Comprehensive Business Environment Report: Nisa Retail Limited

This report provides a comprehensive analysis of the business environment of Nisa Retail Limited. It begins with an introduction to the concept of the business environment, including internal and external factors, and uses SWOT analysis for strategic overview. The report then identifies the purposes of different types of organizations, focusing on Nisa, a private limited company. It assesses how Nisa meets the objectives of its stakeholders (employees, customers, shareholders, suppliers, and government) and discusses potential conflicts. Furthermore, the report examines the responsibilities of the organization, including fair trade practices, employee relations, consumer legislation, environmental and ethical issues, and health and safety regulations, along with the strategies employed to meet these responsibilities. The report then delves into economic systems, comparing free market, command, and mixed economies and their resource allocation methods. It explores the impact of fiscal and monetary policies, competition policies, and market structures on Nisa's operations. Finally, the report discusses the significance of international trade, global factors, and European Union policies on UK business organizations, concluding with a summary of the key findings.

Business Environment

TABLE OF CONTENTS
Introduction......................................................................................................................................3
Section 1...........................................................................................................................................3
Identification of the purpose of different type of organization .......................................................3
The extent to which Nisa meets the objective of different stakeholders ......................................3
The responsibilities of the organization and the strategies employed to meet them.......................4
Section 2...........................................................................................................................................5
Economic system attempt to allocate resources effectively............................................................5
The impact of fiscal and monetary policy on business organization and its activities....................6
The impact of competition policy and other regulatory mechanism on the activities of Nisa........7
Section 3...........................................................................................................................................8
Market structure determine pricing and output decision of business..............................................8
The way in which market forces shape organization responses. ....................................................8
The business cultural environment shape the behavior of Nisa.......................................................9
Section 4.........................................................................................................................................10
The significance of international trade to UK business organization ...........................................10
The impact of global factors on UK business organization...........................................................11
The impact of European union policies on UK business organization .........................................11
Conclusion ....................................................................................................................................12
References......................................................................................................................................13
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INTRODUCTION
“The business environment is consists of all events, influences and conditions that affect
and surround it”(Mukehrjee, 2016). The business environment is the internal and external factor
which keep in mind at the time of operating a business operation. The factors include in business
environment are competition, supplier , technology etc. The swot analysis used for the strategic
overview of the organisation that look for the strengths and the weakness of the organisation and
reduce the impact of threat and improves the opportunities. The present report is based on Nisa
retail limited, it is a mutual organization which sales foods and drinks in market. The present
report covers, the responsibilities of an organization and the strategies to meet them is explained.
This report explains the responsibilities and strategies of an organisation along with which
economic system attempt to allocate resources effectively is also explained. In addition to, the
impact of global factors on UK business is analysed.
SECTION 1
Identification of the purpose of different type of organization
The business identity to be determined while establishing, the form of income tax return
that to be filed. There are various forms of organisations like, partnership firms, sole proprietors,
privet corporations.There are three types of organization with a legal different structure
Name of the organization
Name of the organization Sector
Nisa company Private limited company
Cry organization Non profit organization
Virgin group limited Public limited company
Mission of the Nisa company is to set a long term direction of its organization. It want to become
a best value retailer and fulfill the need of customer always. While the mission of the Cry
organization “enable the people to take a responsibility for the situation of the deprived child
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and motivate then to seek resolution”. On the other hand vision of the Nisa company is to be
become a world's largest company in retail sector. a most while the vision of the Cry
organization is that “a child should be happy, healthy and creative child whose right is protected
and in society equity and justice for all”. Further the main objective of Nisa company is to make
quality product in order to increase the satisfaction level of customer. The mission of virgin
group limited is “to make a sustainable growth with happily fulfil demands of customer and their
life style, by exceeding stakeholders, customers and staff.”
types of organisation
 Private: Private company is owed by an owner and there is no participant of government.
Further its main aim is to earn profit. One of the example of private company is B&M
which operates its business in retail sector. Its purpose is to increase profit and sales and
to expand market in different geographical sector.
 Public: Public Corporation is an instrument of the State further it is created by statute. It
is owned and controlled by the government. Tesco is public company and its purpose is
to sale quality products to customer and satisfy their needs.
Voluntary: The voluntary organization is a group of individuals who enter into an agreement
as volunteer to form a body for accomplish a purpose. UNICEF is voluntary organization and
their purpose is to gives humanitarian and developmental assistance to the children and mothers
in developing countries.
 Charitable: Charitable organization work for the welfare of people. It is non as non profit
organization. Oxfam is the charitable organization as its main purpose is to work for the
welfare of people
The extent to which Nisa meets the objective of different stakeholders
The target competitor Vithas Ups with its purchase power has offered to buy 16-22 euros
per share along with 45% of voting rights.
 Employee: Employee are the important part of the organization. it is a responsibility of
For example Nisa to give them information about the stability of company. They should
be included in the strategy which company has made for achieving objective.
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 Customer: Customer are those who buy the products of Nisa company. They always
demand the new products and services it is necessary for company to fulfill their needs
and demand on time. They always look for new products and services from the company
and it is necessary for the company to come up to the expectations of its customers.
