Impact of National Environment and Policies on Business: Tesco Report

This report provides a comprehensive analysis of the national business environment, focusing on the influence of national conditions and policies on organizations. It begins by defining the national environment and explaining the importance of national entrepreneurship strategies, highlighting their role in fostering innovation, community development, and addressing unemployment concerns. The report then delves into the roles of monetary and fiscal policies, detailing their impacts on companies like Tesco, including credit availability, tax implications, and overall economic effects. Furthermore, it evaluates the impact of competition policy and other regulatory mechanisms on business activities, emphasizing the positive and negative consequences for a company's operations. The report concludes with a case study that compares and contrasts the benefits and challenges faced by Tesco while operating in diverse economic environments, such as the UK and China, identifying similarities in achieving growth and maintaining a sustainable position.

The Business Environment
Title: The nature of national environment in which organisation operate
National environment is the environment corresponding to national
territory such as surrounding area covered in exclusive economic zone agreement
as well as airspace over country. Organisations get affected or influenced through
their own national conditions along with the ways they operate within the field.
Explanation of importance of national entrepreneurship strategy
National entrepreneurship strategy refers to key input for generating
situations to link education system along with human resources requirements to
country in order to address the matching of abilities, aspirations and skills for
devising sustainable self employment choices.
In case with Tesco, the strategy is significant to encourage socially together with
economically productive operations or activities by employees acting
independently in company. Principal objective of the strategy is to enhance
entrepreneurial activity level that are considered to be down the social optimum.
Some of importance of national entrepreneurship strategy are as explained:
Fostering innovation: National entrepreneurship strategy is important to
foster innovation on high level and putting them on attaining economic and social
policy agenda. The strategy motivates organisations to offer unique merchandise
and reduce dependence on obsolete technologies addition to systems. By
adhering the strategy, managers of Tesco improves quality of life along with
morale and provides greater economic freedom.
Community development: The aim aim of national entrepreneurship
strategy is to navigate community from continuity to change, specialisation to
diversity, stability to turbulence through developing suitable entrepreneurial
skills. With the strategy, entrepreneur of Tesco emphasis towards contributing in
community development and increasing overall efficiency of economy.
Tackling growing concerns: In a country, growing concerns of
unemployment issue in an environment in which higher uncertainty levels puts
bigger question on employment generation potentials of large companies are
tackled with the help of national entrepreneurship strategy. By using the strategy,
entrepreneur of Tesco help the national environment to deal with unemployment
situation wherein it operates.
Explanation of role of monetary as well as fiscal policy and the possible impact on
companies addition to their activities
Monetary policy:
It is defined to macroeconomic policy which is laid down by central bank
and includes management of interest rates, money supply, demand side economic
policy which government of nation uses for attaining macroeconomic objectives
such as liquidity, consumption and growth. It is responsibility of central bank of a
nation.

Following are some of role of monetary policy in a country:
To stable prices: Monetary policy plays key role of maintaining stability on
price levels as well as exchange rates. Monetary authority keeps constant vigil
towards movement of prices for regulating supply addition to direction of money
in order to maintain stability in domestic price levels.
Creating and expanding banking institutions: It is role of monetary policy to
speed up aspects of economic development through improving current together
with credit system of nation. For this aspect, huge number of banking institutions
are established for providing huge credit facilities as well as mobilise savings.
Suitable interest rate structure: Another role of monetary policy is to set
suitable interest rate structure as per the requirements to develop economy. For
this aspect, cheap money policy must be focus as it keeps cost of serving public
debts minimum and makes public borrowing cheap which stimulates investments
in nation.
Monetary policy impacts on not only on companies as well as their activities but
also on entire economy in great manner. It is potentiality to obtain credit.
Contractionary policy lowers money supply addition to makes difficult for
company such as Tesco to borrow money. Furthermore, Expansionary monetary
policy ensures interest rates at low levels and easy availability of credit that
impact positively on company to take loans or credit for managing daily
operations and achieving objectives as per planned criteria. Activities of
company depends widely on these policies. At same time, it is also analysed that
the policies reduces taxes that influence activities of company in making less
expenditures for paying taxes which leads to making profits.
Fiscal policy
It is the mechanisms that assist government to make adjustment within
levels of their spendings and taxation rates. In other words, fiscal policy is
utilisation of government expenditure addition to revenue collection for
influencing economy of nation.
Roles played by fiscal policy are as follows:
Mobilising resources: Fiscal policy perform role to mobilise resources in
underdeveloped nation. In such nation, national income as well as per capita
income are generally low because of lower saving rates. So, governments forces
savings and investment to accelerate development of economy.
Provide employment opportunities: Fiscal policy makes huge expenditure to raise
multiple employment opportunities in economies. Government supports
investments and provide tax concessions, subsidies and other facilities to
companies that establish the business in less developed areas and employ local
people which assist in reducing issue of unemployment.

