In this assignment discuss about Stakeholders, Monetary & Facial polices, Market forces and global factors impacting on boots.
Firstly, discuss the different stakeholders of Boots as well as their interest and impact on stakeholders such as suppliers, stockholders, political, economic and technological.
Secondly, discuss the monetary and fiscal policies that can impact on Boots operations as well as their interest.
Thirdly, discuss about the market forces that are most likely related to boots business operations, it should respond to these forces as well as include the type of markets the company operates
Finally, discuss about the global factors that can impact on boots its operations in China.
Q.1: Identify key stakeholders of Boots and discuss the strategies that the company can use to meet the interests of its key stakeholders.
Stakeholders are persons or company who has concern in the positive and can be affecting by the performance of the firm.It is an individual, grouping or association that has through or indirect chance in a group because it can affect or be affected by the organization’s activities, objectives and policies. Worthington & Britton (2003)
Different Types of stakeholders:
There are people who work inside the company and they are directly related to the operations of the organisations.
Someone who is paid for the performance of his or her duty by his or her company and can contain an officeholder, partner and sole-proprietor.
It is an important to please workers as pleased and motivated employees be inclined to confirm superior level of production.
The interest of employees in the company includes the flowing:
Encouraging the interests of their members in terms of better pay and training.
Fair behaviour by company.
Personal development and good working environment.
If their interests are not satisfied, the Boots are impact in following way:
A manager is the person who responsible for controlling or planning or directing or administering or monitoring employees works for a company.
The interest of managers in the company includes the flowing:
Keep personal power.
Develop of the firm.
If their interests are not satisfied, the company can impact in any of way:
Distributers make the products of the company available to the customers. It is a representative who supplies product to stores and other industry that sells to customers.
The interest of distributors from the company includes the flowing:
Timely delivery of orders from the manufacture.
Supply goods quality of products.
Select fair prices by manufacture.
If their interests are not satisfied, the distributors can affect the manufacturing company in any of way:
Provide special treatment to the manufactures challengers.
Delay payments to the manufactures.
Not stocking the manufacturer’s products
A shareholder is a person or group personals encourage in a business and one who individual shares of stock in a firm or joint finance
The interest of shareholders in the company includes the flowing:
Market value of the investment.
Safety of investment.
Liquidity of investment.
If the interest of shareholders is not pleased, than it can impact the firm in any of the following way:
The firm close down.
The company will lose capital.
New people are not interest to invest money.
These are people or organisations that survive outside of the company’s but can affect or be affected by the performances of the organisations.
1. The Government:
The act or method of management, especially the organize and admin of public rule in a following element.
The interest of the government from the company includes the flowing:
Payment of tax regularly.
The company should create jobs sector.
Obey the laws or terms and condition of the country.
If the interest of the government is not pleased, than it can impact the firm in any of the following way:
Close down the company.
Fine on the organisations.
2. The Media:
The media general means is communication. For example radio, newspaper and television are different types of media.
The interest of the media from the company includes the flowing:
The firm should provide to them stories and news.
Buying advertising space.
If their interests are not convening, then they can impact the company in such ways as:
Write negative or bad stories.
Provide false news.
Bad comment about the firm.
02: Boots is predominantly based in the UK and the national business environment can affect its operations. Identify and discuss the monetary and fiscal policies that can impact on Boots operations in the UK.
Monetary and fiscal policies:
The regulation of the money supply and interest rates by a central bank, such as the Word Bank, in order to control inflation and stabilize currency. Sloman (2007)
Decisions by the President and Congress, usually relating to taxation and government spending, with the goals of full employment, price stability, and economic growth. By changing tax laws, the government can effectively modify the amount of disposable income available to its taxpayers. For example, if taxes were to increase, consumers would have less disposable income and in turn would have less money to spend on goods and services. Sloman (2007)
Monetary and Fiscal issues:
Government borrowing and spending.
Regional Business Cycles.
Monetary and Fiscal policies – Impacts on boots:
The taxations are a payment charge by a management or government on a manufactured goods, earnings or action. If tax is levy straight on private or group profits, it is a direct tax. If it is levy on the cost of a good quality or service,it is called an indirect tax.
