Business Environment and Its Impact on Premier Food
The peripheral environment includes of different kinds of aspects out of the company doors that typically onto have much control over. Managing the strengths of internal operations and recognizing potential opportunities and threats outside of company’s operations are keys to business success. Premier Food is one the famous and largest retailer in UK which is primarily renowned for food manufacturing. Premier Food is well managed in its internal and external factors which lead them to progress successfully.
TASK 1 I(a) Purpose of Different types Of Organization Premier Foods Premier Foods produces a range of own-label products across many food categories. Premises major markets are the United Kingdom’s biggest food tillers, wholesalers and convenience stores, and food manufacturers. They have a crystal clear defined plan of merging reflected in the recent addition of the premier product like Ox, Botchers and Homicide. Their expertise passes over in a wide range of food and drink sectors, and reputation of their comprehensive range means that they have an annual group turnover of over IEEE million.
By owning some of the Auk’s most recognized food brands, they additionally manufacture hundreds of products that cater for the food accommodation industry and are introduced to supply retailer branded food product to the Auk’s popular food retailers. Avoidance It is a major international telecommunication corporation with coverage in 29 countries and partnership contact with a further 42 countries including Safari in Kenya. It has almost 75,000 workers in all over the world and in 2014 had more than 295 million clients. In the UK, almost 25 million people are using Avoidance services for communication.
Avoidance’s goal is ‘to be the world’s telecommunication leader and a key element of this is to build a good relationship with the customer by trust and admiration. The company ensures this by taking a relevant step by which they are contending their equines in all over the world. By taking this type of approach they increase its reputation and builds customer loyalty. Its corporate techniques and its Corporate Responsibility (CRY) techniques are internally linked. Avoidance be certain of their long-term retailing achievement emanate from contemning business in an imperishable way. (b) Central economy VS. Market economy In market economy, market prefers mutually beneficial exchange between producer and consumer and system that rely on markets. That means what to produce determined by consumer, how to produce is determined by the reducer and who gets the products depends in the purchasing power of the consumer. On the other hand, in central economy the production of goods and services is undertaken by state-owned enterprises. That means an economic system in which decisions are taken by the government rather than by the interaction between consumers and businesses.
Both this system generally used to prevent economic problem. In market economy the price Of the product is always fluctuating. As a result sometimes it’s very hard to grab the customer in one product. Also there have some opportunity for the producer like a great revenue opportunity. On the basis of the physical and tactical position both premier food and Avoidance can survive on that following economic decision. But as premier food is a food manufacturer, they are very flexible in central economy rather than market economy because the coordination of scarce resources at times of crisis, such as a war or natural disaster.
Free markets also fail at times to allocate resources efficiently, so remedies often involve the allocation of resources by government to compensate for these failures. As for Avoidance, they can survive in both economic systems. 1 (C) Identify Reasons Of stable demand Of rimier food The strategy of Premier food is very simple. They produce safe and reliable food that give the customer satisfaction and produce a great variety of product that gives opportunity to the customer to taste different flavor. That’s why consumer always attracted to the company’s product. Over the last 1 0 years company expand its business globally.
They did an agreement with the Gores group to improve their operational infrastructure and to upgrade their technology. As a result they are now manufacturing more foods effectively and ensuring more safety measure to the food’s safety. Also recently they are selected a telecommunication provider AVOIDANCE to provide integrated communication. So that its gives the company to boost their marketing strategy. So on my perspective; think Company’s customer environment is better than 10 years ago. I(d) Objective of the different Stockholders Premier food is the largest food manufacturing company in ASK.
So they are greatly affected by their stakeholder like customer, employees, government, community, owner etc. The customer of premier is always seeking for safe and reliable product and value for money. The employees of the company ho give their best to make the business successful want job security, job satisfaction. Company must ensure that want to give better service to the consumer. The government manages the economy so company must give them Taxes and ensuring new job opportunities. 1 (E) Responsibilities to the Stakeholders Premier food is maintaining a good relation with the consumer.
