Understanding Business Environment
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Added on 2020-01-15
Understanding Business Environment
Added on 2020-01-15
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Business Environment1
Table of ContentsINTRODUCTION ...............................................................................................................................3P 1.1 Purpose of various organisations listed below:.......................................................................4P 1.2 The extent to which Iceland Supermarket meets the objectives of its different stakeholders.........................................................................................................................................................5P 1.3 Various responsibilities as an organisation and the strategies Iceland employ to meet them.7TASK 2 ................................................................................................................................................8P 2.1 Different economic factors helpful in allocating resources effectively..................................8P 2.2 Consequences on Iceland Supermarket due to fiscal and monetary policies.........................9P 2.3 Outcomes of competition policy and regulatory mechanism on Iceland Supermarket........11TASK 3 ..............................................................................................................................................12P 3.1 Effect of market structure while deciding pricing and output decisions of businesses .......12P 3.2 Market forces shape Iceland Supermarket responses using a range of examples................14P 3.3 Business and cultural environments shape the behaviour of Iceland Supermarket..............16TASK 4...............................................................................................................................................17P 4.1 Significance of International trade to Iceland Supermarket.................................................174.2 Analyse the impact of global factors on Iceland Supermarket (230 words)............................184.3 Evaluate the impact of policies of the European Union on Iceland Supermarket. (380 words).......................................................................................................................................................18CONCLUSION..................................................................................................................................19References..........................................................................................................................................202
INTRODUCTION Business Environment is combination of internal and external elements which affects thebusiness and their stakeholders. Internal factors affects internal environment of the firm whichincludes policies, practices, employees, etc. whereas external factors are competitors, laws, marketstructure, etc. It is easy to handle internal factors as compare to the external. So it is important togather information about these factors including social, political, economic and legal aspects forworking effectively in achieving decided objectives (Hamilton and Webster, 2012). Differentorganisations have different purpose and objectives while some focus on earning profit and someon social welfare. Each company has its size and type on the basis of which it achieves its targetsand goals. Stakeholders plays important role in success and growth of any company, they have theirarea of interest and affects the firm in either positive or negative way and it is the primeresponsibility of the company to fulfil demands of stakeholders (Wetherly and Otter, 2014). For explaining all these factors, Iceland Supermarket is taken into consideration in thisreport. It is a chain of supermarket in Britain which gives emphasis on frozen foods which includesmeals and vegetables. They also sell meat, dairy products and dry goods. The study focus on thepurpose of various organisations, stakeholders of Iceland Supermarket, their responsibilitiestowards stakeholders, market structure, various policies, global factors and international trade. Inthe end, report is concluded in the form of summary with the key findings. 3
P 1.1 Purpose of various organisations listed below:The purpose of various organisations is explained below.Iceland Supermarket: This supermarket is a limited company which has 1.8% share of UKfood market. Private Limited firms do not provide their shares to the public or we can saythat these organisations are not accessible for the public. The capital of these firms is eithermore or less as compare to public limited firms. The purpose of this supermarket is toprovide frozen meal to the customers that include prepared meals and vegetables. It does notcompromise with the quality and value of food and works according to the statement “thefood you can trust” by delivering healthy and tasty meals to the customers (The IcelandStory) .KFC (Kentucky Fried Chicken): It is an incorporate type of firm whose purpose is todeliver fast food especially non- vegetarian to the customers and using the earned profit inthe growth of the company. Owner of KFC does not use the revenue for his personal use.KFC is a customer focused chain of fast food which specializes in fried chicken. It sells fastfood which appeals to the customers who are price as well as health conscious. By investingthe profit, firm increases its product items and improves the quality of food (Guay, 2014). Transport for London (TFL): It is public government organization whose shares areavailable to the public and is added to the stock exchange. The main purpose of this firm issocial welfare and then profit earning. The main aim of this firm is to use such transportstrategies which can manage transport services across London. It focuses on creating valuesfor their users by providing them with high quality and innovative solutions. For publicwelfare, it concentrates on friendly, safe and sustainable environment by minimizing impactof its operations and pursuing all business policies for continue improvement in environment(Brinkman, Navarroand Harper, 2014). Cancer Research: It is a non government organisation which works for cancer patients andits awareness among the people. It is neither a part of UK government nor a private firmwhich focuses on earning profit. It is a world's largest charity whose purpose is to minimizethe number of cancer deaths. It provides information about various types of cancers, theirsymptoms, treatments, medicines and many more by researching into the prevention,diagnosis and treatment of cancer disease. For influencing people it also conducts variouscampaigns and activities. 4
P 1.2 The extent to which Iceland Supermarket meets the objectives of its different stakeholdersTable 1 Stakeholder analysis matrixHigh power Low powerHigh influence Key stakeholdersGovernment, EmployeesKeep satisfied SuppliersLow influenceKeep them informedCustomersNegligibleNoneStakeholder is a person, group and society who is affected by the decisions and actions ofthe organisation or affects the working of the organisation. There are different stakeholders whohave different areas of interest. The various stakeholders of Iceland Supermarket are explainedbelow. Employees: Employees are the most important assets of any organisation. The objectives ofthem are job satisfaction which includes good working environment, good salary and manymore. To meet these objectives, Iceland Supermarket offer their employees a good salary,conduct training programmes for their career growth and conduct employee engagementactivities to improve the worker relations. All these things, keeps the workers satisfied andmotivated. The staffs of the supermarket are trained properly in dealing with the customersin an effective manner (Wetherly and Otter, 2014). Government: For running any business and achieving the targets it is necessary to cooperatewith the government as it monitor the working of companies. The objectives of UKgovernment are social welfare with the development of country and for this it monitorswhether the companies are following the policies and practices introduced by it or not.Iceland Supermarket follows all polices which includes policies related to the sustainableenvironment, corporate responsibilities, etc. It follows various policies for animal welfarewhich includes Fish Sustainability Policy, animal welfare policy, etc (Craig and Campbell,2012). Customers: The objectives of customers are to get quality, valuable products at affordableprice. Now days, they are health conscious and prefer a good diet. To fulfil all theseobjectives, Iceland Supermarket takes care of the quality and value of the food and providesthem in fast and effective manner with friendly environment. They provide various easy andaccessible services to the customers so that they can enjoy the shopping with them.5
Customers feels that environment of supermarket is not friendly as staff does not guide themproperly so at this point firm is required to improve their environment and staff members(Groza And Ragland, 2016). Suppliers: The objective of suppliers is to maintain good relation with the firm and to workin proper cooperation and coordination. To meet the objectives of the suppliers, Icelandcoordinates with its suppliers and also ensures that they meet high standards of animalwelfare. All the suppliers who supplies meat to the firm have CCTV cameras installed intheir slaughterhouse which is monitored by the Supermarket time to time. Suppliers possesswritten Fish Sustainability Policy for fish welfare (Hamilton and Webster, 2015). 6
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