Contemporary development in business & management
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Added on 2020-01-06
Contemporary development in business & management
Added on 2020-01-06
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CONTEMPORARY DEVELOPMENTS INBUSINESS AND MANAGEMENT(FISHING)
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1 Impact of external business environmental factors on Don Fishing company.................1TASK 2............................................................................................................................................52.1 Analyse therelevance andinfluences onpoliciesanddecision-making.........................52.2 Critically evaluate theeffectivenessof theorganization’sresponse...............................62.3 Areas of improvement for Don Fishing Company..........................................................8CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
INTRODUCTIONExternal business environment affects the performance of the organisation in many ways.This is influence by factors that include political, economic, social and environmental factors. Anorganisation can control its internal factors but it is impossible to control external influences onthe business (Lucas and et.al., 2014). So, it is essential for a company to prepare for the futurechanges in the business. The report is based on Don Fishing Company which is among thelargest fish selling and vessel management companies. It has its offices in Peterhead, Macduff,Scrabster and Sutherland. The fishing industry has become much smaller than before because ofincreased rules and regulations of the government and EU on fishing activity (Common fisheriespolicy, 2016). Fishing business has been affected by the external environmental factors to a largeextent. Along with this, the corporate social responsibility of fishing companies, their policiesand decision making process has also been included in the present report. TASK 11.1 Impact of external business environmental factors on Don Fishing CompanyExternal environment can affect the business and its functions in a big way. Businessenvironment is not stable and it changes continuously (Hamilton-Hart and Stringer, 2016). DonFishing Company can use PESTLE analysis framework to evaluate all the factors that can affectits working performance: Political: Don Fishing Company has to follow many policies of the government like EUCommon Fisheries Policy (CFP), fixed quota allocation, Marine Management Organisation(MMO) and licensing of fishing vessels. The UK has to follow the policies of EU which hasaffected its fishing industry (Miret-Pastor and et.al., 2014). Don Fishing Company cannot exceedthe fish catching quota of EU. In order to protect environment damage and overfishing, the UKgovernment has fixed high quota. It has been detrimental for the company as they cannot exceedthe limits set by the government. There has been huge pressure of the UK government but theyfailed to negotiate with the EU about the respective issue. The political failure in the UK has ledto decline in revenues for Don Fishing Company (de Groot and et.al., 2014). Furthermore, taxpolicies, duties and trade tariffs also have impact on the business. It has resulted in manyshipping vessels to lose their license. Merchant Shipping Act 1988 has been very controversial asit has many unwanted rules and regulations in the country. The fishing industry is not an1
important factor for the growth of the UK economy. It only contributes to about 0.05% in GrossDomestic Product (GDP). Economic: The duties and taxes of fishing industry have increased considerably. It hasraised the cost of Don Fishing Company. They cannot increase the supply because they cannotexceed the quota limit set up by the government (Mallory, 2013). The customers are growing butmost of the fish products are imported from the countries. The UK fishing industry has beendeclining and has small contribution to the economy. As such, it is not getting any grants andsubsidies from the government. Apart from this, the business of Don Fishing Company is alsoaffected by the change in interest rates, inflation and slow economic growth of the UK economy. Socio-cultural: Socio-cultural factors consist of buying trends, taste, preferences,cultural trends and demographic factors. The employment in fishing sectors has been decliningand is also not getting proper support from any community. People are getting more concernedabout the environment across the world (Armstrong and et.al., 2013). Don Fishing Company hasbeen directly affecting the environment. The company is under serious threat because in futurethey will be facing more restrictions and regulations. They cannot continue the business bydepleting the natural resources. Technological: The development of new technology and techniques has also affected thebusiness of Don Fishing Company. They have to change their methods and tools to remaincompetitive in the industry. They have adopted new vessels and new fishing techniques in theirbusiness (Roberts and Carter, 2015). It has helped them to increase the productivity and thesupply of fish products. But it is also important for Don Fishing Company to gather more fundsand financial resources so that they can bring innovations in its business. They have madeimprovements in many mitigation procedures and devices. They have included J hooks, long linegears and satellite system in their activities. Furthermore, canning of fish products has improvedthe efficiency and revenues of Don Fishing Company. They can continuously change theirtechniques and analyse the market trends (Llarena-Reino and et.al., 2013). The restrictions ofgovernment have made it difficult for them to raise their supply. They have to increase theirefficiency in order to survive in the industry. Legal: Don Fishing Company has to follow many regulations of the UK as-well-asEuropean Union (EU) (Mangi and et.al., 2016). Some of the major regulations in the country areCommon Fisheries Policy (CFP), Total Allowable Catch (TAC) and quota regulations, licensing2
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