Business Environment and Economic Geography Impact on Productivity

The provided content deals with various aspects of business environment, economic geography, and sustainability. It includes research papers and books that explore the impact of these factors on plant-level productivity, entrepreneurship, innovation, and strategy. The papers also discuss the role of information systems in environmental sustainability, the implications of organizational structure for ERP implementation, and the importance of corporate foresight. Additionally, the content touches upon economic systems, including perfect competition, monopolistic competition, oligopolistic competition, and monopoly. Furthermore, it highlights the challenges faced by businesses and offers strategies for overcoming them. The assignment aims to provide a comprehensive summary of these topics in a concise paragraph.

Business Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 The purpose of various organizations....................................................................................1
1.2 The extent of meeting the objectives of Stakeholders...........................................................2
1.3 Strategies to meet the responsibilities as an organization.....................................................3
TASK 2............................................................................................................................................4
2.1 Different economic system....................................................................................................4
2.2 The impact of fiscal and monetary policy on Iceland Supermarket......................................5
2.3 The impact of competition policy and other regulatory mechanism on the activities of
Iceland supermarket.....................................................................................................................6
TASK 3............................................................................................................................................7
3.1 Impact of market structures on pricing and output decision..................................................7
3.2 Market forces shaping Iceland supermarket responses.......................................................10
3.3 Impact of business and cultural environment in shaping organization's behaviour............12
TASK 4..........................................................................................................................................13
4.1 Significance of international trade.......................................................................................13
4.2 Impact of global factors.......................................................................................................14
4.3 Impact of policies of European Union.................................................................................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
The environment of business consist of various internal and external elements that
directly links with the business functioning and activities. The set of environmental factors
includes different macro-economic and micro environmental factors. They generally deal with
the impacts of political policies, economic conditions, governmental intervention, socio-cultural
situations and national as well as international market environment. Along with this, they have to
face the effects or behaviour of micro economic factors like competitors, customers, suppliers,
financial bodies. An organization needs to consider all the factors that are responsible to
determine their business environment (Melville, 2010). It is helpful in increasing the level of
employee’s participation and involvement in all the business activities.
The report is covering information about the factors that impact the working and market
condition of Iceland which is a supermarket chain. It offers various local as well as international
products thus; it needs to consider the macro and micro environment factors that have high
impact on the improvement and survival of Iceland Supermarket. The management of the giant
supermarket industry has to defeat all those challenges in order to mark success and continue its
business in their targeted market. For this, Iceland supermarket has to define a good set of
strategies for reducing the impacts of these factors.
TASK 1
1.1 Purpose of various organizations
It is examined that all the organizations have different mission, vision, objectives and
competency level which is determined as per their business motive, functioning and targeted
market. The following are the organizations and their purpose are: Partnership firms - They are termed as the business enterprise which are mostly
operated and functioned by more than two individuals. In this, roles, duties, liabilities and
responsibilities are equally divided among all the partners (Griffin, 2013). For example:
◦ Iceland Foods Ltd – It is a British originated supermarket chain which deals with all
types of frozen vegetables, fruits and other foods like precooked meals. Iceland
supermarket group has reported £190 million revenue in 2015 and has expanded its
chain with 750 retail stores. All of their stores offer foods which are fresh and frozen
foods by the name of Iceland and other related brands. Company is facing high
competition from other similar chains of supermarket in UK like Asda and Tesco
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(Kennerley and Neely, 2014). However, Iceland has marked a new position for itself
in food sector which facilitates them to attract high level of customers in the UK
market. The main purpose of the cited firm is to increase the overall productivity for
gaining more sources of attaining revenue. Private firm – This is a form of partnership firm which is owned by private bodies. In
these types of firm, the intervention of government is impossible. A private company is
similar to:
◦ Kentucky Fried Chicken (KFC) – This is a chain of fast food restaurants that are
specialized in making and serving various types of fried chicken. KFC has 19,000+
restaurants in about 200+ countries from where it earns £25 billion every year. KFC
was originated from Kentucky where Harland Sanders, the founder, started selling
various types of fried chickens in his restaurant. KFC mostly adopts the franchising
method for expanding its business in its targeted market. KFC is popular for chicken
food items in the fast food industry (Ferrell and Fraedrich, 2014). The primary aim of
the cited buisness is to increase the market value of the company in the food sector
and generate more profits. Public company – It is a type of company which is wholly owned and maintained by
government or regulatory authorities. Their aim is to work for the public and gives
services in a particular sector. For example:
◦ Transport for London (TFL) – TFL is a local government body that operates its
business in tertiary sector and liable for addressing all the activities that are defined
under the transport system of London, England. TFL is highly concerned for
developing effective network of main road routes and for improving all the public
transportation networks including the underground train system of London,
Docklands Light Railway system and TFL Railways, local buses and taxis. The
organization was established in the year 2000 under the London Council which is
public welfare society (Morton and Hu, 2008). Its aim is to develop an effective
transport network for managing and controlling all the transportation services in
London.
