Q 4.2 Analyse the impact of global factors on UK business organisations.

Q 4.2 Analyse the impact of global factors on UK business organisations.

Globalization: It can be defined as a process through which entire world is increasingly getting interconnected due to massive increase in trade and cultural exchange. Globalization has resulted into increased production of goods and services. Today biggest company in a nation has changed into multinationals, with their subsidiaries in several countries (Hopkins, 2011).

Two driver of globalisation are :

• Low transportation cost: Cost of shipping has come down significantly due to various advancement in logistics. Due this overall cost of the product is reduced, hence companies importing the product can import at relatively lower cost.
• Digital communication: Internet has dramatically reduced cost of transmitting and information communication. Digital products has stimulated the global trade in knowledge products and services creating an entirely new sector of services.

Two global factors which effect UK businesses are:

Competitive Drivers: Due to globalisation new companies are entering UK market. For example setup of low cost carriers (LCC) in UK’s aviation sector has resulted into stiff competition. Due to which customer is getting benefited as competition has resulted in drop of airfare and increase in quality of services.

Government Drivers: UK’s government has been promoting liberalization of UK’s market since many years. Because of which every sector such as retail, insurance, automobile and aviation etc. has witnessed entry of new players. This has proved boon for customers, but companies having operation only in UK are facing the heat as they are not able to adapt themselves in such competitive structure. In such situation many local business might extinct over a period of time if government does not protects them from the international competition.

Q 4.3 For an organisation or organisations of your choice, evaluate at least two European Union policies and explain the impact of these polices on your chosen organisation(s).

Organisation selected for this task is Admiral Group.

The main purpose of European Union can be defined as to promote social and economic progress among its member countries. It also focuses on the area of freedom, security and justice which is maintained and built on the law established under European Union (Jura, 2012).

Two European Union Policies are:

1. EU has a common external trade policy. Which means that trade policy has been declared as an exclusive competence of European Union and no member state can initiate and negotiate its own international trade agreement with a different country.
2. Free trade and open border policy of EU allows transportation of goods and services within Europe quickly without any restrictions from the member states.

These policies have significant impact on Admiral Group’s business. For example because of Free trade and open border policy Admiral group was able to expand its business significantly in other part of EU such as Spain where it launched car insurance comparison website. That is why Admiral group after establishing itself within UK first, is now aggressively expanding among other member states of EU. Since there is no restriction and free trade policy is applicable for EU members, Admiral Group does not have to go through any legalities to establish its business in any other part of EU.

However external trade policy has resulted into the fact, that Admiral Group cannot form a joint venture or partnership with an entity out of EU member states. Thus if it had to form an alliance with a non- EU member entity then the process is very complex and resource consuming. This has resulted into loss of opportunity in growth economies of many Asian countries. With no alliance Admiral Group has to establish its own operation in non-European countries which results into huge operational cost.

References

Nickels, W. G., McHugh, J., & McHugh, S. 2011. Understanding Business 9th ed. Irwin, McGraw-Hill New York.

Knight, C. 2010. Financials.

Freeman, R. E. 2010. Strategic management: A stakeholder approach. Cambridge University Press.

Ramirez, R. 1999. Stakeholder analysis and conflict management. Cultivating peace: conflict and collaboration in natural resource management, 101-126.

Knight, F. H. 2013. The economic organization. Transaction Publishers.

McConnell, C. R., Brue, S. L., Flynn, S. M., & Barbiero, T. P. 2010. Macroeconomics. McGraw-Hill Ryerson.

Kirby, S., Meaning, J., & Warren, J. (2014). Prospects for the UK Economy. National Institute Economic Review, 227(1), F43-F64.

McCallum, B. T. (2014). Recent Monetary Policy and the Fiscal Theory of the Price Level.

Jones, A., & Sufrin, B. (2014). EU Competition Law: Text, Cases and Materials. Oxford University Press.

Myers, J. H., & Tauber, E. (2011). Market structure analysis. Marketing Classics Press.

Porter, M. E. (2011). Competitive advantage of nations: creating and sustaining superior performance. Simon and Schuster.Order Now

edexcel hnd business assignmentsHNC Assignment Helphnd assignment help reviewsHND ASSIGNMENT SAMPLEhnd assignments in businesshnd assignments in computinghnd business assignment helphnd business sample assignmentUnit 4: Business Environment Organization Purposes

Information System To Generate Valid

Describe how to use an information system to generate valid, accurate and useful information for any given problem of your choice.

Tesco PLC is a very big organization and in such a big organization, various issues arise for executing different business operations. In Tesco integration of different business processes is essential in order to synchronize the operations of different chains and this enterprise integration is a major challenge for the management team of Tesco PLC (Sekaran, 2006).  Enterprise integration basically deals with different applications running for executing various business operations on different platforms.  In order to evolve effective enterprise integration it is required to shift corporate politics. In general business applications are oriented towards specific functional area such as customer relationship management, accounts, finance, billing and sales. Due to this most of the IT groups align the software according to these functional areas. In order to evolve successful enterprise integration it is essential that the IT system not only establish a communication system between different computer systems but also among different departments of the organization. This will help in getting rid of single application and each application will be a part of an completely integrated application system (Zammuto, 2005).

