Analysis of Business Environment and Management for Crocodile Garments

This report provides a comprehensive analysis of the business environment management of Crocodile Garments (CG). It begins with an introduction to business environment forces and stakeholder analysis, then delves into CG's mission, vision, goals, and corporate social responsibilities. The report further examines how CG meets the objectives of various stakeholders, outlining the responsibilities of the organization and the strategies employed to fulfill them. Task 2 focuses on economic systems, fiscal and monetary policies, and competition policies and their impact on CG. Task 3 explores market structures, market forces, and the influence of business and cultural environments. Finally, Task 4 assesses the significance of international trade to UK business organizations, the impact of global factors, and the influence of European Union (EU) policies on CG's operations, concluding with a summary of key findings and recommendations.

Environment
Management

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Purpose of different types of organisation........................................................................3
1.2 Extent to which CG meets the objectives of different stakeholders.................................5
1.3 Responsibilities of CG and applied strategies to meet them............................................6
TASK 2............................................................................................................................................7
2.1 Attempt of economic systems to effectively allocate the resources.................................7
2.2 Impact of fiscal and monetary policies on CG and its business activities........................8
2.3 Impact of competition policies and other regulatory mechanism on the activities of CG9
TASK 3..........................................................................................................................................10
3.1 How market structures determine the pricing and output decisions of CG....................10
3.2 Ways in which the market forces are shaped.................................................................11
3.3 Impact of business and cultural environment on shaping the behavior of CG...............11
TASK 4..........................................................................................................................................12
4.1 Significance of international trade to UK business organizations..................................12
4.2 Impact of global factors on UK business organization..................................................13
4.3 Impact of European Union (EU) policies on CG...........................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Business environment is an amalgamated structure of both intrinsic and extrinsic forces
that largely influences the major decisions of businesses. These forces exist with a dual repulsion
which directly or indirectly affects the business activities. Stakeholders are the representable
participants of such forces into which the internal factors are mainly referred to the employees,
suppliers, distributors, investors or shareholders, etc. However, the external forces are meant to
refer the clients and regimental bodies of an active market along with the existent number of
contenders operating into it. The governmental parties are hereby responsible to frame both
political and economic decisions of the market that subsequently signifies the operational
policies for the business organisations (Radwan, 2016).
The below report is with a similar application of such varied forces upon a famed
establishment named as Crocodile Garments (CG) with it’s headquarter in Hong Kong. It is
basically referred to be a retail enterprise that mainly deals in the commodities of clothing and
garments with a foundation year of almost 64 years. It has firstly demonstrated about the purpose
of various organisations along with the nature of their domestic surroundings that impact upon
their business operations. It has together articulated the behaviour of the firms into their
ascertained market environment by together assessing some significant international factors to
shape to up their domestic business activities.
TASK 1
1.1 Purpose of different types of organisation
Each organisation consist of distinct nature and objectives that defines its overall stature
of operating with some specific aims or goals that ultimately depict about their concentrated
missions and vision. CG is hereby referred to be an entitled company which is mainly possessed
by the participant bodies of shareholders. The administrative bodies on behalf of the investors
and lenders operate the entire business activities by borrowing their given stock as funds. The
capitalists later acquires their share of income in the form of dividends. With a similar reference
to it, below described are the ascertained missions, vision, aim, goals and objectives of the
quoted entity-
Mission statement:

