Business environment assessment

Abstract

This paper provides answers to different questions relating to the dynamic business environment in the UK. The aim is to understand the organisational purposes of UK businesses as well as of the nature of the national environment in which UK businesses operate. Another important objective of the paper is to provide a relevant understanding of the behaviour of organisations in their market environment. It is important to assess the significance of the global factors that shape national business activities.

Organisational Purposes of Businesses

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Q1.1 An organisation is described as a structured, open systems unit that is managed to meet various collective goals. All organisations emerge with a management structure that regulates relationships between stakeholders and different activities (Pearlman and Mollere 2009). There are different types of organisations in the UK, such as sole traders, partnerships, companies and franchises (BPP Learning Media 2010). The sole trader is a common form of business ownership and is found to operate in different industry sectors. Approximately 20% of sole traders in the UK operate in the construction industry (Lindgreen et al. 2009). The purpose of the sole trader organisation is to make quick business decisions and to maintain close contact with employees and customers.

Partnerships as a form of organisation are subjected to regulation by the Partnership Act of 2002. This Act makes it legal for different forms of partnership to have a substantial number of partners who enjoy limited liability (BPP Learning Media 2010). The purpose of partnerships refers to sharing skills and expertise, which in turn leads to adequate opportunities to raise capital. There is a clear account of the profits and losses to be shared (Ehrhart et al. 2013). Partnerships are common in setting up professional services, including solicitors, accountants, etc.

Q1.2 A selected organisation in the UK business context is that of Tesco. The values shared by the organisation relate to understanding customers, meeting their needs and acting responsibly for local communities (Pearlman and Mollere 2009). In an attempt to define a stakeholder, it appears that this is a person or group that has interest in an organisation. Stakeholders can influence or be influenced by the organisation’s actions, aims and objectives (BPP Learning Media 2010). The wide range of stakeholders at Tesco indicates the company’s responsibility to take their distinct views into account.

Tesco has different stakeholders, such as customers, employees, communities, suppliers, governments and regulators and non-governmental organisations. Tesco’s brand is something more than the way the company simply works (Belasen 2007). The organisation ensures a high level of stakeholder engagement, which is essential to its values (Ehrhart et al. 2013). The regular meetings held in the company help managers identify and respond to evolving customer needs. In addition, Tesco engages with employees through regular feedback and open communication. Tesco is committed to participate in various community initiatives, focus groups and consumer panels. Suppliers are fundamental to the company’s success (Lindgreen et al. 2009). Tesco has also demonstrated its goal of maintaining an open relationship with political stakeholders. The organisation considers the importance of meeting with non-governmental organisations to discuss emerging issues and concerns.

Q1.3 Tesco has various responsibilities to its stakeholders, such as helping customers lead healthy lives, creating jobs and developing future leaders, optimising organisational networks, and planning relevant community activities (BPP Learning Media 2010). The strategies employed by Tesco to meet these responsibilities correspond to its aims and objectives as well as mission and vision statements. Tesco recognises its role in helping customers lead healthy lives by providing high-quality products, such as the Goodness range for children in the UK (Pearlman and Mollere 2009). The sporting events organised by the company help many people lead active lifestyles. For instance, the aerobics programme in Thailand has generated substantial success. Tesco is committed to creating jobs and developing future leaders (Knox and Gruar 2007). The opening of its zero-carbon training academy in Asia is indicative of the company’s dedication to this objective.

It has been argued that one of the most impressive things about Tesco is the opportunity it has to change people’s lives. Individuals can join the organisation even if they lack qualifications because the company provides regular training and learning opportunities to new employees (BPP Learning Media 2010). The optimisation of the company’s networks is done through maximising fuel economy and introducing alternative forms of transport, such as rail. This initiative helps reduce the release of harmful emissions into the environment. Tesco’s stores are at the heart of the communities the company serves (Vanhamme et al. 2012). The support demonstrated to these communities is evident through providing high-quality products at affordable prices, various educational initiatives and charitable work.

The Nature of the National Environment in Which Businesses Operate

Q2.1 An economic system refers to a system of production and distribution of products and services. Such economic system is also represented by the allocation of resources in a society through various institutions and organisations (Belasen 2007). One of the economic systems to be identified is that of a mixed system, which is prevalent in the UK. Another type of economic system is a command economic system or planned economy. Scarcity in the context of economic systems is associated with limited resources (Douglas and Wykowski 2010). Such resources are identified as the inputs of production in terms of land, labour and capital. Individuals are expected to make choices between different items simply because the resources that are necessary to fulfil are limited.

As mentioned, the economic system present in the UK is a mixed system. It is represented by state ownership of particular organisations, such as the British Broadcasting Corporation. The mixed economic system indicates an adequate level of government regulation as well as open market (Pearlman and Mollere 2009). The allocation of resources in a mixed economic system is done through market forces, as in the case of the grocery sector in the UK economy. Mixed economies may indicate a properly functioning public sector. Yet there is a balance between the public and private provision of resources (Douglas and Wykowski 2010).

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