Assignment 1 Business Environment

Assignment 1 Business Environment
TABLE CONTENTS
Table of Contents
Company introduction................................................................................2
Analysis......................................................................................................2
Legal form:.............................................................................................2
Size.........................................................................................................3
Level of activity......................................................................................4
Ownership..............................................................................................4
Petrolimex and Tesco.................................................................................5
Show the impact of tow chosen company to their stakeholders.................9
Organizations structure and culture and how it effects to business

performance. Analyze the factors which have impact to behavior of
employee at work...................................................................................9
How did the structure affected Tesco..........................................................10
Extent to which Tesco Plc meets the objectives of different

stakeholders..........................................................................................11
Responsibility of Tesco........................................................................12
Nature of Vietnam and UK environment..................................................14
Key macroeconomic features of Vietnam and UK...............................14
Define fiscal and monetary policy and impact of them to Vietnam and
UK........................................................................................................17
Impact of fiscal and monetary policy on Tesco and Petrolimex..........19
Impact of competition policy anti-dumping and anti-monopoly on

Tesco:....................................................................................................22
Impact of competition policy on the activities of Tesco PLC.....................22

Impact of regulatory mechanisms on the activities of Tesco Plc................22
References................................................................................................23
Bibliography.............................................................................................23
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Company introduction
After researching and finding out information, we decided to choose
two companies, one in Vietnam and another one in England. In
Vietnam, we chose Petrolimex and in England we aim to Tesco, this
report of organization will show you information of business model
and business environment in Vietnam and England.
Analysis
Before we begin report about two company were selected, we will
identify the difference type of organization:
Legal form:
o 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.
o 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
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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.
o 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.
o 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 investment.
( http://www.investorwords.com/2078/franchise.ht
ml)
Size
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Small business: is an enterprise were managed by a boss or in
other word is by sole trader or more is partnership but the number
of employees cant exceed over 15 people. Understanding simply,
just have a manager and employees, for example, a restaurant have
9 staff and 5 cleaning staff
Medium business: is a company or organization with over 50
people but less than 250 employees
Large business: is a big business, company have office, factory in
at least two countries on the world. Large business have many
advantages about great resources and when a company have
advantages, disadvantage always happen, like partnership, hard to
control and it have to lose many time to be stable.
( BPP learning media 2013 p.5- 8)
Level of activity
Primary sector: this activity is the most important to commodity

development, although begin produce raw material like wood,
minerals, crop. But it is resources contribute to industrial
development. ( BPP Learning media 2013 p.12 )
Secondary sector: using material in primary sector to make
products like using wood pulp to make papers and develop many
other industries.
Tertiary sector: this sector mostly are service like teaching, media
or trading product from distributor to consumer.
Ownership
Private sector: this is individual organization established for

personal profit, this type usually invested by donors, or the bank
loans, for example, A want to open trading company, he doesnt has
sufficient financial resources, so he loans from the bank. (BPP
Learning Media 2013 p.19)
Public sector: this is a state company and are fully funding from
government and it completely controlled and owned by the
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government. The task of it usually aim to social purpose and people
like airport, railway, gas plant, etc.
Non-governmental organization (NGOs): non-governmental
organization is an organization formed to bring independence
relative to the government, is the competent authority for licensed
or recognized under state management ( Professor Tang 2014,
HCMC bar)
Petrolimex and Tesco

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, ...
o Structure of Petrolimex
Tesco: Tesco 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.( TescoPlc 2014 ).
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o Structure
http://tescoplc.webdev.merchant.co.uk/investors/governance/boar
d-process/
Size
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(Petrolimex vice
director general and Mr.
Nam Tran)
Vision
Tesco
Tesco has 75 millions
shopping trip every weekend
in 12 countries with over
500000 colleagues.
Besides, Tesco 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. (Tesco 2014)
Petrolimex create a new

Tesco has a panoramic view
environment, helping to
and spacious. They set out
cultivate more knowledge, not
what they want to be:
only business petroleum but
- Wanted and needed
also develop ability to service
around the world
- A growing business, full
have no petroleum. That is
opportunity
opportunity to develop personal
- Modern, innovative and
skill and creativity
full of ideas
(Petrolimex)
(Tesco 2014)
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Goals and
Objectives
Mission
To become a biggest gas