The mission statement of CG is concentrated upon their three major depictions into
which they are mostly focussed raising the value of their shareholders with a simultaneous rise in
financial performance. It will be done by a fine creation of reward systems to maintain a long
term relationship with the customers. This prior cogitation is subsequently backed up with a fine
practice of open communication by rendering genuine and transparent services to the customers.
It is where they are together aimed at providing qualitative services to the users with some
innovated context in it into which they are consequently referring to maintain impelling and
managed relationship with their consumers (Aterido, Hallward-Driemeier and Pagés, 2011). It is
mainly in order to refer their altering preferential needs and desires by duly satisfying them on a
considerable period.
Vision:
The vision statement of Crocodile Garment states their conspicuous desire of becoming
an international manufacturer of garments where they can successfully operate at a worldwide
level. It also states about their respective focus upon being a qualitative performer with some fine
standards of servicing their clients by fulfilling their rigorous anticipations.
Goals and Objectives:
The aims and objectives of the cited firm are considered to be a lateral resultant of its
above depicted business values where they are clearly aimed at developing a contract
performance where their hired workforce should operate at a safer prospective of work. CG are
together focussed at providing flexible stature of work to their personnel with some timely
arrangements of training and development sessions for them. This assists them to work at a lower
manufacturing cost along with some diminished expenditure of distribution and functional
expenses as well (Hazlina and et.al., 2010). Some other valuable approaches of the quoted firm
have also depicted their amended measures of customer service with some advanced technical
prospects of work with improved services of delivery, etc.
This will in turn result into a raised structure of their profits with rising sale of products
and a reformed economic performance. It further states about their marginal profits and market
shares where presently they are dealing with 60.57% of gross margins with a net profit margin of
4.63% and operating margin of 6.81%. These are however stated to be a decreased ratio where
after 4 stable years of income statement, CG have abruptly faced with such diminished value of
revenues and net income.

Corporate Social Responsibilities (CSR):
It is with reference to their philosophical belief of serving the community with some
improvised practices where it has actively participated in varied charitable and community
activities. The CSR activities of CG comprises with three substantial parts as mentioned below- Charity: It has been awarded as “Caring Company Logo” in the year 2008 where they
have also donated a charity fund of 150 million dollars along with some emergency relief
items to “The China Foundation for Poverty Alleviation” in the year 2005. They have
together participated in varied charity sales of since the year 2009 where it has together
raised funds for the same. Environmental Protection: Crocodile Garment hereby states themselves as a socially
responsible corporation where they have promoted the concept of 3R. It vitally focuses
upon the three leading terms of reduce, reuse and recycling for uprising the quality of
environment (Cordes, Richerson and Schwesinger, 2010). They together motivate the
community people to preserve the means of natural surrounding.
 Sports: It states about the sponsorship titles of CG where it has represented two title
sponsorship of “World Hong Kong Luminous Dragon & Lion Dance Championship” and
“HK Squash Championships”. They have together represented Gold Sponsor of “The
Hong Kong Games” and Product Sponsor of “The 16th Asian Games”.
1.2 Extent to which CG meets the objectives of different stakeholders
Organisational stakeholders comprises with a dual nature of existence where the internal
participants are mainly referred to the integral bodies of an entity like CG. It is where employees,
managers, board of directors and investors are referred to be an active associates of intrinsic
stakeholders. However, the external bodies are hereby referred to those who are not referred to
be an active participant of a business but makes an equivalent impact upon the business
decisions. Consumers, regulators, suppliers and some extrinsic capitalists are considered as some
progressive bodies of extraneous stakeholders. Each and every associated bodies of stakeholders
exists with distinguished set of objectives, as delineated below- Investors- The capitalist bodies of the cited entity are hereby referred to be the providers
of risk capital and are thence concerned about the risky factors of operating the business
(Chavis, Klapper and Love, 2011). This is mainly with reference to attain a desirable set
of return from their rendered investment of funds. It also enables them to ascertain the

