Unit 1 Business Environment Assignment Primark Copy

Introduction

Business is categorised into different forms such as private company, public company, government and many more. They have their own purposes in the form of mission, vision, goals and objectives and many more. Different stakeholders are interested in the functioning of the business. Different nations have their different economic systems that help in organisational success. The market is of different types in which different organisation performs their activities. Global factors affect the business functionality and impact it in both positive and negative ways. Primark business will be utilised in order to discuss different aspects.

 

Task 1

1.1 Identify what type of organisation Primark is and discuss its purpose. In addition, identify and discuss the purpose of one organisation within the following categories: a) The public sector, b) Charity and c) Cooperative

Primark was launched in Ireland with the name “Penny”. Penny redirects here to the American retailer J.C. Penney. Primark is operating its business in Ireland, Spain, the  Netherlands, and the United Kingdom etc. Primark is working in the retail industry and deals in clothing, houseware, wear and Cosmetics. It is a Subsidiary company of Associated British Foods and provides its services as per the demand of customers through its suppliers. Primark creates customer value, and always follows innovations and fashion-driven edge. Product specification is the main quality of Primark. The right goods to the right place at the right prices is the strategy on which Primark works. Primark offers a diverse range of products to its customers. Primark is a retail industry that offers a diversified range of products to its customers and believes in providing value to its customers’ money. Primark also follows a code of conduct and legal compliance (Ezati Jivan, 2012).

• • Purpose of Primark: Primark works with the purpose of consumer satisfaction and the welfare of society. Primark is working with its Suppliers to know the consumer’s demand so that it can provide goods to them as per specification. The company is working for the welfare of its workers working in different countries, branches and head offices by organising educational programmes and also supporting them in vital issues. The company will also go for building an energy management system and take a step towards the safety of the environment (Ezati Jivan, 2012).

• • Company working in the public sector: there are many public sector organisations working in the United Kingdom Department for Environment, Food and Rural Affairs (DEFRA) is one of them. The main purpose of the organisation is environmental protection, food production and a standardised ruler community (Ezati Jivan, 2012). Company in the Charity sector: Campaign to Protect Rural England (CPRF) is the charity working to save forests and protect of environment. It also stands for the safety of the English countryside.

• • The company works as a cooperative: Dairy Farmers is one of the biggest cooperatives in the Up, operated by a group of farmers for their mutual benefits. It is one of the largest and oldest cooperatives operating in UK (Rasha & Fady, 2013).

 

1.2 Describe the extent to which Primark meets the objectives of its different stakeholders

• • Objectives of Primark: Primark is working in the retail industry and subsidiary of Associated British Foods of UK. Primark offers a wide range of products, including kids' clothing, women’s and men’s wear. It provides its services at a low cost below the market average price. The objectives of Primark include:

1. Profitability holding consumer satisfaction

2. Work with the specification

3. Work in the welfare and for the benefit of society

4. Regularly brought innovations to the products

5. Follows fast fashion trends along with its competitors.

6. Try to maintain economies of scale and efficient distribution.
    

• • Stakeholders: A Company works in an environment created by different stakeholders. Stakeholders include the Government, competitors, consumers, suppliers, workers, and international factors, which are affected from the working of the company and also influence the company’s decisions. There is a wide range of stakeholders whose needs need to be satisfied, but stakeholders have competing interests. Primark meets its objectives with its stakeholders (Rasha & Fady, 2013).

• • Government: Primark follows all the legal compliances which are imposed and applicable on it by the law of UK. Primark follows a code of conduct based on the Ethical Trading Initiative Base Code, founded by the International Labour Organisation. Primark meets the requirements of the government (Dobrea & Maiorescu, 2015).

• • Competitors: Forever 21 and H&M, etc, are the competitors of Primark. Primark is the long-term player in this industry because it always offers its products as per the latest fashion trend and at prices lower than its competitors. Primark is the fastest fashion player in this retail industry.

• • Competitors: Consumer satisfaction is one objective for the company. It offers products for all types of consumers (male, female and kids) as per trend. Primark has a team of experts who understand consumers’ requirements and provide goods as per the consumer’s specifications (Dobrea & Maiorescu, 2015).

• • Suppliers and Workers: Primark also satisfied its suppliers. It takes services from suppliers and pays them as per the norms, and also offers other facilities to them.

• • International Factors: Primark is considering international factors and carrying PESTEL analysis to know the impact of these factors on the operations of the business.

