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Assignment on Issues in Business Environment

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Added on  2020-06-04

Assignment on Issues in Business Environment

   Added on 2020-06-04

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Business Environment
Assignment on Issues in Business Environment_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK ..............................................................................................................................................1(a) Key issues that are significant for the organisations in Retail “Supersector”...................1(b) Possible impact of two issues identified in the above question........................................4CONCLUSION AND SELF REFLECTION..................................................................................5REFERENCES................................................................................................................................6
Assignment on Issues in Business Environment_2
INTRODUCTIONIt is the business on which growth and development of any country depends and so, it isnecessary that government of each and every nation should try to create an environment wherebusiness can grow. Each and every type of industry holds equal significance at their place butthere are some of the industry who manufacture products for our daily purpose and example ofthis can be consumer services industry which is further sub categorised into retail super sector(Welford, 2013). This report will be highlighting the key issues in business environment that arecrucial for organisation in retail sector. Further, retail sector will be sub categorised into foodretailers & wholesalers and there will be brief on the impact of particular two issues had on thisindustry. In the end a reflection on the challenges faced in 'a' and 'b' will be highlighted. TASK (a) Key issues that are significant for the organisations in Retail “Supersector”Retailers get pounded, so increase in the price:- Last year, UK voted in favour of Brexitand decided to separate their path from EU membership. The decision to leave European Unionhas brought sudden devaluation in sterling relative to the euro and US dollar. This thing hasgiven retailers a specific choice to make either to let costs rise, keep price stable and forget aboutmargin or to increase rates to offset higher expenses. Most of the retailers decided to go for thesecond option, especially when it opponents also decided to do the same (Craig and Campbell,2012). According to the data released by British Retail Consortium, it was evident that effects ofthese are being felt. Those rates which shown of price deflation across non-food categoriesslowed to 1.9% in December of 2016, which was less from 2.3% which was a month before. Theimpact was also seen in the clothing & footwear and highlighted month-on-month inflation forthe first time in almost two years (Moutinho, 2011). This inflation trend which was in 2016 isexpected to show its impact in year 2017 also but there might be chances that due to seasonaldiscounts by big companies like Tesco, Marks and Spencer, Sainsbury and etc. can bring downthe prices. Although it is early to predict with any chances what the impact of Brexit on theeconomy might be mainly on the exit terms. Wage Equation: - Increase in the wage and inflation in the prices which is quite tough tounderstand as this is the job of economists to understand it. The simple way to understand this isthat, suppose if the prices of the goods are increasing but at the same time they go far from the1
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