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 NGO – A mixed structure of all the other types of firm whose aim is to function and
operate business functions in accordance to society welfare and betterment (Klapper,
Lewin and Delgado, 2015). They are like:
◦ Cancer Research (CR): It is one of the largest independent cancer research charities
at global level which conducts research for cancer prevention, identifying causes and
curing the disease. The mission is to reduce the rate of cancer deaths by implementing
various activities and campaigns. It is a charitable organization which functions in
multiple sectors (Conner, 2013).
1.2 Extent of meeting the objectives of stakeholders
It is ascertained that a stakeholder is a person who can impact the functioning of an
organization, business and market by its activities. They are present in internal as well as
external environment of an organization, thus has the ability to influence the business process
and projects in various aspects. In that case, Iceland supermarket has to consider all the
stakeholders related to the company (Pryor, 2005). The management team needs to implement
various strategies to increase the participation and engagement level of their stakeholders which
are determined under two perspectives or levels:
Internal stakeholders Employees – They are termed as the lower level management for Iceland and their scope
of improvement links with a good salary, job security, retention over the job, healthy
working environment, timely retirement, better pension plans and a settled career.
However, Iceland supermarket employees and their related groups are interested in
making stability in job whereas the company's aim is increase the level of productivity
among the individuals (Shaikh, 2010).
 Managers - The focus of managers of Iceland supermarket is to maintain their employees
interest level over their jobs, involvement in the business activities and their salary as
well as incentive system. They are liable to do this by their effective set of managing,
making decisions and controlling their processes.
External factors Customers – The process of maintaining the level of customers or their sovereignty is a
highly challenging activity for the organization. For this, the company has to determine
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the areas of useful resources in order to attain attention from their customers which
defines the survival or continuation of Iceland supermarket's business. Central government – It is addressed that the intervention made by the government are
highly impacting the working, functioning and market of Iceland supermarket. The
impacts include the political and economic condition, taxation policy, legal framework as
per the business of Iceland Supermarket (Mitra, 2003). Government parties and their
administrative bodies are generally concerned on maintaining the level of natural
resources.
 Suppliers – The suppliers of Iceland Supermarket mainly seeks for a good merchandising
price over their supply and a fast payment of inventories in order to mark a good deal.
Their aim is to maintain the statement of Law of supply which states that higher the price
would generate high quantity sale of the products.
1.3 Strategies to meet the responsibilities as an organization
It is evident that an organization needs to implement a perfect set of strategies and
accordingly follow the specified action plan. This process would help them to meet up all the
objectives and sustain a high competency level. In that case, it is necessary for the company like
Iceland supermarkets to develop an effective set of strategies for achieving all the targets
determined as per their business. For this, the company needs to consider each and every aspect
of business activities and processes that leads to success. Accordingly, it has to define a set of
action plan which is beneficial for the management as well as the society and other related
authorities (Faul, 2008). In addition to this, it has to consider various elements in respect to their
business and market which are:
Stakeholder responsibilities Customers –Company has to focus on their customers’ needs and wants which is
generally based on a budgeted price product and high quality product. In that respect,
Iceland supermarket has to manage both of these objectives and accordingly develop a
strategy in order to be competitive in providing high value and better quality. The
management of an organization has to protect their customer’s health and safety, for
which Iceland Supermarket is pledged to their customer's principles for sustaining in the
market. Company has destroyed all their products which have flavours and artificial
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colours in the ingredients (Fernando, 2011). Along with this, the company's brand
products commence as per the animal welfare policies and regulations. Local community – It is determined that Iceland supermarket have to protect the interest
of local community and the surrounding environment which are termed under the group
of external stakeholder. It is assessed that Iceland has the participation of approx 24,000
employees. In addition, Iceland supermarket is extremely focused on developing the
business environment and always seeks to give back the communities where the company
operate. They retain the resources in form of creating new jobs, developing new
opportunities, catering superior customer services and providing generous support to all
the factors present in the local communities (Zsambok and Klein, 2014). Employees - Iceland management has invested a lot of money on their employees present
in their UK market. However, an organization is mostly aimed on generating sources of
getting a large form of profit and revenue. For this, it buys product from providers at a
cut-price and deal them with the highest level of profit.
