Business and Competitive Analysis

This assignment delves into the world of business and competitive analysis, exploring both traditional and contemporary approaches. Students are tasked with researching and analyzing various methodologies used to understand market dynamics, identify competitors, and formulate effective business strategies. The focus lies on applying these analytical frameworks to real-world scenarios, demonstrating a grasp of their practical implications.

Business Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 The purposes of these organizations.................................................................................1
1.2 The extent to which it meets the objectives of its different stakeholders...........................2
1.3 Organization's various responsibilities and ways to meet them.........................................2
TASK 2............................................................................................................................................3
2.1 Different economic systems and allocation of resources along with examples...............3
2.2 The impact of fiscal and monetary policy on Iceland Supermarket and their activities.....4
2.3 The impact of competition policy and other regulatory mechanism on the activities of
Iceland Supermarket................................................................................................................4
TASK 3............................................................................................................................................5
3.1 Market structures determine the pricing and output decisions of businesses including
Iceland Supermarket................................................................................................................5
3.2 The way in which market forces shape Iceland Supermarket responses using a range of
examples.................................................................................................................................6
3.3 The business and cultural environments shape the behaviour of Iceland Supermarket......7
TASK 4............................................................................................................................................8
4.1 The significance of international trade to Iceland Supermarket.........................................8
4.2 The impact of global factors on Iceland Supermarket.......................................................9
4.3 The impact of policies of the European Union on Iceland Supermarket............................9
CONCLUSION..............................................................................................................................10
REFERENCES...............................................................................................................................11

INTRODUCTION
No business functions in isolation, it is surrounded by number of factors that influence
the working of it. Success and development of business entity depend upon its efficiency to
maintain the impact of both external and internal factors. Sum total of the influence is referred as
Business environment. Organizations operating in the market cater to earn profitability and
expand its venture by adopting effectual strategy and bringing adaptability with the surrounding
business environment. The present report is prepared to elucidate the ways in which an
organization gets impacted by macro and micro environment. For the purpose, a British
supermarket chain, Iceland Foods Ltd is taken into account. From more than four decades, it is
selling frozen foods and non-frozen grocery items. Along with this, it holds approximately 1.8%
market share in the UK food market.
TASK 1
1.1 The purposes of these organizations
Iceland Supermarkets
Type of organisation: Private
Purpose: It is the privately owned British supermarket chain. Private companies are formed by
the group of people sharing profits and liabilities ( Holcombe and Ipate, 2012). They function to
earn profits and expand their ventures. Iceland supermarket having the significant share of 1.8%
in food market and caters to establish its prominent position by it outstanding personalised
services.
KFC
Type of organisation: Subsidiary
Purpose: Subsidiary organisations function to comply with the laws and regulation framed by
their parent brand. KFC is the subsidiary of Yum and is the fastest growing fast food chain in the
world.
Transport for London
Type of organisation: Statutory organisations
Purpose: Statutory organisation is created by the act of parliament under specific provision to
perform the prescribed functions ( Griffin, 2013). They are also referred as public body. Transport
for London is established to provide the good transport facilities to the countrymen.
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Cancer research
Types-of-organisation: Voluntary organisations
Purpose: Voluntary organisation functions for the specific cause for the betterment of society by
addressing sensitive issues. Cancer research is one such organisation funded by the donation of
public and government aid aims to bring better methods of diagnosis, treatment and prevention
of cancer.
1.2 The extent to which it meets the objectives of its different stakeholders
Key stakeholders of Iceland supermarkets are customers, employees, suppliers and
government organisations.
1. Customers: Iceland supermarkets cater to provide the customer oriented services and
products of their choices (Kaufmann and et.al, 2011). They provide wide range of frozen
and non frozen items.
2. Employees: Central part of operations of Iceland supermarkets are the employees who are
directly in connection with customers. Iceland supermarket provides better condition to
work for them along with providing better career development opportunities through
training and development programs.
3. Suppliers: Iceland supermarket having stores at every corner of the world has large
number of suppliers who provide raw materials and fresh goods to them.
4. Government organisations: Government has laid rules and regulations for food industry
to retain nutrition and freshness that are abided by Iceland supermarkets.
1.3 Organization's various responsibilities and ways to meet them
Recognized for the quality products and services, Iceland Supermarket complies with all
the responsibilities in different dimensions (Tang and Musa, 2011). Economic: It provides shareholders the optimum level of return on investment to fulfil its
economic responsibility. Philanthropic: It is engaged in number of philanthropic activities such as having funds for
treating Alzheimer and its research support wounded heroes, charity for children, Antarctic
expedition and many more. Ethical: Iceland supermarkets source its raw materials and foods from licensed sources,
uses scientifically safe methods to freeze and ways to seal the essentials and flavours t
optimize their services. It also labels the list of ingredients at back of product.
