Analyzing The Business Operations And Impacts Of Different Markets On Tesco And Burger King In The UK Essay.

Organizational purpose businesses

Describe about the the two organizations of UK Tesco and Burger King Business operation and impact of different market on their business operation?

The study is all about the two organizations of UK Tesco and Burger King Business operation and impact of different market on their business operation. There is also a brief analysis of Tesco and Burger King’s strategies which the adopted in term to satisfy their stakeholders requirement. The study is divided into four parts and all four parts are having different factors analysis of Tesco and Burger King. For this study local organization selected is as Tesco and global organization as Burger king (Afonso and Balhote, n.d.). Both Burger king and Tesco are having separate working industry as Tesco is famous for their retailer industry business function and on the other hand Burger king is famous of fast food hamburger restaurant chain.

About Tesco and Burger King

According to (Akinyele, 2010) Tesco is a retail public limited company whose main aim is to deliver every customer good quality product. They are known globally for its grocery and general products which there customers like buying. They are having their business operation in more than 16 countries across Asia, Europe and North America. Tesco mission is to develop good reputation in mind of their customers to maintain long term loyalty from their customers. They work for their customers and stakeholders as commented by (Brash, 2011) the main factors of any retail organization are their customer and their demand so Tesco always try to focus on their customers changing demand. The vision statement of Tesco which makes them separate from other retail industry of UK is they work in an ethical manner for their customers, stakeholder and others to sustain in long term. As mentioned by (Caprotti, 2012) Tesco work for the customers and stakeholders which increases their profit rate and market share. In contrast to this as commented by (Carl, 2012) Burger king in UK is famous for their fast food restaurants chain where serve fast foods as per their customers requirement. The products sold by Burger king in their restaurant are hamburgers, French fries, whopper sandwich and other fast food items. The vision statement decided by Burger king for business operation is as they decided to serve their customers best burgers in the market in addition to it they sell various variety of authentic foods prepared freshly. Burger King always focuses on their customers’ requirement for burger and other fast food items. On the other hand, Burger king mission shows that they try to give quick and fast service to their customers so that they get what they as soon as possible. As said by (Cherunilam, 2010) hunger is main weakness of maximum human being so taking into consideration Burger King always deliver their customers with fast service and good quality of product.

As commented by (Dalal-Clayton, 2013) Tesco is a retail industry so the main factor on which their business depends are customers and their employees. Tesco follow proper strategies and policies regarding the health, safety of their employees as they provide proper leave to their employees so that work load do not affect their health. Commented (Dew, 2008) to obtain good outcome employees should never be forced to work rather they should be influenced to perform better by giving good rewards, work environment, pay and safety facilities. Tesco few stores are far away from main city so employees of that stores are provided with different health and safety facilities in comparison of other store employees. On the other hand Tesco managers always try to work as per the government rules and regulation for retail industry. In comparison of other retail industries of UK Tesco always work in ethical manner, that is the products delivered by them are of good quality, they finish their delivery task on time and other. As said by (Ditlevâ€ÂSimonsen and Wenstøp, 2013), if employees are provided with proper health and safety facilities they will be influenced automatically towards their work. Tesco provide various health insurance and primary health care service to their employees as well as their family. In contrast to this Tesco also provide their female employees various transports services if they have to work in night like night cab drop and bus drops. Managers of Tesco motivate their employees to maintain the positive environment by working in a group or team and other methods.

Tesco and Burger King Stakeholders name and strategies adopted by organization

In contrast to this Burger king follow different strategies regarding health and safety of their employees as the working field of both organizations is different they strategies and responsibilities are also different. Burger king always influence their employees who work in kitchen to maintain safety and hygiene in the kitchen. As mentioned by (Dodel, n.d.) Burger king won many times several awards for their hygiene and good quality of food. Burger king is fast food chain restaurant so policies, rules and regulation for them are different in comparison of Tesco. Burger king in case of any accident in their restaurant kitchen or restaurant area provide primary health care facility and after that they have different team whose responsibility is to identify the reason and implement plan, so that it never occurs in future. Burger king tries to deliver their customers food as fast as possible with good quality as they understand the value of food in hunger stage. According to survey (environment, 2015) Burger king in comparison of other fast food seller is famous in UK as they deliver several fast food items and the food quality is also good in comparison of other. Burger king restaurant deliveries good and fresh quality of food items which always help them in increasing customers’ numbers.