Legal responsibilities
The cited organisation is forced to follow the entire set of legal as well as ethical
responsibilities that are to be maintained by them. They are directed to conduct their business
functions and operations as per the defined norms and standards of functioning in the policies
and regulations specified by the government and related legal bodies.
Practical responsibilities
As per the stated set of responsibilities, the management is bound to maintain the level of
morale values and support towards their employees and targeted customers. This would help
them in placing a strong position in the market and attain greater aspects of business.
Ethical responsibilities
It is ascertained that an organisation should focus its attention and efforts on maintaining
their hold on the entire forms of commitments and promises made by them. This would help
their management in acquiring greater market share and generate ways of attaining more
revenues.
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TASK 2
2.1 Different economic systems
The information has been specified for all the economic markets and resources are forced
to offer a high level of community's goods which is termed as factors of production. Those
elements of resources are determined as minerals, sources of fresh water, areas of oil producing,
the climactic conditions, etc. (Halbert and Ungulli, 2011). It is evident that different states have
assorted kind of resources. In that respect, human resource has a vital role in defining developing
the market as it is the ability of labour or humans to use their skills in order to convert and attain
better profits in producing a finished product. Accordingly, the economy system is the most
significant area or perspective for defining the ways of dealing the situation production in
scarcity. The condition of scarcity is an inefficiency of humans to produce as per the wants and
needs of the society due the unavailability of resources. There are different kinds of economic
system which are effective in allocating and utilising the resources for the benefit of society, they
are: Free economy – It is a free market of defining the prices and determining the competition
as per the actions of demands and supply of the products. However, the central bodies
have the power to control the market intervention and stating the rules. As the
government has no participation in the free market but still the members faces a strong
and positive competition because of their regulations and policies that are flexible for
operating the business processes and activities (Savitz, 2012). Examples of market are
UK, France and Germany. Command economy system – The market or economy system where the government
intervention is high and most of the control and decision are taken by the political parties.
They define the production criteria and the level of production for all the members that
are engaged in the market. In addition, government also interacts with the process of
price fixing. For example, China has a command economy system. Mixed economy – In this kind of economy, the decisions over the prices and other factors
are determined as per the interactions of their buyers and sellers or demand and supply in
markets but in which the government interference in the benefit of resources (Kews and
Stredwick, 2005). United States of America is one of the best examples of mixed
economy.
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 Transitional economy – It is defined as the kind of economy which has modified itself
from centrally planned economy to market economy. This form of economy has a
specific structure of working and placing the operations specified in the system. China is
one the most common example of transitional economy.
2.2 Impact of fiscal and monetary policy on Iceland Supermarket
Impact of Monetary policy
The motive of is to control and maintain the level of macro-economic environment which
determines their impact through the interest rates, exchange rate and money supply. It is analysed
that monetary policy influences the market of Iceland Supermarket and also the whole economy. Exchange rates – It is examined that variation in exchange rates has the capacity to
impact the price. This mostly affects the variableness on the production and the
distribution level of Iceland Supermarket. Consider that if pound realize more than the
Iceland Supermarket business would suffer losses from the other countries as they faces
problems in buying the products while sales in home country would increase higher value
for the company (Prasad, 2010). Interest rate – It is termed under the government intervention when it determines to
modify the interest rate by directing the monetary policy, then it will affect the market of
Iceland Supermarket. Thus, a change in interest rates results to a reduction of profits,
which further leads to low level of expanding the new outlet of Iceland in UK market. On
the other side, if interest rate is decreased then it is beneficial for Iceland company as
they can easily get funding at lower cost.
