https://www.academia.

edu/7825083/Assignment_1_Business_Environment

info

Business

and

about tesco and petrolimex

Introduction:
Business

environment

is

composed

of

two

words

Environment. In economic sense Business means human activities like

production, purchase or extraction or sales of products or services that are
performed to earn money. Meanwhile Environment means the aspect of
surroundings. Business environment is the set of conditions institutional,
political, economical, legal or social that is uncontrollable and affects the
functions of the organization. I decided to choose two companies, one in
Vietnam and another one in UK. In Vietnam, we chose Petrolimex and in UK I
aim to Sainsbury, this report of organization will show you information of
business model and business environment in Vietnam and UK.

1 Know the range of different businesses and their ownership

1.1 Describe the type of business, purpose and ownership
What is a business?
A business, also known as an enterprise or a firm, is an organization involved in the
provision

of goods, services,

or

both

to

consumers. Businesses

are

prevalent

in capitalist economies, where most of them are privately owned and provide goods and
services to customers in exchange for other goods, services, or money. Businesses may
also be not-for-profit or state-owned. A business owned by multiple individuals may be
referred to as a company.
What are the different types of business?
Local business: A company which provides goods or services to a local population.
Though most often used when referring to a locally-owned business, the term may also
be used to describe a franchise or corporate branch operating within a local area.

National

business:

The domestic marketplace for goods

and

services operating within the borders of and governed by the regulations of a particular
country. The health of its home country's national market in terms of the supply and
demand for the product that a business offers can be a strong determinant of its success.
European Union : EU' A group of European countries that participates in the world
economy as one economic unit and operates under one official currency, the euro.
International

business:

International

business is defined as

commercial

transactions that occur across country borders. When a company sells products in the
US, Japan and throughout Europe, this is an example of international business.
Global business refers to international trade whereas a global business is a company
doing business across the world. The exchange of goods over great distances goes back a
very long time. Anthropologists have already established long-distance trading in
Europe in the Stone Age.
Public sector is owned and run by the government for the people. People pay taxes to
the government and this money is used to finance most of the public sectors. The main
purposes of public sectors organizations are to provide essential public services and to
use resources well for the benefit of the community.
Private businesses are owned and run by private individuals. Examples of private
sector businesses are franchises, companies (private and public), partnership and sole
traders. Purposes of private sector organizations are making profit, growing their
business, increasing market share and maximize sales.
Voluntary groups are not owned by any individual people. However, some will be
responsible for ensuring that it sets targets and budgets and does what it is set up to do.
In most instances they try to help particular types of people like guide dogs for the blind
or Oxfam etc. In order to survive they normally must at least break-even (for an example
spend no more than they take in through fundraising, grants and donations etc)
Different business sectors in the economy

Primary sector: this activity is the most important to commoditydevelopment,

although begin produce raw material like wood,minerals, crop. But it is resources
contribute to industrialdevelopment.
Secondary sector: using material in primary sector to make products like using wood
pulp to make papers and develop manyother industries.
Tertiary sector: this sector mostly are service like teaching, mediaor trading product
from distributor to consumer.
What are the different ownerships
Sole trader: sole trader is kind of individual business or in other word a person carry
on individual business, because they have own business so they can make decision by
them self and they can self-ruling in their organization they made. In this business can
have some advantages and disadvantage, advantage is you can hold all the sales profit
with your business and easy to respond quickly to the market and easy to change the
trend of social. For example, a grocery store, clothing store or repair-electronic shop,
etc. Not only have advantages, but also have some disadvantage like difficult for market
expansion, income isnt much and hard to enhance financial.
Partnership: This type always have more than one person, it has from two or more
people who have the same goal and work together to make business. The financial will
rise more than sole trader for sure, but the responsible, they have to share together to do
task. Absolutely have advantages, more people, more ideas, experience and skills.
Moreover, do partnership easy to make customer have more believe, bring a high
credibility to supplier. Besides, about managing and share profit are disadvantage, if
they dont give reasonable agreement, debating about profit and control power will
happen. Linux, Microsoft, Apple are example for this type.
Companies (Corporation): Is a person who can take all legal responsibility for the
owner of company. Specifically, company have 2 types, Ltd and Plc, both of them are
limited liability company, but about Ltd just have less people know and only have the
member inside like a member in family, in class. Plc is opposite, it is known by many
people outside, can be sold and traded to the public.