As a result they are now able to find out the solution of relevant problem very effectively. Company offers a great Variety of product which give opportunity to the customer to taste different product. Employees are the major element of the company. So company gives them proper satisfaction by paying them properly and ensuring a great job environment. Premier foods audit their financial statement time o time. This will make the government to feel that they are following their rules and regulations. Moreover they are paying taxes properly.
TASK 2 2(a) PESTLE Analysis political UK Government is very much concern about the condition and derivation of the food people eat. They also want to make sure that food is originated in very ethical way, with give attention in the environment, which is generally accepted welfare standards are practiced. As per government policy Premier Food Continued commitment to ELK sourcing such as Hoops bread made from flour 100% garnered in the I-J. Premier Food always maintain a strong food Safety unit to check the food that produced by them. Economic In the world, the United Kingdom has one of the paced increasing food and drink markets.
Only the food and drink category achieves sales and paramount magnification areas lie in value integrated products I. E. Ready foods or Non-European prescription. Premier foods presumed that the UK cuisine market is extremely competitive, ‘inductively authorizing consistent product origin and dependable supplier whilst finding more competitive racing and innovative incipient products’. On that purpose Premier Foods make an agreement with an private investment firm named Gores Group trading as Hoops Ltd that help them to introduce new technology to smooth transition.
Social Over the year premier Foods made further significant progress in their four major Corporate Social Responsibility (CARS) sector of retail place, Environment, Workplace and Community involvement. They also gives bolster to local charitable party in a regular period and motivates their workers to organize various activity and grow money to support in the good causes near o where they work such as Employees raised a fantastic IEEE,OHO for corporate charity partner ‘Cancer Research KICK’. Technological To build new technology, Premier foods make an agreement with the Gores Group that help them to smooth Transition.
Legal Premier foods operate in an industry where it is very difficult to have a product that is different to its competitors, when they do release a product with an innovative capability it is vital to protect the rights to it through patents, copyright, trademarks or design to ensure they are not “stolen” by their competitors. Not only are competitors a threat of intellectual, but Premier food must ensure they do not fall victim to counterfeiters. Environmental The company started to give five star environmental awards to their entire production site in 2009 in order to maintaining the environment from any kind of disaster.
The scheme is a benchmark ascertaining ‘energy utilization, waste, dehydrogenate monoxide utilization and carbon dioxide emissions are meticulously monitored. They also use unfriendly machine and work environment which has a adverse effect on polluting environment. They always try to maintain CEO friendly Environment. 2(B) How following factors Effect premier Foods Unemployment Rate: unemployment denotes being fired from the firm or corporation or positions where the people want to work in affirm or company but retain none. Unemployment is one of the most paramount macroeconomic be speaker to quantify the efficiency of an economy.
If one person fired from his job then one person is less from the economy who will not pay state and federal income taxes, one fewer individual who will not able to pay additional retail tax income as a work less worker will fixating on curtail on their dispensable additional spending due to less expandable income and very much worried bout further economical security. As a food manufacturer, it will effect on their selling. ICP inflation For the day to day consumer, it means prices for things go up. But, if the ICP is rising quicker than people average wages, then the consumer’s purchasing power declines.
They can’t buy as much as whatever it is as they did in the past. So it has great effect on Premier Foods. Interest Rate Interest rates are a quotidian element of business.. Companies focus exuberance on money they scrounge, and when they have adventitious money, they apprehend ebullience when they ascertain that cash in a secure investment. Companies additionally complaint enthusiasm when the company’s consumers purchase goods and accommodations on credit. A elevates or reduction in enthusiasms returns have a great effect on this business performance as well as the purchasing style of the company’s consumers.
As premier food is a very big manufacturing organization so they also need to get loan from the financial institution. As a result this factor has a great impact on the Premier food. Exchange rates Exchange rate is an important tool in international trade. Without this, it is not possible to trade. If the Premier’s goods become expensive in other countries cause of international trade then those foreigners will not purchase those goods. RIP Inflation: Retail price index measures the change in the cost of a basket of retail goods and services.
So if the index shows high rate then it will create great effect on company’s price of the product. If the price of the product increases then the customer may not give attraction to the product. So it’s necessary to control the RIP inflation. 2(C) Indication of social and cultural factors affecting consumers which lie behind Premier Foods Premier Foods have 30 food manufacturing sites, 12 distribution depots and flour mills across the United Kingdom, working almost 19,000 people. Many of their production areas have a long past with a intense relationship with their local neighborhood.
