Assessment of UK Business Environment: Competition Policy & Impact

This report provides a comprehensive analysis of the UK business environment, covering various organizational types across sectors, their legal structures, and the differences between public and private ownership, including financing methods. It assesses UK competition policy and the legislative framework surrounding anti-competitive practices, detailing the operations of the Competition and Markets Authority (CMA) in reviewing business practices and their impact on consumers. The report also examines the objectives and instruments of the UK's fiscal and monetary policies, along with the impact of globalization on business, competition, and the economy. Concluding that while diverse organizations operate within varying legal structures that come with advantages and limitations, globalization significantly influences business dynamics, economic stability, and market competition, with government policies playing a crucial role in economic management and market regulation.

BUSINESS ENVIRONMENT

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
1. Various types of organizations in sectors at UK......................................................................3
2. The legal structures further have various advantages and disadvantage.................................4
3 Differences between public and private ownership including forms of financing used for
both..............................................................................................................................................4
4. Assessment of UK competition policy and legislative framework surrounding anti
competitive practice.....................................................................................................................4
5. The way competition and market authority operate to review business practice and have
impact on consumer.....................................................................................................................5
6. The objectives and fiscal and monetary policy instruments of UK.........................................6
7. Globalization and its impact on business, competition and economy.....................................6
CONCLUSION................................................................................................................................6
REFERNECES................................................................................................................................7