Primark is operating a stakeholder engagement process by creating a communication channel between stakeholders and the company that enables stakeholders to be informed about and also influence the decision-making process of the company (Dobrea & Maiorescu, 2015).

 

1.3 Explain the responsibilities of Primark as an organisation and the strategies employed to meet them

• • Responsibility of Primark: Primark captured a wide market in the fashion industry. The bigger the organisation, the bigger the responsibilities. The aim of Primark is to make employees, suppliers and other community part of the success by working with them. Responsibility includes:

1. Responsibility towards stakeholders

2. Responsibility towards employees, giving them opportunities based on merit

3. Local communities should be fairly treated

4. Responsibility towards the environment.

Primark forms a strategy to meet these responsibilities. Primark spread its business all over the world. As a big retailer, it realises its responsibility towards the environment and workers, so it always ensures that products are made with respect for the workers’ rights and the environment (Grey & Jones, 2016).
Primark follows good ethics and a code of conduct in its business. Primark has an environmental sustainability team which works with the suppliers and their factories to implement an environmental sustainability programme.

As per the nature of the product, chemical management is required for Primark. The company follows both EU and US legislation so that it can reduce the bad impact on the environment which occurs due to the manufacturing of products. Primark follows Packaging waste regulations that encourage producers to become responsible towards the environmental impact. Primark make the suppliers agree to follow the working standards as part of the terms and conditions of doing business (Grey & Jones, 2016).

Primark is not manufacturing its own products, so with reference to the responsibility towards investors and the Government, it has audited each factory with approved external auditors and internal auditors. This auditing helps the company to gain insight into the working conditions and labour standards of factories that supply the products of the company. The company also started a structural safety programme for the workers of all the factories where the products of company are manufactured. Primark also contribute to compensation programmes.
Apart from all of this, Primark also supports many local charitable trusts and provides help and advice on jobs and training to those who can work. So, the company is carrying out its responsibility in an efficient manner. It follows all the ethical code of conduct and runs its business with corporate social responsibility (La Rocca & Snehota, 2014).

 

Task 2

2.1 Different countries operate different economic systems to attempt to allocate resources effectively. Research project and explain the type of system operated in the following countries, and the reasons why you think they follow these systems. a) Cuba, b) United Kingdom and c) China
 

• • Economic system: The Economic system is the system by which governments of the countries distribute resources and trade goods and services. There are mainly three types of economic systems. Economic system includes the combination of the various institutions, agencies, entities and customers that form the economic structure of the given community.

1. Free economy or Market economy: A free economy system is a system in which the prices for the goods or services are determined by the buyers and sellers as per the demand and supply forces without any interference (Ostrom, 2010).

2. Command economic system: In this economic system, the government of the country determines the prices and quantity of goods or services. The government makes these decisions by collecting statistical information relating to the resources and their allocation (Ostrom, 2010).

3. Mixed economy: This economic system is considered to have features of both a capitalistic and a socialistic economic system. Here, wealth is generated by business with the government's interference.
    

• • Economic System in Cuba: A Command economic system is followed by Cuba, which is characterised by state-run enterprises. Most of the industries are run by the government because once there was a time when, due to monopolistic organisations, there was unemployment and deep poverty. After the economic revolution government took over the economic system and started recovery from a low GDP level.

• • United Kingdom: The United Kingdom follows a mixed economic system. It has state ownership of some companies. It follows government regulations and also does social welfare, but it provides a market to globally competitive business organisations. UK has fifth fifth-largest economy in the world. Due to huge foreign investments and participation of foreign business organisations. There is a requirement for a mixed economy (Baskonus et. al., 2015).

• • China: China is also following a mixed economic system. China has to follow this economic system because a larger part of the economy is covered by the public sector than the private sector. China is the fastest trading nation in the world and plays an important role in international trade, so certain kind of government restrictions is required in allocating resources (Baskonus, et. al., 2015). 

 

2.2 You are required to assess the impact of fiscal and monetary policy on the following types of businesses. a) Farming and b) Housing

The Chancellor of the Exchequer and the Bank of England regulate the economic system of the UK. Fiscal policy and Monetary Policy are the main tools used by the regulators of the economic system. Monetary policy is related to the management of prevailing interest rates and the supply of money in circulation. The target of monetary policy is to achieve low inflation. Fiscal policy relates to government spending and taxes to influence the aggregate demand. There were expansionary fiscal policies and deflationary fiscal policies. Both monetary and fiscal policy aim to create a stable economy with low inflation and growth (Kotler, 2015).

