Entrepreneurship and Business Environment

Introduction

The understanding of business environment is significant to undertaking the new entrepreneurial venture and successfully operating the existing business organizations. In respect to the purpose and nature, business takes the shape of private, public, government, charitable, and voluntary forms. Each type of business serves specific needs of the society. In addition, the operational process of a business organization is also conducted on the basis of different types of organizational structure which also determines the hierarchy of direction and reporting. Due to the globalization of business activities, the structure of business organizations has significantly changed (Schmidley and Pol, 2017). Now, global organizations are implementing the hybrid business structure for the operational efficiency. Then, the establishment of new entrepreneurial venture is closely connected to the understanding of the market environment so that the entrepreneurs should analyze the economic policies of the government more carefully for the purpose of identifying the capitalizing business opportunities.

Task 1: Understand types of organizations and their purposes

1.1Explain the different types of organizations and discuss their purposes

The understanding of business environment is significant to undertake the new entrepreneurial venture and successfully operating the existing business organizations. In respect to the purpose and nature, business takes the shape of private, public, government, charitable, and voluntary forms. Each type of business serves specific needs of the society.

An organization is composed of group of people working in different department for achieving the purposes of the business. As different business organizations serve different purposes, their activities can be identified on the basis of the nature of work that they perform (Camillus, 2015). On the basis of the purposes, there are following types of organizations are such as private, public, voluntary, government and charitable, where the purposes of the companies are different to each other.

Private organizations are business companies that are established and controlled by the individuals. For example, Greenergy, Swire, John Lewis Partnership etc. are private organizations. The private organizations are out of the direct control of the government as the ownership of the business is rest on the hand of the citizens of a country (Dobni, 2016). The motive behind the establishment of private organization is to earn profit through conducting business. Private organization takes the form of different types of business including the retail chains, hospitals, manufacturing firms, and digital business etc. Private organizations also work for maximizing the return on investment of the owners and facilitate the growth of the organization through providing the quality goods and services to the customers. In addition, private organizations also work for maximizing the value to the customers and maximizing the shareholder’s value through the attainment of the purposes of the organization. Hereby, the private organizations mainly focus on maximizing the profitability and ensure future sustainable development by establishing their business efficiently.

Public organizations are generally established and operated by the government of a country for the purpose of providing the basic services to the citizen of the country. There is not profit motive behind the establishment of the public organization as this type of organization aims at improving the standard of life of the general people (Pride, et al. 2016). For example, British Council, Cabinet Office, Child Maintenance Service etc. are the public organizations. But the service users are required to pay fees for the service they receive. Service the society is the primary motive behind the establishment of the public organization by government bodies. The public firms are controlled by the government and the major focus of the public organizations is to maximize the social welfare by charging minimum amount so that the social communities can afford the services. There are public organizations like Tesco Plc. which is efficient to run their food retail chain across the UK.

Voluntary organizations involve a group of people who enter into an agreement to form a body for the purpose of serving the society without any profit motive. Most of the voluntary organizations are established for improving the socio-economic condition of people through providing voluntary services (Domanovic, 2013). This type of organization also helps the government to tackle the emergency situation of the country and face different social challenges. Most of the voluntary organizations are established to meet the particular purpose including the protection and development of children, spreading education within the rural societies, ensuring the welfare of children and women, and protection of nature. Thus, voluntary organizations help to create awareness and ensure the development of the society. The care, that the voluntary organizations provide are effective to protect human rights and secure the life of the individuals by providing different services such as providing free education in the rural areas, protection of nature and giving support to the women legally and financially. For example National Trust which is operating in the UK voluntary sector, for the places of history interest and beauty and the sector is working of charity and membership organization for environmental and heritage conservation.

Government organizations are those organizations which are established by the federal or state government for the purpose of providing public goods to the citizen of the country. The government organizations are directly related to the social welfare of a country as the society is directly benefited by the service provision of the government organizations (Wyburd, 2018). For example, the government of UK has established different schools, public colleges, and universities that have improved the education of the country. In addition, several government organizations are established for maintaining the sovereignty of the county as it works for maintaining the political relations of the country with the other countries. But most of the government organizations are established for the purpose of proving the basic services to the citizen of the country and ensuring minimum standard of life through this process. Thus, the citizens of a country are directly influenced by the government organizations. National Health Service (NHS) is the government organization, which is regulated by the UK government to ensure the health and social care service to the public across the UK.

