and basic needs of its
1

customers, at the most cost effective price possible, in a safe, comfortable and pleasant
environment manned by very professional, properly trained and friendly staff and retail sellers
(Halbert, and Ingulli, 2014).
Mission of Primark :
Primark shall be the vehicle to achieve the company's vision, through it's most geographically
widespread, accessible and properly designed town centres, populated with the best supermarket,
dry goods retailers, food operators, service shops and a whole array of micro-retail stalls a midst
a very well planned, and well zoned environment that will showcase the best entrepreneurial mix
of commercial operators intended to provide the most convenient and priest basic shopping
needs of the community.
Primark Objectives and Aims:
To provide good quality of products to the public.
To sell goods at the reasonable prices.
To be friendly and helpful towards customers and staff.
To treat everybody the same; The public need to feel like the organization treat everybody the
same.
Primark market share: 13% of the UK retail industry
Primark sales: 28%
2

A) Public Sector:
The public sector is the part of the economy concerned with providing various
governmental services. Tesco is a public sector company, which a leading company worldwide.
The Tesco Company is built with a simple purpose.
The purpose of the organization is to be the champion for the customers and helping to
the customers to enjoy a better quality of life and an easier way of living. All customers want
great products at the fair value which they can buy easily. The company is also having these
purposes that provide to the customers great but at the affordable prices and it is the core job of
Tesco to deliver this in right way. The organization is having purpose for the customer’s welfare.
B) Charity Sector:
A charitable organization is a type of non-profit organization. It differs from other types
of organizations in that are centers on philanthropic goals as well as social well-being (e.g.
charitable, educational, religious, or other activities serving the public interest or common good).
NSPCC (National Society for the Prevention of Cruelty to Children) the UK's leading charity
sector company for child and the prevention of cruelty to children.
The non-profit designation, which is a legal business structure, is a function of state
governments. The internal revenue service grants tax-exempt status to non profit organizations
that meet criteria in the federal tax codes (Palmer, and Hartley, 2011). Federal and state laws
require non profits to use assets to fulfill the organization's mission and purpose.
3

Main purpose of NSPCC trust is something other than making a profit. The organization
allow people to join together and combine resources to achieve common goals. State and federal
governments give special considerations to the firm in consideration of the work they perform.
The main purpose of NSPCC organization is welfare of the child who are poor and can not leave
a happy life. The organization is for prevention of cruelty to the children. (Palmer and Hartley,
2011).
C) Cooperative Sector:
A cooperative sector is an autonomous association of people united voluntarily to meet
their common economic, social and cultural needs and aspirations through a jointly owned and
democratically controlled business. The Baywind Energy Co-operative is the first co-operative to
own wind turbines in the UK. The purpose of cooperative enterprises will be established by its
members, this is ordinary is to remedy specific deficiencies in a specific market or marketplace.
The purpose of Baywind Energy Co-operative is set out in terms of specific outcomes
that the membership wants their enterprise to achieve on their behalf. This organization's purpose
is to provide services to all the customers which set out by its all members.
1.2
A stakeholder is anyone with an interest in a business. Stakeholders are individuals,
groups or organizations that are affected by the activity of the business. They include: Owners
who are interested in how much profit the business makes.
Extent to which Primark meets the objectives of its different stakeholders:
Investors: The providers of risk capital and their advisers are concerned with the risk
inherent in, and return provided by, their investments. Stakeholders of the firm need information
to help them determine whether they should buy hold or sell (Keillor, 2013). Shareholders are
also interested in information which enables them to assess the ability of the enterprise to pay
dividends.
Employees: Employees and their representative groups are interested in information
about the stability and profitability of their employers. They are also interested in information
4

which enables them to assess the ability of the enterprise to provide remuneration, retirement
benefits and employment opportunities.
Lenders: Lenders are interested in information that enables them to determine whether
their loans, and the interest attaching to them, will be paid when due A private group or a
financial institution that makes funds available to another with the expectations that the funds
will be repaid, in addition to any interest and pr fees, either in increments (as in a monthly
mortgage payment) or as a lump sum (Fries, 2003).
Suppliers and other trade Creditors : Suppliers and other trade creditors are interested in
information about the Primark that enables to determine whether amounts owing to them will be
paid when due. Trade creditors are likely to be interested in the enterprise over a shorter period
than lenders unless they are dependent upon the continuation of the enterprise as major
customers.
Customers: Customers have an interest in information about the continuance of the
organization, especially when they have a long term involvement with, or are dependent on, the
organization.
Financial Institutions: The financial institutions, governments and their agencies are
interested in the allocation of resources and, therefore, the activities of the organization
(Mohamed, and Lashine, 2003). They also require information in order to regulate the activities
of the Primark, determine taxation policies and as the basis for national income and similar
statistics.
Public: The organization affects members of the public in a variety of ways. For
example, the enterprise may make a substantial contribution to the local economy in many ways
including the number of people they employ and their patronage of local suppliers. Financial
statements may assist the public by providing information about the trends and recent
developments in the prosperity of the enterprise and the range of its activities.
5