• • Impact of Monetary and Fiscal Policies in Farming Business in UK: UK is the most populated country, which cannot fulfil its own food needs. There is also a wide variation in the sizes of the lands. In spite of skilled farmers and high technology, there are low earnings from the agriculture sector. Farmers do not have their own land, and there is also a shortage of farmland. And the prices of rent are so high. The young farmers are discouraged from joining the industry due to these reasons. For bringing betterment in this sector government provides subsidies to farmers. Annual Investment Allowance, Agriculture Property relief, etc, are the benefits provided in the current fiscal and monetary policy. Falling in average tax rates for farmers brings big opportunities. The government provide unique taxes and reliefs to the farming sector for its development (Kotler, 2015).

• • Impact of Monetary and Fiscal Policies in Housing: In UK government could not meet the requirements of homes for the growing population. The government wants builders, investors and local councils to increase the supply of homes. The government removes unnecessary regulations, provides finance at reasonable interest rates and helps those who cannot buy a home. The property tax paid in the UK is a percentage of the rent and mortgage value. If the government increases the values of the tax rates, then it is adverse to the public. Property of different classes is going to be taxed with different tax rates. Under the property tax system government appraises the monetary value of each property.

Thus, a positive change in monetary and fiscal policy in the farming and housing sector brings positivity to the public of UK and also changes the economic performance of the country (Kotler, 2015).

 

2.3 You are required to identify at least five competition policies and other regulatory mechanisms in the UK and evaluate their impact on the activities of a selected organisation (s).

Competition policy of UK: Competition policy means those policies which are formulated to prevent and reduce the monopoly power of businesses in the economy. There are two types of behaviours adopted by the businesses: collusive behaviour and Abuse of market power. Competition policy is working to reduce these behavioural practices. Competition policies are used to improve the competitive environment so that consumers can fulfil their needs. The competition law of UK is affected by both British and European elements (Andersen, 2013). Five competition policies are helping in improving the competitive process, including:

• • UK government prohibits those agreements and practices which restrict free trading and competition between business entities. UK government remove the cartels. Cartels are agreements between buyers and sellers to control prices or exclude the entry of new competitors in the market. Cartels are removed because they give rise to an oligopolistic industry (Andersen, 2013).

• • Removal of predatory prices is the strategy used in UK. Predatory pricing is a risky pricing strategy where the pricing of a product or service is set very low by companies to drive competitors out of the market or create barriers to entry for new entrants.

• • Provisions are made for the removal of Price gouging is another strategy used by UK government. Price gouging means that a seller increases the prices of goods and services to a level higher than they actually have and exploits consumers (Dan & Andrews, 2016).

• • Removal of the strategy of refusal to deal is another plan implemented under the competition policy of UK. Sometimes the refusal to deal may be considered unlawful anti-competitive practices which resulting reduction in competition in the market.

• • UK government go for supervising the mergers and amalgamations, including joint ventures, because these transactions are considered to threaten the competition in the market.

Greenery, John Lewis partnership, Stemcor Swire and Palmer and Harvey are some of the largest companies in UK which are affected by the competition policy norms. Due to these norms competitive environment increases, and prices of the products are under control. These provisions also remove market denomination (Dan & Andrews, 2016).

 

Contact us

Hey, need expert help with your business assignment? Connect with our experts and get top-notch assignment writing help from them. Click on “Upload Assignment” today and get ready to elevate your academic performance.

 

Task 3

3.1 Explain how pricing and output decisions of businesses are determined in the following market structures: a) perfect competition, b) monopoly, c) oligopoly and d) duopoly

There are different types of marketing management structures present in the economy. Freedom of entry and exit, homogeneous or differentiated goods, nature of control over supply or output, control over prices and barriers in entry are the few determinates of market structures,  Pricing and output decisions are taken by the business companies operated in different competition markets such as perfect competition, monopoly competition, oligopoly competition, and duopoly competition affects the whole economy (Sioshansi, et. al., 2011).