Charitable organizations are established for the purpose of social well-being and philanthropy. This type of organization works for the public interest of a society and considers the common goods while setting up their operational activities (Hillary, 2017). The most activities of charitable organizations are including the educational development, religious promotion, and charitable activities. The most common reason for establishing charitable organization is to collect funds from the wealthy people and distributing it for the development of the society through different activities. The contribution of the charitable organization is social development is intense as the pooper section of the society is directly influenced by the charitable activities. For example, the British Heart Foundation is a charitable organization, funds in the research and development programs for establishing efficient treatment for heart and risk factors in the human body.

1.2 Discuss the purposes of different types of organization

The purposes of the private organizations are,

To maximize profitability

To enhance sales volume and performance

To satisfy the customers

To fulfill the organizational values

To meet the organizational objectives

The purposes of the public organizations are,

To create social values

To rule the overall system

To maintain transparency and accountability

To maximize social welfare

To support the stakeholders by giving high return on investment

The purposes of the voluntary organizations are,

To accomplish the purpose

To maximize common interest of the people

To create values for all the stakeholders

To form effective solutions

To enhance business creativity and innovation

The purposes of the charitable organizations are,

To maximize social values

To support the vulnerable people

To serve efficient service to all the individuals living in the society

To enhance diversity and equality

1.3 Analyze the responsibilities of organizations

Legal responsibilities: The first and foremost responsibilities of business organization are to meet the legal requirement of country in which the organization is operating. In UK, the Equality Act 2010 is required to be maintained within the organization to ensure the equal opportunities for the people (Meiners, et al. 2018). In this regard, the firms in the market must focus on treating all the people fairly and it is necessary to give equal scope to all the employees so that they can feel valued at the workplace. Then, Consumers Act 2015 requires to be maintained by the business organizations for the purpose of maintaining the rights of the consumers and ensuring the quality of products and services. The consumer act is effective to provide quality products and services to the customers, where it is possible to maximize the customer’s values successfully. The Employment Rights Act 2012 should be maintained by the business organizations to ensure the rights of the employees and providing them with the required employment contract. Additionally, the Health and Safety at Workplace Act 1974 is also another effective act to manage the safety and security of the employees in the workplace.

Responsibilities to stakeholders: There are different types of stakeholders involved in a business including the employees, customers, suppliers, government, society, and lenders etc. Business organizations had responsibilities towards these stakeholders. First of all, the employees of the organization should be providing with the proper compensation plan and working environment. Then, the organization should maximize the value to the customers through providing quality goods and services (Crouch, 2018). Then, the responsibilities towards to suppliers can be performed by paying the due bills according the predetermined schedule. The responsibility towards to government is to pay the tax and VAT regularly so that the government will be able to conduct the federal activities. Business organizations also have responsibilities towards the lenders which are to pay the interest and principle amount under the proper scheduling. Thus the responsibilities towards the stakeholders can be performed.

There are other stakeholders, who are engaged with the organizational activities such as government and social communities and it is the responsibility of the organizations to maximize the values of the all the stakeholders of the company, by providing high return on investment. In this regard, it is necessary to fulfill the needs of the social communities by investment for social development. Additionally, following the legal rules and creating values for the government is also the responsibility of the organizations.

Ethical responsibilities: There are different ethical responsibilities of business organizations that are required to be maintained for honoring the culture and norms of a country and society. First of all, organizations should maintain the legal standard of goods and services. Then, the organizations should maintain a fair process in hiring, promotion, and compensation practices (Mohamed, 2015). The protection of the employees at workplace is another ethical responsibility of business. In addition, organizations shouldn’t involve in any business which is against the social value. Following all the legal rules and developing ethical organizational practice are necessary for the organizations in order to develop suitable workplace and maximize the organizational value in an ethical manner.