1.3
Responsibility is a duty or obligation to satisfactorily perform or complete a task
(assigned by someone, or created by one's own promise or circumstances) that one must fulfil,
and which has a consequent penalty for failure.
Responsibilities of Primark as an organization and the strategies employed to meet
them :
Organizational responsibility is to ensuring the organizational efficiently and benefits of
the people. All organizations are implements for the achievement of their objectives (Yu, and
Ramanathan, 2012). It can be based on the organization which it responsibilities these are -
One of the first organizational responsibilities is that the structure model is based on
information and control to run and growth. The structure identifies laws and regulations that help
the firm to maintain compliance. It includes establishing responsibility and organizational
planning.
Allocation of duties is a factor in organizational responsibilities. Allocation of duties is
to maintain organizational structure and gives to individuals in the firm to commit
responsibilities. Leaders of the entity allocate duties to the employees. The management of
boards, seminars, allocation of funds and other benefits to keep the firm must be coordinated
(Hartwell, and Michael, 2015).
Coordination is associated to knowledge and defines the performance of the entity. The
organizational responsibility of coordination is to achieve the objectives of business and hire of
the effective and efficient employees. Operational is an essential to organizational
responsibilities to run and success of the firm. Operation goals are to contribute the purpose of
the organization.
An organization requirement is to develop its goals. Developing an organizational
strategy is to require for the desired change to take place. Organizational strategies employed to
focused purpose is to describing short-term purpose, ensuring operation is accurate, allocation
the benefits of all shareholders (Krasniqi, 2009). Future perception is to describing long-term
view, engaging to the long-term benefits of all shareholders, providing establishment for
decision-making. Strategic improvement is to competitive improvement is to developing an
6

organizational strategy, competitive improvement by all shareholders, employees is to supports
the organizational strategy.
Responsibilities of Primark is to improve supply system by using better technology and
communication system, Increase the employee value proposition to motivate the employee
environment in the organization as well as to recruit the skilled employees and train their
existing employees for better performance. The another responsibility is innovation practice by
which employees are encouraged to participate in innovation activities (Onyido, Boyd, and
Thurairajah, 2016).
TASK 2
2.1
Operational system can be defined as the policies and procedure adopted by a company
for the purpose of carrying out its activities and business practices. Economic system is one type
of process or system where the goods and services as well as production are provided and it is a
system to allocate the resources effectively and properly in the society.
Economic system of United Kingdom and reasons to follow:
The country United Kingdom is a strong and developed economy in the world. The UK
used mixed economy system to run the economy properly. Mixed economy is the economy
where both the sectors are had authority to take decision. Both sectors are such as private sector
companies and public sector companies. Mixed economy is a mixture of capitalistic and
socialistic economy. In capitalistic economy the private companies are able and free to take
business decisions as they want (Wang, 2016). On the other hand in socialistic economy the
private companies are not playing any role, instead of that the government of the country is
regulated and take business decisions. So, in the United Kingdom there are private companies are
free to take own business decision as well as government is also taken the business decisions.
There is three things are very important in the mixed economy such as what products are to be
produced in business, how the products and services are to be produces and third one is for
whom the products and services are to be produced in the business.
GDP growth rate of UK
7

GNP growth rate of UK
Size of the UK economy
8

Inflation rate of UK
9

The UK follows mixed economy because it is a developed country where all the rules and
regulations are properly and effectively followed by the organizations. The UK government have
a good command role in defense, international trade and national transportation, due to the strong
government, it operates in mixed economy.
Economic system of China and reasons to follow:
China's Communist Party using socialist market economy to describe their nation's economic
system. China's economy is subject to market forces, and capitalists are involved, but the party
does not believe that capitalists run their economy (Kuklinski, Moser, and Callarman, 2014). A
socialist economy system is characterized by social ownership and democratic control of the
means of production, which may mean autonomous cooperatives or direct public ownership;
wherein production is carried out directly for use.
China operates in socialist economy because it is having a wide range of manpower and
its a developing country. China has not abandoned socialism or communism, and many elements
of socialism are still present. So, this economy is beneficial for them and using.
Economic system of Cuba and reasons to follow:
The economy of Cuba is a planned economy, which is dominated by state-run enterprise. Most
industries are owned and operated by the government and most of the labor force is employed by
10