Impact of Fiscal policy
They are the policies that mostly attempt to impact the level and process of economic
activities by implementing changes in government spending and taxation, that are: Taxations – It is marked that if taxation rates increases, payment would decrease as the
prices of frozen food products of Iceland Company would be also increase. As per the
results, it leads to a lower profit because Iceland Supermarket will pay more money in
taxes (Ahmed, 2012).
 Government borrowing – The situation which results in no lending of money, Iceland
Supermarket has to pay fewer taxes and can attain benefits to increase revenue. This
generally leads to high wages, generating more than profit and high production.
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However, the nature of lending the money influence Iceland Supermarket which is
responsible for taxes system and this could forbid their business to develop. Thus,
everything is relatively depended on the government intervention and economic politics
(Benedictis and Salvatici, 2011).
2.3 The impact of competition policy and other regulatory mechanism on the activities of Iceland
supermarket
It is ascertained that UK government has developed different economic policies and
regulations that have a direct link or impact with the business activities of Iceland Supermarket.
These set of impacts has both negative and positive aspects, depending on the types of their
working and company's mechanism. Any kind of changes in the policies and regulation in the
government perspective would results influence on the acts of Iceland Supermarket. In UK
market Iceland Supermarket has to overcome all their competitors that are Tesco, Asda, Aldi,
etc. who have similar food market as that of Iceland (Kew and Stredwick, 2005).
All these competitors have different stores with various capital, working and organization
policies. In that respect, it is specified that government must change policies as per the existing
market to make out with the competition. It is termed so because as the organization modifies
their policies in order to increase the competitive spirit and organization, like Iceland, must
follow all such changes. However, alteration in the policies of the competitors (like reduction in
the pricing policies) would lead to change in the actions and policies of Iceland Supermarket. It
is examined that the competitive policy specified by Iceland Supermarket gives better form of
determining the market and motivates their activities for leading different organizations
(Camacho, 2012). It assures broad customer choice between Iceland and their competitors, along
with this; it also breaks the non-competitive market and implements an easy entry on new
competitors.
TASK 3
3.1 Impact of market structures on pricing and output decision
On the basis of certain characteristics such as seller entry barriers, seller number, buyer
entry barriers and buyer number, there are many market structures. Few of the prominent ones
are perfect competition, monopoly, monopolistic and oligopolistic competition.
Perfect Competition
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In this type of market structure there is no barrier while entering into the market and
hence has large number of sellers and buyers (Czinkota and et.al, 2009). Companies operating in
this market structure face fierce competition and cannot choose the prices for their products.
Prices and outputs are determined by the equilibrium attained by the demand and supply of
products and services. There are homogeneous products sold in the market to the large number of
sellers. In any industry such as in retail no organization like Asda and Tesco are empowered to
decide prices and strategy related to it due to goods which are in market are similar in
appearance and quality like eggs. With 1.8% share in UK foods, Iceland Supermarket has
decided its own prices (Bitzenis and Nito, 2015).
Monopolistic competition
It is the type of market structure in which there is large number of sellers but is selling
distinguished product and service range to the buyers. The products offered by the sellers are
differentiated from each others in terms of quality and the methods adopted for branding by
them. The firms operating in this structure are entitled to determine their own pricing and
outputs. While operating in this market structure Iceland supermarket caters to provide optimum
level of products and services to have a competitive edge over rivals.
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Illustration 1: Perfect Competition
Market
(Source: Czinkota, Knight and Liesch,
2004)

Oligopolistic competition
In this type of market structure there is the dominance of few firms and organization over
the market share (Beck and Demirguc-Kunt, 2016). Pricing and output decisions taken by this
organization depends on that of taken by the rivals. The market structure is very productive and
concentrated in nature due to limited number of sellers. The satisfaction level of the customers is
very high in this aspect.
Monopoly
There exists only one seller in the market with the absence of competition. The seller
serves the entire market with the high degree control over the pricing and output making
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Illustration 2: Monopolistic
Competition
(Source: Teece, 2010)
Illustration 3: Oligopolistic
Competition
(Source: Welford, 2013)

decisions that exists in capitalism (Ayyagari, Beck and Demirguc-Kunt, 2017). The government
caters to stop the existence of the monopoly in market by using number of methods in the form
of laws and regulations such as antitrust law. Steps are taken to prevent the market from high
prices and low quality.