1M1: Assess the extent to which Primark meets its stated purposes

Primark is a clothing retailer of the UK which operates its business throughout the country for the purpose of earning profit through providing quality products to the customers. The organization is devoted to meet its purposes through the proper operational activities (Primark, 2020). First of all, the organization has maximized its profit through sourcing the products from the least countries including Bangladesh and ensured the quality of the products. Then, the products are sold at a premium price to the middle and high class customers which have increased the profit of the organization. The company is efficient to utilize effective raw materials to produce and manufacture the quality products which are efficient to meet the customer’s requirement. In addition to this, the aim of the company is to deliver high quality products at effective price, so that the customers can afford the high quality price at competitive price ad this further helps the company to maximize the objective of strengthening their customer base and run the organizational operational activities strategically (Primark, 2020).

The organization has increased the ROI through undertaking cost cutting initiatives. For example, the scientific inventory management system has reduced the storage cost of the organization has increased the ROI of the organization. The sales of the organization have been increasing due to the proper marketing policies of the organization as the marketing team has successfully placed the product to the target customers. As the quality of the product is ensured by the organization, the customer satisfaction has been ensured and the long-term relationship has been established with the customers. Thus, Primark has achieved the purposes through undertaking proper strategies in the relevant fields (Primark, 2020). The strategic planning of the organization is hereby effective to fulfill the organizational aims and objectives, where the marketing and production department are effective to manufacture the quality clothing products as well as promote the brand efficiently in the international market. In addition to this, proper strategies are effective for the organization to meet the stakeholder’s requirements and maximize the values for them by providing them high return on investment. Moreover, the social sustainability and economic values maximization are other factors where the organization is successful to create values for the society and maximize the business profitability to maintain the economic responsibility of the brand and thus it can be stated that Primark is efficient to meet the purpose of the business and expand the organizational activities across the globe (Primark, 2020).

Task 2: Understanding the structure of organizations

2.1 Evaluate the different types of structures found within organizations

Organizational structure involves system and processes that directs the employees of an organization towards the attainment of the goals and objectives of the organization. In accordance with the nature of business and the choice of the manager, there are different organizational structures found within organizations which are discussed in the following-

Hierarchical structure

There are different types of hierarchical structure within an organization which are including the flat organizational structure, matrix structure, functional structure and divisional structure. These structures provide different set of rules which are required to be following within the organizational boundaries (Satryo, 2018). Different types of hierarchical structures are discussed in the following-

Flat structure: In a flat organizational structure, there are few or no level of management between the managers and the employees of an organization so that a close connection can be established between the employees and functional mangers. The company Lidl is using flat structure, where there are efficient managers, under which the team members and the staff are working efficiently under proper guidelines of the managers.

This type of organizational structure is used by the organization when the scope of the organization is relatively small. In such organizational structure, the managers of the organization don’t supervise the employees strongly rather the employees are providing with the decision-making power. It is very effective organizational structure which facilitates creativity within organization.

Matrix organizational structure: Matrix organizational structure takes the form of a matrix which involves the reporting relationship of the different level of managers and employees in grid form rather than the traditional hierarchical form. For example, Walmart as a suitable retail firm is following matrix structure, where there is efficient manager, under which the managers in different departments are hired in order to work efficiently in their expertise and manage different departments successfully.

In such organizational structure, the lower-level employees are required to report to the line manager and product manager as well. That means there is duel reporting relationship within the organization. Such organizational structure is very effective in implementing particular project which involved related activities and requires the interaction of different level of management and functional areas (Colibasanu, 2016). But the matrix organizational structure creates complexities for the employees as they are required to report to the different people.

Functional structure: In a functional organizational structure, the employees of an organization are grouped in accordance with the similar role or task so that the combined expertise makes the work easier to perform. For example, the company Primark and Tesco follow the functional hierarchy to develop appropriate organizational structure, where the departments are generated as era the organizational functions, so that the companies are able to run their operations efficiently.

The functional employees report their activities to the functional manager and the functional manager is devoted to combine the function with the other areas of the organization (Schaffer, et al. 2017). Thus, the functional structure helps to perform particular task with the help of the specialized people within the organization. As per the functional structure of the organization, there is proper organizational structure according to the functions of the organization. The major functions of the organizations are such as marketing and sales, human resource management, finance, sales and purchasing activities, research and development and production, which are effective of the organizations to run their operational activities strategically. In this regard, as per the functional organizational structure, the structure of the firm is developed according to the functions of the firm so that each management team under the functions can handle the department and manage the organizational functions strategically.