a) Perfect competition: Perfect competition is present in a homogeneous product market. Here products are identical, so there are no consumer preferences. Under perfect competition, both buyers and sellers are educated and well informed about the product and prices, so the prices of the commodity are beyond the control of the buyer and seller. Prices are determined by the equilibrium between demand and supply in the short run. Under perfect competition, sellers are price takers (Sioshansi, et. al., 2011).
Under perfect competition seller can only supply equivalent to the demand in the market. Financial markets are an example of perfect competition.

b) Monopoly Competition: Monopoly is the situation where there is one seller or sole producer of the product and a large number of buyers. In monopoly competition seller has no close substitutes. In a monopoly seller can change the prices for their products. A monopolist can change their prices from consumer to consumer. In a monopoly market seller is the price maker (Sioshansi, et. al., 2011).
The above diagram shows the difference between Market under perfect competition and Monopoly competition. Restaurants, different professions like plumbers, and building firms are examples of these competitions.

c) Oligopoly competition: Oligopoly is a situation where a few firms are in competition in the market for a particular good. In this competition consumer is not fully aware of the product. Every seller has some specifications for the product. Aircraft manufacturing, wireless communication, media and banking are some examples of oligopoly market competition. There are no barriers to entry, but it is difficult for new entrants to enter the market. A sudden change in prices and outcome decisions of one business affects its rivals. In oligopoly competition, enterprises are interdependent on each other, so each organisation formulates its own pricing policy, taking into consideration the pricing policies of the existing competitors.

d) Duopoly Competition: There are only two giant firms working under duopoly competition. In this, each selling identical products has fifty per cent of the total market. These two firms may agree on a certain price, or they can divide their market share. They can go for merge themselves into one unit and form a monopoly. They can also try to differentiate their products in features. If sellers in a duopoly market produce perfect substitutes for the customers, then they will engage in price competition. If goods of a producer have differentiation in their product, then each business company have a close watch on the pricing and output policy of rival firms.
1) Classical model of edge worth  
2) Spatial equilibrium model,
3) Stakeberg’s model
4) Modern game theory models are used for the determination of price and outcome decisions in duopoly competition (Choi & Hammoudeh, 2010).

 

3.2 Illustrate the way in which market forces (demand and supply) shape organisational responses using a range of examples (diagrams are essential)

• • Demand and supply forces in UK: Demand and Supply are the two market forces which determine required to set the prices of commodities. Demand and supply an economic models with help in determining the prices of commodities in the economy.
  Demand means a desire, willingness and ability to buy a good or service. Demand refers total demand of consumers in the market. Supply means the quantity of goods or services which producers are willing to sell at a possible market price. Supply can refer total output of all the producers in the market. A sudden change in demand and supply forces gives shape to the organisational responses (Harvey, et. al., 2010).
   

• • Demand and change in Demand forces: utility for a product affects the demand for a commodity. Utility means usefulness and satisfaction that is received by the consumption of a good or service. Changes in demand occur due to the following reasons:

1. Change in the price of a commodity.

2. Change in the number of consumers who demand the commodity.

3. Change in the income level of consumers.

4. Change in the taste and preference of consumers.

5. Change in the expectations of the consumers.

6. Changes in the prices of substitute goods (Harvey, et. al., 2010).

For example change in the prices of tea shifts the demand curve of all the producers of the Tea industry. An increase in the price of tea will decrease demand for tea, and if there is a decrease in the price of tea, demand for tea increases. There is a negative relationship between the demand for a commodity and its price.

(Harvey, et. al., 2010)

Prices of related and substitute goods also affect demand. There is a positive relationship between Change in the demand for a commodity and change in the prices of substitute goods.

For example, Tea and coffee are substitute goods. When there is a decrease in the price of coffee, demand for tea will also decrease, and if the price of coffee increases, demand for tea will also increase in the market. In case of complementary goods like bread and butter, there is an inverse relationship between the price of one and the demand for the other. If the price of bread increases, the demand for butter will automatically decrease.

There is a positive relationship between the quantity supplied of a commodity and its price. Generally, producers offer more for sale at higher prices and less at lower prices of goods or services. 

(Czischke, 2014)

Change in supply of commodity also occurs due to other factors like change in technology, prices of other goods, future prices and economic changes of commodity, subsidies and taxes imposed by government, and change in the number of suppliers in the market.

Apart from the price of the commodity, if there is a change in other factors, the supply of the commodity changes.

(Czischke, 2014)

For example, if there is a change in new technology, producers can produce more goods and supply more in the market this resulting shift of the supply curve.