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 Legal: Iceland supermarkets abide laws and regulations imposed by national and
international agencies such as with respect to food quality, consumer protection, labour
code and many (DeFusco and et.al, 2015).
TASK 2
2.1 Different economic systems and allocation of resources along with examples
Economic systems are categorized on the basis of the manner in which resources are
allocated in the economy. Fundamentally, there are four types of economic system exist in
different economies:-
Command economy
In command economy, a central plan is created by government through which decisions
such as what to produce, how to produce and whom to sell are taken which means that
businesses are run by government itself without any involvement of business entities. China is of
in this type of economic system. Organizations operating in such type of economic system have
limited powers to run its business ( Fleisher and Bensoussan, 2015).
Free enterprise
In this type of system, there is no interference of Government in economic transactions.
Freedom with respect to the ownership of property and having means of production is provided
to the concerned business entities. Canada is one such example of free market enterprise with
flexible labour market, liberalization in taxation policies and no regulatory hand of government.
Mixed economy
Mixed economy is the combination of features of both free enterprise and command
economy. Industries and trade are given to private individuals with certain degree of state
intervention in the economy for the better stabilization and regulation of different activities.
There are many countries which possess mixed economy, among those one such example is the
home country of selected organization that is Iceland ( Christopher and Holweg, 2011). It
experiences freedom in trade and does business with some free market principles that attract
investments due to open financial market.
Transition economy
Economy which undergoes through structural transformation due to its transition from
centrally planned economy to market economy is referred as transitional economy. In this
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economy, reforms are brought by introducing market capitalism. This has the close degree
relationship with free market enterprise ( Morecroft, 2015).
2.2 The impact of fiscal and monetary policy on Iceland Supermarket and their activities
To stabilize the economic activity of any nation, there are two most influential tools used
by Government and other legislative bodies.
Monetary policy is the steps taken by The Bank of England to seek macro-economic
objectives such as price stability, full employment, and other by using tools such as changing bank
rates, interest rates, open market operations and other related. There is no involvement of
government in it. It affects the economy by bringing changes in investments, financial conditions
and balance sheets. These changes significantly fluctuate the Iceland Foods Ltd's strategic
decisions such as decrease in interest rates attracts investments with its increase that helps in its
growth and expansion of venture or to introduce new store in any area.
With the help of certain decisions such as spending and taxation rates, Government
improves the condition of nation economy which is referred as Fiscal policy. Depending upon the
situation of country and value of determinants, steps are taken by the government. For instance:
when there is inflation prevailing in economy, then government increases the taxation rate to bring
down the money supply which further makes the production and operations expensive for Iceland
supermarkets with affecting its profitability (Bowersox, 2013). Whereas, when there is less
circulation of money in economy, government increases it’s spending and expenditure at
infrastructures of attract investments which positively influence the working of Iceland super
markets by easing out their functions.
2.3 The impact of competition policy and other regulatory mechanism on the activities of Iceland
Supermarket
Along with government and legislative bodies, there are some organisations which work to
bring improvement in the working of different sectors. Certain laws and regulations are framed
with respect to the maintenance of legality and fair practices. These regulations also affect the
activities of Iceland supermarkets while making decisions.
Competition policy
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This is the law laid down to regulate the trade practices in the market. With the set of
clauses, hegemony or monopoly of any organisation is prevented. Iceland supermarkets abide all
the laws laid down by it to regulate the market (Brooks and Dunn, 2011).
Environment agency
Its purpose is to bring sustainable development in the country by minimizing wastes and
protecting country from threats such as pollutions and other hazards. Iceland supermarkets comply
with the regulations imposed by the agency with respect to the minimum waste of any materials
and products along with reducing the chances of harming environment.
Competition and monetary authority
This organisation functions to bring innovation in the business activities. It caters to
develop methods that enhance the productivity of the organisations operating in the market.
Iceland supermarkets are affiliated to the authority in order to inculcate productive methods in its
functions so that it can increase productivity and profitability.
TASK 3
3.1 Market structures determine the pricing and output decisions of businesses including Iceland
Supermarket
Market structure refers to the system in which there are different firms operating with
similar characteristics and homogeneous goods. On the basis of this, there are four main structure
that exist in the market.