Divisional organizational structure: The divisional organizational structure involves the arrangement of the organizational activities in the particular market, geographic areas, and product and service group. The divisional structure is given in the following-

The figure shows that there are different functional units for each division of the business. Thus, the divisional organizational structure is devoted to focus on the particular area of business through establishing the required functional units for each division (Adriana Grigorescu, 2015). This type of organizational structure is applicable for the global organizations as their operational area is very big so that the performance of each division can be reported and assessed properly. As per the divisional structure of the firm, it is possible for the corporate firms to manage the different divisions of the organizations such as cosmetics, garments, footwear and medicine, where the companies can handle their departments and improve their expertise to maintain diversified products in the market.

2.2 The functions of different departments in organizational structures and their interrelationship

In the organizational structure, there are different types of functions that are required to be conducted for the purpose of operating the organization successfully. The most interesting fact is that the different functions within an organizational structure are interrelated and contribute to the attainment of the goal and objectives of the organization (Tidström, 2019). The most common functions in organizational structure are listed in the following figure-

Managing the human resource is one of the most important functions of the departments within the organizational structure as human resource is the most valuable component of an organization. Managing the employees and distributing works among them is the most significant task of the departmental head in an organizational structure. Then, establishing communication within the employees of the department and with the other departments is another important function which helps to ensure the flow of information and transparency within the organization. Then, the management of the physical resource of the particular department is another important function which is very significant for ensuring the proper functioning of the particular department of the organization (Vernon and Wells, 2018). For example, the accounting department of an organization should manage the computer system properly unless the departmental activities will be hampered. Financing is another important function of a department within the organizational structure as the proper functioning of the particular department requires several physical and technical resources that require a significant amount of money that is required to the financed by the departmental head (Adriana Grigorescu, 2017. Then again, the performance is the most significant function of a department within an organizational structure which ensures that the employees of the department are working in accordance with the demand of the organization so that the goals and objectives of the organization could be attained properly. The major functions such as production, marketing and sales, human resource management, finance, research and development and the functions are interlinked with the organizational structure, where each of the functions are related to the organizational functions. The human resource management activities are managed by the human resource department, where the human resource managers as well as the finance managers can manage the financial activities and investment. In addition to this, the production department is managed by the production unit team and the managers in order to handle the production functions were the use of raw materials, production technology and handling the quality of the products are controlled efficiently for managing effective product line. The marketing and sales department is managed well by the marketing managers in order to handle the functions of marketing, sales, promotional activities, placing and distribution, pricing and ensuring product quality as well as managing people and process to maximize the organizational aims and objectives. The finance managers are efficient to handle the balance sheet, yearly turn over and other investment related activities of the firm, where they try to maintain the financial activities efficiently to develop final annual report of the company. The management team of the research and development department is also efficient to handle the research activities.

2.3 Evaluating the influence of global factors on organizational structures

As globalization has opened the window of opportunity for the business organization globally, several global factors are influencing the structure of the organizations so that most of the global organizations are required to adjust their organizational structure with the requirement of the global factors. First of all, the cultural differences among different countries has significantly influenced the organizational structure of global organization as the same organizational structure can’t be applied in two different countries due to the specific cultural differences. For example, the American organizations can’t apply the functional organizational structure while operating in China due to the differences in culture(Worthington, 2018). Then, the geographical distance of the business units has influenced the organization to adjust a divisional organizational structure which is focused on a particular business unit. In such case, there might be changes in the level of management in different business units in different areas of the world. As a result, the mangers are required t prepare separate plan for different business areas to comply with the global differences in order to adjust with the vocational differences in business activities. Due to the globalization of business organization, several organizational structures has become useless in global arena e.g. the flat organizational structure so that the organizations with the flat structure are required to introduce significant change in order to state global operation. In many organizations, the top management has introduced hybrid organizational structure in order to adjust with the global influence (Colibasanu, 2016). This type of organizational structure involves the integration of two different organizational structures for the purpose of addressing the demand of global business environment. Thus, global factors are significantly influencing the organizational structure. For understanding the impacts of the globalization era, it is necessary to conduct the PESTLE analysis in the retail sector of the UK, so that it is possible to acknowledge the business environment of Primark, where they can utilize the pace of globalization and fulfill their mission.