(Czischke, 2014)

For example, if producers of widgets go out of the market, the number of producers will decrease, which also decreases the quantity supplied in the market.

Technology also shapes the organisational responses through the change in demand and supply. Innovation brings technology, and technology brings product differentiation. If new products are manufactured and supplied to the market, then they also affect the demand for the existing goods in the market. These changes in demand and supply help the organisations to formulate a price strategy for their product.

 

3.3 Judge how the business and cultural environments shape the behaviour of a selected organisation

Cultural environment of an organisation: Business environment includes all internal and external factors that influence a business. The environment of business is unstable, unpredictable, flexible, and volatile. Organisational culture includes collective values, beliefs, and principles of the organisation of doing business. This is reflected in the structure of the organisation and in the work of the employees of the organisation. Culture is derived from an organisation’s mission, aims and goals. Every organisation has its own culture, which is unique and different from others. So the culture shapes the behaviour of every organisation (Ben-Ner, et. al., 2012). Every organisation has its own culture, which is influenced by the national culture of the country in which the organisation works. The cultural environment of the country has an impact on the values, assumptions, attitudes or behaviour of the organisation. Change in cultural environment affects the work of the workers, quality of the product, other stakeholders and decision-making power of the organisations. Organisations may have a strong culture or a weak culture. In case of a strong culture staff of the organisation behaves as per the organisational values. A strong culture is important for the service sector organisations. Strong culture helps in achieving the goals of the organisation, increases employee motivation and loyalty, increases cooperation between departments and divisions, and enables the organisation to become more efficient (Ben-Ner et. al., 2012).

Weak culture is reflected where organisational values and beliefs are exercised through excessive procedures and bureaucracy. Here, workers are not self-motivated to follow organisational values and beliefs. Apart from strong and weak cultures, organisations have different types of cultures, which include: 1) Power culture shows dominating behaviour of one or a small group of people within an organisation who take important decisions for the organisation 2) in role culture, individuals have their particular role to perform which is already specified. They have to work as per their specified role rather than in a creative way.3) Where individuals are allowed to work in a creative way and express themselves is known as person culture.4) Contrast task culture is followed in those organisations where teams are formed to complete a particular task. Organisations may adopt any of the cultural formats as per their mission and vision. “Google and Facebook” set an example of healthy organisational culture (Ben-Ner, et. al., 2012). Many other organisations are also following fostering cultures that align with their values and beliefs. For example, “Adobe” earned its name in Fortune's top 100 companies due to a healthy organisational culture. It always supports its staff members in creative work. Employees receive patents for their ideas, and a bonus is also given to them for their creative ideas. These bonuses and other incentives encourage employees’ loyalty towards the organisation. In Adobe, new products are realised through events where teammates are recognised for their work. Adobe shows that its values are well communicated in its departments. Organisations offer incentives and facilities to their staff so that they can follow the organisational culture.
Analysis of the organisational culture is necessary because it impacts the work of the organisation. The organisation will definitely achieve success in achieving its goal where it follows its culture, considering the changes in the national culture (Ben-Ner, et. al., 2012).

 

Struggling with business concepts? Get expert Business Assignment Help from Locus Assignments and boost your academic performance by clicking on “Upload Assignment” today!

 

Task 4

4.1 Discuss the significance of international trade to UK business organisations

International Trade: International trade refers to the exchange of goods, services and capital at the international level. International trade allows great competition and competitive pricing of goods and services in the market, which benefits consumers with affordable products to the consumers. International trade helps consumers in getting those goods and services which are not otherwise available to consumers globally. International trade provides new and potential markets, more profitable markets, and increases competitiveness among organisations, which results in product or service betterment. International trade brought new product ideas, manufacturing innovations and new technology. International trade has great significance for UK Business organisations. The concept of comparative advantage should be considered with reference to international trade for UK business organisations (Krivokapic & Jasko, 2015).
Through the international trade organisations of UK have the chance to expand their business in other countries; this will increase their profits. In the absence of international trade business organisation has a limited local market in its country, but international trade provides the facility to have access to other countries' markets and attract consumers towards their product (Krivokapic & Jasko, 2015).