capable factors of CG where they are efficiently able to repay the dividends by the sale of
shares. Employees- The set of employees include both sections of administrative consultants
along with the hired bodies of subordinates. They are mainly concerned about the
profitable and strengthening concepts of business where they can acquire a mitigated
sense of working with the cited entity. They hereby require some boosting elements of
motivation with a dual existence of both financial and non monetary constituents of
rewards and benefits. Customers- Another subsequent bodies of clients are users are mainly concerned about
the maintained prospective of business establishments like CG where they should always
render qualitative products and services to them (Muhammad and et.al., 2010). Thus, a
reliable format of servicing the consumers within an affordable structuring of price are
depicted to be some major concentrated arenas of this peculiar set of stakeholders.
 Government- The regimental parties are solicitous about some legitimate procedurals by
CG where they should work in adherence to the implicated structures of taxation towards
nationalised income. This also includes some other precedent components of licensing
and standardisation by together referring to a protective concern for the welfare of
consumers.
1.3 Responsibilities of CG and applied strategies to meet them
The foremost responsibility of organisation is to ensure an efficient outlook of the
business that vitally benefits all its correspondent bodies. With reference to which, CG are
hereby accountable for a due accomplishment of their ascertained objectives by applying certain
below defined strategies-
 The quoted entity should work upon an integrated model of maintaining quality and
environment for their business which should subsequently refer to a lawful structure of
regulations to maintain the compliance approaches of CG (Kang, Lee and Kim, 2010).
 Allotment of duties is considered to a subsequent aspect of organisational responsibilities
into which both set of employees and employers should work in a cogitated manner with
a precise acknowledgement of their predefined obligations. It is with a prior formulation
of the appointed managers in the cited firm where they should clearly specify the
commitment of their subordinates.

 Coordination is yet another responsible factor of CG that directly associates with the
defined cognition of organisational performance where they should choose to appoint
effective set of workforce (Klapper, Lewin and Delgado, 2011).
 Operations are an ultimate responsible element which mainly defines the succeeding
facet of the enterprises. These goals largely serve to attain the purpose of the
establishments like CG.
It is therefore important for CG to operate into a strategic format of work with a clear
definition of organisational responsibilities that are crucial for both short term and long term
association of work. Into which, the short term orientation of goals are mainly related to ensure
an accurate execution of operations that directly benefit the affiliated stakeholders of CG
(Oyegoke, 2016). However, the long term goals are mainly with reference to inculcate a strategic
amendment of policies and procedures to achieve a competitive perception of advantage.
TASK 2
2.1 Attempt of economic systems to effectively allocate the resources
The economic system aligns with the commercialised set of economy along with two
other pivotal existence of mixed and command economy. The market economy is mainly based
upon the private business organisations and their applied tools of marketing. It however exists
into an apportioned formation with a negotiable and grasping attribute to resemble with the
changing dimensions of the market. The command economy is on another hand is directly
influenced by the prospects of demand and supply chain in the market. In addition to which, the
mixed format of economy impacts upon the system of mixed economy. A resultant constituent of
slow economy is mainly due to a deficit contending prospects of the companies like GG.
It is where their accomplishments are hereby required to be changed from a
correspondent inculcation of command economy to market economy (Prajogo, 2016). The
regimental bodies of CG however governs a prospective orientation of market economy and
mixed economy into which a collective instrument depicts a disapproved esteem towards
violated set of economy. The governmental role in developing economy is basically to
disapprove the inadequate existence of production. An active existence of opportunity cost is
assumed to be the best possible source to obviate the factor of low economic stature. The

controlled action plan is also shattering the land and resources where there is a leading
requisition of investing capital by the governmental bodies.
2.2 Impact of fiscal and monetary policies on CG and its business activities
Both fiscal and monetary policies makes a direct and indirect effect on the framed
decisions of CG. These decisions are mainly with reference to define about some essential tact of
managerial executions along with certain competitive constituents of operating the business. It is
where the business considerations of CG will rigorously deal with some potent ups and downs of
declination and regain. These policies at that time will directly affect the size and time of their
rotational business cycles (Trkman, 2010). It is mainly with reference to some affiliated factors
developing economy with an exaggerated expense of consumers that directly result to rise the
interest rates to another level of inflation. These factors exist with some major impediment
factors of work shut down with an increased loss in employment that directly results into a
decreased performance of business activities in CG.
The disbursals made by government is however to recharge the economic stipulation of
nations. Into which, the business cycle of the cited entity will hereby continue to work upon a
new level of development. The monetary policies are mainly set by the orderly rates of fund in
the nation. This directly impacts upon both short term and long term rates consisting of the rates
of credit cards and loans, etc. However, the fiscal policies are directly governed by the
regimental bodies of the operational market of CG in order to define their taxation policies along
with some legal regulations to strengthen the business surrounding.
This also involves the spending policies into which lower taxes results into more income
for clients and users. It in turn results in rising the cash flow in the business of CG where they
can invest it into their R&D department of research by together building newer infrastructure for
the business (Teece, 2010). It however exists with a short-term context of nature that aids to
drive the business demands by creating short-term opportunities of employment by levelling
down the hovering condition of unemployment. It however increases the business incomes over
the time where CG can efficaciously refer to a long term prospective of growth in the future. The
monetary policies involve some major influential factors that directly impact upon the nation's
prospective of money supply.
It together refers to change the short term rates of interest by simultaneously impacting
upon the long term rates of loan, etc. Such lower enforcement of interest rates directly results

