Business Environment

Mission, vision and Objectives of Busniess

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Introduction to Business Environment

Business environment is the mixture of intrinsic and extrinsic factors which impact the business aspects like market growth, sales and purchase in the nation. It is an important process to take any type of decision for running the business of organization (Botha, Kourie and Snyman, 2014). Iceland supermarket is a retail corporation which provides effective commodities to its clients in United Kingdom and Ireland. The present file describes classification of types of firm in the nation with their purposes. It also introduces various responsibilities of enterprise for employees in the country. It defines economic system of Britain as well. Apart from that, it also explains the effect of competition policy and other regulatory mechanisms on company. Last but not the least; report presents the pricing and output decisions of various market structures in United Kingdom along with stating the global factors for Ice-land supermarket.

Task 1

1.1 Identify the purposes of different types of organizations

Every kind of firm has a different purpose which depends on the nature of its business in United Kingdom.

Private Organization- This type of organization does not contain any government in the country. Main objective of this firm is to generate profits rather than serving public in the nation. For example, Ice land Supermarket and KFC are the best examples of private companies in UK.

Public organization- In this type of firm, stake of government is higher than private authorities in the nation. The purpose of this organization is to serve people and to earn higher income by giving equal importance on both factors in the nation (Hamilton and Webster, 2015). For example, British Airways is a good example of public enterprise in United Kingdom.

Government Firms- It contains pure government structure in the nation. These organizations are made for public service in the country (Wetherly and Otter, 2014). For example, Transport for London is a government firm which provides optimistic service to all citizens of London. Then after, organization earns profit in UK.

Non government organization- These organizations give more concentration for public service like health and social service in UK. For example, Cancer research firm is the best example of NGO which serves cancer patients free of cost in the nation (Bah and Fang,  2015).  
Purpose of Ice- land supermarket

Vision- The vision of Ice-land super market is to become the leading retailer company by providing appropriate products and services in the world.

Mission- Mission of Ice land super market is to enhance the quality of products and services for all types of consumers to get top rank in the United Kingdom.

The main purpose of organisation is to sell genuine retail products to consumers. Corporation also provides effective service after sales of products so as to maintain good relationship with their customers. In addition to this, organisation want to increase its profit and market share in the retail sector of UK. Ice land supermarket also understand requirement of customers in order to complete  them (Kindsfaterienė and Lukaševičius, 2015).

Objectives:

  • To enhance of presence of Iceland supermarket by expanding  its global operations s  in many countries.
  • To achieve higher profits by making effective strategies for increasing the sales.
  • To become good firm by providing the customers satisfaction and rendering effective services in the nation.
  • To conduct effective CSR activities for people to improve the market image in United Kingdom.

Purpose of KFC organisation

Aim of KFC is to earn effective profit by providing quality fast food to the consumers in United Kingdom. Further, corporation also designs new products and services after understanding needs of various customers in the nation (Solomon and et.al., 2014).

1.2 Explaining the level to which organization meets the objectives of its various stakeholders

Ice land supermarket applies many efforts to meet the objectives of stakeholders in the nation. There are many associates like consumers, employees, shareholders, creditors, suppliers and government of this organization in the nation (Kerr and Perdikis, 2014). Corporation also tries to fulfil the objectives of them in United Kingdom. Generally, Ice land supermarket uses customer relationship management (CRM) for providing effective services to consumers. This tool also helps the firm to solve the complaints and queries of customers. This process also helps in understanding the requirement of consumers in the nation. Along with that, organization provides effective working environment to employees and managers. Management of corporation arrange meeting with staff members in order to know the their needs. They also try to complete all feasible needs of employees in Ice land super market. This thing also aids organisation to increase their output in the nation. Management of enterprise also provides timely dividend and interest to its shareholders to attain its objectives in United Kingdom. This process also helps the firm to create a good image in the minds of investors in the country (Doh, McGuire and Ozaki, 2015). Organization also tries to manage effective relationship with suppliers in the nation. Management of Ice land supermarket conducts regular meetings with vendors to solve various types of issues which are occurring in transactions. Organization pay all due payments of its suppliers in order to make better relationship with them in retail market. In addition to this, Corporation also meets with government authorities to know about new taxes and tariffs in United Kingdom. Ice-land supermarket also pays all taxes of government to make a positive image in front of authorities and to achieve its objectives in  nation.