The intention of tax is provide money to government. For example, United Kingdom (UK) government has increased 17.5% to 20% income tax from jan-2011, it will be more impact on boots such as the company will increase their products price and they will lost consumer very shortly because the costumer are not interest to buy the products.
If the government will reduce tax it will be more effect on boots positively. For example, the boots will reduce their products price and the costumer will buy the products more.
The money supply is all total deliver of cash in movement an agreed country’s financial system at a particular moment.
The money supply is consider an essential tool for controlling price increases by those economists who speak that development in money supply will only guide to increase if currency claim is secure.
The interest is a charge is pay or the use of cash. An interest rate is frequently spoken as a yearly profit of the most important.
Interest rates frequently change as an effect of price increases and central formality policy. For example, if a lender (such a private or government bank) charges a customer ?50 in a year on a loan of 1000, than the interest rate would be 50/1000*100%=5%.
If interest rates is low the boots are more interested to borrow money from the bank to invest in their company, if it is high they are not more interest to loan.
Q.03: Explain the market forces that are most likely related to boots business operations and discuss how it should respond to these forces. Your discussion should also include the type of markets the company operates.
Market forces mean are the economic factors disturbing the price and ease of understanding of a service or product in a free market. Economic pressure caused by free trade and not governed by the action of the government. Weatherston & Wilkinson(2010)
There are different market forces:
Demand for boots products.
Suppliers of boots product.
Consumers disposable incomes
Consumer’s life style.
Availability of substitute products.
Cost of production for boots products.
In industry, a corporation in the similar manufacturing or a comparable business which offer a related invention or facility. The attendance of single or extra competitor can diminish the price of merchandise and military as the company endeavour to increase a big market allocate. Opposition as well require company to develop into extra resourceful in command to decrease price. Campbell & Craig (2005)
The competitors are a company who challenger each other for their products, marketing policy, manufacturing etc.For example: Supper Drugs and Glaxo Smith Kline are company are competitors. The impacts on boots are capturing new customer or keep in touch with old customer, take the great idol, rise on the top marketplace possible.
2. Demand for boots products.
The sum an exacting financial high-quality or provision so as to a buyer or collection of customers will desire to purchase at a known cost. The demand is regularly descending slanting, because customers will covet to obtain additional as cost decrease. Demand for a high-quality or overhaul is strong-minded by various diverse factors other than charge. Blair & Hitchcock (2007)
For example: Co-co cola and Pepsi arethe cost of replacement products and fully separate to value or just about unlimited at a programmed price. The boots want that products those want to customer more.
Types of market:
A market is a position where consumer and seller act together. Basically there are many types of market whose classification is based on the use of the products that these markets offer, the different types of which are explained below.
6. Reseller markets
1. Monopoly markets:
Monopoly lies at the opposite end of the spectrum to competition. In its purest from a monopolistic market is one in which there is no competition at all, there is a single producer supplying the whole market. Morrison, (2011)
There are many explanations why it happens. Few of them are refer to below:
When a businessman get capital for a product which other people can’t get.
When one gets expert enough such that others can’t handle his level of skill for that service.
The manufactured goods provide excellent public utility and is most easy to use.
May be the product or facility is recently made-up and therefore the technology existing booked with that provider.
An oligopoly is a marketplace subject by little large dealers. The amount of market attention is very high. Firms within an oligopoly produce branded products and there are also barriers to entry. Morrison (2011)
Another main quality of an oligopoly is mutuality between the companies. This funds that each firm should get into bank account the possible reply of other firms in the marketplace when creation price and savings decision. These create insecurity in such market – which economists request to copy from side to side the use of game theory.
The Boots are operating in market following way:
A great compact of market power.
A secure price rank, the price set by price management.
A lot publicity or advertising and brand name.
Non-price opposition is common.
Irregular income can exit; their amount depends on the power of competitors.
Q: 04: Boots has now entered the market in china as part its growth strategy. Identify and explain the global factors that can impact on its operations in China.
