Business Analysis 2: Business Environment Report for Module Assessment

This report provides a comprehensive analysis of the UK business environment, focusing on key aspects such as legal structures, competition policy, and globalization. It examines the legal structures of Ferguson, Marshall Group, and the National Trust, including sole proprietorships, partnerships, LLCs, and corporations. The report assesses the UK's competition policy, including legislative frameworks and the role of the Competition and Markets Authority. It also explores the impact of fiscal and monetary policies on business operations, along with the effects of globalization on businesses, competition, and the overall economy. The analysis includes discussions on financing, anticompetitive practices, and how globalization influences business strategies and market dynamics. The report utilizes case studies of Ferguson, Marshall Group, and the National Trust to illustrate the concepts discussed.

Business Environment (Ferguson, Marshall Group, the National Trust)
(Report)
Student’s Name
Module code
Module Title
Dated

Business Analysis 1
Table of Contents
1. Introduction..................................................................................................................................3
1.1 Ferguson................................................................................................................................3
1.2 Marshall Group......................................................................................................................3
1.3 The National Trust.................................................................................................................3
1.4 Legal structures......................................................................................................................3
1.4.1 Sole Proprietorship.........................................................................................................3
1.4.2 General Partnership........................................................................................................4
1.4.3 Limited Liability Company (LLC).................................................................................4
1.4.4 Corporations...................................................................................................................4
1.5 Public Ownership...................................................................................................................5
1.6 Private Ownership.................................................................................................................5
1.7 Forms of Financing of public ownership...............................................................................5
1.7 Forms of Financing of Private Ownership.............................................................................5
1.8 Assessment of the UK Competition Policy...........................................................................5
1.9 Legislative Framework With respect To Anticompetitive Practices.....................................6
1.10 How the Competition and Markets Authority operates to review Business practice and
impact on the Consumer..............................................................................................................6
1.11 Fiscal and Monetary Policy Instruments and the Impact on Employment, Taxation,
Interest Rate, Balance Of Payments and Exchange Rates In Relation To Business Operations.6
1.12 Globalisation........................................................................................................................6
1.13 How Globalisation affects Business....................................................................................7
1.14 How Globalisation affects Competition..............................................................................7
1.15 How Globalisation affects Economy...................................................................................7
References........................................................................................................................................8

Business Analysis 2
1. Introduction
1.1 Ferguson
Ferguson, is a company previously known as Wolseley Plc, established in 1953 by
Charles Ferguson mainly along with other business partners Ralph Lenz and Johnny Smither
with its headquarter in Wokingham, England. Its starting capital was around $165,000 at the
beginning. Ferguson is a British-American based multinational distributor company of plumbing,
ventilation, building constructive materials, air conditioning equipment and heating products.
The networks of products distributor are centred in UK, US and Canada (Iqbal and Keay, 2019).
1.2 Marshall Group
Marshall Group is a company founded by David Gregory Marshall in 1st October, 1909.
The headquarter is located in Cambridge Airport, UK. It was formerly known as Marshall’s of
Cambridge, operates to maintain, modify and design of an aircraft globally. The company works
on a civilian aircraft ranging from Cessna Citations to Boeing 747s (Johnson, Rudolph and Seay,
2010).
1.3 The National Trust
The full name of National Trust is National Trust for Places of Historic Interest or
Natural Beauty, it is the UK based charity organisation initiated by Octavia Hill, Sir Robert
Hunter and Hardwicke Rawnsley in 12th January, 1895. The main aim of the trust is to promote
the preservation of architectural heritage for the benefit of Nation (Lawlor and Lithgow, 2016).
1.4 Legal structures
There are four main legal structures that is operated in Ferguson, Marshall Group and
The National Trust, including Sole Proprietorship, General Partnership, Limited Liability
Company and Corporations (Robé, 2011).
1.4.1 Sole Proprietorship
Permwanichagun et al., (2014) stated that it is the form of business that is
possessed by single individual in which the owner and business have no legal distinctions
suitable for small businesses. The tax return is not filed but a sole proprietorship passes