3.2 Market forces shaping Iceland supermarket responses
Market forces are referred to the economic factors that have the influence over the
pricing, demand and availability of commodity in the market. Iceland supermarket operating in
the retail industry is significantly affected by different market forces such as demand and supply
of products and services, customer's perception, economies of scale and cost-output.
Demand and supply
Manufacturing decisions taken by Iceland Supermarkets crucially dependent on the
demand exists in the market. The products' quantity is made available as per the needs and
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Illustration 4: Monopoly Competition
(Source: Blocher, Chen and Lin, 2008)

requirement position in market. For instance when the demand is at peak such as at the time of
events and festivals, the quantity supplied are increased along with the raising of prices to attain
the high profitability. On the other hand, when downturn occurs in the economic conditions and
financial crises occur resulting into low demands, supermarket reduces the prices to retain the
customer base.
The price and quantity by the organization is determined through the intersection of
demand and supply curves and the point where equilibrium is attained. On the basis of demand
and supply of products and services there are two equations which are formed that are:
Qs=a1-b1P
Qd=a2-b2P
Where a and b are variables denoting slope and intercepts. Qs and Qd as well as
quantitative supplied and quantity demanded and P is price. Solving these two equations price
and quantity is obtained.
Customer perception
At present the market conditions are more oriented towards the customer's needs and
wants. Iceland supermarket is focused towards satiating the customer's desires in the optimum
manner. It seeks customer's views and opinion through surveys and feedbacks and provide them
products and services in that manner. For instance, customers are moving towards the quality
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Illustration 5: Demand and supply
(Source: Bradfield and et.al, 2015)

products at affordable prices and hence, Iceland supermarkets make their products full of
nutrition with no amount of preservatives and artificial colours and maintaining the taste and
flavour.
Economies of scale
Economies of scale refer to the process in which the advantage attained by the
organization in one particular area of the operation by the organization is utilized in other
segments. For instance, Iceland Supermarket is recognized for delivering the fresh and ethically
sourced products. It is utilized by the organization while launching and new product. Further, the
well developed research and development section enables the organization to introduce new and
innovative products in market on frequent basis (Chi, Kilduff and Gargeya, 2009).
Cost-output
This is the major factor that determines the productivity and profitability of organization's
operations is the cost-output ratio. The intimate knowledge of cost and output relationship has
enabled it to control costs and increase profit margins. This is made effective through proper
rational promotion, pricing, profit production and other related.
Technology
The rising level of innovation in the technologies and engineering has directed a great
form of pressure on the organisation for adapting the latest kind of software and other
application. In that context, the management team of the cited organisation also has to conduct a
proper set of research in order to determine the ways of executing the business operations and
functions.
Labour trend
It is generally specified that the effectiveness of labour has a direct relation with their
overall abilities of achieving the business objectives and desired form of results. Similarly, the
labour trend has also a great impact on the market forces in ways like the variation in the labour
turnover fluctuate the market rate, increase in the level of labour increases the supply rate, etc.
3.3 Impact of business and cultural environment in shaping organization's behaviour
Business and cultural environment has the direct influence on the decision making
process of the organization
Political factors: It refers to the existence of the stability in the political scenario and the
political aspect in relevance to the organizations operations (Hajkova and et.al, 2016). In that
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context it is found that UK has stable political conditions that favour the smooth functioning of
Iceland supermarkets. Along with these laws and regulations of UK welcomes the expansion of
retail industry due to its significant share in country's GDP (Gross Domestic Product)
Economic factors: Iceland supermarkets take decisions on the basis of economic
conditions prevailing in the host country and region. For instance, prices are kept in accordance
to the exchange rate value and per capita income such as countries with high value have premuin
price ranges and vice versa. Further, the regions where interest rates are low, Iceland
supermarkets cater to expand its venture through making investments.
Social factors: This is the major factors that account the decision making process and
behaviour of the organization. UK is the place with diverse population with large number of
immigrants. Hence, people are having varied choices and preferences for the consumption of
products and services offered by the organizations (Honig, 2014). Iceland supermarkets offer
products on the basis of choices ad requirements of the customers. For instance, People are
moving towards the healthier options in the products and hence research and developments are
made to make the product having more nutritional values and no preservatives and artificial
colours. Further, in accordance to the culture as well decisions are taken by the organization such
as on the basis of communities products are served. Indians are resistant towards consuming beef
and Muslims belonging to many regions prefers only specific ingredients hence Iceland
supermarkets offers products and services accordingly.
