Contemporary Developments in Business and Management (Fishing) Report

This report provides a comprehensive analysis of Don Fishing Company, a major player in the UK fishing industry. It begins with an introduction to the external business environment and its impact on the company, utilizing the PESTLE framework to evaluate political, economic, social, technological, legal, and environmental factors. The report then delves into the company's corporate social responsibility (CSR) initiatives, examining the relevance and influences on its policies and decision-making processes. This includes an assessment of the company's approach to sustainable development, preservation of the ecosystem, and the use of new fishing technologies. The report further evaluates the effectiveness of the organization's response to external pressures, including government regulations and environmental concerns, and concludes with recommendations for areas of improvement, such as adapting to new fishing methods and maintaining good stakeholder relations. The report also incorporates SWOT analysis to assess the company's internal strengths and weaknesses in relation to external opportunities and threats, highlighting the challenges of overfishing, environmental damage, and the need for proactive adaptation to ensure long-term sustainability. The report is designed to inform students about the complexities of the fishing industry and the importance of responsible business practices.

CONTEMPORARY DEVELOPMENTS IN
BUSINESS AND MANAGEMENT
(FISHING)

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Impact of external business environmental factors on Don Fishing company.................1
TASK 2............................................................................................................................................5
2.1 Analyse the relevance and influences on policies and decision-making.........................5
2.2 Critically evaluate the effectiveness of the organization’s response...............................6
2.3 Areas of improvement for Don Fishing Company..........................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
External business environment affects the performance of the organisation in many ways.
This is influence by factors that include political, economic, social and environmental factors. An
organisation can control its internal factors but it is impossible to control external influences on
the business (Lucas and et.al., 2014). So, it is essential for a company to prepare for the future
changes in the business. The report is based on Don Fishing Company which is among the
largest 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 of
increased rules and regulations of the government and EU on fishing activity (Common fisheries
policy, 2016). Fishing business has been affected by the external environmental factors to a large
extent. Along with this, the corporate social responsibility of fishing companies, their policies
and decision making process has also been included in the present report.
TASK 1
1.1 Impact of external business environmental factors on Don Fishing Company
External environment can affect the business and its functions in a big way. Business
environment is not stable and it changes continuously (Hamilton-Hart and Stringer, 2016). Don
Fishing Company can use PESTLE analysis framework to evaluate all the factors that can affect
its working performance:
Political: Don Fishing Company has to follow many policies of the government like EU
Common 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 has
affected its fishing industry (Miret-Pastor and et.al., 2014). Don Fishing Company cannot exceed
the fish catching quota of EU. In order to protect environment damage and overfishing, the UK
government has fixed high quota. It has been detrimental for the company as they cannot exceed
the limits set by the government. There has been huge pressure of the UK government but they
failed to negotiate with the EU about the respective issue. The political failure in the UK has led
to decline in revenues for Don Fishing Company (de Groot and et.al., 2014). Furthermore, tax
policies, duties and trade tariffs also have impact on the business. It has resulted in many
shipping vessels to lose their license. Merchant Shipping Act 1988 has been very controversial as
it has many unwanted rules and regulations in the country. The fishing industry is not an
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important factor for the growth of the UK economy. It only contributes to about 0.05% in Gross
Domestic Product (GDP).
Economic: The duties and taxes of fishing industry have increased considerably. It has
raised the cost of Don Fishing Company. They cannot increase the supply because they cannot
exceed the quota limit set up by the government (Mallory, 2013). The customers are growing but
most of the fish products are imported from the countries. The UK fishing industry has been
declining and has small contribution to the economy. As such, it is not getting any grants and
subsidies from the government. Apart from this, the business of Don Fishing Company is also
affected 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 declining
and is also not getting proper support from any community. People are getting more concerned
about the environment across the world (Armstrong and et.al., 2013). Don Fishing Company has
been directly affecting the environment. The company is under serious threat because in future
they will be facing more restrictions and regulations. They cannot continue the business by
depleting the natural resources.
Technological: The development of new technology and techniques has also affected the
business of Don Fishing Company. They have to change their methods and tools to remain
competitive in the industry. They have adopted new vessels and new fishing techniques in their
business (Roberts and Carter, 2015). It has helped them to increase the productivity and the
supply of fish products. But it is also important for Don Fishing Company to gather more funds
and financial resources so that they can bring innovations in its business. They have made
improvements in many mitigation procedures and devices. They have included J hooks, long line
gears and satellite system in their activities. Furthermore, canning of fish products has improved
the efficiency and revenues of Don Fishing Company. They can continuously change their
techniques and analyse the market trends (Llarena-Reino and et.al., 2013). The restrictions of
government have made it difficult for them to raise their supply. They have to increase their
efficiency in order to survive in the industry.
