Businesses now are wary of quick fixes and short-term gains. In other words, they want to practice business in a more sustainable fashion. Businesses are expected to lead in the area of environmental sustainability as they are considered to be the biggest contributors and are also in a position where they can make a significant difference.
Businesses can potentially cause damage to all areas of the environment. Some of the common environmental concerns include: damaging rainforests and woodlands through logging and agricultural clearing, polluting and over-fishing of oceans, rivers and lakes, polluting the atmosphere through the burning of fossil fuels, damaging prime agricultural and cultivated land through the use of unsustainable farming practices etc.
For much of the past, most businesses have acted with little regard or concern for the negative impact they have on the environment. Environmental sustainability forces businesses to look beyond making short term gains and look at the long term impact they are having on the natural world. You need to consider not only the immediate impact your actions have on the environment, but the long term implications as well.
RPI inflation: Retail Price index helps to measure the change in retail goods and services. I I think RIP inflation affects the company fairly because if the price of retail goods is increasing then the price of the products will also increase. And increased price leads to decreased demand of foods as there are many competitors available.
Interest rate: it is the proportion of loan that is charged as interest. Interest rate is also important for the Premier Foods to determine higher interest rate leads to lower profit. Unemployment rate: Unemployment rate affects the businesses of the companies. Unemployment rate hinders the mass production which results to less profit that it was possible.
Plus the unemployed people are less able to purchase the goods. Exchange rates: the value of currency while conversion of one to another is exchange rate. Exchange rate affects Premier Foods in case of shipping products to some other place where currency is different. These different factors can have diverse effects on consumers. Changes in social and cultural factors affect the business environment of Premier Foods.
The socio cultural factors are mainly the lifestyle, preference, demographics, education, religion, interest groups, family, social organizations, aesthetics and lifestyle etc. Companies should be keep this factors in mind while formulating strategies, segmenting target market and doing their business as a whole. In power brands it has listed those foods which are readymade and one can have them right away like Ambrosia custard and rice pudding, pasta, rice and noodles etc.
Support brands are the products that support the power brands while cooking. Salt, sauce, milk etc. Social and cultural factors are affecting consumers. Because some people prefer readymade food. Specially the students, young customers, Bachelors etc. And some families like to cook food for them. The preferences of people are having a great impact here.
Demographics are also affecting the consumer decision. Over the last 10 years, they have been focusing on expansion. But now they have changed their strategy. Their current strategy focuses more on consolidation and organic growth.
There are some reasons behind this change of strategy. Because, expansion of business can often bring unintended consequences. It becomes very difficult for the management to handle all the operations properly. Rapid expansion declines the quality of the product, the hiring and training of employees become difficult, it needs large capital investments and above all the company loses control over its operations.
Because of these reasons the company has shifted its focus to consolidation and organic growth. From a positive point of view, defense of company by government, for instance, in the spheres of farming may positively influence business in general. The farming business may see financial troubles but it may be vital for the administration to provide assistance for the good of the country.
From a political point of view, terrorism is the main concern of many managers. Businesses working overseas are particularly vulnerable to terrorist threats and must include some protective measures into every day business plans. Firms may be subject to acts like kidnapping of executives for payment or the bombing of buildings.
It is imperative for businesses to not only be aware but be ready with countermeasures to prevent the attempts of felons as well as a means of assisting the form in recovering from violence. All people realize that violent conflicts internal or external are always harmful to trade, and unluckily the globe is full of them. Internal conflicts may occur as civil wars like wars in Sudan, Nepal or Sri Lanka.
Nevertheless, most of conflicts exist today in the type of terrorist activities that are very hard to plan for in advance. Unexpected blasts may spoil goods, create a law and order trouble following by damage or loss of goods or make their transit not possible. So, it will ultimately lead to the end of the trade. Goods may be insured, but insurance may not cover all the possible situations.
Luckily, real wars are today few and occasional, and relatively simpler to foresee. Yet these wars, when they do take place, may have wide consequences on the supply lines across the world, and thus may influence intercontinental trade taking place away from the place of conflict through economic, financial or other effects.
In all types of conflicts there is constantly a huge risk to the property and human beings. Other political forces influencing international businesses are the governments themselves and their ability to preserve a stable climate Wagner, When the political climate of a state is unstable, this may crash the businesses. Should that nation be in the midst of aggressive actions toward other countries, companies can surely suffer.