Political:

There is political stability in the UK political environment and the government of the UK is efficient to support international trade activities, where the organization Primark has the scope to expand their business through international trade.

Economic:

Economic growth of the UK and National income are contributing factors for the business to run their operations efficiently. There is high purchasing power parity in the country, where the customers have the ability to make effective purchase decision.

Social:

Social development with high literacy rate is effective to boost the performance of the organization. Additionally, people try to gather news and information through online activities and thus it further influence the companies like Primark to promote their business through social media advertisement and online activities, where the customer prefer online shopping activities.

Technological:

As per the technological concern, there is high technological advancement in the country, where the organizations try to improve their business efficiencies by implementing latest technology and design the mobile application of the business, so that the company Primark can expand their business sustainably.

Legal:

The legal structure is also strong, where there are customer’s protection laws and employment legislations which provide a scope to secure the customers and employees in long run. Through following the legal compliances, the organizations can run their operational activities ethically in the market.

Environmental:

In the recent era of globalization, all the social communities are concerned about environmental protection, as well as there are several rules and guidelines for the multinational corporate firms to manage the positive environmental footprint and ensure future sustainability of the business. The practice of managing green supply chain, utilizing alternative or renewable energy resources ad using electric cars and paper packaging system are the initiatives for the business to be sustainable in the market.

2D1Assessment of the organizational structure of Primark

The organizational structure of a business is directly related to the operational process of the organization which influences the operational boundary and employee motivation at the same time. The organizational structure of Primark is given below-

The figure shows that Primark has a functional organizational structure where the functional manager coordinates the activities of the particular functional area. This organizational structure helps the management of Primark to apply specialization in the organization so that employees can apply their expertise at workplace (Satryo, 2018). But Primark is a global company so that the divisional organizational structure should have been a better choice for the organization which will be very effective in evaluating the performance of particular area of business. As per the structure, there are sales directors, chief executive officers and chief executive operating officer, who are efficient to manage the functions of the organization. Under finance and accounting, there are store managers, supervisor and staff assistant who try to collaborate and manage the financial activities of the firm. Apart from that, sales director is responsible to handle the marketing and promotion of the company, managing sales and purchase activities in order to manage the organizational operations successfully.

Task 3: Understand the impact of the market environment on organizations

3.1 Analyze the impact of supply and demand on the prices of goods and services in markets

Market is a place where the buyers and sellers of a product meets together to exchange the product at a particular price. In such case, the buyer is the demand side of the produce and the seller is the supply side of the product. The prices of the products and services are determined on the basis of the cost of production, expected profit, and market condition (Dobni, 2016). In most of the cases, the profit on product or service is largely depends on the demand and supply of the product in a particular market. In a competitive market, the price of a product is determined by the interaction between the demand and supply of the product. The changes in the demand and supply of the product will surely change the price in a particular manner. In the following, the impact of supply and demand on the prices of goods and services in market is discussed-

Concept of Demand: The demand of a product is referred as the quantity that the customers are willing to purchase at the available price. The demand of a product changes due to the change in price of the product, price of substitute product, price of complementary product, and change in income (Camillus, 2015). The demand curve and change in demand curve is shown in the following-

In the figure, demand curve has shown along with its different types of changes. In the first picture, the change in demand curve has taken place along the line. This change is due to the changes in price. But in the second figure, there is a shift in the demand curve which is due to the change in factors other than price of the product. For example, if the price of the organizational products increases, the demand of the customer for that particular product or services will decrease due to high rice, where the customers cannot afford the price. Accordingly, the drop in price will increase the customers demand for the products.

Concept of Supply: The supply of a product involves the quantity of a product that is available for sale at a particular price. Supply has a positive relation with the price of the product as the increase in the price of a product also increases the supply of that product (Domanovic, 2013).The supply curve moves due to the changes in costs and profit. The In the following, the movement in supply curve is shown-

The first figure shows that the supply of a product is positively related to the price. Again, it also shows that the movement in supply curve takes place along the line due to the changes in price, costs, and profit. In the second picture, the movement along the supply curve has taken place due to the factors like taxes. The supply of the organizational products will depend n is price, where the entrepreneurs try to increase their supply if the market price is high.