the Cuba state. A planned economy is an economic system in which the state or government
makes economic decisions rather than the interaction between consumers and businesses.
Cuba is a under develop country which is isolated country, the crises arise in Patrons,
deeply indebted, here cell phones are now allowed and potential for growth. So the country is
adopted the planned economy (Harrison, 2013).
2.2
Monetary policy – It can be defined as an important financial tool which is used by
nations to manage and maintain flow of money in an economy. This tool is taken care by central
bank of country and it includes changes in rate of interest.
Fiscal policy- It is a tool in which changes are carried out in tax rates by government of a
country in order to carry out effective management of money in a particular economy.
Farming Industry:
In UK 69% of the country's land areas uses for agriculture. Fiscal policy is a government's
decisions regarding spending and taxing. Monetary policy is the decisions a government makes
regarding to the money supply and interest rates.
Fiscal policy and monetary policy are handled by the central government and central
bank respectively of the UK. The monetary policy sets by regulating the funds rate. It affects
short-term and long-term rates, including credit-card rates and loans. Governments describe
fiscal policy sets by taxation, law and regulation for strength to the environment. In the farming
business the fiscal policies are impact directly or indirectly. In this impact on the competitive
factors of the agriculture industry (Keillor, 2013). When the central government make new or
make changes in existing rules and regulations which are must be follow by the farming
organizations, So, sometimes it may be in favorable situations and may be in unfavorable
situations.
Under the monetary policy if the bank changes the interest rates, repo rates, taxation and
all so nit will direct impact on the farming business. If any organization of UK wants to expand
the production line but due to the interest rate increases he don't want to go for loan so it will
affects to the business.
11

Housing Industry:
Housing business is also a growing industry in UK. Fiscal policies as well as and
monetary policies both are direct affects to the housing and construction businesses. Fiscal and
monetary policies are regulated and changes by government and central bank. The policies are
regulated for stabilize the economy and growing the economy of UK country. The policies are
stabilized the economy after make changes in the incomes and outcomes related with state
budget. The monetary policy is a mechanism who control the supply and flow of money by
central bank of UK.
Fiscal policy is regulated by the government of UK. In this if the situation of inflation or
recession occurs then the prices of housing products are increase and decrease respectively.
(Primark is top business model, says retail expert, 2016). In the situation of inflation prices
increases and purchase reduces and then the income taxes are increases. Due to that the prices
will increase simultaneously the impact on the sales of products. Under the Monetary policy if
interest rates changes, it has enormous impact on the construction organizations. If there is
inflation arises than the customers will not attract towards purchasing so it will impact on the
sellers in Construction firms (Gallemore and Labro, 2015).
Hence, the fiscal and monetary policies are affects positively and negatively on the
farming and housing business of the UK.
Housing industry effected by monetary and fiscal policy
Housing industry is form of a real estate construction industry. The monetary and fiscal
are governed and regulated by the government and central bank. Authority body of monetary
policy is central bank of UK country. Under the fiscal policy and monetary policy there are
several factors affects to the housing industry such as taxation rules and regulations, tariff rates,
business policies etc. and interest rates, loaning rates etc. respectively. The industry is depends
on the loaning and mortgage loan, so the interest rate will affect greatly and decrease the growth
of the industry. On the other hand the taxation policy is also impact to the industry for selling
and purchasing. Due to changes in monetary and fiscal policies there is vast impact on the
housing industry or construction companies.
Farming industry effected by monetary and fiscal policy
12