Business Analysis 3
through the taxation of its own. The owner is answerable for a legal responsibilities
personally and can lessen the risk with insurance contracts. Entrepreneurs are the most
common founders of sole proprietorships, since they try to get the most out of the
business environment. Due to the small size of the firm, overheads are often low, but if
the company is unable to produce a profit and continues to accrue debt, the owner is
completely responsible for any outstanding obligations.
Advantages and Disadvantages
 It is fairly easy to established
 Overall control of business by owner itself
 Chances of risk has been increased
 Investors would not interested in the individual based organised business
1.4.2 General Partnership
Lin, (2010) described that the business partnership can be created by the
association of two or more people, it requires an agreement of partnership in terms of rules for
percentages of ownership, profit/loss sharing. This entity is a tax-reporting and each member
have to fulfil the tax paying requirements according to the profit/loss sharing. The business
partners are accountable to each other for their actions.
Advantages and Disadvantages- 200 words
 Create easily and tax returns are passed by owner’s profits and losses
 Developing a management and personal liable issues
1.4.3 Limited Liability Company (LLC)
It is the connection of individuals, corporations and foreign entities that makes a
LLC, collectively called members or Owners of LLC. Filing only an informational tax return
demanded by this type of business that means members of LLC reporting to the income tax
returns on the basis of their own profit or loss sharing. To establish an LLC, a standard
agreement of operations must be followed (Tricker, 2011).
Advantages and Disadvantages
 The business unit of the company is responsible for the problems
 The tax is imposed at the individual level
 At the state level additional taxes may be subjected

Business Analysis 4
1.4.4 Corporations
The business structure of corporations are the most complex ones that is
independent from the owner known as shareholders who runs the business. The corporations is
generally used for building up a larger business with number of workforce. C-Corp and S-Corp
are the sub-categories of corporations in which the taxing procedure is the major difference
among them. C-Corps is considered as “double taxation” because entity pays the tax on the profit
of corporations and at shareholders level as well. S-Corp entity pay the tax returns by income
and losses of corporates, deductions and credits of shareholders so that it stays away from
“double taxation”. The shareholders of corporations are not accountable for the company debts
and obligations (Corporations, 2019).
Advantages and Disadvantages
 It requires more accounting and legal contracts
 It is beneficial for the investors
 The development procedure of corporations is costly
 Level of governance is high by the directors of board
1.5 Public Ownership
The public ownership holds the rights to sell its shares through the stock exchange to the
community (Haney and Pollitt, 2013).
1.6 Private Ownership
A group of investors are owned the private ownership and not selling its share in the open
market by means of stock exchange (Dorfman, 2014).
1.7 Forms of Financing of public ownership
There are four types of financing in public ownership public expenditure, public debt,
public revenue and financial administration, aimed to create, maintain and intervene by the
government in the current economy (Dalton, 2013).
1.7 Forms of Financing of Private Ownership
Bank loans, schemes of Government, local councils authorities, asset financing &
leasing, funding are different types of financing for a private ownership company (Hall, Foxon
and Bolton, 2016).

Business Analysis 5
1.8 Assessment of the UK Competition Policy
Monopoly, oligopoly, and competition are the three primary market systems. In an oligopoly
market, a few organisations provide similar items; these are global corporations with little market
rivalry. A monopolistic market is one in which a single business controls the whole market.
Various enterprises compete for the same items in the same marketplace in a competitive market.
In a number of ways, competition policy is tightly incorporated into the UK's overall national
strategy for regulation. Policymakers must assess whether the proposal will have a major impact
on competition when filling out the Impact Assessment Summary. If the impact of proposal on
competition is significant analysis and evidence page are considered. Policymakers should
analyse the four issues posed in the competition evaluation, which are supplemented by
examples of how competition could be harmed. Although the framework for this competition
evaluation was created to aid in the Influence Assessment process, similarly it may be used to
determine the impact on competition of current legislation (Buccirossi et al., 2013).
1.9 Legislative Framework With Respect To Anticompetitive Practices
Price fixing, group boycotts, and exclusionary exclusive dealing contracts or trade
association rules are examples of anticompetitive practises, which are divided into two categories
which are
 Horizontal behaviour refers to agreements between competitors
 Monopolization, often known as single-firm behaviour (Capobianco and Christiansen,
2011).
1.10 How the Competition and Markets Authority operates to review Business practice and
impact on the Consumer
The Competition and Markets Authority (CMA) is the UK's major competition and
consumer authority. It is an independent department tasked with investigating mergers, markets,
and regulated businesses, as well as enforcing competition and consumer laws. It took over the
activities of the Competition Commission on April 1, 2014 (Eve, 2016).
 Regulation and monitoring of prices
 Accessibility to Markets
 Customer Service Standards
 Substitute Competitor