One more political risk to intercontinental trade is the form of conflicts without hostility. Sanctions are the key form of these conflicts that may be hurried by an action of the country, like the nuclear testing of North Korea or unexpected Buddhist protests in Myanmar. International sanctions can simply forbid trade, and therefore these possibilities need to be discussed while dealing with states with likelihood of sanctions. A peculiar form of political risks is alterations in trading model imposed by politics.
An example is an unanticipated prevention of imports or exports of particular goods, due to the rapid popular mood against trades. Sometimes abrupt political opportunism may lead to nationalization of business companies, or placing global trade in a particular product under strict government control.
In the USA and European counties, labor unions are a political power which may have amazing influence on businesses. American unions have powerful political ties and are extremely active in the political sphere. Badly negotiated agreements may let the union to force businesses into decisions that may in the end lead to their termination. Political Risks in International Trade When, for example, an organization, like Nike, makes a decision to become a global entity, it will always experience a boost in profitability.
Unluckily, the recent examples prove that organizations like Nike have to defeat hard obstacles before creating a successful business in a foreign state. Because of this, the majority of widely known firms have presented a variety of cases to protect their positions on having business overseas. One such case is a Nike sweatshop labor case that evolved a lot of debates over business practices. Even though Nike has tried to recover from the bad articles in the papers, it still fights to overcome the negative thoughts from people across the USA.
However, investing in foreign markets also presupposes risks that may sometimes be far greater, or at least more complex, than the risks that investors usually face when investing in their countries. Further the resource allocation pattern is also different in these three economic systems. The capitalist economy is the one in which whole control on the distribution and usage of resources remains into the hands of private sector.
They can extract the natural resources as per the need and requirement. Profit is their main motive and this element goes against the usage of natural resources. They extract the resources for their own benefits and distribute it to the common people as per their convenience. Further the advantage of capitalist economy is that the wastage of resources is very low and most importantly the maximum utilization of natural resources could be ensured Jeffs, Afterwards the socialist economy is the one which the resources and its control related to production and distribution remains in the hand of government.
The decision making related to the extraction of natural resources remain completely into the hand of government. The major aspect of socialist economy is that the common people can get the items and products at reasonable prices. But due to the high level of corruption the wastage of resources is the common scenario into the socialist economy. The profit is never the motive of the government as compare to the capitalist economy.
Mixed economy is third type of economic system which is adopted by various countries. However it has both the perspectives attached to it. It could be ideal as well as worst economic system with relevance to allocation of resources effectively.
There is huge requirement of proper planning as the decision making remains partially in the hand of government and partially in the hands of private sector. Thus if the coordination is not proper then the distribution, allocation and product pattern could be disturbed. Therefore these are the advantages and disadvantages of every economic system.
The impact of economic system could be realized immensely on the business environment of company. Become a Freelance Writers Place an Order 2. Before assessing the impact of fiscal and monetary policy there is huge requirement of gaining intellect about these two kind of significant policies.
The fiscal policy is the one that has relevance with the overall budget of the country and caters the information like sectoral distribution of financial resources. Further the Monterey policy is the one where the bank determines the rate of interest and cash on reserve rations Fernie, The impact of fiscal policy is huge on the business operations.
The major aspect is that the fiscal policy covers the whole industry rather than focusing on individual business organization. Team Work Environments and the Potential for Self-Managed Teams Traditional vs Team Environments This paper will explain the differences between traditional environments and team work environments. According to Exhibit In simple terms, the state in which a person remains busy is known as Business.
The organization has certain responsibilities towards its stakeholders. Thus it is their responsibility that human resource policies must be framed for the benefits of employees rather than over burdened them. Transparency into business activities is the essential aspect mentioned in fair trade policy. I have describes the international business environment and especially the criteria by which international businesses judge whether a country is stable or not to locate foreign operations. Environmental problems should be handled by the united efforts of the global community. The major aspect of socialist economy is that the common people can get the items and products at reasonable prices.
Are neighboring nations hostile? Therefore the business activities become fair, ethical, and legal if the regulatory mechanisms have been followed by them properly. The contamination of the living environment leads to the deaths of the entire natural ecosystems. They are mainly the customers and the community. The key players of Premier foods are is the Vodafone who is the exclusive provider of integrated communication, the gores group with whom it has formed a joint venture, the top level management and the developers. The company should show consideration to the people with low power and high interest.
The usage of non-conventional sources of energy should be encouraged. On the other hand, Premier food is a domestic local company. There is even a possible risk for American firms that outsource services, and move growth onto foreign soil. However, investing in foreign markets also presupposes risks that may sometimes be far greater, or at least more complex, than the risks that investors usually face when investing in their countries. So, companies become international.