The concept of sustainable economic growth is closely with the farming or agricultural
growth. The fiscal and monetary policies are affected to the agricultural industry in terms of
loaning etc. The fiscal policy is governed and regulated by the government of UK country. It
affects to the farming industry in order to loaning process and sell the production in market. The
farming industry is export the crops in international market and domestic both. It affects to the
agriculture business in order to taking loan etc (Neubauer and Lank, 2016). The fiscal policies
affect to farming industry with the several factors such as inflation rate, exchange rates etc. with
the high inflation rate prices are increases which lead to decrease consumers and affects to the
farming industry. On other hand monetary policy affects to farming industry in order to interest
rate where the industry is affected in terms of loan.
2.3
Competition policy is very important for every business in every industry. With the help
of competition policies the firm attract to more consumers in order to generate more sales and
profit. Under the competition policy a firm try to beat the rivalry firms and increase the market
share in the industry or market place (Strydom, 2015). The competition policy is a government
policy which helps to prevent, protect to business and decrease the monopoly power of
organization in the market. From this policy the market will work better and perform well in the
industry. There are several competition policies which are adopted by firms in the UK country.
The competition policies and other regulatory mechanism are such as follows:
Low Price : Low price is an important policy of competition policies. It is widely used by
the business as well as Primark business organization. Low price is a policy where the firm try to
increase market shares at a low price. The company makes prices lower in comparison to same
products and services which provide by its rivalry firms in same market (Strumickas and
Valanciene, 2015). Under this policy the firm attract more consumers in order to providing goods
and services at relatively low price and better quality. Furthermore, with providing at low price it
offers various schemes and discounting policies to attract more and more consumers. The policy
affects to firm sometimes regarding to decrease profit level of business.
Antitrust & cartels : It is another competition policy which are adopted by companies in
the UK country. The policy is referred to eliminate the agreements which lead to restrict the
companies to fix their prices of products and services. It abuses by the business entity who have
13

the market position of dominant where firm have market shares more than fourty percentage
(Krasniqi, 2009).
Market Liberalization : Liberalization means the company operates in free market and
there is not any obstacles for run the business in marketplace. The Primark is also having
monopoly in his products so, this policy is impact to the organization in between other
international competitors in this industry. It is the lessening of government regulation and
restrictions on an economy in exchange for greater participation by private entities. Thus,
liberalization in short is '' the removal of control'' in order to encourage economic development.
Abuse of Market Power : Market power indicates to the business in order to increase and
control or maintain the price level of the goods and services. In order to this the price has to be
lower than the competitors of the Primark company which are providing same products and
goods (Bah and Fang, 2015). It introduces to the ability of the company in regarding to the
manipulation in company. Manipulation in such as price, supply of products as well as demand
of the goods and services. It will influence to the manipulation in the price of services.
Merger Policy : A merger is a deal to unite two existing companies into one new
company. This policy can influence market structure in the industry by preventing certain
mergers between firms (Belás and et.al., 2015). If two companies will merge than there is capital
will be increase simultaneously product range also increase, in that case the competition will
become tough from existing competition scenario. So, the merger policy also impact on the
Primark in competition market.
Apart from this by considering numerous government and authority frameworks policies
and regulations the company can compete in the market which are like as competition act 1998
as well as the enterprise act, 2002. In addition to this, there are on the basis of the competition
acts, policies of the industry and market, rules related to the skills as well as training, enterprise
strategies etc. the company compete in the market with the rivalry firms and then provide the
services and products to the customers.
14

TASK 3
3.1 Price and output decision determining market structure
Pricing affect on buying decision of every person because in business determining price
of product is very difficult therefore, businesses need to analysis price of product uniformity so
that maximum customer get attracted. While, organization need to understand all market
structure well in advance so that they does not faces any problem in future therefore, for
determining structure of market firm is involving some tools that are perfect competition,
monopoly, oligopoly and duopoly moreover, they all includes of characteristic and some impact
on their business (Teece, 2012). Perfect competition consist of large number of buyers and
sellers so in this situation market structure of that product will moderate because there are many
competitors of same product which businesses are selling to their customers.
Therefore, in perfect competition market customer will get many substitute of that
same product in market because there is many sellers of same goods which organization is
producing. In monopoly market there is only one seller of that firm and there are large numbers
of buyers of that product which organization produce therefore, they need to find out all situation
which are existing within and outside organization (Weiss, 2014). There is restriction on entry of
firm because entity involves high cost for that product because there is only one seller and
customer will not get any substitute of that product in market.
Duopoly market is controlled by small numbers of companies therefore, there are two
holders who interact on price and product output. There is no free entry and exist of firm due to
these small entity continuously need to supply goods and manufactured there product on time
because their investment capacity is low therefore they cannot compete with those business who
plays in perfect competition (Zhu, 2014). In oligopoly market structure, small firm consider
large number of market share because there are very less number of sellers in market through
this, it may lead to reduction in competition and price of product will be higher for those
consumers who are willing to buy these product of businesses. By considering, few sellers there
is less competition of goods so that each oligopoly need to be aware of those action which other
sellers are taking while selling of their product. A duopoly cab have the same impact on the
market as a monopoly if the two players collude on price or output. Collusion results in
15