Business Analysis 6
1.11 Fiscal and Monetary Policy Instruments and the Impact on Employment, Taxation,
Interest Rate, Balance of Payments and Exchange Rates in Relation to Business Operations
The aims of government policy are known as objectives, and the tools by which these goals are
accomplished are known as instruments. The government, for example, may set a target of
lowering the proportion of price inflation. Adjustments in the Central Bank's monetary policy
rates, which have been set since 1997, are the principal tool for doing so. The government's
objective is to achieve more equal income distribution. It would then determine which policy
tools, such as tax reform or a raise in the minimum wage, are most suited to accomplishing this
aim. Another tool for achieving this goal may be fiscal policy. Resource strategies can also be
utilised to control inflation and encourage long-term growth. The Federal Government
regulates the money supply with three primary tools: open-market operations, the discount rate,
and reserve requirements. The Federal or a central bank influences the money supply and interest
rates by purchasing and selling government securities (typically bonds). When a recession is on
the horizon, the central bank employs an expansionary monetary policy to boost the money
supply, increase the number of loans available, lower interest rates, and move aggregate demand
to the right (Altavilla et al., 2021).
1.12 Globalisation
Globalisation refers to the international interconnection and incorporation of individuals,
businesses, and governments. Thanks to advancements in communication and technology,
globalisation has increased since the 18th century. Globalisation in business refers to
businesses that operate abroad or on a global scale. This entails the majority of the world's
economies cooperating to provide and produce goods and services. Imports, exports, and
business location are the three primary factors of globalisation (Potrafke, 2015).
1.13 How Globalisation affects Business
Globalisation aims to provide businesses a competitive edge by lowering operational costs and
increasing the number of things, services, and consumers available. Spreading assets,
discovering new investment opportunities, increasing markets, and gaining access to various raw
materials are all ways to get economic value. As a result of globalisation, companies are being
compelled to adopt new techniques based on the most recent ideological tendencies in order to

Business Analysis 7
balance the interests and rights of consumers and society as a whole. This approach allows
employees and authorities to legally engage in the formation and execution of business policies
and goals, which helps organisations operate on a worldwide scale while also signalling a
substantial shift for corporate leaders, workers, and management. Companies can develop more
cost-effective ways to create their goods as a result of globalisation. It also boosts global
competition, which lowers prices and provides customers with a wider range of options. People
in both emerging and developed countries benefit from lower prices since they can live better on
less money (Dabic, Maley and Novak, 2020).
1.14 How Globalisation affects Competition
Increased competition is a result of globalisation. This competition could be related to
product and service costs and prices, target markets, technology adaptation, quick reaction, and
company production, among other things. When a corporation produces at a lower cost and sells
at a lower cost, it can expand its market share (Janeba and Osterloh, 2013).
1.15 How Globalisation affects Economy
Generally globalisation reduces production costs. This allows businesses to sell goods to
customers at a lesser cost. The average cost of items is an important factor that leads to rising
living standards. Consumers can also choose from a greater range of products (Shahbaz et al.,
2018).

Business Analysis 8
References
Altavilla, C., Lemke, W., Linzert, T., Tapking, J. and von Landesberger, J., 2021. Assessing the
efficacy, efficiency and potential side effects of the ECB's monetary policy instruments
since 2014. ECB Occasional Paper, (2021278).
Buccirossi, P., Ciari, L., Duso, T., Spagnolo, G. and Vitale, C., 2013. Competition policy and
productivity growth: An empirical assessment. Review of Economics and Statistics,
95(4), pp.1324-1336.
Capobianco, A. and Christiansen, H., 2011. Competitive neutrality and state-owned enterprises:
Challenges and policy options.
Corporations, C., 2019. C Corporations.
Dabic, M., Maley, J. and Novak, I., 2020. An analysis of globalisation in international business
research 1993–2018: rise of the sceptics. critical perspectives on international business.
Dalton, H., 2013. Principles of public finance. Routledge.
Dorfman, A., 2014. Private ownership and the standing to say so. University of Toronto Law
Journal, 64(3), pp.402-441.
Eve, M.P., 2016. Referring Elsevier/RELX to the Competition and Markets Authority.
Hall, S., Foxon, T.J. and Bolton, R., 2016. Financing the civic energy sector: How financial
institutions affect ownership models in Germany and the United Kingdom. Energy
Research & Social Science, 12, pp.5-15.
Haney, A.B. and Pollitt, M.G., 2013. New models of public ownership in energy. International
Review of Applied Economics, 27(2), pp.174-192.
Iqbal, T. and Keay, A., 2019. An evaluation of sustainability T Autors 209. Common Law World
Review, 48(1-2), pp.39-63.
Janeba, E. and Osterloh, S., 2013. Tax and the city—A theory of local tax competition. Journal
of Public Economics, 106, pp.89-100.
Johnson, L.R., Rudolph, H.R. and Seay, R.A., 2010. An accounting international experience
course. American Journal of Business Education (AJBE), 3(10), pp.55-62.
Lawlor, J.D. and Lithgow, K., 2016. The National Trust and Hinemihi at Clandon Park. In
Decolonizing Conservation (pp. 149-160). Routledge.
Lin, L., 2010. The limited liability partnership in China: a long way ahead. International
Company and Commercial Law Review, 21(7), p.259.

Business Analysis 9
Permwanichagun, P., Kaenmanee, S., Naipinit, A. and Sakolnakorn, T.P.N., 2014. The situations
of sole proprietorship, E-commerce entrepreneurs and trends in their E-commerce: A case
study in Thailand. Asian Social Science, 10(21), p.80.
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