Technological factors: In the era of information technology, there is fast pace advancements
seen in the adoption of the latest techniques and methods for different operations and purposes.
Iceland supermarkets in order to satisfy their customers to the utmost level inculcate this
technology in their process. For instance at the coastal regions like Indonesia and new china sea
different methods of fish processing are used that are been imbibed by the organization. Further,
new technology was introduced to make the product full of nutrition (Welford, 2013).
TASK 4
4.1 Significance of international trade
Iceland supermarket is the multi-chain retail organization which is serving millions of
people in different countries around the globe. Entering into the global market has benefited the
organization in different ways (Wiklund and Shepherd, 2015). International trade is the process
of exchange of goods, services and capital involving business entities, individuals and
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Government. Indulging into different types of trade with other organizations is important for
Iceland supermarkets is in the following ways.
Market Expansion: With the introduction and offering of products and services beyond
the geographical boundaries Iceland supermarkets is able to expand its market domain that is
leading towards the market expansion. Adopting of different strategies such as Ansoff matrix
that is market development and others enables the organization to increase its sales and output
range. In this way it increases its market share and possibilities of growth and development. This
process proves to be the lucrative way increase sales and revenue generation.
Cost reduction: International trade is the broader concept which is practised in different
manner to have competitive advantage (Iskanius, Page and Anbuudayasankar, 2010). For
instance, Iceland supermarkets interact with the organization to decrease the competitive costs
and expenses. This is practised through importing the raw materials and other requirements in
the significant low costs. Thus enables the organization to have the high profit margins and
increase the earning.
Brand awareness: When an organization has its operations in the Global market, the
brand awareness increases in the considerable manner. The number of people becoming aware
about the products and its offerings escalates. Iceland supermarkets on the other hand also attend
international trade fairs and exhibitions showcase their services and products and launch it on
wide platforms.
Connectivity and networking: International trade enables the organization to engage with
number of business entities in the global market such as suppliers, trading partners and many
expertise and specialists in the field. Hence, introducing products and services in different
countries enables the organization to interact with wide range of entities which makes them to
increase the efficiency and productivity in different aspects and becoming technologically
advanced (Klapper and Love, 2010).
4.2 Impact of global factors
Iceland supermarkets while having operations in the global market is affected by the
number of global factors.
Opportunities: With the inception of high intensity globalisation around the globe, the
boundaries between consumers and producers have been decreased to the very large extent. This
provides the organization such as Iceland supermarkets to grow and develop in different parts of
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the country have their establishments there. Different range of opportunities is availed by Iceland
supermarkets such as cost reduction, high profits, technological advancements and many others.
Protectionism: In order to protect the hegemony of any particular country or organization
different steps have been taken. One such method is protectionism according to which there is
the imposition of quotas, taxes and tariffs to enable the small industries develop. Hence, it makes
the organization less competitive and limits itself in different aspects such as increasing the
volume of trade and profitability.
International organizations: Iceland supermarkets while having international trade is
supposed to abide all the laws and regulations framed by the respective countries and
international organizations (Klapper, Lewin and Delgado, 2015). There are number of
organization that functions in this respect such as environmental groups functions to bring
sustainability and appropriateness in operations that are supposed to be complied by the
organizations. Further, along with obligations Iceland supermarkets enjoys the removal of
restrictions such as through different clauses made by World Trade organizations.
Economic conditions: Different economic conditions prevail in the countries in which
organization is operating. Hence, in that respect organization such as Iceland supermarkets is
required to follow different strategies as per the suitability. These strategies are developed on the
basis of demand elasticity, exchange rates and other factors. For instance, regions and countries
where demand elasticity is high, prices are kept low on the other hand regions where demand
elasticity are low, prices charged by Iceland supermarkets is high to earn high profitability.
Emerging market: From the recent global trends it has been found that there are some
countries and regions which are growing with the very fast pace threatening the existence of
developed countries (Lall and Mengistae, 2015). This challenges the high market share hold by
the organizations of rich countries. Such emerging markets are India, China, Brazil and Russia. It
makes competition level significant high for the Iceland supermarkets to have their sustenance in
different parts of the world.