consumers paying higher prices than they would in a truly competitive market and is illegal
under U.K. antitrust law.
3.2 Market forces shaping organizations response
Market forces consist of elements such as demand and supply which affects the
operations and activities of a business enterprise directly. Market forces exemplify relation
between supply and demand of that product within market. Firm response and reaction is very
crucial for that business because through this firm is able to get economical situation and
circumstances which organization is facing (Abushaiba, and Zainuddin, 2012). Primark response,
to market forces has create large impact on reputation, brand image and profit of organization
therefore, company need to assess market structure properly by ensuring that they are able to
provide services of that product on time. Organization need to judge their market demand
properly so that they can attract more customer which may customer more satisfactory through
supplying right product at right time, at right place and in right amount so that customer can
fulfilled there demand and needs. Profit of this organization is increasing because as their
judgement and deciding of profit margin are correct so they are able to sell more of its products
in market (Khanagha, Volberda, and Oshri, 2014).
Some of branches of Primark are incurring and consisting of heavy losses because they
are not selling products by doing market research and their judgement are also incorrect
therefore, they need to judge properly (Hamilton and Webster, 2015). As a result, customer are
leaving stores with empty handed because want of customer need to be fulfilled. Change in
demanded quantity and supply of product will change in existing price of product. Change
in elasticity of demand and supply of existing product will change in demand of quantity of
product because price in not the only factor which will influence market forces (Harmon, 2014).
Administrator can use of price discrimination and economic price for attracting of customer so
that they can increase in demand and supply and due to this there is surplus of consumer and
producer.
If Primark increases it production capacity than per product cost will decrease because
producing at capacity will lower cost and every customer can use it. For firm market equilibrium
is very important because here, supply and demand are exactly meet out and there is no surplus
and shortage of goods and service through this, it will help in determining of price and quantity
16

of goods and service produce within organization (Zdravkovic, Stirna, Henkel, and Grabis,
2013). Market disequilibrium is that situation for company where, demand and supply of
market forces are not meet out properly due to shortage and decrease in demand of that product.
For effective market forces Primark need to analysis and perform market research properly so
that their reputation and brand image does not decreases.
3.3 business and cultural environments shape the behavior of a selected organization
Business environment shaping organization response
Business and cultural environment has created great impact on organizational behavior
because Primark consider two different type of environment that is economic and non-economic.
However, economic environment consist of economic policies, condition and system of
organization so their effective work can be carried out and firm can reach out goals and target
properly (Ballard, and et.al., 2012). Further, non-economic consist of external forces which
influence working lifestyle of every business and through these factors company is unable to
achieve set ultimate goals and target which are set within organization. External forces consist of
PESTEL i.e. political, economic, socio, technological, environmental and legal factors if
these influences are not consider and understand properly on time then organization will be
impacted and start incurring losses and also will unable to reach out to goals (Müller and
Timofeev, 2016). From all these aspects, Primark need to also analysis of legal forces because
they consist of laws, regulation, policies and procedure and before selling of their goods and
service to their customer.
Organization need to provide training and also motivating them according to need
because if employee skills are not upgraded on time then firm may incur losses and through this
firm will get affected (Chkili, and Nguyen, 2014). Primark need to analysis of market research
properly so that employee can understand trend and needs of customer by using of latest
technology and by doing some innovation in product for gathering of more customer. If
organization has understand and concerned all issues and problem well in advance regarding
customer demand than no external forces will create impact on firm. In addition to this,
technology environment involve of various tools, techniques and approaches which has been
adopted for production, distribution and for providing service (Bar-Isaac, and Shapiro, 2013).
17

Culture shaping organization response
Cultural environment involve of cultural values, norms, religion, caste, custom and belief
so management need to assess of all these factors for increase in sale of business and collecting
more customer by providing satisfaction and fulfilling their needs. If management has done
market research correctly and firm has understood properly regarding their values and norms
than that person can sell anything to that consumer and also fulfill gap between there need and
what organization has provided to them (Rose, Orrenius, and Neumann, 2013).
TASK 4
4.1 the significance of international trade to UK business organisations
International trade is very crucial for every organization because it make possible in
growing and producing of goods and service within country. Without international trading it is
not possible to sell everything everywhere because it involve of exchange of goods and service
which are not possible for executing without doing trading between two and more countries
therefore, doing business internationally is difficult task and it require huge formalities and
licensing for doing trading internationally (Colacito, and Croce, 2013). For growth of business
BREXIT need to understand market opportunities well before entering into internationally
because every countries include of different policy, procedure, rules and regulation for doing
trading internationally. For UK business organization doing trading internationally is very
profitable and economic because they sell their product in Dollars and some benefits of
international trading for UK business organization are as follows:
Production cost: Through trading internationally UK business organization need to
increase in production capacity so that their product range will be lower down (Petersmann,
2015). BREXIT imports raw material from international market at cheaper rate and at low price
and these raw material are converted it into finished product and UK business organization sell
these goods at higher price because through this they will achieve more profit and will increase
in expanding and recognizing in international market.
Broadens horizon and market: If UK business organization sell their product and service
in their country itself then this will result in decrease in their potential of working and will also
impact on their working style of employees (Kleine, 2013). While, doing trading in national
market only will attain steady growth for UK business organization and through this they will
18