Franchise: it was sold by using business model of a company or individual

organization. In the simplest form, a franchisor has the right to the name or brand of
their own and can sell the rights to a branch (a franchisee) that. It is considered to be the
name brand or product name. In a more complex form, franchising build a broader
relationship development and always exist between the two sides. Franchisees usually
require a full-service format, including: site selection, training, provide product,
marketing plan, capital.

Sainsbury and Petrolimex

Sainsbury: Sainsbury Plc is a supermarket group, it have many kind of product like
food, drink, cosmetics, household items, clothing and many things. That is one of the
worlds largest retailers with over 500,000 colleagues, they serve millions of customers
a week in their stores and online.
Petrolimex: this is Vietnam National Petroleum Group (Plc), it formed from the
equitization. The main field of business is import and export petrolimex and oil trading,
oil refinery - petrochemical, investments in other enterprises to business sectors that are
Petrolimex business and other business sectors in accordance with law. Besides the
areas related to petroleum, Petrolimex investment business in the industry: design,
construction, mechanical and petroleum

equipment; insurance, banking and

commercial activities other services; which, many brands is considered as PLCs leader
in Vietnam, PGC, VIPCO, VITACO, PJICO, etc.
1.2. Describe the different stakeholders in an organisation
Everybody related with the association is known as the partners or stakeholders. Diverse
partners have need and desire from the association considering that extent the
association needs to address all the issue and desire of these partners (Preston & Steel,
2002).

Mention the different stakeholders who influence the purpose of the two
contrasting businesses

Customers: Customer is the key player of the association who expects quality items,
dependable administrations, great client care services and reasonable and rational costs,
among different factors return of their payment. This is the first degree or division that
Sainsbury needs to consider before meeting goals of different partners as though clients
are not fulfilled then the association will endure over the long haul.
Shareholders or investors: shareholders are the real proprietor of the association
where administration lives up to expectations for the interest of the shareholders.
Shareholders interest is to have a decent capital gain, nice looking profit amount and
development in the estimation of the shares however these desires are not constrained
to these. They need a balanced return against the risk they are taking investing into the
association (Gitman& McDaniel, 2009).
Employees: Employees has more than 537,000 workers everywhere throughout the
world. This vast number of representatives expects a decent open doors and

compensation from the organization. Other than that representatives are occupied with
the free stream of data to survey the possibility of the association considering the
compensation, retirement benefit and vocation opportunities (Gitman& McDaniel,
2009).
Suppliers and other trade creditors: Sainsbury has numerous suppliers as the
organization has differentiated products for the clients. These suppliers need great
payment frameworks, adaptable terms of credit and business understanding and the
behaviour of the association.
In Sainsbury , they just focus on the customers, produce products in accordance with
customer satisfaction but profitable and beneficial for individuals because this is private.
Petrolimex is opposite, they aim to customer but their goals are serving the community.
Value of Sainsbury simply is everyday-value, it just for customers need and that will
bring out relationship, customers loyalty and satisfaction, but value of Petrolimex was
not so, their value is diversity, is the legacy of national, people and economics. It not
only focus to develop the group, but also is the obligation for national by traditional
history. However, Sainsbury development is successful because they just aim to
customer and only find out how profitable to themselves instead of have to attention to
public, to country.
2 Understand how businesses are organised to achieve their purposes
2.1 Describe how two businesses are organize
Organisational structure:
Organizational structure is a system used to define a hierarchy within an organization. It
identifies each job, its function and where it reports to within the organization.

The purpose of an organizational structure is to define the guidelines,

parameters and the procedural process necessary for a group to
accomplish a main objective. For example, the anatomy of an
organizational structure is further reduced to the distribution of
authority, span-of-control, line vs. staff structures, organizational
height and departmentalization.
Span-of-Control
Span-of-control portion of an organizational structure defines the amount of
employees an authority figure is responsible for. According to
www.docstoc.com, the span-of-control is expressed one of two ways: a wide
span of control where managers supervise many employees; a narrow span
of control where managers supervise few employees.