For example, Ambrosia has been making popular dairy-based products, at the same site in Devon, since it was established in 1917. The Creamery began with only a dozen Staff and now employs 270 local people; over its 93 year history, generations of families have worked at the production areas. Each of their sites has a neighborhood winner who along with their working partner determines which local charities and movements o get presuppose with and support. In December 201 1, the agreement with CRUD, a charitable organization is come to end.
The partnership with CRUD is recognized in a great accomplishment, the company’s entire worker did a hard work and activities for CRUD so much, and as consequence of the employee’s activities they raised IEEE,OHO against an initial target to raise IEEE,OHO. At the end of 2010, they again asked all their employees to nominate their preferred charity partner for 2011 and 2012. The charity with most votes was “Help for Heroes”. Although company Specialized with various mind of brands like OX, Quern , Hoops, Botchers and Brannon Pickle which make them power brand of the country.
For that following reasons Premier foods now recognized as both power and support Brands. 2(D) Choosing the Right Strategy Premier Foods now established as UK leading food manufacturer, specializing in many consumer brand product like OX, Quern, Hoops, Botchers and Brannon Pickle. It is predicted that 99% of UK population buy at least one premier product in each year. Their employee’s efficiency and management skill and adopting new technology increases the production, its quality and ells. In recent strategy change they linked with Avoidance which help to boost in their marketing support.
So in this prospect they have to expand their business in different European country. As a result they can use different environmental advantage to boost their production and cutting marginal cost. So on my perspective; they need to concentrate on expansion. Task 3 3(a) Significance of International Trade International trade is mutually beneficial for two countries. It is important for the I-J so that it can maintain its economics strengths and improve in an increasingly competitive global economy. There are many important elements that are important about international trade, economic strengths and global markets.
Without international trade business would not be as profitable and economies would suffer. If UK leaves IF, then it will create a great impact on economy. If UK based company had to only retail and trade their manufacturing item internally, never retailing or presuming their items to customer in another marketplace or countries, the government of the country would completely restricted Its percept. They may earn a steady trade from UK customer, but they wouldn’t be prosperous to increment as much as if the many retailed with ten other countries realtor. Additionally it withal engender a disadvantage for the company.
EX. is a free traded area where products are able to move independently with no border maintenance and no import VAT and obligations. On the other hand, Business like premier Food has to give additional cost for import goods or raw material. So, it will be a bad news for Premier Food. 3(b) Impact of global factor in UK business Premier food and Avoidance, both have face loss if UK leaves EX.. They have to cost more money than before to continue their business in EX.. They are not blew to do their activities independently with no border maintenance and no import VAT and obligation in all EX. country.
Avoidance is more lose than Premier Food because they spread their business in most of the EX. country. For this decision they have pay more money and as a result it will create a great impact on their consumer mobile billing system which is not so good for the company. 3(C) Impact of EX. policy in LIKE UK economy is greatly influenced by the ELI membership in a number of ways. One of the most important effects rise through the Single Market, the element of economic integration through which the Else’s ‘four freedoms’ are established. EX. has a great combination in their policy which affects the other policy too.
The EX. maintain a great relationship with other countries outside the community to negotiate retail and to make investment and the competence is a man made community with a general peripheral tax on imported products. This relationship thus contributes a deep affects the Auk’s trade relations with non-E members. An expanded EX. creates new markets for the UK exports. It allows the I-J firms to enjoy the benefits of economies of scale and so gain from trade. New markets for UK exports and increased intention from new member’s countries should increase dynamic efficiency.
The UK firms like Avoidance and Premier food in the traded goods and service sectors will be forced to improve their competitiveness. The UK will have a good trade relation with other countries. There will be a trade creation. Conclusion From the above observations premier Food have to monitor some important issue. Premier food is a Food manufacturing company beside that is a listed company in the London Stock Exchange. They started from a small scale but now reached the global arena. They should be more attentive to meet the objectives of its stakeholders.