not be able to recognize in international market, will not be able to expand their business and
they cannot earn maximum profits for organization. However, while doing trade internationally
businesses will be able to increase in traffic, sale and consumers by demanding more quantity of
products for their countries.
Economy: While doing trading in international market will enhance in growth of
business and country too because trading between two countries results in exchanging of
currency and through at currency country can be developed and this will also enhance in
infrastructure of country (Oatley, 2015). Earning more foreign currency will increase in
reputation and image of country and as well as for business. Through it company and nation is
named as developed country.
International trade creates market opportunities of UK business organizations. If a British
company only sell its products domestically and not introducing its products to foreign market, it
would limit its potential. UK business companies are capable to maintain a steady sales
performance from the domestic market, as the brand has already establishing a goodwill in UK.
In sight of this, Top-shop set up branches in emerging economics, like BRICS. Therefore, under
international trade, UK business organizations can have new market opportunity, which
increases customer numbers and sales.
The importance of international trade
It can be stated that international trade is important because it helps in achieving higher
growth and success of companies. Every business whether private or public is avalaiable with
limited number of customers in their home market. Furthermore, in order to find out more
opportunities for growth and development, international trade is very important. On the other
side of this, international trade is important because it helps in increasing customer base, sales
and profits. It also supports in getting competitive advantage over other market players in the
country.
4.2 The impact of global factors on UK business organizations
Acceptance to bio-tic and antibiotic pressure in plants will decrease in working by
indicating. UK business organization impacted on global factors various time because they
consist of various problem and issues which occur at time of doing business internationally
(Mizuta, and Yamagata, 2013). Emerging market opportunities will help in UK business
19

organization because this factor will help in involving of trading between BREXIT and other
countries. Some of global influences on UK business organization are as follows:
Market opportunities: UK business organization has created good brand image and
reputation of firm because in whole world by consisting of advancement technology and will
also enhance in economy of country (Lee, Chen, and Liu, 2013). However, global factor,
provides opportunities to UK business organization by conducting international trade between
countries.
Global growth: This factor provide opportunities in expanding of business and also help
in creating foreign exchange for business this will result in positive growth for country and
business too. If currency is going out from country will lead to decrease in growth of firm as well
as nation.
International trade and UK economy: Providing opportunities for making international
trade this will help in boosting up of UK economy and will also enhance in developing of
infrastructure within nation (Eng, 2015). Various UK firm are operating their business in other
countries so that their they get cheap labor and raw material for producing finished stock for their
customers.
Protectionism: Through protectionism, economic policy in difficulty will impact on
international trade methods such as tariff, quotas and varied government policies and regulation
from allowing and designing of fair competition between importing and exporting of products
and services.
World trade organization (WTO): WTO was mainly setup in maintaining of rules
between two and more countries for trading purposes. Due to this, internationally trading become
easier and flows smoothly, predictably because doing trading UK business organization need to
ensure well in advance about other country policies and procedure of selling products (Wagner,
2012).
Government impact: UK government forms rules and regulation according to their
conveyance so that UK based organization can perform activities in international market easily
and will help in reducing of global factors due to this organization of UK can perform activities
in positive and efficient manner (Eichner, and Pethig, 2014).
20