Perfect competition
There are many sellers and buyers in this type of market structure with the existence of
fierce competition. Organisations have thorough knowledge about the market and its prevailing
conditions. Sellers are the price takers by which prices are decided as per the market forces that are
demand and supply of goods and services. Iceland supermarket working in this type of structure
faces high degree of boundations with respect to the process of taking decisions about the prices of
its frozen and non-frozen goods (Sass and Fifekova, 2011).
Monopoly
Market in which there is one seller with the sole beneficiary is referred as monopoly. More
precisely, it is stated in UK that if, organisation is having the share of more than 25% in the
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market, then it will be referred as monopoly. Iceland supermarket operating in monopoly will be
entitled to have supernormal profits.
Monopolistic
Monopolistic market has few sellers and many buyers having the high degree of
competition. In order to get the high amount of profits, businesses are producing distinguished
products with competitive prices. Iceland supermarkets shaping in this type of market structure
faces close competition with their rivals and providing outstanding products and services to reach
large number of people.
Oligopolistic
Market structure having sellers who interdependent in taking decision with respect to price
and output is oligopolistic market (Loshin, 2012). In sellers are closely linked to each other.
Iceland supermarkets running in oligopolistic market decides its prices and outputs in relation to
the supermarkets.
3.2 The way in which market forces shape Iceland Supermarket responses using a range of
examples.
Market force is the manner in which demand of product or services is related to its supply.
It comprises several components such as key functionary is demand and supply relationship. Other
market forces that influence the working of Iceland supermarkets are elasticity of demand, research
and development and innovation.
Demand and supply
The key determinant that affects working of organisation is the demand and supply of its
frozen and non frozen product range. Fluctuations in that trickles down its effects to the decision
taken by it. For instance, at the time of boom Iceland supermarkets increases its prices to earn more
profits whereas at time of recession when people have low disposable incomes and purchasing
power, Iceland supermarkets lowers its prices to retain heir customers and fulfil their needs.
Research and development
Research and development led to the success and development of any organisation towards
growth in different dimensions. Iceland supermarket has he aims to give the quality food to its
customers by providing them quality food by fulfilling objectives of retaining essentials along with
flavour and taste while freezing (Dowling and Moran, 2012).
Innovation
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It is the crucial element of operation in an organisation to get success and establish
prominent position in market place. Iceland supermarkets believe in providing fresh range of
products with variety on frequent basis. Consumers get attracted towards the organisation who
comes up with innovation in range of products and in its services.
Elasticity of demand
It refers to the degree of change in demand as compared to the fluctuations in prices occur.
Iceland supermarkets have many stores around the globe. Hence, it adopts the strategy of
differentiation that is introducing products with higher prices at the markets having low elasticity
of demand and inversely introducing rage of items at competitive prices at market having high
elasticity of demand.
3.3 The business and cultural environments shape the behaviour of Iceland Supermarket.
Iceland supermarkets work in the influence of business and cultural environment. It is the
combination of political influences, economic fluctuations, social preferences, technological
advancements, environment impacts and legal considerations (Kim and Ko, 2012).
Political factors
This is the major factor affects the entry and stability of organisation in any country. Each
country has different norms, regulations and political scenario. Iceland supermarkets experiences
ease in its operation where there are liberal laws and favourable conditions whereas unrest in any
country hinders its establishment.
Economic factors
Economic determinants such as inflation rate, interest rates, bank rates and indexes decide
the price structure and financial decision of Iceland supermarkets. Countries experiencing
economic growth also led to the fast pace development of cited organisation and regions facing
depressions led to the attainment of less profits generation or some times' loss.
Social factors
Iceland supermarkets always cater to provide the products and services as per the demand
and choices of their customers (Lee, 2011). Hence, it has the team which seek their opinions and
requirements through surveys and personal interactions. Hence, it has introduced the products with
no artificial colours and preservatives keeping in mind the demand of health concious people.
Technological factors
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Advancement of technology leads to the increase in efficiency and productivity of
operations of Iceland supermarkets. Good communication leads to the better coordination and
connectivity between different stores of Iceland supermarkets.
Legal factors
Iceland supermarkets abides all the laws and regulations laid by government and other
legislative bodies with respect to the functioning of retail and supermarket industry such as
consumer protection, employees related issues (Forsgren and Johanson, 2014).
Environmental factors
Countries having favourable environment conditions related to its operations such as
finding sea foods, seasonal at nearby locations ease its functions whereas, lack of resources or
unfavourable conditions deviates its growth.
TASK 4
4.1 The significance of international trade to Iceland Supermarket
Expanding ventures across the borders help the organisation in availing lucrative benefits
in various dimensions.