Line vs. Staff Structures

An organizational structure may adopt a live structure or a staff structure or
both to achieve their main objectives. A line structure, sometimes called a
product structure, identifies the activities directly responsible for the
organization's main goal, such as the labor involved in making an actually
product. A staff structure is the support staff or network assisting the line
structures in their goals.

Organizational Height
Organizational height defines how many levels or layers from the decision
makers and down there are. Organizational height is expressed as tall
organizations with many levels or flat organizations with few levels.

Departmentalization
Its critical for an organizational structure to determine, categorize, and
organize the variety of tasks to be accomplished when achieving a main goal

and decide how to separate specific tasks from others. This involves
departmentalizing tasks, resulting in the formation of departments and
divisions within an organization.
Types of structure
Functional Structure
Functional structure is set up so that each portion of the organization is grouped according
to its purpose. In this type of organization, for example, there may be a marketing
department, a sales department and a production department. The functional structure
works very well for small businesses in which each department can rely on the talent and
knowledge of its workers and support itself. However, one of the drawbacks to a functional
structure is that the coordination and communication between departments can be
restricted by the organizational boundaries of having the various departments working
separately.

Divisional Structure
Divisional structure typically is used in larger companies that operate in a wide geographic
area or that have separate smaller organizations within the umbrella group to cover different
types of products or market areas. For example, the now-defunct Tecumseh Products
Company was organized divisionally--with a small engine division, a compressor division, a
parts division and divisions for each geographic area to handle specific needs.

Matrix
The third main type of organizational structure, called the matrix structure, is a hybrid of
divisional and functional structure. Typically used in large multinational companies, the
matrix structure allows for the benefits of functional and divisional structures to exist in one
organization. This can create power struggles because most areas of the company will have
a dual management--a functional manager and a product or divisional manager working at
the same level and covering some of the same managerial territory.

Functional areas

Through this chart, you can see here is the organizational chart of Sainsbury
company, headed by Managing Director, this position take responsibility for the all
part and find how to develop the company, it given the necessary strategies, how to
manage personnel and maintain the company's machines, then give way research
and development. Under Managing Director have 5 other sections as: Human
resources, finance, Administration ICT support, marketing and sales, customer
serviceFor the role of Human Resources, take responsible to train staff to enhance
the skills, knowledge and experience in dealing with customers in trade, especially
with this role, how to recruit new members are also important. In finance positions,
primarily the Sainsbury bank, equip customers or loyal customers an account, then
took money from the money sent by the customer, this activity can help customers
saving with a fixed interest rate of 3%, while for card purchases, there will also be
incentives like free money transfer fees. About administration ICT support, they
do the office work such as collecting and distributing mail, record keeping,
organizing meetings, suppose, for customers in Sainsbury members and today has
chapters Sainsbury promotions to customers, IT will send mail about the specific
information to customers. Identify and describe ways in which the business
stakeholders of contrasting organizational meet stated business purposes.
Marketing and sales, market research, learn about customer psychology is the
need to create customer satisfaction and customer loyalty, the role of marketing
and sales, actually Sainsbury is a group retail very large supermarkets, so attracting
customers that are more focused on the promotion than products, because it as a
gift to a customer wants to purchase. It may sound strange coming from a big
business, but at Sainsbury we really care about doing the right thing. And the
reason we are making such a big deal of it on the site of our recruitment is simple:
you will need to bring a passion for the business is responsible. Finally, customer
services, through what the role of human resource personnel were well trained, the
service issues will be an advantage for Sainsbury customers want to buy the phone,
staff specializing in IT sector will take care of the customer and help maintenance.

2.2 Explain how their style of organisation helps them to fulfil their purposes

Petrolimex
Including 62/63 provinces and cities in
Vietnam with 42/68 units members of
Petrolimex do business gas.
Besides, with retailers, Petrolimex
owns 2170 gas stations across Vietnam,
out of about 13,500 service stations by
all economic sectors

Sainsbury
Sainsbury has 75 millions shopping
trip every weekend in 12 countries with
over 500000 colleagues.
Besides, Sainsbury is a growing
group in the UK, they have over 3,000
stores and more than 300,000
colleagues around the world, therefore
they have to develop and strengthen the
business base in the UK.