Impact of demand and supply in determining price: The demand and supply of a product has a significant impact on its pricing as the price of a product in determined a by the interaction between the demand and supply of the product. The point at which the demand and supply interact is known as the equilibrium point. For example, if the supply of a product is greater than the demand of the product, the price of the product is expected to fall due to the excess supply (Mohamed, 2015). On the other hand, if the demand of the product is greater than the supply of the product, the price of the product will increase due to the excess demand. Thus, the demand and supply in the market determine the price of the product and influence the manufacturer in determining the unit of products that should be produced in a particular market condition.

3.2 Analyze possible planned interventions in the market place and their impact on organizations

Although the competitive market environment is most preferable way of conducting economic activities within a country, the government of the country often intervenes in the market place in different manner (Tidström, 2019). There are different types of market intervention in the market place which are listed in the following-

The most common manner of market intervention is to impose tax by the government or providing subsidies by the government. The tax is imposed to limit the supply of a product by increasing its price. For example, most of the countries impose high tax on alcohol products for controlling its consumption. On the other hand, subsidies are provides to keep the price in control or to protect the domestic industry from the international competition. Another common way of market intervention is to impose a maximum or minimum price for a particular product so that the suppliers of a product can’t increase the price of the product beyond this band (Meiners, et al. 2018). This strategy is very effective if the market isn’t competitive. It helps to force specialization in production and price reduction for the betterment of the consumers. In most of the countries, the public good and services are provided by the state owned business organizations which are funded by the government of the country. Private organizations aren’t allowed to distribute these products as the government is dedicated to supply basic services to the citizens of the country. The purpose of the state owned business organizations is to ensure the social welfare through providing the core services at the lowest possible price. In most of the times, the products and services are distributed at their production price.

Impact of planned interventions on business organizations: When the government conducts panned intervention in the market place, the business organizations are directly influenced. First of all, there might be market failure in the free market environment which is corrected by the government intervention. Then, the government collects the taxes for redistributing it to the society which ensure the social welfare. As a result, the business organizations are also positively influenced by this government activity (Wyburd, 2018). If a business organization conduct monopolistic business activities in particular market, the imposition of minimum and maximum pricing limits its profit margin. Then, the social inclusion of the business organization also takes place due to the government intervention in the marketplace. Government intervention in this regard plays a crucial role in managing the business and restructuring the organizational strategic planning, so that it is possible for the business to establish the brand. The policies such as price setting and tax impose are not beneficial for the organization, as this further raise the product price and the companies lose their customer base. It is necessary for the organizations to specialize the products and services in order to develop product line that can match the customer’ preferences and apart from that proper investment in the organization is required to tackle the policies of the government and establish the company successfully.

3M1 The response of Primark to changes in its market

As a global organization, Primark is always responsible to the changes is market. In the cloth retailing industry of UK, several new business organizations have been established so that the competition has become intense. To cope up with the situation, the management of Primark has started to cut cost in order to reduce the price of the products so that the demand of the products could be increased (Colibasanu, 2016). Then again, the organization is focusing on complying with the green business as most of its warehouses and factories are maintaining the environmental codes of practices for the purpose of ensuring the healthy environment. Thus, the management of Primark is always responsible to the changes in its market. In order to response to such intense competition in the market and gain high competitive advantage, the company should focus on the product diversification strategy in order to deliver a huge volume of clothing products it he market. A strong product line is effective for the organization to manage the market and operate efficiently in the market. Additionally, the company should focus on developing marketing strategy for successful promotion of the products in the market so that the customer can access the products and check the availability of the products. The promotional activities such as campaigning, social media advertisement are effective of successful branding. On the other hand, the company needs to manage green supply chain through utilizing electric cars for transacting the goods and raw materials as well as utilize the fossil fuel and renewable energy resource such as solar panel which are effective for the organization to establish the business in the market.