1.3 Responsibilities of organization and strategies to complete them

There are many responsibilities of Ice land supermarket in United Kingdom. Organization applies many efforts to complete them for its stakeholders in the nation. Corporation also makes effective strategies to fulfil them in the country (Strumickas and Valanciene, 2015). For example, organization implements many policies to fulfil the needs and requirements of employees in United Kingdom. As per the organizational responsibility, management of Ice land supermarket also tries to solve the conflict of employees with the help of meeting process. Power influence matrix is a stakeholder analysis tool. This approach also aids Ice land supermarket to find out the nature of its staff members. Enterprise also uses many schemes and policies to satisfy its stakeholders in UK. Management of Ice land supermarket also manages regular public meeting and charity functions for its associates and public in the nation (Wild, Wild and Han, 2014). This process also helps the firm to make appropriate image and to solve their queries in the mid of stakeholders in United Kingdom. Organization also uses health and safety rules for its staff members as a security in the country. Corporation also provides effective salaries, promotion, bonus and medical insurance for its employees to fulfil its responsibilities in the nation. Management of Ice land supermarket also follows the corporate social responsibilities (CSR) activities to maintain environment of UK (Solomon and et.al., 2014). In this way, organization is using many strategies to accomplish its responsibilities in United Kingdom.

Task 2

2.1 Describing the economic systems that attempt to allocate the resources effectively

There are many economic systems which contribute an effective role to allocate the resources in United Kingdom. These are explained as follows:

Command economy system- In this process, Government allocates all resources to various types of corporations to manage its operations in the nation. Generally, organization also registers its name to take appropriate resources  in the nation. For example, Ice-land supermarket takes permission to use this type of facility in UK (Sinay, 2014). As per the availability, Government allocates its resources to the organization in the state.

Free enterprise- In this approach, resources are allocated by the group of enterprises in United Kingdom. Generally, many organizations make board to allocate the services in nation. Government of UK does not play any kind of role in this matter. For example, Ice-land supermarket registers its name to take these services in the nation. As per the requirement, this board allocates these resources to the organization to handle its retail operations in United Kingdom.

Mixed economic system- In this system, government and all companies develops one combined board to allocate the resources to all organizations in UK. For example, Ice-land supermarket sends its request to take various types of services in the nation (Dinu, 2014). As per the convenience, this mixed board allocates all resources to organization for handing its business activities in the United Kingdom. In this way, organization can allocate these services and facilities to all kinds of organizations in the nation.

2.2 Assess the effect of fiscal and monetary policy on Iceland Supermarket and their actions

There are many impacts which affect the Ice-land supermarket and its activities in the United Kingdom.
Effect of Financial policies- Modification in financial regulations are generated so various  complexities for firm. These rules  increase taxes and tariffs such as income tax and Value added tax (VAT) in the United Kingdom. These things also decrease main net earnings of Ice- land organisation in the nation (Carroll and Buchholtz, 2014). Complex financial polices create issues to execute any kind of business activities and plans in United Kingdom. Further, they also obligate the firm to enhance prise of retail products for customers in the country.  Fiscal policies enhance many expenses like documentation and new taxes of firm in the nation. In addition to this, they also increase work load on managers and staff members of Ice- land organisation (Kindsfaterienė and Lukaševičius, 2015).

Effect of monetary policies- Changes in monetary rules also rise inflation rate in the nation. In addition to this, it reduces selling of retail products of Ice-land supermarket due to its higher prices. These effects also reduce earning of citizens in United Kingdom. As a result. It produces adverse impact on demand and supply of raw material in the nation. These things also decrease market growth of retail industry in the UK.  (Cavusgil and et.al., 2014). Management of Ice- land organisation reduces its profits due to lower selling of its retail of  products.