Emerging market that BRIC [Brazil, Russia, India and China: These countries’
economies are growing and increasing rapidly in near future because they are leading in
international market therefore these countries are threat for UK business organization.
In terms of global impact, it can be asserted that sales and profit of companies are
affected by any kind of changes or modifications in global environment, situations such as
recession results in effecting the operations and activities of organizations globally. Trade
practices gets lower down and global recessions also affects economies of nations worldwide
(Kaplan and Norton, 2001). The impact of this is that it creates obstacles in overall growth,
success and development of companies operating in any particular nation.
4.3 The impact of policies of the European Union on UK business organizations
Different policy and procedure will help in monitoring of decision and outcomes which
are achieved. Evaluation of European Union on UK business organization has created great
impact because different policy are executed by determining and assuming of board authority
within European Union and UK business organization here, policies and regulation are assumed
and predict by senior administrative officers therefore, policies can aid for particular objective
and decision making (Oatley, 2015). Now, European Union laws are same for all European
Union countries therefore, they need to contract and follow of legislation which are formed by
European Union government. In this there are several policies which are like as exchange rate,
trade policies, rules and regulations of the exporting as well as importing the goods and services,
competition policies between firms etc. lead to influence the companies. In this context, EU is
the tax free area where the companies of the European not need to pay any kind of the tax and
tariffs while entering in the market and trading which is the most beneficial for the UK business
entities.
European Union policies has huge influence on UK business organization through
spending on tax laws and by supporting of subsidies company through this, all UK business
companies may result in reduce in barriers with European Union organization because their
international trade rules and regulations are similar therefore, they can achieve and attract more
of customers however, it breaks boarder and barriers which are taking place within two countries
and nation while doing trading internationally (Mizuta, and Yamagata, 2013). While establishing
of effects of polices and procedure will help in avoiding of harmful effects by seeking of UK
21

positive benefits for UK business organization. Business consider those policies that help in
implementing by acquiring of process. Policies will effects on environmental so that some
policies may also seek by impacting on government, humanities and laws.
CONCLUSION
From above it has been concluded that whole assignment focuses on international trade
and business environment of UK business organization. It can be concluded that a business
enterprise is directly affected by changes in the macro environmental factors such as
technological, economic, social and political. Furthermore, at the time of carrying out its
business operations, it is required by Primark to take care of each and every factor. From the
above report, it can be also inferred that international trade is beneficial because it supports in
increasing sales by allowing businesses to carry out free flow of their products and services.
22

REFERENCES
Books and Journals
Abushaiba, I.A. and Zainuddin, Y., 2012. Performance measurement system design, competitive
capability, and performance consequences-A conceptual like. International Journal of
Business and Social Science. 3(11).
Bah E.H. and Fang L., 2015. Impact of the business environment on output and productivity in
Africa. Journal of Development Economics. 114, pp.159-171.
Ballard, C., and et.al., 2012. Dimensional Modeling: In a Business Intelligence Environment.
IBM Redbooks.
Bar-Isaac, H. and Shapiro, J., 2013. Ratings quality over the business cycle. Journal of
Financial Economics. 108(1). pp.62-78.
Belás J. and et.al., 2015. The business environment of small and medium-sized enterprises in
selected regions of the Czech Republic and Slovakia. E+ M Ekonomie a Management.
(1). p.95.
Chkili, W. and Nguyen, D.K., 2014. Exchange rate movements and stock market returns in a
regime-switching environment: Evidence for BRICS countries. Research in International
Business and Finance. 31. pp.46-56.
Clarke G., Li Y. and Xu L.C., 2016. Business environment, economic agglomeration and job
creation around the world. Applied Economics. 48(33). pp.3088-3103.
Colacito, R. and Croce, M.M., 2013. International asset pricing with recursive preferences. The
Journal of Finance. 68(6). pp.2651-2686.
Eichner, T. and Pethig, R., 2014. International carbon emissions trading and strategic incentives
to subsidize green energy. Resource and Energy Economics. 36(2). pp.469-486.
Eng, P., 2015. Trading Places: An Airport Economist's Guide to International Business, by Tim
K. Harcourt (New South Publishing, Sydney, 2014), pp. Ix+ 404. Economic Record.
91(292). pp.126-127.
Gallemore J. and Labro E., 2015. The importance of the internal information environment for tax
avoidance. Journal of Accounting and Economics. 60(1). pp.149-167.
23

