Business Environment HND

Business Environment
Individual Assignment
BTEC EDEXCEL HND DIPLOMA IN (MANAGEMENT & HUMAN RESOURCE)

OFFERED BY INTERNATIONAL COLLEGE OF BUSINESS AND TECHNOLOGY
Ancoombra Tea Factory
Unit 1: Business Environment
F.K.Mohamed Firnaz
BM K 23
ICBT Kandy Campus
Assessor: Mrs.Lasanthi Gunasekara
Submission: 08/08/2012
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Acknowledgement
I would like to thank Ancoombra Tea Factory Proprietor Mr.Ziyaudeen who helped me to
complete the Assignment Successfully.
I would like to thank my lecturer Mrs.Lasanthi Gunasekara.
Also I would like to thank all my friends and classmate who supported me in different
way to complete the Assignment successfully.
Also I would like thanks all those who have support me to make this assignment to
complete successfully.
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Executive Summary
The Ancoombra Tea Factory is a Private Limited Company which is owned by Mr.Meezan
Hadjiyar. It was started in 1946 in a small town in Ankumbura which is located in the Central
province of Sri Lanka.
The important Stakeholders of the company are Owner, Employees, Supplier, Customer,
Government and neighbors. All the stakeholders contribution to the organization is high.
Ancoombra Tea Factory mainly considers on customer satisfaction of the products and won
many awards.
The main responsibility of the organizations is on Social, Environmental, Managerial, and
Employee. There are three types of Economic systems, which are Command Economy, Free
market Economy and Mixed Economy. The basic Economic Problem is What to Produce, How
to Produce, To Whom to produce and how these basic economic problems are solved.
The UK National Fiscal and Monetary Policy and the Key Forces, UK Budget Deficit, Inflation
Rate and Interest rate. How Fiscal and monetary policy impact on the business.
UK Competition Policy and pillars of it and the impact on Competition Policy on the Tea
factory. International Trade and its impacts on the tea business in UK and how the European
Union Policies effect the business.
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Contents
Introduction ................................................................................................................................................... 6
Section 1: ...................................................................................................................................................... 7
LO 1.1 ........................................................................................................................................................... 7
Types of Organizations Available in Sri Lanka ............................................................................................ 7
Characteristics ........................................................................................................................................... 7
Size............................................................................................................................................................ 9
Legal Form .............................................................................................................................................. 10
Ancoombra Tea factory .............................................................................................................................. 11
LO 1.2 ..................................................................................................................................................... 12
Stakeholder Map ......................................................................................................................................... 12
Needs of Employees ................................................................................................................................... 15
Customer Expectations and Satisfaction ..................................................................................................... 16
LO 3.2 ..................................................................................................................................................... 17
Demand and Supply Curve ..................................................................................................................... 17
Porters 5 Forces....................................................................................................................................... 17
Sales Figures of Ancoombra Tea Factory ............................................................................................... 18
LO 1.3 ......................................................................................................................................................... 19
Organization Responsibility........................................................................................................................ 19
Section 2 ..................................................................................................................................................... 20
LO 2.1 ..................................................................................................................................................... 20
Economic Problems .................................................................................................................................... 20
Solving Basic Economic Problems ............................................................................................................. 22
LO 2.2 ..................................................................................................................................................... 25
UK National Fiscal and Monetary Policy ................................................................................................... 25
Monetary Policy .......................................................................................................................................... 28
Monetary Policy is there to support Fiscal policy and to manage demand. ................................................ 28
LO 2.3 ......................................................................................................................................................... 29
UK Competition policy and Regulatory bodies .......................................................................................... 29
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Impact of Competition Policy of Selected organization ............................................................................. 30

Role of Regulatory Bodies ...................................................................................................................... 30
LO 4.1 ......................................................................................................................................................... 32
International Trade ...................................................................................................................................... 32
How UK Business is affected by International Trade ............................................................................. 32
LO 4.3 ......................................................................................................................................................... 33
Impact of Policies in European Union ........................................................................................................ 33
Impact of European Union in UK Business ............................................................................................ 33
Policies of EU ......................................................................................................................................... 33
Recommendations and Conclusion ............................................................................................................. 35
References ................................................................................................................................................... 36
Appendices.................................................................................................................................................. 37
Figures:
Page Number
Stakeholders Map
12
Demand and Supply Curve
16
UK Budget Dificit
23
Inflation Rate
23
UK Recent Interest Rate
24
Tables:
Objectives of Stakeholders
13
Importance of dealing with Stakeholders
14
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Introduction
The Ancoombra Tea factory is located in the small town of Ankumbura, in the Central province.
It was started in 1946 by the late Meezan Hadjiyar. The company has reputation as one of the
largest and best mid grown Tea factories in the Central region.
The factory is aided and abetted with the latest state of the art machinery and is one of the few
factories nationwide that takes pride in having fully Automated Orthodox tea processing systems
as well as the C.T.C (Cut, Twist & Curl) method of tea manufacture.
The Ancoombra tea factory Produce black tea of the finest Aroma & flavor to cater to many
different categories of consumers all over the island.
Has won many prestigious awards such as. The 5S and 2 Star awards for best maintenance, the
H.A.C.C.P health certification for maintaining the most hygienic standards of tea production and
last but not least, the Entrepreneur of the year National award
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Section 1:
LO 1.1
Types of Organizations Available in Sri Lanka
Categories of Organization
1. Characteristics
2. Size
3. Legal Form
Characteristics
1. According to Ownership
2. According to Control
3. According to Activity
According to Ownership
Private Sector
Examples: Dialog, Etisalat, Airtel
Public Sector
Examples: Ceylon Electricity Board, Ceylon Water Board
According to Control
By the Owners
Example: Sidhalepa
By People Working
Example: Nawaloka Hospitals PLC
Indirectly by the Government