Different Economic Systems of Tesco and Burger king

Tesco and burger king allocate their resources in different economic system which are as mixed economic system, free market economic system, command economic system and traditional economic systems. Tesco and burger King allocate their different resources as

Command economic system- As Tesco is a retail industry so under command economy all the functions of Tesco are controlled by UK government and before taking any decision Tesco has to present the government of UK (Groznik, Krapež and Škerlavaj, 2011).

On the other hand, Burger king business activities are also monitored by UK government. All activities which Burger king is doing are planning to do in future have to planned as per the government norms and in command economic system government can interrupt in between of an business activity of Burger king.

Free market economic system - In free market economic system Tesco can perform all business activities freely without interruption of government but in an ethical manner without affecting surrounding. In contrast to this Burger king in free market economy performs all the restaurant activities with little intervention of government of UK.

Mixed Economic system – In mixed economic system the resource allocation of Tesco can done with slight involvement of UK government in comparison of free market economic system. Tesco and burger king both can allocate their resources mixed economy system easily in comparison of traditional and command economic system as government involvement is only regarding policies and other activities of organization (environment, 2015).  

Traditional Economic System- Tesco and Burger king are two different industries so the resource allocation in traditional economic system is also different of both organizations. In traditional economic system government involvement in business activities are same as mixed economic system but in this system government monitor and provide suggestion regarding overall business activity of Tesco and Burger king in UK.

Responsibilities of Tesco and Burger King regarding health, safety, environment, legal, social, legal and ethical

Fiscal and monetary policies are made by UK government to control and monitor the different organization as well as economy. UK government decides these policies as per the economic position of country and impact of their business activities on country’s economy. The different activities which are affected are interest rate, country’s reserve, exchange rates, tax rate of UK, government expenditure on business activities and etc (Guy, 2009). Business activities of both Tesco and Burger king affect UK fiscal and monetary policies. If UK government decided to change rate of interest via monetary policy then the business activity of both Tesco and Burger king will be affected (Makos, 2014). If UK government make changes in any policy like exchange rate, tax rate and etc business activities of Tesco and Burger King. Suppose if UK government raise the government expenditure in different business field then the sales volume of business will be affected.

As stated by (Haase and Franco, 2010) some of the competitors of Tesco are Sainsbury, Asda and Morrison’s in retail industry. In retail market there are several other companies but the main company is only Tesco as it holds more than 37% of the market share. Commented if any other organization changes their business activity then Tesco business activities will be affected and they will try to update their activities as per their market competitors to increase hold in market share (Langdana, 2009). Suppose any organization changes their policy then to stay in retail market Tesco will try to change their business activities. On the other hand the main competitors of Burger King are Mc Donald’s corporation, The Wendy’s Company. Burger king also changes their business activities if their competitors make changes in their business policies and activities.

Different market structure of Tesco and Burger King and different competition faced by both organizations

Tesco although has started its journey from UK has managed to expand the market place all through the world. Mainly, as mentioned by () the motto of Tesco is to generate maximum profit. The size the organizational ethics is essentially managed. It generally prefers the open market approach which seems to be important for the organizational development (Schnittfeld and Busch, 2015). By letting the liberal economic structure to be developed, Tesco has managed to increase its financial status as well. Tesco is having been strategically competed by other retailing industries like ASA, Morrison, Marks and Spenser and so on. This also let the organizational ethics to be developed.

For Burger King Open market policy proves to be essentially detrimental. In order to gain competitive advantages from McDonalds, Pizza Hut and other eatery organizations, the marketing approach of Burger King is really intrinsic (Miles, 2012). The company has also developed its strengths in the financial marketing sector at the same time.