Vision

Petrolimex create a new environment,

helping to cultivate more knowledge,
not only business petroleum but also
develop ability to service have no
petroleum. That is opportunity to
develop personal skill and creativity

Sainsbury has a panoramic view and

spacious. They set out what they want
to be:
- Wanted and needed around the
world
- A growing business, full
opportunity
- Modern, innovative and full of
ideas

Goals and
Objectives

To become a biggest gas company in

particular and petroleum corporation in
general in the coming year.
Petrolimexpromoted the position, role
and function of trade union organization,
the organization continues to innovate,
content and method of operation for
team building CNVC-Labor unions and
stronger, making it strong changes in the
actions of each employee Petrolimex gas
Corporation, contributing to the
development corporation grows, job
security, living standards for workers.

Before become Britains leading food

retailers, Sainsbury was performed
some strategy for the objectives like:
- Offering to customers the best
value and the most competitive
price value for money
- meet the needs of customers by
constantly searching and
collecting opinion innovation
- providing shareholders with
progressive
- developing talents of people by
management practices

Mission

Providing to people energy in general

and gas for vehicles in particular.

To be acknowledged by customer as the

premier drilling services company:
- Move from being a top drive
only AMSS company to a full
rig maintenance company.
- Move from a callout CDS Service Company
to a full offering, broad based
tubular services company.
- Move from a top drive only

Size

product sales company to a full

rig mechanization products
company.

Value

Product

Firstly, proud of being legacy in

Vietnam and Vietnam
development
Secondly, putting the human is
central of the action, show
respect, protective to people in
Vietnam
Thirdly, dream of innovation to
complete, constantly evolving to
change itself
Lastly, developing new ideas,
respect people ideas and
appreciate the differences and
richness

Quality and variety for everyday

cooking, eating and living
- No one tries harder for
customer: we have to
understand customers and then
meet their needs
- Treating people how they want
to be treated
- Using our scale for good

Petroleum (gas), oils

Petroleum jelly
Insurance
Construction

The products of Sainsbury includes:

- Food
- Wine
- Clothing
- Clubcard
- Tesco bank
- Phone

Sainsbury serves their customers with high respect. Sainsburys employee takes
note of customers need and the price they are willing to pay. Sainsbury
management try to involve customers in their decision and buying. Sainsbury
take surveys at different place to know what customer like and what they need.
Sainsbury try to fulfil customers every need in their everyday life style. These
strategies apply to good customer service and good customer service helps to
improve their sales and profit.
SMART objectives

Objectives give the business a clearly defined target. Plans can then be made to
achieve these targets. This can motivate the employees. It also enables the business to
measure the progress towards to its stated aims.
The most effective business objectives meet the following criteria:
S Specific objectives are aimed at what the business does, e.g. a hotel might have
an objective of filling 60% of its beds a night during October, an objective specific to that
business.
M - Measurable the business can put a value to the objective, e.g. 10,000 in sales in
the next half year of trading.
A - Agreed by all those concerned in trying to achieve the objective.
R - Realistic the objective should be challenging, but it should also be able to be
achieved by the resources available.
T- Time specific they have a time limit of when the objective should be achieved, e.g.
by the end of the year.
Possible factors which can impact on the organisation including:
Profit Maximisation. The most basic model of a firm assumes firms wish to maximise their profit. They will do this by
increasing revenue (price * quantity sold and reducing costs. Higher profits enable a firm to pay higher wages,
dividends to shareholders and survive an economic downturn.
Growth Maximisation. An alternative to profit maximisation is for a firm to try and increase market share and
increase the size of the firm. They can do this by cutting price and increasing sales. Growth maximisation may come
at the expense of lower profits. For example, starting a price war can lead to lower profits but enable higher sales.
Social / Ethical concerns. A firm may not be motivated by money but may seek to offer a service to the local
community. They may voluntarily take decisions which help the environment / local community. Many big firms now
place a key role on promoting their ethical policies; arguably there may also be some marketing benefits to promoting
ethical and social concerns. It could have a tie up with profit maximisation.
Corporate Image. Related to social / ethical concerns is the image / brand of a firm. It may wish to cultivate a certain
image and brand. Google do no evil. BP Beyond Petroleum. Body Shop leader in human and animal rights
Stakeholders Well Being. A firm may also be concerned about the welfare of its stakeholders suppliers, workers
and customers. For example, giving training and long term job security to its workers.