2.3 Evaluate the effect of rival policies as well as other regulatory mechanism on the activities of firm

Effect of competition policies and other regulatory mechanisms on the activities of firm is very high in the nation. In retail sector of UK, competition of UK oblige the Ice land supermarket to use market penetration pricing. Its rivals organisations are giving many efforts to increase market share in the United Kingdom. This process affect its business in the nation. On the other side, Competition Act 1998, Enterprise Act 2002, Competition Commission and Office of Fair Trading is also help the firm to control over the competition by applying these rules and regulations in the nation (Rao, Krishna and Rao, 2014). These act also compel the all firms to use fair policies and rules for increasing its sales growth.

Effect of legal and other regulatory policies also enhances of expenses by changing fiscal policies, inflation rate and reducing revenues of Ice land supermarket in the United Kingdom. This process obliges the firm to change the business strategies in the retail market. On the contrary note, Companies Acts, industrial policy, enterprise training and skill policy also contribute effective role for the organisation to make new plan and strategies as per changed legal and other regulatory policies in the United Kingdom.

2.3 Evaluate the effect of rival policies as well as other regulatory mechanism on the activities of firm

Effect of competition policies and other regulatory mechanisms on the activities of firm is very high in the nation. In retail sector of UK, competition of UK oblige the Ice land supermarket to use market penetration pricing. Its rivals organisations are giving many efforts to increase market share in the United Kingdom. This process affect its business in the nation. On the other side, Competition Act 1998, Enterprise Act 2002, Competition Commission and Office of Fair Trading is also help the firm to control over the competition by applying these rules and regulations in the nation (Rao, Krishna and Rao, 2014). These act also compel the all firms to use fair policies and rules for increasing its sales growth.

Effect of legal and other regulatory policies also enhances of expenses by changing fiscal policies, inflation rate and reducing revenues of Ice land supermarket in the United Kingdom. This process obliges the firm to change the business strategies in the retail market. On the contrary note, Companies Acts, industrial policy, enterprise training and skill policy also contribute effective role for the organisation to make new plan and strategies as per changed legal and other regulatory policies in the United Kingdom.

Task 3

3.1 Explain how market structures measures the pricing and output decisions of retail organisation

There are many types of market structures which affect the pricing and output decision of Ice-land of corporation. Generally retail sectors follows perfect competition market structures in the nation.

In the perfect competition, pricing of retail products is based on market oriented pricing. This process also increases the sales of organisation. For example, Ice land super of enterprise develops its strategies as per its market structures to increase its sales (Samat and Ali, 2015). This process also rise demand of retail  products in the nation. All income class spend appropriate money to take various types of retail commodities as comparison of other market structure in the United Kingdom.

In the Oligopoly market structure, Ice-land and some other supermarket chain pricing can be higher of its retail products as compare to perfect market competition in the United Kingdom. For example, This thing affect sales of  premium commodities of firm due to higher pricing in the nation (Keršienė and Savanevičienė, 2015). This way, Ice-land  and other firms can generate more profit due to few firms in the market.

In the Monopoly market structures, Only one organisation can sell retail products in the nation. For example, Ice land supermarket can fix its pricing of retail products. Organisation can earn more income as comparison both market structures. This process also decrease selling premium products in the nation (Prakash and et.al ., 2014).

3.2 Explain the way in which market forces shape Iceland Supermarket responses using a range of examples

There are many market forces which shapes organisation responses in the nation. Supply and demand product, elasticity of supply and demand are main factors which affect consumer perception and pricing decisions in the nation. For example, Generally, if supply is higher than demand then product price will be less. If demand is higher than supply then Ice-land will get effective benefits by increasing prices of products in the United Kingdom. This process affect organisation to sell products at higher price for consumers in the nation. Elasticity of demand determines how responsive demand is to alter price of retail products in the nation. In addition, elasticity of supply measure the responsive supply of product is to modify the cost of commodities in the country. These market forces also oblige the Ice land supermarket to make its policies as response (Price elasticity of supply, 2015). These thing also affects consumer perception regarding purchasing of commodities in the United Kingdom. This process also affects the pricing decision as per demand and supply of retail products in the nation.