Example: Golden Key, Sri Lanka Airlines, St/Anthonys College
Directly by the Government

Example: Sri Lanka Postal Department, Sri Lanka Police, Sri Lanka Army, Sri Lanka Navy
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According to Activity
Service
Example: Bank of Ceylon, Seylan Bank, Peoples Bank, Sampath Bank etc.
Product
Example: Nestle, Keels
According to Profit & Non Profit Orientation
Profit making
Example: Private Organizations
Non Profit
Example: Rotary Club, Mawbima Lanka, Samadhi Community Development
Foundation
According to Legal Status
Limited Companies
Example: Colombo Exchange
Partnership Companies
Example: Perera & Sons
Sole Trade
Example: Mangala Tax
Public Company
Example: Sri Lanka Insurance, Sri Lanka Airlines
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According to Size
Number of Staff
Example: Sri Lanka telecom, CIC Holding
Number of branches
Example: National Saving bank, Sampath Bank
Sales revenues each year

Example: John keels
Market Share
Example: Unilever Sri Lanka, Hamas Holdings
Size
1. Small business
Owns and Runs by one or a few
Sell Goods and Services Locally
Employee less than 50 People

Example: Orchid
2. Medium Business
Operates Locally or internationally
Employee Between 50-250 People

Example: Singer PLC
3. Large Business
Has Household names, easily recognized logos
Factories, offices & outlets are located in other locations
More than 250 employees
National & multinational Business

Example: Singer PLC, Cargills PLC, Damro
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Legal Form
1. Sole Trader
Single individuals
Usually small Scale
Baring the profit or losses

Example: Wayamba Traders
2. Partnership
Two or More persons associated
One stage beyond the sole trader
Each Partner Contributed an agreed amount of capital
Agreed method of profit sharing, salaries & interest
Must be dissolved whenever more than 50% of the partnership interest change
hands
Example: Apparel industry of Sri Lanka
3. Public Limited Company
Listed in the Stock market & name should be include letters PLC
Owned by a wide range of investors

Example: John Keels, ODEL, Dialog
4. Private Limited Company
Shares are only transferable directly
No Privilege to sell shares in the stock market
Name Should be included Ltd, or Limited
Owned by Limited Number of investors

Example: Atlas, MAS Holdings
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Ancoombra Tea factory

Can Classify Ancoombra Tea factory into 3 categories
1. Characteristic
Private Sector Business
Control Characteristic and company was controlled Mr. Ihithisham.
Profit making Organization
2. Size
Large Business
Have branches in Hatale, Nagala in Sri Lanka
Large Number of Employees and Staff
3. Legal Form
Private Limited company
Own by a Single Owner
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LO 1.2
Stakeholder Map
High
Owner
Government
Bank
Supplier
Customer
Power
Competitor
Employees
Neighbors
Low
Low
Interest
High
Figure No.1 Stakeholders Map
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Stakeholders
Objectives
Owner
Owner should have good relationship with the stakeholders. His

expectations are future profit potential of investments, current
financial performance and the stability and the strengths of the
capital structure. He expects the profitability from the business.
Supplier
Instant payment, satisfaction, development purchasing.
Government
Fulfill legal requirements and make way to produce best

quality
Bank
To Provide loans and get interest
Customer
Get high quality tea with an affordable cost
Competitor
How the company produce and marketing techniques used
Employees
To fair return to their work
Neighbors
Use factory without polluting or disturbing
Table No.1 Objectives of Stakeholders
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Stakeholders
Why they are dealing
Owner
To make sure all managerial activities are carried out in a

correct way
Government
To make sure that they follow all legal requirement which will
not harm the consumers
Bank
To Provide loans and get interest and make good financial

status to the organization
Supplier
Build the satisfaction and make good relationship with them

to attain good supplies.
Customer
To get valued product for the money
Competitor
To overtake and improve their business
Employees
Process of producing high quality tea
Neighbors
To have a eco-friendly environment
Table No.2 Importance of Dealing with Stakeholders
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Needs of Employees
Ancoombra Tea Factory provides these important factors to the employees
Respect
Trust
Open Communication
Clear Communication
Appreciation
Chance to make own decision
Opportunities to grow
Free Health checkup once in a month
Promotion
Motivation
Transfer
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Customer Expectations and Satisfaction
Ancoombra tea factory was started in 1946 and till it growing and growing. Their green leaf
processing capacity exceeds 52,000kg per day and it shows customers were satisfied if they are
not satisfied they cant be in this field for more than 66 years.
Ancoombra tea factory won Prestigious 5 `S` Award (Given by Japan)