Tesco being a retailing organization is literally armed by the different suppliers of different products of the market place. To cope up with the increasing demand of the market place, Tesco has decided to maintain the supply chain sophistically (Phillips and Freeman, 2010). At the same time, to gain the competitive advantages of the market, the price of the different products has been kept low in comparison with the other organization.

In the last few years, the demand of Burger like products has increased seriously. Therefore, the demand of the products from McDonalds, Pizza Hut, Dominos, Subways are literally in high demand. Therefore a proper supply chain management is needed to be used. Burger King in order to attract the focus of the market place applies different strategies to make people fascinated to their products.

Politically both the companies, Tesco and Burger King get patronized. The sales rule of expansion of the market place helps both the companies to expand their outlets from the urban areas to the outer and remote areas. Economically both the companies in the last few years have received an immense recession. But from the London Olympic both the companies are receiving a huge economical profit. (Phillips and Freeman, 2010) has stated that in 2013 Tesco was reportedly on the top of all the retailing companies over UK while Burger King came to the third position in the list of fast food eateries in order to earn the most. Socially the necessity of the Burger King and Tesco is essentially appreciated and evaluated in UK. The social approaches are really intrinsic to make the organizational approach to be managed. Technically both the organization tries to surpass their competitors. Letting the customers purchase and order online and cherish the products from their home has become an approach of technical development. Both the organizations are aware of the environmental issues (Schnittfeld and Busch, 2015). Approach of reduction in carbon footprint movement both these organizations has played a peer role. Finally, the legal norms of Britain are sophistically maintained by both the organizations. Following of the Labor Law, Industry Law and others are playing an essential role in developing of business.

Significance of International trade to UK organizations business

(Henson, 2009) commented on the fact that on the basis of International trade system Tesco PLC easily operates in other countries with very little market barriers. International trade has become significant that helps the company in free operation globally without any barriers. In order to increase the organizational competency in UK, international trading norms, rule and regulations are essential for fair trading purpose. From the version of (Hinloopen and Normann, 2009) international trade is also essential for Tesco as because this reduces the cost and increases the quality of the business. Moreover, this also increases the company’s activities all through the world with little barriers.

International competitiveness- (Hommel, 2012) commented that international companies like Wal-Mart and Mc Donald’s have a high competition in UK as well as internationally. So, these companies need to be considered in competition.

Tariff and Tax- According to (Hoovers.com, 2015) if the tariff rate and market tax is increased, then Tesco and Burger-King will be facing a tough completion while trading globally.

Exchange Rates- (Jolly and Henson, 2008) had a view that a huge exchange rate will be a good threat to Tesco as well as Burger-King as it affects the ultimate revenue of the organization.

International Business Environment- According to the opinion of (Komori and Wellens, 2009) the international business environment includes political, economic, technological, legal as we;; as social factors that  directly impacts on the business environment of Tesco as well as Burger-King internationally.

The European Union formulates certain regulations and strategies that need to be followed by the member countries when conducting different business operations within the country and also outside its boundary (Lee, 2011). The major policies taken by the EU are enumerated as follows:

• Regional policy
• Employment policy
• Training and education policy
• Taxation policy
• Inflation policy
• Establishing the ‘ rules of the game’ policy
• International policy

These rules and regulations impact the business activities of the member countries directly. In this case, Burger King and Tesco PLC will have to consider whether there is any such rule and regulation which might limit the activities of the companies (Lee, 2003). In order to conduct all their activities smoothly, Tesco PLC and Burger King needs to abide by the guidelines of the EU or else they will be penalized for violating the member countries agreement.

Conclusion

From the various references and situation analysis, it is quite evident that a business organization needs to consider several factors, both internal and external, which have a direct impact on the business activities. Tesco PLC and Burger King have succeeded in carrying out all the business duties diligently (Lin, 2014). Both the companies have provided improved customer service, employment strategies and proper disclosure of relevant information to the stakeholders. The retail industry is becoming more competitive with each passing day and as a result of this, Tesco and Burger King should insist on diversification of their products and services (Makhbul, 2012). In doing so, they will have to take care of the local as well as the international factors, in order to succeed in the long run.

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