4.3 Impact of policies of European Union
European Union is the integration of 28 member countries in Europe. It caters to improve
the condition of all the member countries in different aspects such as political stability, economic
conditions, social conditions such as health and employments, technological advancements and
environmental conditions. There are many laws and legislations enacted by the union that are
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required to be abided by all the organizations operating in the environment. The policies and
laws framed by the European Union includes taxation and inflation policy, education and
training policy, employment and labour policy, policies specific to particular industries such as
food and beverage, aviation, hospitality and many other related (Lambsdorff, 2007). Further,
there are many policies made to check the legality of operations conducted at the Business
organizations and hence, frequent investigations are made by different committed made in this
respect. Two of the most prominent policies used by the Iceland supermarkets are Food policy
and Employment policy.
Food policy: According to this policy, organizations operating in the food and beverage
industry are supposed to label the composition. In that reference strict clauses have been made to
make the products offered by the organization with the high nutritional content. Further,
organization is supposed to comply with the laws and regulations assuring the safety and security
of customers by providing them appropriate products. It is being tested on the grounds of
composition of ingredients used by Iceland supermarket and hence in that regard different
research is being made for that (Ruff, 2016).
Employee Policy: There are many policies made by European Union such as equality to
remove all forms of discrimination at every operational level. Further, in this respect, Iceland
supermarkets provide adequate, safe and secured workplace and complies with norms laid
CONCLUSION
Business environment is the sum total of all the factors affecting the operational activities
of the organization. It includes the human resources' management, administration, marketing,
finance, manufacturing and other related. These operations are performed to increase the
productivity and profitability in different aspects. While working in business environment it is
found that it get influenced by the number of factors including both macro and macro factors.
Micro factors are internal determinants such as employees, suppliers, customers and other
related. Macro factors includes the factors such as political scenario existing in the country,
economic conditions prevailing, social factors that are choices and preferences of countrymen,
technological advancements, legal aspects and the environmental conditions.
Organizations such as Iceland supermarkets works and decides its strategies on the basis
of influences from these factors that is been incurred on it. From the study it can be articulated
that it is adopting the appropriate measures for the purpose such as manufacturing products as
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per the choices and preferences of customers, abiding the laws and regulations laid by the
government related to the offerings of the organizations, imbibing new techniques and methods
in the operations, making producing and output decisions on the basis of economic conditions
such as exchange rate, interest rates, market structures, influence of market forces and other
related.
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REFERENCES
Books and Journals
Ahmed, W. M. A., 2012. On the interdependence structure of market sector indices: the case of
Qatar Exchange. Review of Accounting and Finance. 11. pp.468 – 488.
Ayyagari, M., Beck, T. and Demirguc-Kunt, A., 2007. Small and medium enterprises across the
globe. Small Business Economics. 29(4). pp.415-434.
Beck, T. and Demirguc-Kunt, A., 2016. Small and medium-size enterprises: Access to finance as
a growth constraint. Journal of Banking & Finance. 30(11). pp.2931-2943.
Benedictis, D. L. And Salvatici, L, 2011. The Trade Impact of European Union Preferential
Policies: An Analysis Through Gravity Models. Springer Science & Business Media.
Bitzenis, A. and Nito, E., 2015. Obstacles to entrepreneurship in a transition business
environment: the case of Albania. Journal of Small Business and Enterprise
Development. 12(4). pp.564-578.
Blocher, E., Chen, K. H. and Lin, T. W., 2008. Cost management: A strategic emphasis.
McGraw-Hill/Irwin.
Bradfield, R. and et.al., 2015. The origins and evolution of scenario techniques in long range
business planning. Futures. 37(8). pp.795-812.
Camacho, L., 2012. ReferenceUSA and Mint Global: a comparative examination of two business
directories. Reference Reviews. 26. pp.5 – 7.
Chi, T., Kilduff, P. P. and Gargeya, V. B., 2009. Alignment between business environment
characteristics, competitive priorities, supply chain structures, and firm business
performance. International Journal of productivity and performance management. 58(7).
pp.645-669.
Czinkota, M. R. and et.al., 2009. International business. Dryden Press.