 Shareholder: Shareholder invest their finances in the company Nisa. In return the
expected financial returns. They are interested to know homonw much profit company is
earning every year. Shareholders are investors in the company and they are interested that
the company must achieve its targeted profit.
 Supplier: Suppliers are those who supply raw material to Nisa company it is necessary
for the terms and condition of the supplier. Nisa company required to fulfill the suppliers
demand for meeting the objective. Suppliers supply raw materials to the company
according to the terms and conditions specified. It is important for the company to make
good relations with its suppliers, so that company may not face any problems in its
operations.
 Government: Government also play crucial role because they make rules and regulation
for the organisation. Along with this it is important for Nisa to follow all rules and
regulation which are made by the government (Popli, Chauhan and Sharma 2014). For
instance Nisa, need to pay tax as per the rule every year.
With the use of stakeholder mapping it is analysed that there are few stakeholders who are
important for Nisa company that are as follows:
Keep satisfied
Customers
Manage closely
Employees
Monitor
Suppliers
Keep informed
Government
Customers are important stakeholder because there buy the product and help company in
increasing the sales. Further employees need to be kept satisfied so that they make quality
products for its customers.
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The possible conflict which can take place between the stakeholder is related to the price
of the products and services. Further it is important for the company to identify its important
stakeholder then analysed them to understand their relationship to the issue(s) and each other,
and to prioritize based on their relative usefulness for this engagement.
The responsibilities of the organization and the strategies employed to meet them
 Fair trade practices: The companies trades for the economic, social and environmetal
well versed by measuring small producers to not to maximise the profit expenses. Nisa
required to start a fair trade practices it is related to a social economical and
environmental. It should not keep the price of the products higher for only earning a
profit (Chor and Manova, 2012.). It is a responsibility of the organization to deliver a
superior quality of products with specification. For this Nisa can adopt strategy in which
all the products can be sale with fair price
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 Employees: Employee of Nisa should be provided with job security along with some
benefits. It is also important for them to in the business strategies. Training and
development facility should be provided to the employees. It is also important to involve
them in business strategies, so that they can work more effectively. Motivating employee
with the use of promotional tools and techniques is the strategy which can be adopted by
the Nisa
 Consumer legislation: Nisa company should follow all the rules, laws, and regulations
made by the government. They should not cheat the customers and clearly specify what
particular specification their products are having such as ingredients. All the ingredients
should be specified along with any health risks attached with them. To follow all the
legislation through implementing them within the firm is the strategy which can be
adopted by the Nisa
 Environmental and ethical issues: It is important for Nisa organization to ensure that its
product and services do not harm the surrounding environment. Products and services
which is deliver by Nisa must be environmental friendly and it should not carry out any
unethical activity (Delcour and Wolczuk, 2014). Along with this strategies need to be
made so that unethical practices can be avoided such as misleading customers and
creating negative image of competitor. To make environment friendly product is the
strategy used by Nisa.
 Health and safety legislation: Health and safety legislation must be adopted by Nisa
company. By doing this it ensure safety of employees who are working in there
organisation (Johanson and Mattsson, 2015). Strategy which can be adopted by Nisa that
it can remove all risky hazard from the organisation which can harm the employees.
 It is a responsibility of Nisa to ensure that its focus on the making environmental friendly
product so that good image can be build in the market. Along with this, Nisa can easily
protect the environment from getting harm
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
Illustration 1: Different type of stakeholder
(Sources: Stakeholder of organization. 2016)
SECTION 2
1.4 Economic system attempt to allocate resources effectively
In economic system the government has divided the trade good and service and the
resources to control the all five factors of the production, Including- Capital, Labour, Physical,
Entrepreneurs and infrastructure resources.
There are three types of economic system and resources allocated in each of them in
different way that is discussed below
Free market economy: In the free market economy system the prices of the products and
services are decided between vendors and consumers. Different organisation have freedom who
operates business in free market economy as they can sets their own policy and price of the
products in free market economy. Company has the interference of the government in free
supply and demand (Yarbroughand Yarbrough, 2014). In this resources are allocated by the self
directed market force and with free interaction. In this what is required to produce is determine
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by the consumer preferences. Way of producing is determine by the producers who want to earn
profit. Here resources is allocated by the company itself without any interfere of government.
Role of supply and demand in free market economy is that when demand increases supply is also
get increase with the times. Here owner is free to produce and sales for earning profit. Further in
the free market economy price is determined by the whatever buyer and seller is agreed on.
Command economy: It is a economy in which the controls are in central government's hands.
They decide the way of distributing and producing the resources and prices in the market
economy were set by them, Apart from the customs guided by Traditional Economy. For is a
private limited company there is no interference of government in allocating a resources. In the
command economy what to produce is set by the government preferences. Here, all the
resources is allocated by the government to the companies.
In command economy products are allocated efficiently because control is in government hand
and they allocate resources according to the needs.
Role of supply and demand in free command economy in this demand is made up with
the total amount of good which buyer are willing to purchase in the given price and quantity.
While in command economy price is determined by the value of the product plus with profit.
