Business Environment: Legal Structures, UK Competition Policy, Fiscal and Monetary Policies, Globalization

This report discusses the different legal structures of business organizations, UK competition policy, fiscal and monetary policies, and globalization. It also highlights the impact of COVID-19 on private organizations and the importance of analyzing the business environment. The report is based on the case study of Marks and Spencer, a multinational retailer brand headquartered in London, England.

Business Environment

Contents
INTRODUCTION.....................................................................................................................................3
Introduction to provide an overview of the different types of organisations in different sectors.....3
Explanation of the different legal structures including their advantages and disadvantages............3
An assessment of the UK Competition policy and the legislative framework surrounding
anticompetitive practices..................................................................................................................4
An understanding of the objectives and fiscal and monetary policy instruments the government
can use to regulate the economy during the recession.....................................................................5
An understanding of globalisation and how it affects business, competition, and the economy......5
CONCLUSION.........................................................................................................................................6
REFERENCES..........................................................................................................................................7

INTRODUCTION
The business environment is defined as the collection of various activities which can
impact the operations of the business organisation. It is very important for the organisations
to take care of the business environment so that the company can focus on achieving the
success and growth. The various internal and external factors can influence the business
operations. The company which is been taken into consideration for this report is Marks and
Spencer which is the multinational retailer brand. The company is headquartered in London,
England. The company is specialised in selling clothing, home products and home products.
The company was established in 1884 by Michael Marks and Thomas Spencer. It has 959
stores in United Kingdom. (Le, Q., Ling, T. and Yau, J., 2018) This report will include various
topic such as explanation of legal structure, how the UK legislations can impact the business
organisation. Monetary and fiscal policies and at last how globalisation can impact the
organisation.
Introduction to provide an overview of the different types of
organisations in different sectors
There are different types of the business organisation and sectors in the business
environment which are affected by the various factors. It is very important for the
organisation to take care of the environment in order to achieve goals and objectives. There
are different types of sectors which in which there are organisations. The different types of
sectors such as public, private. It is been identified that as changes in the legislation and the
policies there is been a change in the business organisations.( Gromoff, A., Bilinkis, Y. and
Kazantsev, N., 2017)
Explanation of the different legal structures including their
advantages and disadvantages
There are different business legal structures of the business organisation in which the
company has t choose one of them. It is very important for the business organisation to adopt
a structure in order to abide to the legal formalities within the environment.
Also, the structure helps the organisation to have a right form of company in order to
complete the various task. The different structures are explained below:
Sole proprietorship- A major benefit of a sole ownership is the elevated degree of
independence the proprietor needs to maintain his business. There could be no different
proprietors to isolate benefits with, which permits a sole owner to utilize organization assets
in any way. Sole owners have somewhat couple of conventions with comply to and very little
guideline from bureaucratic, state and neighbourhood government. Be that as it may, a
significant drawback of a sole ownership concerns the absence of obligation security for the
entrepreneur. This implies a sole owner has a moral obligation to pay each business
obligation and commitment.
Partnership- An organization of at least two people can work together. Accomplices can
share the obligation of dealing with the organization and offer thoughts with different
accomplices. Likewise, accomplices are not expected to document annual duties as a business

element, meaning each accomplice reports his portion of business benefits and misfortunes
on his own personal expense form. Then again, an association offers no private resource
assurance for accomplices of the business. An accomplice might be even obligated for the
careless demonstrations of another accomplice. On the off chance that the association's
business resources don't cover a commitment, a bank might seek after an accomplice's very
own resources as pay for the business obligation.( Panda, S. and Rath, S.K., 2018)
Limited liability corporations- A restricted responsibility organization is a mixture business
element that furnishes individuals with restricted risk insurance from organization obligations
and commitments. Additionally, individuals from a LLC can partition organization benefits
in any way, paying little heed to possession in the organization. This adaptability permits a
LLC to designate benefits and misfortunes to the best tax break of the organization's
individuals. In any case, a LLC is exorbitant to shape and will be unable to raise capital since
it can't give stock like a company. This implies a LLC might need to depend on the individual
resources of its individuals to support the organization's exercises.
Corporations- Enterprises give investors, chiefs and officials restricted risk assurance for
organization commitments. An investor's risk for organization obligations doesn't stretch out
past his interest in the business. One more benefit of an enterprise is the organization's
capacity to raise capital by giving stocks and bonds. The returns of a stock or bond issuance
can be utilized to extend or pay the organization's current commitments. The drawback is
twofold tax collection. An enterprise should record a business assessment form with the
Internal Revenue Service and pay charges on organization benefits at the organization's
material corporate expense rate. Afterward, when the organization disperses profits to its
investors, the investors should deliver charges on profits got from the business at their own
annual assessment rates.( Tian, Y., Wang, Y., Xie, X., Jiao, J. and Jiao, H., 2019)
An assessment of the UK Competition policy and the legislative
framework surrounding anticompetitive practices.
United Kingdom contest regulation is impacted by both British and European components.
The Competition Act 1998 and the Enterprise Act 2002 are the main resolutions for cases
with an absolutely public aspect. Nonetheless, assuming that the impact of a business' direct
would reach across borders, the European Commission has ability to manage the issues, and
solely EU regulation would apply. All things considered, the part 60 of the Competition Act
1998 gives that UK rules are to be applied in accordance with European statute. Like all
contest regulation, that in the UK has three principle undertakings.
denying arrangements or practices that limit free exchanging and contest between business
substances. This remembers for specific the suppression of cartels.
forbidding harmful way of behaving by a firm ruling a market, or hostile to cutthroat
practices that will generally prompt such a predominant position. Rehearses controlled in this
manner might incorporate ruthless estimating, tying, cost gouging, refusal to bargain and
numerous others.
directing the consolidations and acquisitions of huge organizations, including a few joint
endeavors. Exchanges that are considered to compromise the cutthroat interaction can be

