Impact of Market Structures, Forces, and Environment on UK Businesses

This report examines various market structures including monopoly, oligopoly, and perfect competition, detailing their impact on output and pricing policies. It applies PEST analysis to assess the political, economic, social, and technological factors influencing businesses like Samsung and McDonald's. The report further explores how market forces shape organizational responses and the broader business and cultural environment. It analyzes the relevance of international trade to the UK, the impact of global factors such as terrorism, economic crises, and migration, and the effects of European Union policies on UK businesses, including reduced taxes and competition policies. The analysis provides a comprehensive overview of the external factors shaping business operations and strategic decision-making in the UK context.

TASK 3 and Task 4

3.1 Different market structures determining the
output and pricing policies of businesses
Monopoly market
In this type of market, there is a single firm to produce single good and
services.
There are no close substitutes to the product and the buyers rely on the single
producer.
Due to legal and technical restrictions, new firms are not able to enter the
monopoly market and there are no direct rivalries or competitors.
The single producer determines the output and price of the product or service
as they are price-maker.

Oligopoly market:
There are very few numbers of sellers and good amount of buyers
in oligopoly market.
Close substitutes are always present in the market although each
company tries to differentiate its product features with the rivalry.
The pricing and production policies depend upon competitors
market strategies. There is cut throat competition in the market,
little change in the price of one firm makes a noticeable impact on
the price and output of the other firm.

Perfect competition market
Under this market, various business organizations are
working within same industry with immense
competition. From this, it is evaluated that there exist
buyers and sellers who do not have any options of
entry and exits in the market.

3.2 Impact of market forces in shaping organizational
responsesPEST Analysis Samsung McDonald
Political Political stability in UK will provide
more opportunity to explore the market
resources and forces.
While, instability in the political
scenario hampers the demand and
supply of its services.
Economic Increase in taxation policy will
ultimately rise the price of Samsung
products.
Relaxation in corporate tax will help the
company to invest its capital for new
ventures or existing ones.
Social Current trends and techniques in the
market will help in determining supply
and demand of the product.
Consumers tastes and preferences plays
important role in serving numerous food
stuffs.
Technological Adoption of updated techniques and
gadgets are prominent to identify
demand and supply of products.
Better packaging and advertising
techniques attracts large number of
customers.

3.3 Impact of business and cultural environment
on the organization
Samsung has to consider their business and cultural environment
before taking any crucial decision because it can pamper their
goodwill and profitability.
Apart from it, economic situation can also have major impact on
the performance of the business organization as in country where
there is crisis, cited firm cannot expect to earn revenue and
profits.

4.1 Relevance of international trade on UK
business environment
International market serves as a medium to exchange
commodities and services all across the globe.
It provides political, economic, social and cultural benefits to
both the countries or group of nations involved in it.
In UK, the major part of economy depends upon international
market. Many companies are involved in performing export and
import activities to gain higher profits. It has helped to improve
the GDP of the economy.

4.2 Impact of global factors on UK
business organizations
Firstly, threat of international terrorism hinders the global
business activities. UK -based companies dealing with countries
involved in terrorist activities slower down s the economic and
business transactions.
Secondly, global economic crisis such as Great Depression led
negative impact on the overall global trade also, hindering growth
of UK economy. Opportunities and expansion activities were
suddenly lay ed down in comparison with normal economic
scenario.

Continued...
Thirdly, increasing practices of immigration and migration of
domestic talent from UK to other countries influenced its own
development. As the creamy layer of mangers, executives, business
entities shifted their focus to other nations instead of their own
country.
Lastly, impact of environmental issues like global warming also
resulted in various natural hazards. Tragic cyclones, earthquakes
and tsunamis restricts transportation and communication process. It
creates destruction to people, goods, services and properties.

4.3 The impact of European Union policies
on UK business organizations
It provides benefits like reduced selling tax and freedom from
restrictive fiscal policies that provides higher profits to the
business corp orates.
Eu's competition policies ensures that the market competition
remains free and healthy for the entities to provide the best
products to clients at the best prices.
The employment policies have created more job opportunities for
huge amount of population of the country. The policies and
framework has encouraged people to establish their own
enterprises with innovative ideas and techniques.

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