into lowering the expenditure of interest for the businesses. This also results in alleviating the
level of income for the consumers with a controlled measure towards inflation by creating huge
profits for CG. It however exists with a reversal impact of high interest rates with some counter
impact of raised expenditure of interest by significantly lowering the sales and profits of the
quoted firm. Thus, on summarising the dual consent of both the policies, one can directly state
about the changing impact of interest rates that in turn affect the spending layout of customers.
2.3 Impact of competition policies and other regulatory mechanism on the activities of CG
Competition policies leads to a strengthened perspective of businesses where it directly
leads to inspire the effective factors of business for both consumers and the companies like CG
by significantly reducing their varied costs and enhancing the qualitative dimensions of their
products and services (Soto-Acosta, Placer-Maruri and Perez-Gonzalez, 2016). However, some
pivotal impact of such policies along with some other regulatory mechanisms of CG are as
defined below-
 The low pricing strategy significantly assists CG to gain higher shares in the market
where they work into a competitive percept of business with reduced fixation of prices.
Such competition together improves the qualitative nature of proposed goods and
services by CG that is mainly to fetch a liable interest of the clients and users with a
pivotal rise in market shares. This also results in enhancing the innovative content of CG
where they can refer to the enforced strategies of their contenders and can opt to build a
distinct set of goods and services for the customers. It will largely assist them in gaining a
competitive advantage while exposing into the global set of markets by producing better
products.
 The economic regulations is another vital strategy that is generally implemented to
analyse some influential factors that impacts upon the business performances (Aula,
2010). It is referred to be a major contributory factor that refers to develop the business
performance of CG with a gradual decrement in any existent state of poverty. A technical
development for assessing the impact of standardised implications to process the
regulative action plans largely contributes in amending the applied strategies.
These factors thus helps in developing an improvised role of regulations that further helps
in improving the economic performance of CG by together preventing the state of poverty. It

also is also considered to be a huge contributory factor where it helps in designing some
reformed policies and regulations to spread over the research.
TASK 3
3.1 How market structures determine the pricing and output decisions of CG
Four types of market structures are available for various organizations. It depends upon
goal and objective of particular firm to opt such structure. Several market structure determine the
pricing and output decision of the company (Abdullahi and Zainol, 2016). It is very important
that CG chooses right market structure that should be related with goals of the organization.
There are several market structures as below: Oligopoly: In this kind of market structure, industry is dominated by small sellers. Very
small organizations have large market share. If concentration ratio is high then company
identify as Oligopoly firm. In this structure decision of one firm influence others decision
too. It is beneficial for such firms to control prices of their products or inventories. It
increases competition between several sellers and it can be fierce as low prices and high
productions. Monopoly: In this structure only one manufacturer or single trader is available. There is
no other dealer is present in such area. A firm has many competitors but challengers are
having different products (Czinkota and et.al., 2010). So that in this market structure
company can take its own decision about price and output. In this organization is free to
enter and to exit from the market and no such barrier is present. Perfect Completion: This is hypothetical market and competition is too high. CG is
having this market structure. There is no barrier to entry and exit. Company produce
similar and identical outputs and that are not branded. In this particular firm has no rights
to increase its price or decrease cost of the products. In this structure firms earn normal
profits in long tern period.
 Monopolistic competition: In this type of market structure, many traders sell their
products but each product is differed from other in term of branding and quality
(Gecevska, V. and et. al., 2010). There is no existence of any substitute products.