Legal: Don Fishing Company has to follow many regulations of the UK as-well-as
European Union (EU) (Mangi and et.al., 2016). Some of the major regulations in the country are
Common Fisheries Policy (CFP), Total Allowable Catch (TAC) and quota regulations, licensing
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regulations, Sea Fish Conservation Act 1967, Marine Management Organisation (MMO) and
licensing of fishing vessels. The company has to operate under lots of restrictions which have
made its business difficult. Furthermore, they have to comply with social responsibility,
marketing guidelines and employees regulations (Chkanikova and Mont, 2015).
Environmental: Fishing has huge impact on the environment and it causes damages to
the ecological balance of the nature. Many companies have been exploiting the natural resources
and species to increase their revenues. It is for the same reason that the UK government has
imposed restrictions on fishing. There are many areas in the country where fishing is not allowed
(Rotter, Airike and Mark-Herbert, 2014). Furthermore, removing large number of fishes from
their natural habitats has led to the destruction of many species. Don Fishing Company also
operates on a large scale. It has been found that about two-third of the EU stocks have been over
exploited.
Don Fishing Company has to consider all these factors because it can affect their
business. Fishing industry has been depleting the environment directly as a result they have to
comply with strict rules and regulations of the government. The political situation in the UK has
not been supportive for the company (Knudsen, Moon and Slager, 2013). There are many areas
where fishing is banned in the UK. Many companies have to keep reserves so that they can
prepare themselves for the uncertain events of the future. Furthermore, EU's Common fisheries
policy has harmed the fishing industry. It has been damaging the industry and all the companies
which are associated with it. It is important for Don Fishing Company to comply with all the
rules and regulations. They have to change their strategies according to the changes in the
environment. They have to adapt to new methods of fishing which are less destructive to the
environment (Asbury and Ball, 2016). For example, fish farming and harvesting has been less
destructive to the environment and it can be used to increase the supply of the fish products. Don
Fishing Company has invested huge funds in their research and development department. The
quota of the government is also in some specific areas while other areas have fewer limitations.
The management of the company has to ensure that they avoid overfishing and resort to more
sustainable approach. It is difficult for a company to control its external factors. They have to
remain proactive and adopt the changes in the business (García‐Rodríguez and et.al., 2013). In
order to accomplish this, Don Fishing Company can use SWOT Analysis to analyse its internal
factors as follows:
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STRENGTHS WEAKNESSES
 There is high demand of fish products
in the UK and Europe. The fishing
company in the UK has not been able
to cover the domestic demand of the
nation. Don Fishing Company has been
among the leading fish companies in
the country and they have all the latest
tools and technologies in their business.
 The Europe has abundance of marine
species. There are many colleges and
fishery research institutes in the UK.
 There are strict rules and regulations in
the country. The policies of EU have
not been supportive for the fishing
industry. Many countries like Norway,
Iceland and Greenland have avoided
this situation which has benefited their
fishing industry.
OPPORTUNITY THREATS
 Don Fishing Company has make use of
new tools and techniques of fishing. It
will reduce its cost and help them to
increase the efficiency.
 EU markets have been performing well
in terms of price and availability of fish
products.
 There has been increase in Illegal,
Unreported and Unregulated (IUU)
fishing and piracy in the country. This
has affected the long term sustainability
of the environment.
 The cost of production and processing
industry has been rising. It can reduce
the profits of Don Fishing Company
because the company cannot increase
the supply. UK government has made
quotas which are expected to increase
in the future.
 Increasing awareness among the people
about the environmental damage can
also influence the business in the long
run.
 Overfishing, pollution, effects on aqua
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culture and natural habitat.
TASK 2
Corporate Social Responsibility (CSR)
2.1 Analyse the relevance and influences on policies and decision-making
Don Fishing Company has been among the largest fishing companies in the Europe. The
management is completely aware about the biological and legal framework of marine resources
in the Europe (Wilson, 2016). They have adopted a sustainable approach for the development of
the business. They have realised the importance of environment and have made changes in their
business accordingly. Fishing directly affects the ecological balance of the nature. In many
countries, overfishing has led to the exploitation of natural resources (New, 2015). The growth
strategy of Don Fishing Company includes use of latest tools and techniques of fishing,
reducing the damage to the environment, preservation of marine resources and sustainability.