Halbert, T. and Ingulli E., 2014. Law and Ethics in the Business Environment. 8th Ed. Cengage
Learning.
Hamilton L. and Webster P., 2015. The international business environment. Oxford University
Press, USA.
Hamilton L. and Webster P., 2015. The International Business Environment. Oxford University
Press.
Harmon, P., 2014. Business process change. Morgan Kaufmann.
Harrison A., 2013. Business Environment in a Global Context. OUP Oxford.
Hartwell C. and Michael B., 2015. A helping hand: examining the effect of foreign banks on the
business environment. International Journal of Emerging Markets. 10(4). pp.875-895.
Kaplan R.S. and Norton D.P., 2001. The strategy-focused organization: How balanced
scorecard companies thrive in the new business environment. Harvard Business Press.
Keillor B., 2013. Understanding the Global Market: Navigating the International Business
Environment. ABC-CLIO.
Khanagha, S., Volberda, H. and Oshri, I., 2014. Business model renewal and ambidexterity:
structural alteration and strategy formation process during transition to a Cloud business
model. R&D Management. 44(3). pp.322-340.
Kleine, M., 2013. Trading control: national fiefdoms in international organizations.
International Theory. 5(03). pp.321-346.
Krasniqi B., 2009. Personal, household and business environmental determinants of
entrepreneurship. Journal of Small Business and Enterprise Development. 16(1). pp.146-
166.
Kuklinski C., Moser R. and Callarman T., 2014. Managing dynamic business environments:
India's future automotive industry. Journal of Indian Business Research. 6(4). pp.309-331.
Lee, T.C., Chen, H.C. and Liu, S.M., 2013. Optimal strategic regulations in international
emissions trading under imperfect competition. Environmental Economics and Policy
Studies. 15(1). pp.39-57.
24

Mariani, M.M. and Kylänen, M., 2014. The relevance of public-private partnerships in
coopetition: Empirical evidence from the tourism sector. International Journal of Business
Environment 5. 6(1). pp.106-125.
Mizuta, H. and Yamagata, Y., 2013. International Emissions Trading with.ICM Millennium
Lectures on Games. p.319.
Mohamed E. and Lashine S., 2003. Accounting knowledge and skills and the challenges of a
global business environment. Managerial Environment. 29(7). pp.3-16.
Müller M. and Timofeev D., 2016. Issues Faced By Small and Medium Enterprises In A Global
Business Environment.
Neubauer F. and Lank A.G., 2016. The family business: Its governance for sustainability.
Springer.
Oatley, T., 2015. International political economy. Routledge.
Onyido TB., Boyd D. and Thurairajah N., 2016. Developing SMEs as environmental businesses.
Construction Innovation. 16(1). pp.30-45.
Palmer A. and Hartley B., 2011. The Business Environment. 7th Ed. McGraw-Hill Professional
Publishing.
Petersmann, E.U., 2015. Why Do the EU and Its Court of Justice Fail to Protect “Strict
Observance of International Law”(Article 3 (5) TEU) in the World Trading System and in
Other Areas of Multilevel Governance of International Public Goods?. In Trade Policy
between Law, Diplomacy and Scholarship (pp. 145-189). Springer International
Publishing.
Rose, L.M., Orrenius, U.E. and Neumann, W.P., 2013. Work environment and the bottom line:
Survey of tools relating work environment to business results. Human Factors and
Ergonomics in Manufacturing & Service Industries. 23(5). pp.368-381.
Strumickas M. and Valanciene L., 2015. Research of management accounting changes in
Lithuanian business organizations. Engineering Economics. 63(4).
Strydom J., 2015. Principles of Business Management. Oxford University Press Southern Africa.
25

Teece, D.J., 2012. Dynamic capabilities: Routines versus entrepreneurial action. Journal of
Management Studies. 49(8). pp.1395-1401.
Wagner, J., 2012. International trade and firm performance: a survey of empirical studies since
2006. Review of World Economics. 148(2). pp.235-267.
Wang Y., 2016. Environmental dynamism, trust and dynamic capabilities of family businesses.
International Journal of Entrepreneurial Behaviour & Research. 22(5). pp.643-670.
Weiss, J.W., 2014. Business ethics: A stakeholder and issues management approach. Berrett-
Koehler Publishers.
Yu W. and Ramanathan R., 2012. Effects of business environment on international retail
operations: case study evidence from China. International Journal of Retail &
Distribution Management. 40(3). pp.218-234.
Zdravkovic, J., Stirna, J., Henkel, M. and Grabis, J., 2013, June. Modeling business capabilities
and context dependent delivery by cloud services. In International Conference on
Advanced Information Systems Engineering (pp. 369-383). Springer Berlin Heidelberg.
Zhu, J., 2014. Quantitative models for performance evaluation and benchmarking: data
envelopment analysis with spreadsheets (Vol. 213). Springer.
Online
Fries S., 2003. The 2002 Business Environment and Enterprise Performance Survey: Results
from a survey of 6,100 firms. [pdf]. Available through:
<http://www.ebrd.com/downloads/research/economics/workingpapers/wp0084.pdf>
[Accessed on 7th November 2016].
Primark is top business model, says retail expert, 2016.[Online]. Accessed Through :
<http://www.belfasttelegraph.co.uk/business/news/primark-is-a-top-business-model-says-
retail-expert-30570922.html>: [Accessed on 7th November 2016].
26