Before become Britains
company in particular and
leading food retailers, Tesco
petroleum corporation in
was performed some strategy
general in the coming year.
for the objectives like:
Petrolimex promoted the
- Offering to customers
position, role and function of
the best value and the
trade union organization, the
most competitive price
organization continues to
value for money
- meet the needs of
innovate, content and method
customers by constantly
of operation for team building
searching and collecting
CNVC-Labor unions and
opinion innovation
stronger, making it strong
- providing shareholders
changes in the actions of each
with progressive
employee Petrolimex gas
- developing talents of
Corporation, contributing to the
people by management
development corporation
practices
grows, job security, living
http://www.tesco.com/inves
standards for workers.
torInformation/report95/cor
pobj.html
Providing to people energy in
To be acknowledged by
general and gas for vehicles in customer as the premier
particular.
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 product sales
company to a full rig
mechanization products
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company.
(Tesco Corporation 2014)
Value
- 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
Product
The products of Tesco

includes:
- Food
- Wine
- Clothing
- Clubcard
- Tesco bank
- Phone
Form
Petroleum (gas), oils

Petroleum jelly
Insurance
Construction
Petrolimex is a state own

corporation (PLC) with large
business in primary sectors and
tertiary sectors
Tesco is a private own

corporation (PLC) with large
business too and focus in
tertiary sectors.
Through a comparison chart of the two companies, we can see the difference
forms of this two companies. About Tesco, they just focus on the customers,
produce products in accordance with customer satisfaction but profitable and
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beneficial for individuals because this is private. Petrolimex is opposite, they
aim to customer but their goals are serving the community. Value of Tesco
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, Tesco 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.
Show the impact of tow chosen company to their

stakeholders
Organizations structure and culture and how it effects
to business performance. Analyze the factors which have
impact to behavior of employee at work
Through this chart, you can see here is the organizational chart of
TescoPlc 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 service For 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
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finance positions, primarily the Tesco 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 TescoPlc members and today has
chapters Tesco 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 Tesco 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 Tesco 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 Tesco customers want to buy the phone, staff specializing in IT sector
will take care of the customer and help maintenance.
How did the structure affected Tesco
Tesco is one of the few organizations who have adopted the mode of
having two organizational structures. Both for a different purpose so that the
system is clean, transparent and less complex for the employees. Today Tesco
have two organizational structures. One organizational structure is for the
company as a whole, which includes board of directors and the managing
directors, and the other one is the structure that is commonly used within each
of Tescos stores all across the globe. The traditional structures are followed in
Tesco also that is that starting from the board of directors; move along to the
segment of subordinates. On the other hand the structure for each store is simple
one as Tesco uses it because it is very easy to understand with each level of
control shown clearly. There are not lot of layers simple the Store managers and
under them the workers working within the store. One of the major advantages
of this simple structure is that by having a very effective and not so technically
complex, in other words a simple store structure is that it allows employees to
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see easily who is in charge of each department or who their department manager
is and whom to report in time of urgency.( Tesco 2014) (123helpme.com)
Organization culture:
When Tesco started a business culture of a company cheap products
affordable. The reason for this is because Jack Cohen (founder of Tesco)
as he will always buy products in bulk as well as the box that Sainsbury
has been removed because it was his vision to be "piled high and sell it
cheap ".
In Tesco today the company has been recognized by the motto "piled high
and sell it cheap", but the company has introduced into the quality of their
products by providing three main areas of different products. The first
area consists of very high quality products as organic products are usually
the most expensive. Group between products is often a collection of
Tesco and branded company product and includes a wide price bracket.
The third group is the product of the Tesco value range, which includes
the cheapest products as toilet rolls, bin liners and ready meals. The
product category is all about value for money and have no equal level of
quality. As well as offering their customers more choice, in the way of
groceries, Tesco now offer their customers the chance to buy clothes,
electronic goods, DVD, CD, etc. By providing visitors their every other
Tesco products are changing their culture to become a "one stop shop",
which offers customers the chance to buy almost anything they need at
the same time. (Tesco PLC 2014)
For changing the organization culture of the Tesco is not a huge
task since it has multicultural and diversified labor force operating
in numerous branches all across the UK. Organization culture of
Tesco was formed over years of interaction between the
participants in the organization.
An organization culture of Tesco has formed for a reason. The
current organizational culture of Tesco is matching the company
founders style and comfort zone. Their cultures often demonstrate
the style of management that is practiced by the Tesco top brains.
The hiring process is very much influenced by the organizational
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culture of Tesco as they hire people who have the flexibility to
adjust. (case study of Tesco. Doc)
Extent to which Tesco Plc meets the objectives of different
stakeholders.
Everyone related to the organization is called the stakeholders. Different

