Business Environment: Impact of Government Policies and Globalisation

This report provides a comprehensive analysis of the business environment, focusing on the UK context. It begins by examining different types of organizations in various sectors, including private sector businesses like Next Plc, public sector charities such as the British Heart Foundation, and non-profit organizations like Oxfam. The report details various legal structures, including sole proprietorships, partnerships, corporate companies, and limited companies, outlining their respective advantages and disadvantages. It also differentiates between public and private ownership, highlighting their financing methods. Further analysis is dedicated to UK competition policy, its legislative framework, and the role of the Competition and Markets Authority in reviewing business practices. The report also explores macroeconomic objectives, fiscal and monetary policy instruments used by the government, and the impact of globalization on business, competition, and the UK economy. The analysis incorporates frameworks like PEST analysis and Porter's Five Forces to assess the external factors influencing businesses like Next Plc.

Business environment

Table of Contents
INTRODUCTION ..........................................................................................................................4
TASK...............................................................................................................................................4
a. Introduction to provide an overview of different types of organisation in different sector ...4
b. Explanation of different legal structure along with their advantage and disadvantage..........4
c. Differences between public and private ownership consisting different forms of financing
uses for both................................................................................................................................5
d. An assessment of UK competition policy and legislative framework supporting with anti
competitive practices ..................................................................................................................6
e. How Competition and market authority operates to review business practices and its impact
on consumer................................................................................................................................6
f. Understanding of objectives and fiscal and monetary policy instrument which can be used
by government to regulate economy during recession and its impact employment, taxation,
interest rate, exchange rate, balance of payment in relation to business operations...................7
g. Understanding of globalisation and its impact on business, competition and economy ........8
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment refers to an environment which is a sum of collection of different internal
as well as external factors like customers need,s employee, demand and supply, clients,
management, owners, activities of government and many more (Belyaeva, 2018). These factors
create various impact over company and business present in a nation. This project report includes
overview of different types of organisation and different legal structure. It consist different
among private and public ownership and their source of finance. Moreover, it consist different
market structure, analysation over competition and market authority.
TASK 1

This project report includes study of Next Plc which is UK based organisation and was
introduced in the year 1864 by Joseph Hepworth. This project report includes study of PEST
analysis and porters five forces model.

These factors create serious impact over company and also their operation. It is important for
managers to identify these factors which create impact over business.

This analysis identify factors related to stability of political structure, innovation and
advancement of technology, social trends and economic changes.

Political Factors: In global pandemic situation, business is facing loss and in order to overcome
of these losses, government of UK is providing support to these business.
Economic Factors: Due to global pandemic, economy of UK is facing recession due to which
purchasing power of people has reduce as it does not allow customers to buy branded products of
Next Plc.

Social Factors: Due to increasing reeds of digital technology, customers will get many option in
market. It increase competition for products and service of Next Plc.
Technological Factors: Managers of Next Plc are adopting various technology in their
organisation which helps them to adopt digitalisation in their organisation and also helps them to
offer products on online stores.

It consist different forces which can be applied in context of industry including competition
within industry, threat of new entry, threat of substitute. Bargaining power of customers and
suppliers.

Competition: competition create huge impact over prices of products and services and also
decrease profitability in industry.
Threat of new entry: It create pressure on Next plc to lower down their prices and also provide
value proposition to customers.
Threat of substitute: A product which are meeting same demands of customers in different
ways are considered at substitute.

Bargaining power of customers: It create pressure on profitability of Next Plc as next Plc is
having customers which are more powerful, it increase threat of bargaining power of customers.
Bargaining power of supplier: Supplier play important role in quality of products and service.
Next Plc has less threat from this factors as they has numbers of supplier in UK.