3.3 Measure how the business and cultural environments shape the behaviour of corporation

There are many business and cultural environments factors which impact the behaviour of Ice land supermarket in the United Kingdom. In the economy aspects, inflation rate also oblige the firm to increase the cost of retail products in the nation. In the political factors, taxes and tariffs also affect the income of organisation in the UK (Makos, 2015). This way, organisation make its policies to achieve income in the nation. Social and cultural factors also affect business activities of the Ice land supermarket. As per latest trend and lifestyle of people, organisation purchases its raw material in the nation. This process also gives effective advantages to earn effective revenue by increasing sales  in the retail market. In the technological aspect, effective technological infrastructure also helps the Iceland supermarket to promote its retail products in the market. This aspects aids the firm to increase sales in the firm (Kindsfaterienė and Lukaševičius, 2015). Legal factors also oblige the organisation to follow many legal rules like  the health and security regulation for employees in the nation. This process increases the expenses of Ice land supermarket.

Task 4

4.1 Explain the significance of international trade to Iceland Supermarket

There are many significance of international trade to Ice-land supermarket. This process can also help the firm to increase the business activities in many nations. For example, these trades can provide many opportunities for organisation to enter global markets. Firm can expand its business into the BRIC countries to increase its sales. This way, Iceland supermarket can increase its presence many nations (Wetherly and Otter, 2014). It can increase market share in these countries. Management of corporation can also increase its brand identity which can provide optimistic benefits  in many nations. In addition, Company can earn more profit in a global retail sector. On the other side, enterprise has to aware about their culture, rules, regulations, competition and other factors of BRIC countries to get appropriate success. Further, Ice land supermarket can take help of world trade organisation to enter in global countries.  Other wise, company can get loss in these nations.

4.2 Determine  the effect of global factors on Iceland Supermarket

There are many impacts of international factors on the Iceland Supermarket. These aspects also helps the firm to increase the business in many global countries. This process also leaves optimistic effect on the organisation (Solomon and et.al., 2014). Further, company earns more profit by expanding its branches in many nations. Global factors create better impact for Iceland supermarket to increase its sales and market growth by providing effective services and retail products to consumers in the different countries (Solomon and et.al., 2014). These international factors also provide better opportunities for employees to learn new things in another nations. They also give good experience to  employees regarding global market which produces optimistic impact to develop new strategies and plans for expansion of firm in the world. However, global factors also increase various type of  risk regarding investment of monetary funds which create bad effect on the ice land supermarket in various countries (Sinay, 2014). In addition to this, they also increases issues of trade and tariff which affect profit of firm in the other nations

4.3 Evaluate the impact of policies of the European Union on Iceland Supermarket.

European policies also creates positive and negative impact on the organisation in the United Kingdom. This rules also help the firm to make open area. As result, corporation is increasing its sales retail products in all European countries. These things also giving effective profits to earn in the market (Dinu, 2014). On the other side, polices of European union also increases so much competition in the the UK. These things are oblige the firm to invest more money on market research to know dynamic behaviour of consumer in order to increase the sales in the United Kingdom. These rules also reduces taxes and tariffs between European countries. This process also provides huge reliability to increase its operations in these nations. These thing are saving many expenses of Ice land supermarket in these nations. According to Cavusgil (2014), this rules and regulations also increases so much work load on the employees of Iceland supermarket. This process is creating problems to provide optimistic services for consumers in the United Kingdom (Cavusgil and et.al., 2014).

Conclusion

From the report, it is found that mission, vision as well as objectives of Iceland supermarket contribute effectively to earn appropriate profit in the United Kingdom. Organisation is also helping its stakeholders through completing its all responsibilities in the nation. Further, fiscal and monetary policies are affecting the income of Iceland supermarket in the retail sector of UK. In addition, Perfect market structures is aiding the firm to increase its sales by using market oriented pricing in the United Kingdom. It can be concluded that impact of European union policies creates positive effects for firm to create optimistic profit in other zones.

References

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