Preservation of Ecosystem: the Company as ensured that they avoid overfishing
activity. It has been the main barrier for them which have been stopping them to achieve
sustainable growth. The UK government has made quotas to restrict overfishing activity in the
country. It will allow the company to grow its business because most of the fish products are
exported to the China and Iceland. New methods have been adopted by the company which has
increased their efficiency (Hansen and Uldam, 2015). Furthermore, Don Fishing Company has
spent huge funds on research and development teams. They have started to use new techniques
which are less destructed to the environment. It is important for the company to maintain good
relations with the stakeholders. They have to change their strategies in such a way that the
environment is benefited from it. The management cannot overlook the environmental factors
of the business as it has major impact on their company (Gutierrez and Thornton, 2014). Fishes
have to be managed according to the ecosystem approach. It means that only those fishes should
be used which are in abundance. Don fishing company does not use vulnerable fish species.
Furthermore, they have adopted harvesting system which helps them to maintain the supply of
fish throughout the business cycle.
Sustainable development: The main aim of the company is to offer quality products to
their customers. Don Fishing Company has established committees which formulate strategies
for the development of the business and CSR (Leadbitter and Benguerel, 2014). It takes into
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consideration business, sustainability, international fishing practices, social concerns and
fishing practices of the country. Most of the fishes are harvested through sustainable sources
and within the quota specified by the government. The management ensures that the company
only buys products that have certifications with it. They have implemented tracing system in the
supply chain (Tench, 2016). It gives the details about the fishing vessel and the goods. Don
Fishing Company has established cross functional committee which ensures that the quality of
the products remains same. All the data of environment is stored by the management. It is used
to set targets and act as key performance indicators for the company. It has allowed the Don
Fishing Company to measure the emission of carbon (Khan and Korac Kakabadse, 2014). Their
corporate social responsibility focuses on the sustainable development of the business
considering all the factors of the environment.
Development in fishing activities: The management of the company has made changes
in the vision statement of the company to ensure better growth of the company. The company
has been evaluating the factors which contribute to environmental damage. They have changed
their policies so as to comply with all the rules and regulations of the government and European
Union. All the vessels of Don Fishing Company are equipped with new technologies to give
maximum respect to the environment (EU common fisheries policy, 2016). The management
has ensured that the production limit does not excess the quotas which are set up by the
government. Don Fishing Company has been participating with many institutions to develop
fishing activities and to understand the biological and legal regulations in the fishing sector. The
company has been focussing on rationalism and conservation of marine activities. This activity
has been important for the company. They have changed their strategies to ensure growth of the
business. Quality control system has also been incorporated in the company. They have
maintained strict policies to ensure that the products are of good quality (Common fisheries
policy, 2016). In order to accomplish this, Don Fishing Company uses fish freezing on board
method. The company also offers advices to the government about fishery management. It helps
the government to improve the efficiency and productivity of fishing industry.
2.2 Critically evaluate the effectiveness of the organization’s response
Don Fishing Company has been in the business over a long time. They have
continuously adapted to the changing business environment. The fishing industry was growing
at a good pace before the UK adopted the regulations of the European Union. It has made them
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difficult to operate their business. The quota restrictions of EU and fishing restrictions in many
areas have affected the profitability of the company (Overfishing, 2011). But Don Fishing
Company has changed its strategy to ensure that the business remains profitable in the long run.
They have no option but to follow the quota restrictions of the government. They cannot do
anything about it and they have to continue the business with the limited supply of fish
products. In order to deal with this issue, the company has adopted new methods and techniques
of fishing. It has allowed them to improve its efficiency and productivity (Knudsen, Moon and
Slager, 2013). They have also resorted to sustainable development and it has been included in
the strategies of the company. They have been monitoring the changes in the market to ensure
better decision making of the company. They have done collaborations with many companies to
understand harvesting techniques and knowledge associated with it. They have also started a
stakeholder engagement process which allows them to gather the responses of the local
population (Llarena-Reino and et.al., 2013). It is important for the management to ensure that
the decision making of the company considers all the environmental factors.
Some of the benefits and responses of Don fishing company are:
 They have formulated a stable and long term policy for the sustainable development of
their business and the environment. In order to accomplish this, they have altered the
strategy to include sustainable development as one of their major objectives (Roberts
and Carter, 2015).
 All the rules and regulations of the UK government and EU have been followed by the
company. The company cannot do anything about the supply of the fish stock. They
have to grow their business without changing the supply.
