Comprehensive Analysis of UK Business Environment and Policy

This report provides a detailed analysis of the UK business environment, covering various aspects such as different types of organizations (for-profit, non-profit, public sector), legal structures (partnerships, sole traders, limited liability companies, and corporations) with their advantages and disadvantages, and the differences between public and private ownership. It also discusses UK competition policy and the legislative framework, including the role of the Competition and Markets Authority (CMA). Furthermore, the report examines fiscal and monetary policy instruments and the impact of globalization on businesses, using examples like Tesco to illustrate the effects of political, economic, social, and technological factors (PEST analysis) and Porter's Five Forces model to assess competitive intensity. The report concludes by highlighting key findings and providing recommendations for businesses operating in the UK environment.

Business Environment

Contents
INTRODUCTION.........................................................................................................................................14
MAIN BODY...............................................................................................................................................14
PART -1......................................................................................................................................................14
(Covered in PPT)........................................................................................................................................14
PART-2.......................................................................................................................................................14
1.Overview of the different types of organisations in different sectors................................................14
2.Different legal structures including their advantages and disadvantages:.........................................15
3.Differences between public and private ownership...........................................................................15
4.UK Competition policy and the legislative framework........................................................................16
5.Process of Competition and Markets Authority operates:.................................................................16
6.Objectives and fiscal and monetary policy instruments:....................................................................17
7.Globalisation and how it affects business:..........................................................................................17
CONCLUSION.............................................................................................................................................18
REFERENCES..............................................................................................................................................20

Slide 1

Slide 2

Slide 3
• It will analyse the PEST model in detail to identify various macro environmental factors that
affects the working either in positive or negative manner.
• Lastly, the presentation will identify the Porter five forces model in context of quoted firm so
that competitive strategies can be developed in the future.

Slide 4
• In context of Tesco political factors may either create positive or negative impact depending
upon the situation of any particular country. For example: if there is political instability in any
country than government may not allow to sells goods easily because of certain trade
restrictions.
• Moreover, prices of good could be increased when tax rate is high in any particular region and
thus it may create negative impact on sales of Tesco as consumers would switch to buy local
market goods

Slide 5
• Moreover, with the new reforms in United Kingdom such as Brexit reforms, inflation rate is
higher that may be demerit for the quoted firm as demand of the products becomes lower as
purchasing power decreased.
• Moreover, salary expectations of Tesco workers increased and thus there was higher
production cost that may also create a negative impact as demand of its shareholders has to be
met to work in long run. Economic factor proved positive for Tesco in time of Covid-19 when
unemployment rate was higher and thus it has opportunity to higher workers at low salaries
thus reducing the cost of operations.

Slide 6
• This factor may create positive impact on the brand image of Tesco as it can change its variety
and include more healthy options such as organic food products. Also, consumer’s behaviour
demands in fair trade movement where the right prices must be given to farmers and other
suppliers for various products that are kept in the supermarket.

Slide 7
• Also, Tesco made this factor turned out positive as it has come up with an idea of selling its
goods online and also given various interesting promotions, discounts and rewards etc. to
build brand loyalty.Moreover, the recent announcement of Tesco with Amazon Go to create
new technology for cashless transactions is also very popular.

Slide 8
• Tesco competitive atmosphere can be understood as below:
• Threat of new entrants:
• There is always fear that new rivalries will enter into the market at some point of time but
Tesco does not have to worry much as it has its own competencies different from others and
also enjoys economies of scale. However there is threat of opening of certain small retail
outlets in UK that will serve the consumers’ needs when rest others are unable to fulfill.
• Competitive rivalry:
• The rivalry is very high in the UK due to increasing demand of various goods among the
people in various regions. As result most of the retail outlets try to introduce those products
that are completely different and unique from the rest others to stay ahead in competition.
Example: Sainsbury, Morrison’s, Aldi etc.
• Threat of substitutes:
• There are various substitutes that are available in the market but the Tesco is considered super
brand because of its price strategy of making the goods available at lowest prices as possible.
Hence, even if other substitutes are present they cannot compete with big retailers with limited
investment and business strategies.
• Bargaining power of suppliers:
• In UK it is considered from low to moderate because of large number of suppliers that are
ready to provide raw materials and other resources at lowest prices. Hence, due to number of
suppliers Tesco can easily avail the services at lowest prices to fulfill certain business strategy
• Bargaining power of buyers:
• It is high in United Kingdom due to presence of various vendors in the market. Thus,
consumers are kept at high priority as customers awareness is increased due to various social
media platform and thus they can easily switch to other options if demand remains unfulfilled
in certain retail outlet.

Slide 9
• Moreover, the presentation analyzed that through using porter five forces model quoted firm
could gain competitive advantage in short period.

Slide 10
• Pervan, M., Curak, M. and Pavic Kramaric, T., 2018. The influence of industry characteristics
and dynamic capabilities on firms’ profitability. International Journal of Financial Studies.
6(1). p.4.
• Safeer, A. A.and et.al. 2021. Role of brand experience in predicting consumer
loyalty. Marketing Intelligence & Planning.
• Wiid, J. A. and Cant, M. C., 2021. MARKET CONDITIONS IN GAUTENG TOWNSHIPS:
CONDUCIVE TO BUSINESS GROWTH AND SUSTAINABILITY. Academy of
Entrepreneurship Journal. 27. pp.1-16.