restricted by and large, or endorsed subject to "cures, for example, a commitment to strip part
of the blended business or to offer licenses or admittance to offices to empower different
organizations to contend.
The Competition and Markets Authority implements contest regulation for people in general.
It consolidated the Office of Fair Trading with the Competition Commission after the
Enterprise and Regulatory Reform Act 2013 Part 3. Shopper government assistance and the
public interest are the fundamental target of contest regulation, including modern strategy,
territorial turn of events, assurance of the climate and the running of public administrations.
Rivalry regulation is firmly associated with regulation on liberation of admittance to business
sectors, state helps and sponsorships, the privatization of state possessed resources and the
foundation of free area controllers. Explicit "guard dog" organizations, for example, Ofgem,
Ofcom and Ofwat are accused of perceiving how the activity of those particular business
sectors work. The OFT and the Competition Commission's work is by and large bound to the
rest.( Kudlats, J., McDowell, W.C. and Mahto, R.V., 2019)
It is been analyses that change after the pandemic and covid -19 there is a change in the
consumer perceptions which have impacted a lot. In context of Marks and Spencer. The
consumer has changed their perceptions and this has become more important for the
organisation to analyse the environment in order to satisfy the needs and demands of the
customers.
An understanding of the objectives and fiscal and monetary policy
instruments the government can use to regulate the economy
during the recession
Monetary policies define to national bank exercises that are coordinated toward
affecting the amount of cash and credit in an economy. Conversely, monetary arrangement
alludes to the public authority's choices about tax assessment and spending. Both money
related and financial strategies are utilized to manage monetary action after some time. They
can be utilized to speed up development when an economy begins to ease back or to direct
development and action when an economy begins to overheat. What's more, financial
strategy can be utilized to reallocate pay and riches.
The all-encompassing objective of both money related and monetary strategy is
regularly the making of a financial climate where development is steady and positive and
expansion is steady and low. Essentially, the point is hence to control the fundamental
economy so it doesn't encounter financial expansions that might be trailed by broadened
times of low or negative development and elevated degrees of joblessness. In such a stable
monetary climate, householders can have a solid sense of safety in their utilization and saving
choices, while partnerships can focus on their speculation choices, on making their standard
coupon installments to their investors and on creating gains for their investors.( Holbeche, L.,
2018)

An understanding of globalisation and how it affects business,
competition, and the economy
Globalization is a main idea which has turned into the primary variable in business life during
the most recent couple of many years. This peculiarity influences the economy, business life,
society, and climate in various ways, and practically all enterprises have been impacted by
these changes. These progressions are for the most part connected with expanding rivalry and
the quick changes of innovation and data move. To challenge these changes, organizations
need to remember different parts of the principal impacts of globalization.
one of the most striking indications of globalization is the utilization of new advances by
pioneering and universally situated firms to take advantage of new business open doors. Web
and web based business methodology hold specific potential for SMEs looking to widen their
inclusion into new global business sectors.
Innovation is likewise one of the principal devices of contest and the nature of labor and
products. Then again it requires a considerable amount of cost for the organization. The
organization needs to involve the most recent innovation for expanding their deals and item
quality. Globalization has sped up innovation move and mechanical improvement. Client
assumptions are coordinating business sectors. Generally, organizations in capital serious
business sectors are in danger and to that end they need speedy/quick adjusting concerning
the client/market assumptions. These organizations must have productive innovation the
board and proficient R&D the executives.( Laszlo, C. and Zhexembayeva, N., 2017)
CONCLUSION
From the above report it is concluded that there are different forms of business
organisations. The private organisations have been impacted after the covid -19 there are
changes within the government regulations and the consumer perceptions. This has made
necessary for the organisation to look for the business environment. The business
environment is essential for the organisation to achieve growth and success.

REFERENCES
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Gromoff, A., Bilinkis, Y. and Kazantsev, N., 2017. Business architecture flexibility as a result of
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Panda, S. and Rath, S.K., 2018. Strategic IT-business alignment and organizational agility: from a
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Tian, Y., Wang, Y., Xie, X., Jiao, J. and Jiao, H., 2019. The impact of business-government relations
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Kudlats, J., McDowell, W.C. and Mahto, R.V., 2019. Unrelated but together: Trust and intergroup
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Holbeche, L., 2018. The agile organization: How to build an engaged, innovative and resilient
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Laszlo, C. and Zhexembayeva, N., 2017. Embedded sustainability: The next big competitive
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