stakeholders have need and expectation from the organization considering that
extent the organization has to meet all the need and expectation of these
stakeholders (Preston & Steel, 2011). The major extents that Tesco PLC
considers to meet the objectives of the stakeholders are discussed below;
Customers: Customer is the key player of the organization who
expects quality products, reliable services, good customer care
services and fair and rational prices, among other factors in return
of their payment. This is the first extent or sector that Tesco has to
consider before meeting objectives of other stakeholders as if
customers are not satisfied then the organization will suffer in the
long run.
Shareholders or investors: shareholders are the real owner of the
organization where management works for the interest of the
shareholders. Shareholders demand is to have a good capital gain,
handsome dividend amount and growth in the value of the shares
but these expectations are not limited to these. They want a rational
return against the risk they are taking investing in the organization
(Gitman & McDaniel, 2012).
Employees: Tesco has more than 537,000 employees all over the
world. This large number of employees expects a good
opportunities and remuneration from the company. Besides that
employees are interested in the free flow of information to assess
the prospect of the organization considering the remuneration,
retirement benefits and employment opportunities (Gitman &
McDaniel, 2012).
Government: Government provides specific rules and guidelines
regarding tax payment, licensing, standardization and protection of
consumer welfare that Tesco has to abide by. So, here Tesco has
these responsibilities to meet the objectives of the government.
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Suppliers and other trade creditors: Tesco has many suppliers as the
company has diversified products for the customers. These
suppliers want good payment systems, flexible terms of credit and
business agreement and the behaviour of the organization.
So, these are the major fields or extent that Tesco has to consider to meet the
objectives of the stakeholders. Every stakeholder should be given priority
regarding their position and expectation from the organization.
Responsibility of Tesco
Environm
ent
Tesc
o
Communit
y
Peopl
e
Heal
th
through "chart" has displayed what Tesco have done, which is responsible for
community, the people, the environment, health:
Environment: Environment contributes important in life, and now
is the Tesco production, therefore, lose a large part of energy also.
So they have reduced Their Environmental to Impact save their
money, in the years from 2000 to 2008, energy use per square foot
of them was halved to perform testing of a company responsible
for environmental . The use of energy will increase their ability to
double the current if they have no savings since 2008. Till this
moment, they're saving more than 150 million each year to focus
on environment as providing insulation and solar energy
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People: Tesco's success depends on their 492.714 employees
worldwide work for great clients. This means attracting the right
people and help them grow. When they grow, they create jobs, and
help employees perform to their potential so that they can provide
to customers and the community. If they do not attract and keep
people honest, they see more positive benefit for their customers.
As a result, they may decide to go elsewhere. Providing good jobs
and careers and help staff feel fine company they work for is that
they will grow faster and stay longer with Tesco and do the best for
our customers.
Community: Enterprise is consistent with the needs of their
communities, sensitive to their concerns and help them achieve
their goals, be rewarded with more customers and greater loyalty.
Understanding the local community to allow Tesco to serve their
customers regardless of their background is and give them new
services and products.
Health: In certain markets, customers expect safe food for basic; in
others, it continues forward. If they sell the famous food safety
markets where food safety is a problem, it helps them build
confidence, give them a significant competitive advantage and the
opportunity to work with the government to improve standards.
Helping clients to eat healthy than to allow them to open up
opportunities for new business activities, especially in markets
where obesity is a major problem. program 'initiative' of them all
over the world to help their clients keep a good shape, as well as
increase their loyalty.
Nature of Vietnam and UK environment