Tesco is top retailer in the world. Retail industry is very challenging as well as
requires huge investment of money from each company on developing their
products and services as they compete with others with the purpose of attaining
competitive advantages. At same time, various regulatory mechanisms are also
enforced in the industry in order to forecast the ways market works together with
the outcomes of results for manufacturers or producers and customers. Certain
regulatory mechanisms includes environmental policies, fair trading, ethical
operations, standard customer services etc which are monitored by regulatory
committee. It have been evaluated that competition policy and other regulatory
mechanisms impacts positively on Tesco and its workings in terms of offering
wider choices to customers, technical innovation that strengthens efficiency of
company and help in making sustainable position in competition. In contrary, the
negative impacts on the business and its activities are seen in context to abuses,
price fixing and huge interference of regulatory body in working of entity.
Case study that compares and contrast benefits as well as challenges to specific
business operating in different economic environments
Tesco is the company that operate in distinct economic environments that
includes some challenges to business and certain benefits also. Some of countries
wherein Tesco operates are France, UK, Ireland, China, India, South Korea,
Thailand, Turkey, United States, Slovakia etc. For example, by operating business
in UK that have mixed economy, Tesco enjoys benefits of easy doing operations as
there are limited restrictions to initiate new operation, manageable taxation system,
effective recruiting of skilled employees, strong infrastructure and improved
flexibility. The challenges that are faced by Tesco while operating in the market
environment are Brexit negotiation, advancement in technology and uncertain
future. In contrary, by doing business in China which have economic environment
of centrally planned economic system, benefits that Tesco achieves are favourable
government policies, facilitating entrepreneurial environment, abundance of talent,
growth opportunities and stability in macro environment. The challenges that
Tesco faces in the business environment are difficulty in market access, diversified
customer preferences and intense competition. The similarity in working the the
economic environment are that both helps in achieving growth and maintain
sustainable position.
To assess the enforced regulation and dominant
administration: This is a proactive measure of
monitoring and review. As there should be proper
and regular checking of implemented standards in
organisation.
Inducement to capital formation: Fiscal policy have significant responsibility of
making investment within strategic industries and private sector through
providing assistance for introducing modern tools for production which leads to
inducing capital formation.
Fiscal policy have great impact on organisations and their operations.
These are determined by government as well as includes amount of tax which are
to be paid by entity to government. For example, if there are increase in tax level,
then Tesco have less money available for investing as well as performing other
activities including recruitment, innovation etc that impacts negatively on its
exiting activities. The company can charge huge money to customers for its
offerings. However, in context to low taxes imposed by government, then
positive impacts are seen on Tesco and its activities as it can invest huge money
in different sectors that create multiple jobs for people and leads to making more
return on investment.
Evaluation of impact of competition policy as well as other regulatory
mechanisms on activities of specific company
Competition policy refers to structures political system have against
regulation of monopolies as well as markets. The main objective of competition
policy is to prevent growth and development of monopoly power together with
prevent abuse of restrictive trading practices and monopoly power.