Global factors in China are relating to the whole word, worldwide, the communication will be in the global economy.
Political factors is truthful information which is acceptable, but on the other hand able to be info Political factors are truthful information which is correct, but on the other hand can be information which knows how to be challenged politicians. This can be a number of equipment. For examples, Education, Employment, etc. Worthington & Britton(2003).
Political factors in China have a tendency to concentrate on the identification of what improves economic performance and governmental stability. China is a big country, both geologically and population wise. So a main concern is how to resolve the overall development of the nation.
Strikes are bad news for a country. If a person or company strike against of government or any other countries, it will be more harm for a country because the boots will not interest to invest. In this time boots will think, no invest any more or try to find another country.
For example, in China, “Five big emerging powers expressed misgivings on Thursday about NATO-led air strikes in Libya and urged an end to the fighting which, together with turbulence elsewhere in the Arab world, has added to global uncertainty”. The Reuters, (Chaina, Thu Apr 14, 2011 1:21pm IST),
The taxations are a fee charge by a government on a product, earnings or action. If tax is levy instantly on private or group profits, than it is a direct tax.
For example, In China, income is texted gradually at 5% to 45% and tax rate for domestic and foreign companies is 25%. Sometimes the boots are not interest to make a company because there have many to have below 25% tax. They will find better options.
Those political factors are impact on Boots in China:
The Boots in China their Company close down.
The Boots will lose investor and shareholder.
They will think alternative.
They will lose trust of shareholders.
Economic factors are an activity of country, company or person. It will be exchange rates, demand of company or supplier, competition, transport costs, fuel or power prices and interest rates. If country’s economic growth is low the boots business will close down, staff cut, lose money and economy performed will run poorly.
For example, In China, as the year 2009 fades into the distance in the rear view mirror, the Chinese economy has entered into unknown territory in 2010. Investors are universally far more upbeat than one year ago. Policymakers talk busily about adjusting economic structure as the new top policy priority, seeing no risk in achieving above 8 per cent growth. Huang (2010)
The economic factors are impact on Boots in China:
The Boots will lose capital.
They will lose man power.
They are not able to sell low price products.
The firm close down.
In china directly connected to this is the people matter. If women observe staying at home and bringing up children as their chief role, they will have extra children than persons who job. (Appendix: 01)
http://www.sustainablescale.org/images/uploaded/Population/World Population Growth to 2050.JPG
China might be a main control now, but it was the world’s residential country in the middle ages and stagnated for centuries. Part of this was cultural, a pleasure and sense of self-sufficiency that led to a closing of China’s borders. China looks to have long been stationary.
Sometimes socio-cultures impacts on boots negatively, they are not interest to accept global business with other country peoples. As a reason boots are not interest to invest.
REFERENCE and BIBLOGRAPY:
Worthington, I. & Britton, C. 2003, the Business Environment, Mandarin, London.
Aguilar, F. J.(1967) Scanning the business environment, Macmillan, New York.
Sloman, J. (December 3, 2007), Economics and the Business Environment, Financial Times/ Prentice Hall, London
Weatherston, J &, Wilkinson, G. (Sep-2010),The International Business Environment, Lan brooks, UK.
Campbell, D. & Craig, T. (2005), Organizations and the Business Environment, Prentice Hall, UK
Blair, A. & Hitchcock, D. (2007), Environment and Business, unlike print books,London,UK
Reuters, (News) ( China | Thu Apr 14, 2011 1:21pm IST),
Chain News,(2010), (online) Available at http://www.worldwide-tax.com/china/china_tax.asp (Assess at12.00 pm on 14-04-2011.
Makmal,J. (2006), attitude of chain government, (online) Available at: http://www.ethicalcorp.com/content.asp?contentid=6821 (access at 3.37 pm on 14-04-2011.
Huang,Y. (2010) Peking University and ANU press relies, (online) Available at: http://www.eastasiaforum.org/2010/01/10/five-predictions-for-the-chinese-economy-in-2010/. (Access at 4.00 pm on 14-04-2011)
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