Task 4: Understand the nature of the national environment in which organizations operate

Entrepreneurship is the most important driver of job creation and economic growth of a country as it contribute to the establishment of the small and medium organization. Different social problems and social needs are addressed through the implication of entrepreneurship at national level so that national entrepreneurship strategy is very significant to the development of a country (Vernon and Wells, 2018). The national entrepreneurship strategy involves the country-specific market knowledge which provides significant input in formulating the business model within the national boundary. Then, the national entrepreneurship provides the assessment related to the national strengths and priorities so that the entrepreneurs can establish business organizations which are required in the national market and meets the requirements of the planned growth of the national economy. The analysis of the national market provides the opportunities regarding the unserved market niche which increase the success rate of the new organizations and facilitates the growth of such entrepreneurial ventures (Worthington, 2018). As the government of a country undertakes strategies related to the national growth, the national entrepreneurship storages help to implement the government’s strategy successfully. Finally, the national entrepreneurship strategy provides the framework for the improvement in the entrepreneurial objectives so that new entrepreneurs enter into the market with their ventures (Tidström, 2019). Thus, national entrepreneurial strategy helps to promote entrepreneurship within a country and facilitate the economic growth of the country through improving the national economic activities. For this reason, the establishment of national entrepreneurial strategy is very significant nor the development of the country and improving the socio-economic condition. In the recent era of globalization, the companies like Primark focus on developing entrepreneurship in the organizational workplace, where it is possible to empower all the employees at the organization as well as it is effective to develop suitable corporate governance in the firm. the entrepreneurial strategy helps the entrepreneurs to develop appropriate strategic planning for maximizing the organizational aims and objectives, where the national entrepreneurship strategy further influence the entrepreneurs to establish their business efficiently in the market. It further helps to develop sustainable self employment system, where the entrepreneurs have the chance to explore or alternate solutions in the market and establish their business successfully. The national entrepreneurship needs to be enhanced across the country in order to influence the entrepreneurs for more creativity and business innovation in order to enhance the operational performance of the companies.

4.2 The role of monetary and fiscal policy and the possible impact on organizations and their activities

The success of new and existing business organization is largely depends on the monetary and fiscal policy of the central government of the country as the supportive monetary and fiscal policy provides significant advantage to the business organizations and motivates them through offering greater benefits(Schaffer, et al. 2017). The core economic variables of a country are determined by the monetary and fiscal policies of a country which are directly related to the performance of business ventures.

Fiscal policy:

Under the fiscal policy, the government adjusts the tax rate and spending in the market in order to influence and monitor the economy. The level of profit of the business organizations is determined by the fiscal policy of the country as the level of interest and taxation has direct impact on the profit of the organization. If the interest and tax rate is lower in an economy, the profit margin of the organizations like Primark increases and entrepreneurial ventures are created (Satryo, 2018). If the government planned to import less and export more products, the economic activities are positively influenced within the country so that the business organizations can expand their operation and earn greater profit. The size and nature of employment is also determined by the fiscal policy of the country as the expansionary policies by increasing spending, creates the opportunities for greater level of employment in an economy.

If the fiscal policy of a country plans to create new trading partners, the business organizations are also positively influenced as the level of import and exports significantly increased due to the positive influences of the government policies. If he level of interest is increased within an economy, the propensity to save is motivated within a country and a positive investment environment prevails so that the business organization can borrow huge sum of money from the market (Crouch, 2018). On the other hand, if the level of interest is reduced, the propensity to consumption increases so that the consumers spend more money which also increased the sales of the organizations.

Monetary policy:

The central bank adjusts the volume of money and circulation of money in the economy. The expansion of the business organizations takes place when the government undertakes the expansionary monetary policy as is increases the availability of loans for the business organizations and influences the production positively. on the other hand, negative monetary policy is related to cutting down the money in the economy and it further deteriorate the productivity of the economy as well as reduce the circulation of money and reduce the investment in the economy. Thus, the monetary and fiscal policies of a country directly influence the economic activities of business organizations.