In foreign business markets organisation faces more competition than in its local market. The international competition brought new and innovative products for the consumers at the cheapest price. A foreign country also provides better business opportunities to the international trade organisation. Business organisations can also find new international investors and business partners. Cross-border joint ventures will also take place. Export of technology from one country to another will take place Organisation can adopt new technology which is invented by other countries when these technologies are exported by one country to others. International trade helps to that business which could not create new high-quality technology.UK business organisations can utilise the natural resources of those countries which have a huge amount of fuel, minerals, and many other resources. So, international trade fulfils the requirement of natural resources. Resources which are less used by local producers can be used by international producers. In return for the resources, they can have more income for the government. International trade efficiently allocates the natural and human resources and increases their better utilisation. Different countries' people have their own tastes and preferences with reference to goods and services. International trade helps to understand these new trends and develop new products with unique features. International trade brought efficiency in production; countries are trying to adopt better methods of production to keep costs down in order to remain competitive. International trade provides consumers with goods and services globally (O’Connor, 2010). International trade facilitates countries to exchange goods or services with the use of money, which will increase the flow of money and increase the foreign reserves of countries. A nation which has strong international trade becomes more prosperous and developed in the world’s economy. International trade helps in generating more employment opportunities through the opening of new industries for the fulfilment of the demand of consumers from different countries. International trade enables a country to consume those things which cannot be produced within its local boundaries. International trade brings stability to the fluctuating prices of goods. Thus, International trade is significant for the business organisation (O’Connor, 2010).

 

4.2 Analyse the impact of global factors on UK business organisations

Global factors of international trade not only affect UK business organisations but also other countries' economy with which UK have trade relations. Global factors only affect those business organisations which want to do business globally. Globalisation of the economy means buying, selling and distributing the products and services in most countries of the world. In globalisation, similar products are not produced by all the producers; they produce products in cooperation with each other and sell them in all countries. Globalisation makes the sale of goods easier (Ali, 2013). There are many global factors present in the economic world which affect international trade between countries:-

• • Change in climatic conditions: Change in the climatic conditions of the countries is affecting the production, supply and sale of goods and services. Demand and consumption of a good depend on the prevailing climatic conditions. Companies do expenditure on new technologies to bring good products for consumers. Climate change can reduce the demand for those goods and, thereafter, companies will incur a loss (Ali, 2013).

• • Emerging Market: New and emerging markets are a global factor in international trade. Emerging markets have higher returns on investments but also have greater risk due to unstable political conditions, currency volatility and limited equity opportunities. Stability is absent from these emerging markets. So, business organisations of developed nations like UK invest their money after a full research and study.

• • Change in International trade duties: All the imports and exports of goods and services between countries are done with import and export duties. When a company purchase any raw material or goods from another country than it has to pay import duty, and when the company sells its goods and provides services to another country then it has to pay export duty. If import and export duties are increased, then prices of the product will rise, and it reduces trade between countries, and companies will lose their customers (Renard & Biscop, 2016).

• • Global Financial Stability: Companies require finance whenever they do business in another country. To fulfil their demand, companies use international financial institutions and regional trade agreements to decrease tariff rates. If the financial conditions of the country are stable and good, companies would be encouraged to invest their money in developing the business. Unstable financial conditions are risky for doing business.

• • Impact of government Policies: government policies of countries have a major effect on their balance of trade. Government policies regarding the subsidisation of exports, restrictions on imports, etc. Affects the international trade, and that’s why many companies prefer to supply their product in BRIC nations because the policies of BRIC members are liberal (Renard & Biscop, 2016).

• • Impact of exchange rates: Exchange rates are used to value the currency of one country in other countries’ currencies, which is required in international trade, so changes in the exchange rate affect the import and exports of companies. Thu,s these global factors affect the business organisations in international trade. If UK remove itself from the EU, then it will have to face these factors independently, which is very risky for its business organisation, and this will affect its economy.

 