The major constraint while the integration process is of taking a hold on the number of applications that are participating in the integration process. In most of the cases the different applications are packaged applications that are not designed for integration to a single process and in such situation developers tend to develop those applications accordingly (Rocha, 2013). In order to solve issues during integration process different integration patterns are effective measures.  These patterns are not a written code or software that are available in the market for integration process. For employing integration pattern it is required that the management team of Tesco should hire experts who have years of experience in measuring and analysing the patterns in which issues arise during integration process and what are the appropriate methodologies for solving them. For an effective integration of different applications it is required that the data should be shared in a significant manner to amalgamate it in collaborated manner (Wittmann, 2008). For this purpose integration process is classified as information portals, data replication, service oriented architectures, distributed business processes, business-to-business integration and shared business functions. The particular information required for developing different enterprise solutions for Tesco the company uses the MIS and ESS systems employed for decision-making process (Keller, 2009). The data collected by these systems are handed over to the developer’s team in order to analyze the required data that is required for developing synchronized enterprise integration for Tesco. The data is sent over a data warehouse that is located at the main headquarters of Tesco. This strategy will help the developers in accessing to the information of each and every center in a significant manner and applications can be integrated accordingly.

P 3.2 Evaluate alternative methods of solving the problem identified.

Enterprise integration is necessary for generalizing the application flow of the organization. The management team can also adopt alternative methodologies for processing different operations of different departments by employing database, client server, expert system, and artificial intelligence at different centres.

• Database: – Different centres can employ their own database for collecting data for their centres and analysing it for different business operations of their centres. The database can be classified according to the content they are designed to collect for such as numeric, images, bibliographic and full text. Setting own databases for different centres will increase the efficiency of accessing the information and will reduce the burden of integration (Robinson, 2005).
• Client Server: – To process different requests made by customers the management team of Tesco can deploy different client server for different centres to increase the processing speed of requests (Kumar, 2000). Client server sets up a relationship between different computer programs in which one is dedicated to the customer from whom the customer can make different requests and the other end is for the operations team that processes it. This system will also reduce the burden of enterprise integration for Tesco.
• Expert System: – This system is deployed for analysing different behaviour of humans within an organization (Capon, 2003). As Tesco is a very huge organization different employees cannot be analysed manually. IN addition to this their grievances and issues also cannot be considered individually. To handle such issues either enterprise integration of human resource system or expert system can be employed that is dedicated for the welfare of the employees.
• Artificial Intelligence: – There are various operations like checking bill at the exit, performing security check at the entrance of the Tesco store that requires manual assistance. In such areas either a centralized monitor system that is governed by central headquarters or artificial intelligence for each store can be employed. Artificial Intelligence for security checks will employ sensors that will check for tags on the products at the exit, metal detectors at the entrance, cameras. Artificial intelligence deploy a computers that are not intelligent to take decisions but are designed for executing particular operations while analyzing various factors.

The above stated measures will reduce the burden of enterprise integration for Tesco, which would be a very tedious task for the management team to do for all the stores and warehouses of Tesco. These will be limited to individual chains and may be aligned with central model in order to update details to the main corporate office about the various operations of Tesco (Rocha, 2013).  The above stated strategies will also help the organization in determining the effectiveness of different departments in executing their operations without external support. The management will also get to know the leadership qualities of the managers from different departments, as they will have to analyze and collect information by adopting different methodologies without central support. Coordination of different departments within different chains will be also evolved by adopting such strategies as different operations will be executed at an individual level.

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Conclusion

Different organizations have different information needs for their business operation and it is important that effective system is employed for collection, processing, analysing such information in order to achieve overall business objectives (Rajaraman, 2004). The above mentioned information system can be employed by these organizations according to the suitability of these systems to the organizations. It can be also stated that information systems are also efficient enough for solving different business related issues and can be employed for making effective problem solving policies.

References

Aken, J. (2012) Problem Solving In Organizations: Methodological Handbook For Business And Management Students, Cambridge: Cambridge University Press.
Anderson, D. (2012) Quantitative Methods For Business, London: Cengage Learning.
Boland, R. (2002) Critical Issues In Information Systems Research, New York: John Wiley & Sons.
Capon, N. (2003) Corporate Strategic Planning, Colombo: Columbia University Press.
Keller, S. (2009) Big Tools For Young Thinkers: Using Creative Problem Solving Tools With Primary Students, Sydney: Prufrock Press Inc.
Kurtz, D. (2008) Contemporary Business, London: Cengage Learning.
Kumar, A. (2000) Principles Of  Business Management , New York: Atlantic Publishers.
Lissack, M. (2005) Managing Complexity In Organization: A View In Many Directions, London: Cengage Learning.
Rajaraman, V. (2004) Analysis And Design Of Information Systems, New Delhi: PHI Learning Pvt. Ltd.
Wittmann, R. (2008) Strategic Planning: How To Deliver Maximum Value Through Effective Business Strategy, London: Kogan Page Publications.
Wood, R. (2009) Managerial Problem Solving: Framework, Tools, Techniques, Melbourne: McGraw-Hill.
Robinson, C. (2005) Governments, Competition And Utility Regulation, London: Edward Elgar Publishing.
Rocha, A. (2013) Advances In Information Systems And Technologies, London: Springer Science & Business Media.
Sekaran, U. (2006) Research Methods For Business: A Skill Building Approach, New York: John Wiley & Sons.
Zammuto, R. (2005) Assessing Organizational Effectiveness: Systems Change, Adaptation, and Strategy, New York: SUNY Press.

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