4.3 An evaluation of the impact of competition policy and other regulatory mechanisms on the activities of Primark

The competition policy in the market of UK has a significant impact on the activities of Primark as the organization is largely influenced by these policies. First of all, the competition policy promotes the free competition in the market place so that the organization will be able to purchase the products from the suppliers at the lowest possible price (Hillary, 2017). In addition, the price of the final products is required to be determined at a competitive rate so that the organization will not be able to earn abnormal profit. Due to high competition in the market, the company Primark faces high threats of substitute products and threat of intense competition for which the organization must focus on setting effective price and delivering high quality products, so that the organization can satisfy the customers and retain them for long run. Then, Primark is required to implement specialization through research and development for the purpose of increasing organizational efficiency and reducing the cost of operation otherwise the organization will not be able to survive in the competitive business environment. Hereby, competition policy influence the company Primark to focus on cost leadership strategy and premium pricing policy in order establishes the company successfully in the retail chain of the UK. Then, the consumers has got the opportunity to choose among greater variety of products so that Primark is required to focus on the needs and wants of the consumers for the purpose of facilitating the growth of the organization and hence the product diversity strategy must be implemented in the company so that Primark can handle good and effective product line with quality products (Domanovic, 2013). To earn competitive advantage, Primark is required to implement technological innovation for over passing the competitors which continually improves the efficiency of the organization which in turn helps the firm to gain high competitive advantage. Among other regulatory mechanisms, the most significant policies are 4 pillars of competition policy in the UK and European Union which are including the antitrust and cartels, market, liberalization, state aid control, merger control. When the organization agreed to provide same quality of products rather than innovating better products it is called cartel. The EU has banned cartel and enforced the innovation for protecting the rights of the consumers so that Primark is required to improve the quality of products regularly. Liberalization facilitates the increased participation of the private organizations in the economic activities of that efficiency takes place and price of product reduces (Dobni, 2016). In the EU market, Primark isn’t able to merge with the large organization as it is against the free competition. So, the management of the organization is required to consider these issues while operating business. Such regulatory framework as well as the policy framework further provides a scope to Primark to improve their operational efficiency as well as maximize the business values to satisfy all the stakeholders. Structuring the organizational strategic planning through innovation and creativity is the major impacts of such policies, where the firm s influenced to tackle the competitive environment through technological innovation, business creativity, product diversification and cost leadership strategic planning.

4D1Compares and contrasts the benefits and challenges to a specific business operating in different economic environments

Business organizations operate their operation in different economic environment which provides various benefits and challenges for them. When the organization conducts business in different economic environments, it can conduct effective market analysis which is very significant for formulating strategy (Camillus, 2015). In addition, organizations can adopt the cyclical chances and expand their business operations through analyzing and optimizing the opportunities provided by different economic environments. In addition, organizations like Primark can access to purchase high quality materials due to its operation in different economic environment which also provides economic of scale for the organization. The organization is able to utilize different economic environment by conducting more research and development in order to develop effective strategic planning and apart from that, the opportunities for utilizing the economic environment for Primark are enhancing performance, maximizing profitability and sales volume and satisfying all the stakeholders engaged with the business. The opportunities in operating in different business environment are utilizing different culture, a wide range of knowledge and technical skill, developing partnership working practice and improving organizational tactics to perform in future. On the other hand, there are some challenges in operating in different business environment, where Primark might be unable to communicate effectively with the international business environment due to the dynamic nature of different business environment. In addition, the cost of the organization might increase due to the changes in variables frequently in different economics so that the cost of operation will increase for the organization (Harrison, 2014). Due the increased legislations and regulatory requirements, Primark might not be able to survive the international competition. In addition, the cultural differences in different economics might negatively influence the scope of the organization in earning profit. The other challenges of operating across different environment are cultural diversity, internal conflicts at the organizational workplace, lack of trust and understanding among the employees, mismanagement, non-cooperation and lack of partnership working practice for which the organizational performance can be hampered in long run.

Conclusion

The competitive nature of the business environment has influenced the organizations to adjust their organizational structure with the requirement of the environment. As a result, the dynamic of business operations has significantly changed in the recent years. Due to the increased globalization, the nature of business activities has significantly changed as most of the organizations are trying to establish interrelationship among the activities in different operational areas (Schmidley and Pol, 2017). In addition, new business organizations are being established for the purpose of serving the niche market and exploit the opportunity to earn profit. But the intervention of the government is actually determining the business dynamics in the competitive business environment. For this reason, the organizations are required to structure their operational activities more carefully and consider the regulatory and competitive factors while formulating strategies.

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