Survival. For many business, it seems a matter of surviving breaking even. In desperate times, firms may be forced
to sell off assets to keep their creditors at bay. For many small local businesses struggling in a highly competitive
market, survival may be the best they can hope for. IN a way survival strategies are a form of profit maximisation as
survival will still involve trying to increase revenue and reduce costs.
Another issue for firms is:

Market-share: Businesses gain a larger market-share by increasing the sales of their products
against competitors. This may involve reducing prices. To win the loyalty of customers and
encourage

repeat sales, businesses need to be reliable and provide a quality service to their c

3 know the impact of economic environment in business

3.1 Describe the influence of two contrasting economic environments on business activities
within a selected organisation

Inflation rate

Until the present time, inflation in Vietnam has been decreasing over the
previous year, particularly at a time in July 2014, the inflation rate was kept at
4.98%. Unlike the previous year, at the time of October 2013, the inflation rate is
high up to 7.5%. In Vietnam had an average of 7:26% in 1996-2014 and reached a
record high of 28.24% which is a record low of -2.60%. With inflation as a result, the
Group's business Petrolimex is very difficult, moreover, with state-owned company
like Petrolimex, increasing gas price in the market in Vietnam is impossible. To
concretize the problems of inflation, as the chart below inflation in Vietnam in
recent years:

Unlike Vietnam, the inflation rate in the UK is significantly lower than the rate
of inflation in Vietnam. In recent time, the inflation rate in July 2014 was the lowest

only 1.5%, compared with last year inflation rate in October 2013 was just highest
2.8%. According to statistics from the National Statistics Office, the average inflation
rate is 2.78% of the UK from 1989 to 2014 with a maximum of 8:50% in 1991 and a
minimum of 0.50% in 2001

Unemployment

We can see that the unemployment rate in Vietnam through diagrams,obviously,

these figures demonstrate the unemployment rate in Vietnam is very low, so why, in
Vietnam there is something called "freelance jobs", these people can do anything to
have can make money, that is the reason why the unemployment rate in Vietnam is
less, unless otherwise do not want to go or lazy. In contrast, the UK has the
unemployment rate is quite high and gradually lower until the present time by the
UK economy is affected by fiscal policy recently, but the amount has yet to

significantly reduce.We can see that in Vietnam there are many foreigners who
come here to work, from office work to teaching, including the UK
Another problem in two countries Vietnam and the UK it is about living
standards, the UK is a developed country and is also the country with high living
standards, with sufficient manpower ratio, better education and training. And in
Vietnam, a country with a population of about 89 million people fairly crowded, so
much human resources, but the kind of education and training in Vietnam do not
have professional skills, and lifestyle somewhat outdated, therefore lead to poor
performance

Define fiscal and monetary policy and impact of them to

Vietnam and UK

Fiscal policy:Fiscal policy is changes in taxes and spending of the

federal government for the purpose of expanding or contracting the
level of aggregate demand. In a recession, an expansionary fiscal
policy involves lowering taxes and increasing government spending. In
expanding too hot, a narrow financial policies require higher taxes and
reduced spending. According to Keynes, a recession requires deficit
spending while expanding overheating requires a budget surplus.Fiscal
policy involves government spending and revenue. For example, when
low demand in the economy, the government could step in and
increase spending to stimulate demand. Or it can be reduced to
increase income tax for people as well as organizations.
Monetary policy: The actions of a central bank, currency board or other
regulatory committee to determine the size and rate of growth of the
money supply, thus affecting interest rates. Monetary policy is
maintained through actions such as raising interest rates, or to change
the amount of money banks need to hold in inventory (bank reserves).