INTRODUCTION
Business environment can be defined as external and internal factors that impact on
organization ability to build and maintained strong relationship with the customers. It is dynamic
or ever changing in nature such as policies of government, taste and preference of customers,
technology and environment keeps on changing. So, companies in order to stay ahead in
competition needs to adapt its strategy and set of operation as per external environment and
situation. Globalization has positive and negative impact on business, economy and competition
likewise it lead in increasing competition level in the economy. This report covered information
related to different type of organization operating in different sector, their legal structure.
Furthermore has explained difference between public and private ownership and different forms
of finance used by company to promote its operation. At last it has depict significant detailed
related to objective of government related to introducing fiscal and monetary policy.
1. Various types of organizations in sectors at UK
There are various types of organizations which can be segregated into various sectors,
which can be analyzed into varied aspects connected with significant working rise for
strengthened abilities and fundamental working competencies rapidly evolving. Retail sector is
one of the most essential sectors in UK having wide range of companies, Tesco being largest
organization having wide range of services and products associated based on high scale advanced
technology usage. Another crucial sector is hospitality sector, where Hilton is best brand having
varied range of travel enriched hospitality services for all customers (Huntand Bolivar, 2021).
Sector holds huge importance with changing time and preferences within competitive industry
targets, where productive services have been found to be also critically essential for strengthened
business goals actively. It can be also analyzed that organizations among above discussed
sectors have been found to be also keenly diverse, where technical functional abilities for driving
new change holds huge productive scope for higher customers engagement rapidly. Retail sector
holds huge diversified importance for bringing high range of products and services, catering to
extended customer satisfaction paradigms which has been found to be also competitively
advanced for productive working efficiency.
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2. The legal structures further have various advantages and disadvantage
Public legal structure company is one of the most essential legal structure, where it
further determines potential scope for delivering huge business growth rise diversely based on
productive working advancement. Advantage of public company is that there are varied
shareholders, which can be further connected among extended working scenarios for
strengthened working vision. Disadvantage of public company is that shareholders from external
aspects cannot vitally take any active decision among meetings (Pledger, Giurgiu’s and Merits,
2021).
Private company is another legal structure, where the main aspects connected to business
scenarios are fundamentally correlated towards segmenting growth for gaining stronger growth
among profit aspects. Advantage of private legal structure, is that area of stakeholder’s decisions
is only retained towards company owners who are the main risk holders also. Disadvantage is
that the capital risk is huge, and external shareholders are not involved as they cannot be listed
among public.
3 Differences between public and private ownership including forms of financing used for both.
It can be analyzed that public company ownership finances capital mainly by listing
shares on stock exchange, and on other hand private companies are financed by taking up shares
from own shares significantly which strengthens proper competitive growth rise. Furthermore,
private companies have to finance their own capital based on extended scope which enhances
key abilities for delivering best potentialities. The public companies on other hand, gain capital
from extended shareholders reach and segmented paradigms which further enhances companies
working goodwill dynamically. Financing the capital holds huge scope for business to develop
best strategies, enhance working goodwill productively (Adamou, Kiriakou and Connolly, 2021).
4. Assessment of UK competition policy and legislative framework surrounding anti-
competitive practices
Monopoly is defined as a structure in which a product is sold and manufactured by a
single suppler. In contrast to this, oligopoly is a structure whereby small number of firms operate
in an interdependent manner regarding the pricing and output policies. A perfect competition
structure is one in which homogeneous products are produced by many firms. None of them
influence the industry.
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UK competition policy
The competition policy in UK works to eradicate those practices which restrict healthy
competition or undermines it. This policy is in place to avoid situations like abuse of a dominant
position by a firm in the market. Anti – competitive agreements between firms are also checked
by this policy. The policy also checks those mergers and takeovers as a result of which
competition would lesson substantially (The UK competition regime, 2021). The policy is
responsible for investigating collusive behavior and abuse of market power. Collusive behavior
occurs when an agreement is made by the firms to fix prices. This is illegal and needs
investigation. It also investigates the abuse of market power when a firm has more than 40 per
cent of share in the market.
EU Competition Policy
As compared to UK competition policy, the main aim of the EU competition policy is to ensure
that correct functioning takes place in a single market (EU competition policy, 2019). It works to
ensure that there is a possibility for the enterprises to compete on equal terms.
5. The way competition and market authority operate to review business practice and have
impact on consumer
In current scenario, there is high competition among companies that are operating in
external environment that has provided opportunities to customers to easily select a particular
organization to fulfill their desires and needs (Barnedo and Inocencio, 2021). Customers choose
among these several companies according to their wants, preferences and also the demand for the
products. Competition and the market authority (CMA) plays a vital role in business practices. It
is the competition regulator in UK which control and manage the competitors or the substitutes
that are introduced in the market of UK.
Competition and market authority examines and investigate the mergers of the companies
that could limit or restrict the competition in the market. It also investigates the problems
regarding the consumers needs and wants. CMA undertakes the study of the whole market that
where there may be the competition between the companies. It keeps an eye and the regular
check on the new competitors introduced in the market that they should not breach the laws,
rules and regulations of the UK against anti-competitive agreements (Andriychuk, 2021). It
conduct the proceedings of the customers or the individuals who made any corporate offense.
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CMA also impose or enforce the consumer protection laws in order to handle and manage the
market conditions and the practices of the organizations that creates difficulties for the buyers
regarding their choices.
6. The objectives and fiscal and monetary policy instruments of UK
The main or the basic aim of the fiscal and monetary policy is to decrease or reduce the
fluctuations in the economic cycle (Hachula, Piffer and Rieth, 2020). It includes taxes, budget
deficit, government spending, etc. The government used fiscal and monetary policies as an
instrument at the time of recession in order to stabilize the economy. These policies also gave
impact on the employment, interest rates, tax rates, exchange rates etc. At the time of recession
government imposed high interest and the taxes that affect the business operations directly. There
were no opportunities of employment so the people faces the problem of unemployment at this
period. In order to overcome this situation government apply or use fiscal and monetary policies
that are used to regulate or manage the economic activity (Afonso, Alves and Balhote, 2019).
These policies are used to increase the growth rate of the economy and also to redistribute the
wealth and income.
7. Globalization and its impact on business, competition and economy
Globalization refers to the process of growing the interdependence of the world's culture
and economies (Ergashev and Farxodjonova, 2020). It is an economic concept which includes
trade, investments and the integration of the markets. In simple words, globalization means the
easy movements of the people as well as the goods across borders. It helps the organization in
order to increase the capital and the profitability. It also give positive impact on the economy as
it increases the economic rate. Globalization makes the market efficient and facilitates the new
competitors a good and healthy environment of competition in the market (Branstetter, Glennon
and Jensen, 2019). It also facilitates the various sources of raw material at cheap rates for the
new competitors.
CONCLUSION
From the above report, it can be concluded that there are many different types of
organizations that are working in different sectors. There are some legal structures that have
advantages along with some limitations or the disadvantages. However, it can also be concluded
that the globalization have an impact on business, economy and competition. The government of
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UK uses the fiscal and monetary policy at the time of recession so that they can be able to
manage the economy and also the impact on taxation, employment, balance of payments, interest
rates, etc. On the other hand the competition and market authority plays an important role in
business operations and also for the customers.
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REFERNECES
Books and Journals
Adamou, M., Kiriakou, N. and Connolly, J., 2021. Evolution of public-private partnership: the
UK perspective through a case study approach. International Journal of
Organizational Analysis.
Afonso, A., Alves, J. and Balhote, R., 2019. Interactions between monetary and fiscal
policies. Journal of Applied Economics. 22(1). pp.132-151.
Andriychuk, O., 2021. Shaping the new modality of the digital markets: the impact of the
DSA/DMA proposals on inter-platform competition. World Competition. 44(3).
Barnedo, E.D. and Inocencio, A.B., 2021. Impact of Subsidies on Market Competition in the
Philippine Agriculture and Manufacturing Sectors. Philippine Journal of Science.
150(5). pp.1169-1186.
Branstetter, L.G., Glennon, B. and Jensen, J.B., 2019. The IT Revolution and the Globalization
of R&D. Innovation Policy and the Economy. 19(1). pp.1-37.
Ergashev, I. and Farxodjonova, N., 2020. Integration of national culture in the process of
globalization. Journal of Critical Reviews. 7(2). p.477.
Hachula, M., Piffer, M. and Rieth, M., 2020. Unconventional monetary policy, fiscal side effects,
and euro area (im) balances. Journal of the European Economic Association. 18(1).
pp.202-231.
Hunt, S.A. and Bolivar, V., 2021. Private providers and market exit in UK higher
education. Higher Education. 81.pp.385-401.
Pledger, L.E., Guirguis, K. and Mertes, A., 2021. Making public concerns tangible: An empirical
study of German and UK citizens’ perception of data protection and data
security. Computers in Human Behavior. 122.p.106830.
Online
EU competition policy. 2019. [Online]. Available Through:
<https://www.europarl.europa.eu/RegData/etudes/IDAN/2019/642209/EPRS_IDA(2019)
642209_EN.pdf>. [Accessed on 20 November 2021].
The UK competition regime. 2021. [Online]. Available Through:
<https://commonslibrary.parliament.uk/research-briefings/sn04814/>. [Accessed on 20
November 2021].
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