Key macroeconomic features of Vietnam and UK
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
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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
GDP
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With GDP growth rate as well and is relatively stable compared to a

developing country like Vietnam, along with the entry of WTO, Vietnam is a
suitable place for business investment. In contrast to the UK, although the UK
GDP figure is much larger than Vietnam. But looking at the chart of UK GDP
can see the status uneven development, which lead to the recession and the
difficulty of economic stability
Unemployment
1
1 Www.tradingeconomics.com
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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.
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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).
About Vietnam:
Fiscal policy plays a major role for the national economy in general
and Vietnam in particular. In Vietnam, there are many changes and
the impact of WTO accession. Specifically, the period from 2009
until now, the global economic downturn, our economy faces many
difficulties. Vietnam Markets aperture high (import and export over
150% of GDP); area of foreign direct investment (FDI), though
only accounting for over 27% of the total social investment, but
always reach 55-70% of total exports, imports, after the crisis
broke out, the export market and declining investment world
suddenly, Vietnam economy immediately fell into stagnant
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production. Weakened economy, businesses fall into depletion, to
close.
Monetary policy, although inflation was under control and tend to
stabilize at a low level, dollarization is still a common phenomenon
in developing countries and economies in transition, including
Vietnam. In an environment with economic status dollarization, the
executive macroeconomic policy in general and monetary policy in
particular, difficulties, need to properly assess the situation and its
impact to operating the proposed policies for effective solutions.
(master Nguyen Thi Hong).
About UK
Fiscal policy: Currently, the UK government tends to focus on
monetary policy rather than fiscal policy because of the advantages
and benefits from monetary policy than fiscal policy. However,
through the chart below:
Fiscal policy also has some minor effects such as causing the effect
and encourage work on government borrowing. MPC has cut
interest rates around 0.5% in 2005, however, the same interest rate
cut still not help the economy of UK escape the recession. It
appears the economy of UK is in a liquidity trap. Therefore, the
Government turned to fiscal policy to try to stimulate economic
activity.
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Monetary policy: Monetary policy in the UK that operate through
loan rates - interest rates. In March 2009, the MPC announced that
in addition to setting Bank Rate, it will start pumping money
directly into the economy by buying financial assets - often called
quantitative easing. MPC intend to at least maintain the high
position of the stimulus current monetary policy until economic
slack has been dramatically reduced, provided this does not cause
material risks to price stability or financial stability.
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).
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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 WTO because Vietnam has
changed the economic in market. In the petroleum segment of
Petrolimex, private enterprises was 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
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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)
Impact of competition policy anti-dumping and antimonopoly on Tesco:
Impact of competition policy on the activities of Tesco PLC

In UK supermarket and retail shops face a severe competition among them as
there are different super shops with equal capital and business policies. The
major competitors are Tesco, Sainsbury's, Asda and Morrison's that are
dominating the super market. Though there are different companies but Tesco is
almost holding 35% of the market capital. But changes in the policy of the
competitors will change the activities of Tesco has an organization has to adjust
its policies with the existing market to cope with the competition (Buzzle,
2013). So, when other organization changes the policy to stay in the competitive
position then Tesco has to change the business policy. Tesco normally made
competition policy considering the cost and product diversification.
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Impact of regulatory mechanisms on the activities of Tesco Plc
UK government makes different regulatory policies that have a direct impact on
the activities of Tesco PLC and these impacts may be both positive and negative
considering the type of the mechanism (Tescoplc, 2014 ). As operating in the
EU zone, Tesco PLC also has to follow some regulations made by the EU while
operating in EU countries. So, any changes in the regulations will affect the
activities of Tesco PLC in different ways. For Example; If government impose a
standard quality that Tesco has to maintain, then to produce within that
guidelines the cost of Tesco may rise. SO, in this case Tesco PLC has to change
the policy like to increase the price or reduce the cost.
References
Radebaugh, et al., (2010), Business and stakeholders, 8th edition,
India
(n.d.). Retrieved 7 29, 2014, from Tesco PLC:
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(n.d.). Retrieved 29 7, 2014, from Organization structure and culture:

http://vi.scribd.com/doc/56666365/Impact-of-Organizational-Culture-onthe-Performance-of-Tesco
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Assignment 1 Business Environment

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Assignment 1 Business Environment

Petrolimex and Tesco.................................................................................5

Show the impact of tow chosen company to their stakeholders.................9

Organizations structure and culture and how it effects to business

How did the structure affected Tesco..........................................................10

Extent to which Tesco Plc meets the objectives of different

Nature of Vietnam and UK environment..................................................14

Key macroeconomic features of Vietnam and UK...............................14

Impact of fiscal and monetary policy on Tesco and Petrolimex..........19

Impact of competition policy anti-dumping and anti-monopoly on

Impact of competition policy on the activities of Tesco PLC.....................22

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