Impact of fiscal and monetary policy on Tesco and Petrolimex

About Tesco:
Government makes different monetary and fiscal policies to control the economy
and the business organizations. These policies are taken by the government bodies
considering the economic positions that also have a god impact on the business
activities of a company that are shown below;

Changes in the interest rate: When government changes the interest

rate through the monetary policy then it has an impact on the business
activities. If interest rates rise then Tesco will face difficulties on

financing as the cost of capital will increase while the customers will
reduce their consumption level that will reduce the sales volume of
Tesco. On the other hand, If Interest rate reduces then Tesco will be
able to get more financing at lower cost. This will help Tesco operate

the business activities.

Changes in the reserve requirements: if monetary policy changes the
reserve requirement then it will also have an impact on the overall
business activities. High reserve requirement will push the interest rate
high that will influence the consumers to deposit more rather than
consumption. So Tesco has to change the business activities as its

sales volume will reduce (Stoudmann, et al., 2010).

Changes in the exchange rates: If exchange rate changes then it will
also affect the activities of Tesco.

If pound appreciates then the

business sector of Tesco that is operating in other countries will face

problems while home country sales will increase more value for Tesco.
Changes in the tax rate: If government changes the tax rate through
the fiscal policy then it will affect the business activities from different
perspective (Edgar, 1992 ). If tax rate is reduced then Tesco will be
benefited and company may increase the quality of the products
without considering the changes in the price. Or Tesco can increase
more expenses on the advertisement or other sector as reduction in

the tax rate has made the company more profitable.

Changes in the government spending: If government increase the
government spending in different sector than a business organization
will face reduction in the sales volume. On the other hand, reduction in
the government spending will increase the demand for the private
sector so is it for Tesco PLC (Tescoplc, 2014).

About Petrolimex
Vietnam has had a big impact by fiscal policy in 2007 after Vietnam
has already joined to the WTObecause Vietnam has changed the
economic in market.In the petroleum segment of Petrolimex, private
enterpriseswas able to sell gasoline, provided that after payment of
taxes to the government. Therefore, in recent years, ignored by policy
support for fuel price, gasoline prices are rising fast like "vane". The
chart below is the price of petrol in Vietnam market

Through chart we can see rising the price of gasoline in Vietnam, also
partly due to the open market and inflation. However, with some of the
effects of monetary policy, such as reduce oil prices, gas and also
reduce income tax along with interest rates. Therefore, the market is
still reached Petrolimex good business and has decided to expand to
foreign countries markets like Singapore (BloomBerg)

Supply-side policies are mainly micro-economic policies aimed at making markets

and industries operate more efficiently and contribute to a faster underlying-rate of
growth of real national output

Successful policies have the effect of shifting the LRAS curve to the right leading
to a rise in potential output

Most governments believe that improved supply-side performance is the key to

achieving sustained growth without causing a rise in inflation.

Supply-side reform on its own is not enough to achieve this growth. There must
also be a high enough level of AD so that the productive capacity of an
economy is actually brought into play.

Supply-side policies can be implemented by the public or the private sector

Influences on demand

1. Income of the consumer:

A consumers demand is influenced by the size of his income. With increase in the level of income,
there is increase in the demand for goods and services. A rise in income causes a rise in
consumption. As a result, a consumer buys more. For most of the goods, the income effect is positive.
But for the inferior goods, the income effect is negative. That means with a rise in income, demand
for inferior goods may fall.
2. Price of the commodity:
Price is a very important factor, which influences demand for the commodity. Generally, demand for
the commodity expands when its price falls, in the same way if the price increases, demand for the
commodity contracts. It should be noted that it might not happen, if other things do not remain
constant.
3. Changes in the prices of related goods:
Sometimes, the demand for a good might be influenced by prices changes of other goods. There are
two types of related goods. They are substitutes and complements. Tea and Coffee are good
substitutes. A rise in the price of coffee will increase the demand for tea and vice versa. Bread and
butter are complements. A fall in the price of bread will increase the demand for butter and vice
versa.
4. Tastes and preferences of the consumers:
Demand depends on peoples tastes, preferences, habits and social customs. A change in any of these
must bring about a change in demand. For example, if people develop a taste for tea in place of
coffee, the demand for tea will increase and that for coffee will decrease.
6. Price expectations:
Expectations of people regarding the future prices of goods also influence their demand. If people
anticipate a rise in the prices of goods in future due to some reasons, the demand for goods will rise
to avoid more prices in future. Contrarily, if the people expect a fall in price, the demand for the
commodity will fall.