Mixed economy: In the mixed economy it is a combination of private and state
enterprises. It has a distinct private sector (Schularick and Taylor, 2012.). Nisa allocates
resources in the mixed economy by the combination of markets and planning. Way to produce is
determine by producers seeking profits and partly by government. In this all the resources is
allocated by the government and partially by the company.
Role of supply and demand in free mixed economy is that supply decreases and demand
stay constant and price goes up. The market mechanism forces of demand and supply assist
private sector in deciding the commodities to produce and in what quantities, further price is set
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Illustration 2: Types of eco
system
The impact of fiscal and monetary policy on business organization and its activities
In monetary policy is the process in which supply of money is controlled by the monetary
authority of a country. It includes the interest rate, foreign exchange rate etc.
Fiscal policy: Fiscal policy is knows as government spending and taxation which influcne the
economy (Amadeo 2016).Fiscal policy is used by government to promote strong and sustainable
growth and reduce poverty. Government use it by chaning the level and types of taxes. Further
its impact on business is that if government increase tax rate than company need to pay high tax
which impact their profit level.
In Fiscal policy government modify its spending level.To influences a nation economy and for
monitoring the tax rate the government adjust its spending levels is know as fiscal policy. Fiscal
policy includes exchange rate, Taxation etc.
 Monetary policy; It is a way through which central bank manage the money for the
growth and development of economy (Amadeo 2016.,). Liquidity is money which need
to supply which covers cash checks, money market and credit. The main objectives of
central bank is to manage liquidity at the time of inflation and to minimise
unemployment. It is used by government as a tool such as interest rate and for adjusting
the supply of money for keeping economy stable. Further its impact on business is that if
bank charge high interest rate then it become difficult for company to take loan from
bank.

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 Interest rate: if low amount of interest rate charged by the bank then Nisa can easily
take a loan from them. Company can take a high amount of loan from the Financial
institute and easily can produce more goods and services (Popli, Chauhan and Sharma
2014,). With the help of loans company generates capital, and invests in research and
development. On the other hand banks charge a high amount of interest then company
cannot take a such loan because they have to pay high interest. It not helps earning a
profit of company.
 Inflation; At the time of low interest rate and increasing in money flow through a
economy then inflation occur. At the time of inflation Nisa required to decrease the rate
of products because consumer buying power get down at the time of inflation. If inflation
goes above 4%, then Nisa face issues like increase in costs and the whole system of the
company becomes uncertain. It also affects the profits of the company. High inflation
will demotivate the company to invest because they are uncertain of future profits.
 Taxation: Nisa is affected by taxation which is a part of fiscal policy. If government
charge low tax rate then consumer purchasing power increases and it increase the profits
of company (Tsujinaka, Ahmed and Kobashi, 2013). It also helps in the growth of the
economy as it is helps in improving the employment opportunities in the country .
Government measures its expenses and tax rates to control the nation's economy.
 There are significance of fiscal policy and monetary policy on firm, for instance if
government increase the tax rate then firm unable to make profit or it need to increase
price of products for paying tax and making profit.
 Both fiscal and monetary policy affect the organisation as it lead to increase the chances
of unemployment. Further, company cannot take load as because due to this bank charges
high interest on loan amount.
The impact of competition policy and other regulatory mechanism on the activities of Nisa
 Enterprises act 2002: According to this act the company Nisa can carrying out its
trading activity dynamically. In the competitive market, all activities must be carried out
on fairly basis, while decision making is mostly done by independent bodies. This act is
successfully doing as it help in carrying out its trading activity dynamically. For
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example, Enterprise act help Nisa company in carry out healthy competition in the
markets.
 Competition act 1980: According to this act, the use of monopoly as policy is prevented
by the government. It also helps to control the competition among the companies. In
order to survive in the competitive environment, many companies have started to produce
and sell unhealthy products. If Nisa wants to survive in this competition, it must focus on
producing some innovative products which are difficult to limited. This act is
successfully doing as it help in control the competition among the companies.
Example of competition policy: Comptetion policy help Nisa company in selling product
at fair price in the market.
 The office of fair trading: The office of fair trading is known as the independent body
which have control on market (Jiménez, Ongena and Saurina, 2014). They make decision
that related to market is working effectively or not. There are three different division of
such office which cover Ofwat, Ofcam and Ofgem. Further there work is to carry out
right trading practices. For example this act is effective as it help in carrying out the fair
trading practices for Nisa company.
 Competition commission: Here its role is to measure that merger will minimize the
competition (Tsujinaka, Ahmed and Kobashi, 2013). After merging competition need to
be maintained or not it is decided by competition commission.
These all policies can affect the Nisa company as because of high level of
competition it will become tough for company to carry out all the activities successfully.
Further due to fair price policy it is not easy for company to make products and sale them
at different prices. People also have choice between different companies’ products that
can impact the sales of the firm
SECTION 3
Market structure determine pricing and output decision of business.
There are several kinds of market structure that keeps various kinds of monetary and
output decisions:
 Monopoly structure: In the monopoly market there is only one firm and many buyers.
There are many types of products and service available. The seller of the product decide
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