 The company has cut down its cost and improved their efficiency (Armstrong and et.al.,
2013). But, they cannot compromise with the quality of the products which has to be
same throughout the business cycle.
 They have ensured that the company makes profits over long term and not from short
term selling of fish products. It will help them to reduce overfishing activity of the
business.
 They have realised the importance of fisheries to the society and they are working
towards maximising the supply they receive (Miret-Pastor and et.al., 2014).
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 It will also allow the society and fishing communities to gain benefits from the
fisheries.
 It will enhance the participation of the stakeholders in the decision making of the
company. They will make consumers understand about the impact of fishing on the
environment (Mangi and et.al., 2016).
 It will help them to maintain a healthy marine environment, protection of rare species,
abundance of fishes and help the company to grow.
 They can ensure that the fishes are harvested using sustainable methods in the
organisation (Khan and Korac Kakabadse, 2014).
 All the fishes which are under vulnerable condition will not be used for fishing. Only
those fishes will be caught which are in abundance. Moreover, harvesting of fishes will
be done.
It is important for Don fishing Company to involve local communities in the decision
making process. It will help them to engage in the corporate social responsibility. The company
has to follow the rules and encourage other companies also to do so. The management has to
take good business decisions considering all the factors. This will allow them to manage the risk
efficiently in the company (Hansen and Uldam, 2015). They have to ensure that the retailers and
buyers also follow the rules of the government. It is for the same reason that Don fishing
Company has adopted tracking system to keep a check on the supply of the fish products. It has
helped them to recognise the uncertainties of the future. It includes product specifications,
storage and the supply of the products (Chkanikova and Mont, 2015). Don fishing Company
cannot increase its supply so they have to operate efficiently in their operations. They to
improve their communication process so that they can include consumers with them. The
customers have to be informed about the fish they purchase. It will help the company to achieve
their corporate social responsibility and grow their business in a sustainable manner.
2.3 Areas of improvement for Don Fishing Company
Don fishing Company has to make changes in their policies and plans in order to survive
in the market. There are many areas which have been ignored by the company like
diversification, merger and acquisition and market research (de Groot and et.al., 2014). They
can expand business to other countries outside the European Union. They can carry out their
fishing operations in other countries which has less rules and regulations. Many countries have
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better opportunities for the fishing industry to grow for example, Argentina, Malaysia, India,
New Zealand and Algeria. So, it would be better for the Don fishing Company to adopt
diversification in the business. They can export the products to other countries as well to the
UK. The contribution of fishing industry in the UK economy is very less (Wilson, 2016). These
countries also have significant contribution in their nation's economy. Apart from this, the
management has to adopt certain standard for quality of products and efficiency in the
operations. It will allow the company to find out the limitations and can make changes
according to it (Common fisheries policy, 2016). Some of the improvements that Don fishing
company can make in their existing business are as follows:
 Don fishing Company should use certifications on their products. They should market
their products under eco label. It will ensure the quality of the fish products (Knudsen,
Moon and Slager, 2013).
 The company should provide their fishermen with modern and improved fishing gear. It
will help the company to reduce the by catch.
 There should be appropriate fishing methods. For example, instead of using heavy trawls
this can affect the seabed and natural plants. The company can use new methods which
are eco friendly.
 It is important for Don fishing Company to maximise operational wastes like oil spills,
lost fishing gears etc (Rotter, Airike and Mark-Herbert, 2014).
 They should invest funds in market research and development activities. It will help
them to use innovative methods in their business actions.
 There should be a fishery management system in the company which makes sure that all
the rules and regulations have been complied with (Lucas and et.al., 2014).
 The company should also collect data about the current stock on a regular basis.
 Overfishing and by catches should be reduced to the minimum.
 Illegal, unregulated and unreported fishing should be avoided by the company (Miret-
Pastor and et.al., 2014).
 The business should adapt to the changing environment and should remain proactive in
their approach.
Don fishing Company has been facing many problems in their business. They are not
getting the support from the government. The stringent rules and regulations have made it
9

difficult for them to grow their business (Chkanikova and Mont, 2015). It is important for the
management to carefully analyse the external factors and change the policies accordingly.
CONCLUSION
It can be concluded from the above report that external factors have huge impact on the
business. It can be a determining factor for the success of the business. Don Fishing Company
has been facing problems with the political, legal and environmental factors. There are too
many rules and regulations in the UK and the company has to adopt all these in their business.
In order to tackle this, emerging issue the company has adopted more sustainable and eco
friendly approach in their business. They have adopted Corporate Social Responsibility (CSR)
in their organisation which has helped them to improve the business.
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