LO4 Know how political factor, legal and social factor impact on business
4.1. Describe how political, legal and social factors are impacting upon the
business activities of the selected organisations and their stakeholders
Political impacts

Political stability is usually defined as the state of peace that is normal experienced in a
country from the activities from the government and also the government in this situation
will make decisions and keeping the best interests in mind for people.
The conservative party that is normally referred as the Tory party and is a centre right
political party in the UK and as of 2013 it has become the largest political party in the UK
and also the largest single party in the house of commons with 303 MPs. Govt initiatives: is
when the Government can support business through grants and tax reductions and an
example of this is the solar panels grant.
Also when the government chooses to Investment finance this then involves selling part of
your business (shares) to an investor. The investor will then take a share of any profits or
losses that the company makes.
The International Monetary Fund describes itself as an organization of 188 countries that
works to foster global monetary cooperation, to then secure financial stability, facilitate
international trade, promote high employment and sustainable economic growth, and
reduces poverty around the world.
The Government may change the tax rates up or down this will be to try help boost the
economy, an example of this is VAT this means all non food and adult clothing range will
need different prices on the shelf edge labels this then means staff will then have to go
change the SELs ( shelf edge labels). Although this then will change the profitability and
finance department of the company as they will then need to change the profit sheets that
report back to the business.
The government have their own initiatives for companies and these are the healthy eating
and fit for life, these are the type of campaigns that the supermarkets will try to support to
then try get more funding or advertising for the company from the government, this is by
the prime minister if he mentions how good ASDA has been supporting the certain
campaigns.
Also the government are also offering support and funding to business that will or are
offering apprenticeships, to then try getting more people in to a job and working life.
Legal impacts
The legal impacts are that ASDA must follow the law, and an example of this is the trade
description act, this is where the product most be described accurately otherwise it can
cause an issue and an example of this the big issue with meat earlier this year, so it is
extremely important that you describe the product well and accurately if not then the
trading standards will have no other choice but to get involved.
Consumer protection is when a group of laws and organisations have designed to ensure
that the rights of consumers, these are put in place to hopefully prevent businesses that
engage or are planning on engaging in fraud or specified unfair practices to try and gain or
taking an advantage over competitors.

FSA is the foods standards authority, this is where they regulate the amount of salt that is
allowed in products and also the amount of palm oil that is allowed in the products and this
is from the sustainable rain forests.
Health and safety standards are the most important, and for all the new workers will have a
full day having an induction before that are allowed to start their job, they are also shown
around their work place and they are also shown the areas that they wont be allowed to go
due the dangerous machinery.
The legal frameworks is where the business chooses the way it operates, this will then
determine who has what role and share to the business, this will also determine the
relationships between investors, employees customers etc.
Social impacts The social impacts that ASDA may face are the difficulty to recruit the right people for the
job in the stores or the offices depending on where they will be based, also most of the
workers that are in the stores are an unskilled workers on the minimum wage given .
ASDA is a company that will support charities and the main one they support every year is
tickled pink, they are always thing outside the past ways they have raised money to, give
customers a new product to buy to support the charity.
ASDA has a company cannot discriminate anyone from having a disability, different religion
or if they are pregnant and other things on this terms and when they are employed by the
company or if they are in the HR Department they are then recruiting they are also not
allowed to ask questions in these areas.
ASDA like to support their local community and an example ASDA helped out in a local park
in Bradford, by tidying it up and planting new plants to make it look more presentable and
cleaner, they also do talks in schools in local areas and give out free stock for sports days.

Demographics are the main numbers in a given population these can also be used
to identify gender, age, ethnicity, also the knowledge of languages, disabilities,
mobility, home, and employment status, and even the location you live in also most
of the timesthese types of data are used widely in public opinions, polling
and marketing.