4.3 Evaluate the impact of the policies of the European Union on UK business organisations

Impact of the policies of the European Union on UK Business Organisation: The European Union is a political and economic partnership between 28 European countries. The EU works for improvement in the economic conditions of member countries and for avoiding war with each other. The EU allows the free flow of goods and services between member countries and has become a single market. Brexit means the UK leaves the European Union. It is the decision of the people of Britain that Britain has to leave the EU through the referendum voting process. The main reason for Brexit is that Britain remains backwards in some issues due to the restrictions imposed by the EU. Britain blames the EU for making strict rules and regulations related to trade, which have not benefited to UK’s economy. When the voting was conducted, 58% of the total voting was in favour that Britain should leave the EU for its betterment. This voting has a major impact on the economy of UK. The value of the pound was down. UK lost its top AAA credit rating. The cost of the government loan was higher. Prices of the Stocks were down. It may bring other drastic changes to the economy of the UK. Business policy of the European Union governs the free movement of goods, services, people and capital among the member countries to achieve the objective of the single market. When any risky situation arises related to public health, the environment or consumer protection, the EU restricts the supply of these elements. So, there is a great opportunity to do business in the EU, and when the UK is no remains its member, it cannot take advantage of this business policy. Food security for the population, climate change and management of natural resources, keeping the rural economy alive, all these are part of the agriculture policy of EU. The UK will have to draw its own agriculture policy. Only a small population comes under the agriculture sector, and UK imports food products from other countries to fulfil its requirements. The UK’s Tax policy also changes because taxation regimes are provided by the EU to its member countries. UK is a developed nation; it imports and exports goods and services based on the concept of competitive advantage, so as to set new international links with other countries. The UK will have to prepare new policies. EU member countries are strictly following the rules and regulations of labour law. The UK must change its policies regarding labour laws (McCullough, 2012).

UK leaves EU because UK has to invoke an agreement named Article 50 of the Lisbon treaty, which requires the two sides to agree on the terms of the split. The Laws of the EU are applicable in the UK until the UK ceases its membership. The UK will continue to abide by the Treaties and agreements of EU, but it cannot take part in decision-making. The citizens of the UK working with EU after leaving EU, the  UK imposes restrictions on those who have worked in the EU and then the citizens will change their employment (McCullough, 2012). For the individuals who are working with the EU UK will have to make policies for them and save their rights. UK receives more benefits as a member of EU because it accounts for around 40% of international trade of its total trade with EU countries.

 

Conclusion

In the end, it is concluded that an organisation has different purposes which get attained with the help of its effective strategies. Stakeholders include a list of employees, management, government, stakeholders and many more. The economic system is utilised for allocation of resources in an effective manner, and the market is of different types such as perfect competition, monopoly, monopolistic competition, oligopoly and duopoly. Global factors influence the functioning of the business organisation. EU policies effectively have an impact on the business organisations operating in EU.

 

Don’t let deadlines stress you out. Secure reliable Business Assignment Help now and submit high-quality work on time! Click on “Upload Assignment” today and get it done instantly.

 

References

• • Ali, A. 2013, "SIGNIFICANCE OF HUMAN RESOURCE MANAGEMENT IN ORGANISATIONS: LINKING GLOBAL PRACTICES WITH LOCAL PERSPECTIVE", Researchers World, vol. 4, no. 1, pp. 78.
• • Andersen, K.V. 2013, "The problem of embeddedness revisited: Collaboration and market types", Research Policy, vol. 42, no. 1, pp. 139-148.
• • Baskonus, H.M., Mekkaoui, T., Hammouch, Z. & Bulut, H. 2015, "Active Control of a Chaotic Fractional Order Economic System", Entropy, vol. 17, no. 8, pp. 5771-5783.
• • Ben-Ner, A., Kong, F. & Lluis, S. 2012, "Uncertainty, task environment, and organisation design: An empirical investigation", Journal of Economic Behaviour & Organisation, vol. 82, no. 1, pp. 281.
• • Choi, K. & Hammoudeh, S. 2010, "Volatility behaviour of oil, industrial commodity and stock markets in a regime-switching environment", Energy Policy, vol. 38, no. 8, pp. 4388-4399.
• • Czischke, D. 2014, "Social Housing Organisations in England and The Netherlands: Between the State, Market and Community", A+BE: Architecture and the Built Environment, vol. 4, no. 14, pp. 1-386.
• • Dan, S. & Andrews, R. 2016, "Market-Type Mechanisms and Public Service Equity: A Review of Experiences in European Public Services", Public Organisation Review, vol. 16, no. 3, pp. 301-317.
• • Dobrea, M. & Maiorescu, I. 2015, "ENTREPRENEURIAL OUTCOMES AND ORGANISATIONAL PERFORMANCE THROUGH BUSINESS COACHING", Amfiteatru Economic, vol. 17, no. 38, pp. 247-260.
• • Ezati Jivan, M. 2012, "The influence pattern of key factors affecting the purpose of organisational excellence consulting on the efficiency of businesses consulting services (A case study of small and medium-size food enterprises in Tehran province)", Management Science Letters, vol. 2, no. 2, pp. 713-726.