Market Expansion: It leads to the expansion of market with the greater consolidation of customers
around the globe at different stores by the Iceland supermarkets. It increases the sales along with
the profit generation in the significant manner.
Networking: Iceland supermarkets are able to connect with wide stream of traders, suppliers and
other organisation that helped it to increase the business and improve operations (Rainer and et.al,
2013).
Brand Image: Introducing products and services to the different countries creates the brand
awareness among large number of people which leads to the establishment in firm manner.
Improves efficiency: Key benefit of introducing product on international grounds is that it enables
the organisation to link with institutes or people owing better technology or equipment. Installing
these resources in Iceland supermarkets and inculcating better technology such as used in other sea
food producing countries for frozen increases the graphs of its efficiency level.
Risk management: Introducing products in different counties reduces he ratio of risk and
probability of failure reduces in the considerable manner.
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4.2 The impact of global factors on Iceland Supermarket
There are many global factors that affect the success and development of the organisation
while trading with together business entities across the borders.
Economic differences
Difference in economic parameters such as inflation rates, tariffs, taxes and custom duties
affects the pricing of the Iceland supermarket. It leads to the development of different financial
plan and strategies to establish (Lankes, 2011).
Emerging economies
At present there are many economies which as growing with the fast pace and intensity.
These economies such as India, china, Brazil are the major challenges for the Iceland supermarkets
to move in international markets.
Protectionism
This is the form of policy adopted by certain international organisation that provides
protection to the countries facing challenges in growth and development and provide hem
relaxation. These steps affect Iceland supermarkets enabling to come with better strategies and
policies.
International organisations
There are many organisations which functions introduce fair trade practices and bring
competitive environment in the market. In that respect it has laid certain rules and regulations for
all the member countries so the quantum of global trade can be enhanced and improved.
4.3 The impact of policies of the European Union on Iceland Supermarket.
European Union is the politico-economic union of 28 countries to ensure the fee movement
of goods and services, capital among them and improves their condition on different grounds such
as economic, social, commercial and political through a standardized system of laws and
regulations (Schuler and et.al, 2011). There are two policies mention with respect to the working of
Iceland supermarket.
Competition policy for Food
Competition policy is laid for all the member states with respect to the food chain supply,
production and grocery retail for the execution of all the functions in the proper manners It led to
the innovation and process of fair practices. Documents such as Treaty on the functioning of the
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European Union details the procedures and methods needed to be adopted by business entities
engaged in supermarkets of retail.
Labour law
This law states the set of activities that is required to be followed by employers for the
protection of all the workers at their organisations. It includes clauses such as minimum state of
work conditions, number of working hours, minimum pays and salaries and other related. Iceland
supermarkets recognized for the resourceful and healthy work culture keep in consideration all the
stipulated issues laid for employees (Experts in Frozen. 2016).
CONCLUSION
Environment in which organisation is operating has the significant impact on the working
and strategies framed by it. In the present study with reference to the Iceland supermarkets, it has
been articulated that it undergoes the influence of political interferences, economic fluctuations,
environmental impacts and other macro economic factors. Further, it can be inferred that selected
organisation comply with all the laws and regulation laid by different legislative bodies and have
effectual measures to stand effect of both internal and external factors.
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REFERENCES
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turbulence. International Journal of Physical Distribution & Logistics Management. 41(1).
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DeFusco, R.A. And et.al., 2015. Quantitative investment analysis. John Wiley & Sons.
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of new and classic methods. FT Press.
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Holcombe, M. and Ipate, F., 2012. Correct systems: building a business process solution. Springer
Science & Business Media.
Kaufmann, D. and et.al., 2011. The worldwide governance indicators: methodology and analytical
issues. Hague Journal on the Rule of Law. 3(02). pp.220-246.
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Lankes, R.D., 2011. The atlas of new librarianship. MIt Press.
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pp.1216-1223.
Loshin, D., 2012. Business intelligence: the savvy manager's guide. Newnes.
Morecroft, J.D., 2015. Strategic modelling and business dynamics: A feedback systems approach.
John Wiley & Sons.
Rainer, R.K. And et.al., 2013. Introduction to information systems: Supporting and transforming
business. John Wiley & Sons.
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Sass, M. and Fifekova, M., 2011. Offshoring and outsourcing business services to Central and
Eastern Europe: Some empirical and conceptual considerations. European Planning
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Schuler, R.S. And et.al., 2011. Global talent management and global talent challenges: Strategic
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Online
Experts in Frozen. 2016. [Online]. Available through:<https://www.iceland.co.uk/food-you-can-
trust/frozen-experts/>. [Accessed on 15 th February 2016].
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