Business Environment Iceland Supermarket Report
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Added on 2020-01-06
Business Environment Iceland Supermarket Report
Added on 2020-01-06
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Business Environment
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1 The purpose of various organizations....................................................................................11.2 The extent of meeting the objectives of Stakeholders...........................................................21.3 Strategies to meet the responsibilities as an organization.....................................................3TASK 2............................................................................................................................................42.1 Different economic system....................................................................................................42.2 The impact of fiscal and monetary policy on Iceland Supermarket......................................52.3 The impact of competition policy and other regulatory mechanism on the activities ofIceland supermarket.....................................................................................................................6TASK 3............................................................................................................................................73.1 Impact of market structures on pricing and output decision..................................................73.2 Market forces shaping Iceland supermarket responses.......................................................103.3 Impact of business and cultural environment in shaping organization's behaviour............12TASK 4..........................................................................................................................................134.1 Significance of international trade.......................................................................................134.2 Impact of global factors.......................................................................................................144.3 Impact of policies of European Union.................................................................................15CONCLUSION..............................................................................................................................16REFERENCES..............................................................................................................................17
INTRODUCTIONThe environment of business consist of various internal and external elements thatdirectly links with the business functioning and activities. The set of environmental factorsincludes different macro-economic and micro environmental factors. They generally deal withthe impacts of political policies, economic conditions, governmental intervention, socio-culturalsituations and national as well as international market environment. Along with this, they have toface 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 todetermine their business environment (Melville, 2010). It is helpful in increasing the level ofemployee’s participation and involvement in all the business activities. The report is covering information about the factors that impact the working and marketcondition of Iceland which is a supermarket chain. It offers various local as well as internationalproducts thus; it needs to consider the macro and micro environment factors that have highimpact on the improvement and survival of Iceland Supermarket. The management of the giantsupermarket industry has to defeat all those challenges in order to mark success and continue itsbusiness in their targeted market. For this, Iceland supermarket has to define a good set ofstrategies for reducing the impacts of these factors.TASK 11.1 Purpose of various organizationsIt is examined that all the organizations have different mission, vision, objectives andcompetency level which is determined as per their business motive, functioning and targetedmarket. The following are the organizations and their purpose are:Partnership firms - They are termed as the business enterprise which are mostlyoperated and functioned by more than two individuals. In this, roles, duties, liabilities andresponsibilities are equally divided among all the partners (Griffin, 2013). For example:◦Iceland Foods Ltd – It is a British originated supermarket chain which deals with alltypes of frozen vegetables, fruits and other foods like precooked meals. Icelandsupermarket group has reported £190 million revenue in 2015 and has expanded itschain with 750 retail stores. All of their stores offer foods which are fresh and frozenfoods by the name of Iceland and other related brands. Company is facing highcompetition from other similar chains of supermarket in UK like Asda and Tesco1
(Kennerley and Neely, 2014). However, Iceland has marked a new position for itselfin food sector which facilitates them to attract high level of customers in the UKmarket.The main purpose of the cited firm is to increase the overall productivity forgaining more sources of attaining revenue. Private firm – This is a form of partnership firm which is owned by private bodies. Inthese types of firm, the intervention of government is impossible. A private company issimilar to:◦Kentucky Fried Chicken (KFC) – This is a chain of fast food restaurants that arespecialized 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. KFCwas originated from Kentucky where Harland Sanders, the founder, started sellingvarious types of fried chickens in his restaurant. KFC mostly adopts the franchisingmethod for expanding its business in its targeted market. KFC is popular for chickenfood items in the fast food industry (Ferrell and Fraedrich, 2014). The primary aim ofthe cited buisness is to increase the market value of the company in the food sectorand generate more profits.Public company – It is a type of company which is wholly owned and maintained bygovernment or regulatory authorities. Their aim is to work for the public and givesservices in a particular sector. For example: ◦Transport for London (TFL) – TFL is a local government body that operates itsbusiness in tertiary sector and liable for addressing all the activities that are definedunder the transport system of London, England. TFL is highly concerned fordeveloping effective network of main road routes and for improving all the publictransportation networks including the underground train system of London,Docklands Light Railway system and TFL Railways, local buses and taxis. Theorganization was established in the year 2000 under the London Council which ispublic welfare society (Morton and Hu, 2008). Its aim is to develop an effectivetransport network for managing and controlling all the transportation services inLondon.2
NGO – A mixed structure of all the other types of firm whose aim is to function andoperate 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 charitiesat global level which conducts research for cancer prevention, identifying causes andcuring the disease. The mission is to reduce the rate of cancer deaths by implementingvarious activities and campaigns. It is a charitable organization which functions inmultiple sectors (Conner, 2013).1.2 Extent of meeting the objectives of stakeholdersIt is ascertained that a stakeholder is a person who can impact the functioning of anorganization, business and market by its activities. They are present in internal as well asexternal environment of an organization, thus has the ability to influence the business processand projects in various aspects. In that case, Iceland supermarket has to consider all thestakeholders related to the company (Pryor, 2005). The management team needs to implementvarious strategies to increase the participation and engagement level of their stakeholders whichare determined under two perspectives or levels:Internal stakeholdersEmployees – They are termed as the lower level management for Iceland and their scopeof improvement links with a good salary, job security, retention over the job, healthyworking environment, timely retirement, better pension plans and a settled career.However, Iceland supermarket employees and their related groups are interested inmaking stability in job whereas the company's aim is increase the level of productivityamong the individuals (Shaikh, 2010).Managers - The focus of managers of Iceland supermarket is to maintain their employeesinterest level over their jobs, involvement in the business activities and their salary aswell as incentive system. They are liable to do this by their effective set of managing,making decisions and controlling their processes.External factorsCustomers – The process of maintaining the level of customers or their sovereignty is ahighly challenging activity for the organization. For this, the company has to determine3
the areas of useful resources in order to attain attention from their customers whichdefines the survival or continuation of Iceland supermarket's business.Central government – It is addressed that the intervention made by the government arehighly impacting the working, functioning and market of Iceland supermarket. Theimpacts include the political and economic condition, taxation policy, legal framework asper the business of Iceland Supermarket (Mitra, 2003). Government parties and theiradministrative bodies are generally concerned on maintaining the level of naturalresources. Suppliers – The suppliers of Iceland Supermarket mainly seeks for a good merchandisingprice 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 pricewould generate high quantity sale of the products. 1.3 Strategies to meet the responsibilities as an organizationIt is evident that an organization needs to implement a perfect set of strategies andaccordingly follow the specified action plan. This process would help them to meet up all theobjectives and sustain a high competency level. In that case, it is necessary for the company likeIceland supermarkets to develop an effective set of strategies for achieving all the targetsdetermined as per their business. For this, the company needs to consider each and every aspectof business activities and processes that leads to success. Accordingly, it has to define a set ofaction plan which is beneficial for the management as well as the society and other relatedauthorities (Faul, 2008). In addition to this, it has to consider various elements in respect to theirbusiness and market which are:Stakeholder responsibilitiesCustomers –Company has to focus on their customers’ needs and wants which isgenerally 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 astrategy in order to be competitive in providing high value and better quality. Themanagement of an organization has to protect their customer’s health and safety, forwhich Iceland Supermarket is pledged to their customer's principles for sustaining in themarket. Company has destroyed all their products which have flavours and artificial4
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