3.2 Ways in which the market forces are shaped
The market forces makes a direct impact upon the organisational responses where they
are considered as some direct responsible factors to shape up the existent measures of
establishments like CG. It is mainly with reference to a changed perspective of supply and
demand where such modifications directly changes the existing rate of prices (Commander and
Svejnar, 2011). These are thus referred to be some interlinked factors into which a surplus
demand of products results into a discriminated stature of pricing by CG. It is where the surplus
production can be used by the suppliers where they can implicate the exceeding minimal cost of
manufacturing the goods. Market equilibrium is referred to be yet another major factor into
which the supply matches with the demand of goods and commodities with no prior shortage or
excess in it.
3.3 Impact of business and cultural environment on shaping the behaviour of CG
Business and cultural environment plays a significant role in shaping behaviour of CG. A
business firm is an open system which get affected by external environmental factors. These
factors provide opportunities and threats for the company. It is difficult to change the cultural
and business factors as they are external and firm is having less control over these factors.
Political factors that affect working of CG firm includes government laws formulated by state to
regulate industrial relation in the country. CG follows all the rules while formulating policies of
the business. Monetary, fiscal and industrial policies of the state also affects overall working of
the firm as it changes external business environment of the firm.
Social and cultural factors are significant for shaping the behaviour of firm (Abdullahi
and Zainol, 2016). Customs and tradition of a place, education level of people and preferences of
people comes under the socio-cultural factors. Utilization of these factors in a effective way
provides an effective method for using the opportunities that are available in market place. Social
and cultural factors affects operational activities of the business as company needs to
manufacture products according to requirement of consumers and traditions, customs and rituals
of a place play a significant role in determining buying behaviour of consumers. Analysis of
social beliefs and culture helps a firm to understand market requirement and it provides an
effective medium to promote products and services in a better and effective way. Economic
environment that includes economic conditions of a country, purchasing power of people and
market situation also affects success of the company in market place.

TASK 4
4.1 Significance of international trade to UK business organizations
International trade is important to UK business organizations in respect of comparative
advantages. The concepts demonstrate a trade between two countries can be made in a mutually
beneficial manner (Xue, Shen and Ren, 2010). This is very helpful to every business in bringing
new resources and its allocation in an effective manner.
Some greater benefits received by the international trade are:
Increase sales and profit: UK business not only trade in their own country but to gain the profits
it increases their sales in other countries with the help of international trade. Different
opportunities exits for company and it also helps a UK business to expand their markets in
another country and maintain their production line. It is with relation to discuss upon the
associated factors of CG enterprise where they can also utilize the beneficiary factors of
international trade. A business expansion will precisely help CG to significantly enhance their
current generation of revenues.
Decrease dependency on existing markets: Company not only depends on the existing markets
for the profits but with the help of international trade they expand their business across the globe
and attain their predetermined targets with greater effectiveness (Trkman, 2010). Thus, with
respect to the prevalent instance of CG, a proficient extension of business activities will precisely
guide them to lower their limited prospects of domestic market. It is where they are entirely
relied upon their domicile marketplaces with no prior recognition at an international level.
Gains a global market share: A business operates worldwide and gain profits with the help of
increasing number of customers in another country. This increases the global market share of the
business. If the market share of business is very high a company achieves its growth above the
set limit. An international expansion of business operations will largely serve CG to gain a
substantial market share of its extended market arenas with a raised generation of income at a
worldwide level.
Take advantage of international trade technology: It is very easy for the marketers to adopt the
latest technology in their own country with the help of international trade (Radwan, 2016). Two
countries exchanges their technology and gained the competitive advantages. It is yet again with
reference to the foreign expansion of business by CG where they can take a prior benefit from
the advanced technical prospects of both its domestic and international marketplaces.