Czinkota, M. R., Knight, G. A. and Liesch, P. W., 2004. Terrorism and international business:
conceptual foundations. Terrorism and the international business environment: The
security-business nexus. pp.43-57.
Faul, 2008. Business Environment:Test & Cases 2E. Tata McGraw-Hill Education.
Fernando, C. A., 2011. Business Environment. Pearson Education India.
Ferrell, O. C. and Fraedrich, J., 2014. Business ethics: Ethical decision making & cases. Cengage
learning.
Hajkova, D. and et.al., 2016. Taxation, business environment and FDI location in OECD
countries.
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Halbert, T. and Ungulli, E., 2011. Law and Ethics in the Business Environment. 7th ed. Cengage
Learning.
Honig, B., 2014. Entrepreneurship education: Toward a model of contingency-based business
planning. Academy of Management Learning & Education. 3(3). pp.258-273.
Iskanius, P., Page, T. and Anbuudayasankar, S.P., 2010. The traditional industry sector in the
changing business environment-a case study of the Finnish steel product
industry. International Journal of Electronic Customer Relationship Management. 4(4).
pp.395-414.
Kennerley, M. and Neely, A., 2014. Measuring performance in a changing business
environment. International Journal of Operations & Production Management. 23(2).
pp.213-229.
Kew, J. and Stredwick, J., 2005. Business Environment: Managing in a Strategic Context.
Chartered Institute of Personnel and Development.
Kew, J. and Stredwick, J., 2005. Business Environment: Managing in a Strategic Context. CIPD
Publishing.
Klapper, L. F. and Love, I., 2010. The impact of business environment reforms on new firm
registration. World Bank Policy Research Working Paper. (5493).
Klapper, L. F., Lewin, A. and Delgado, J. M. Q., 2009. The impact of the business environment
on the business creation process. World Bank Policy Research Working Paper. (4937).
Lall, S. V. and Mengistae, T., 2015. The impact of business environment and economic
geography on plant-level productivity: an analysis of Indian industry. World Bank Policy
Research Working Paper. (3664).
Lambsdorff, J. G., 2007. The institutional economics of corruption and reform: theory, evidence
and policy. Cambridge University Press.
Melville, N. P., 2010. Information systems innovation for environmental sustainability. MIS
quarterly. 34(1). pp.1-21.
Mitra, J., 2003. The Entrepreneurship Dynamic: Origins of Entrepreneurship and the Evolution
of Industries. Journal of Small Business and Enterprise Development. 10(2). pp.210 –
214.
Morton, N. A. and Hu, Q., 2008. Implications of the fit between organizational structure and
ERP: A structural contingency theory perspective. International Journal of Information
Management. 28(5). pp.391-402.
Prasad, V., 2010. Business Environment. Gyan Publishing House
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Pryor, L. F., 2005. Economic Systems of Foraging, Agricultural, and Industrial Societies.
Cambridge University Press.
Ruff, F., 2016. Corporate foresight: integrating the future business environment into innovation
and strategy. International Journal of Technology Management. 34(3-4). pp.278-295.
Savitz, A., 2012. The triple bottom line: How today's best-run companies are achieving
economic, social and environmental success--and how you can too. John Wiley & Sons.
Shaikh, S., 2010. Business Enviornment. 2nd Ed. Pearson Education.
Teece, D. J., 2010. Business models, business strategy and innovation. Long range planning.
43(2). pp.172-194.
Welford, R., 2013. Hijacking environmentalism: Corporate responses to sustainable
development. Routledge.
Wiklund, J. and Shepherd, D., 2015. Entrepreneurial orientation and small business performance:
a configurational approach. Journal of business venturing, 20(1). pp.71-91.
Zsambok, C. E. and Klein, G., 2014. Naturalistic decision making. Psychology Press.
Online
Conner, C., 2013. Challenges in business environment. [Online]. Accessed through <
http://www.forbes.com/sites/cherylsnappconner/2013/03/04/the-8-great-challenges-every-
business-faces-and-how-to-master-them-all>. [Accessed on 7th June 2016].
Griffin, D., 2013. Economic System Types. [Online]. Available through: <
http://smallbusiness.chron.com/economic-system-types-1129.html>.[ Accessed on 7th June
2016].
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