1. Seiri Organization
2. Seiton Orderliness
3. Seiso Cleanliness
4. Seiketsu Standardized cleanup
5. Shitsuke Discipline
5C is meant by 5 Pillars of an organization. This Award proves that Physical Environment in

Ancoombra is tidy and very well organized.
Ancoombra tea factory finds out it and produce high quality tea by plucking fresh tea from their
fields and also manufacturing process carried out in the same company. So it enables to produce
high quality tea with high technology machines with an affordable price. Suppliers sell to
consumers at a low price than the competitor because Ancoombra sells at a very low cost to
suppliers because their manufacturing charge and labour is very low. So it makes consumers to
satisfactory because Customer expects tea for affordable price and the quality for the money they
pay.
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LO 3.2
Demand and Supply Curve
Figure No.2 Demand and Supply Curve
In Ancoombra tea factory can see positive shift in Demand 1 and Demand 2 resulting
increase in price also increase in quantity as well, this happens very rarely in any
organization and this tells the quality and the trust of the consumers for the tea from this
organization.
Porters 5 Forces
1. Threat of Suppliers
Labour, Machinery, Transporters and Tea Plantations
2. Threat of Buyers
Nature of Product, Initial Buyers and Final Buyers
3. Threat of Substitute
Biggest threat to package industry is loose tea industry and Beverages
4. Entry and Exit Barriers
Barriers for tea factories, plantation, distributors and packages and consumers
5. Degree of Rivalry
There are varieties of tea available in market and almost all the same in quality
wise so if another company reduces the price consumer will switch it to other
substitute because switching cost is low.
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Sales Figures of Ancoombra Tea Factory
Sales for January 2012

Tea Kg Per day
Tea for Month
= 200
= 200kg x 30 days = 6000Kgs per Month
Sales for February 2012

Tea Kg Per day
Tea for Month
= 162
Sales for March 2012

Tea Kg Per day
Tea for Month
= 189
Sales for April 2012

Tea Kg Per day
Tea for Month
= 212
Sales for May 2012

Tea Kg Per day
Tea for Month
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= 202
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LO 1.3
Organization Responsibility
Social
Social Responsibility means an act to benefit society to large extent.
Ancoombra tea factory as proved that they values social responsibility and also they won
H.A.C.C.P health certification for maintaining the most hygienic standards of tea production.
Environmental
Environmental Responsibility means the way waste is treated and disposed properly.
Ancoombra tea factory uses fully Automated Orthodox tea processing systems as well as the
C.T.C (Cut, Twist & Curl) method of tea manufacture. There is an old saying seeing is
believing and Ancoombra welcomes all to visit and witness wondrous process of manufacturing
finest blend of tea.
Managerial
They follow moral principles and values that govern of a group or person with respect right or
wrong. Ancoombra tea factory has won Entrepreneur of the year National award in 2007 so it
tells that best managerial activities carried out in the organization.
Employee
Ancoombra tea factory gives equal opportunities to all employees without discriminating. Also
take care or employees well-being. They make employees to work for minimum hours (8hours).
They also give promotion to skillful employees and motivate new/training employees so they
feel good to work. Also create a safe and healthy place for work with all necessary requirements
applicable for safety and health situations.
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Section 2
LO 2.1
Economic Problems
Economic Systems:
1. Command Economy
2. Free Market Economy
3. Mixed Economy
1. Command Economy
Fully owned and control by Government
Collective Decision Making
Government decides answer for all three economic problems
Benefit goes to members only
Central planning committees
2. Free Market Economy
Called as Capitalism
Owned by Private Sector
Ability to pay, supply & demand influence the decision making
Less Government intervention
Countries which practice this system are United Kingdom, United States of
America and Germany (but cant find 100% Free market Economy in the world)
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3. Mixed Economy
Public Ownership
Free enterprise sector
Both Public and Private sector involved
Basic Economic Problems

1. What to produce
2. How to produce
3. To whom to produce
1. What to Produce:
It is depend on what customer wants to buy and the affordability cost they can pay
to own the product. Produce goods with the minimum resources available and
making maximum output of it.
2. How to Produce:
Using the most appropriate production method by considering what types of

technologies needed to be use. Choice about who will produce & what mix of
resources use. Depend on the cost of resources and efficiencies of resource
utilization.
3. To whom to produce:
Deciding on whom the product is produce and will be distributed. What type of
Social class and groups targeted.
Eg: SL and UK
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Solving Basic Economic Problems

1. Free market economy and problem solving.
Free market economy is called as capitalism. For this free market government intervention is
very low. All decisions are taken by the market mechanism. In this free market economy all
firms are trying to maximize their profit. Customers are trying to buy goods with more benefits
for least price and workers are trying to maximize their wages.
What to produce?
When firms are deciding what to produce they are trying to select products which help to earn
highest profit. Firms are only trying to maximize their profit. This decision is mainly depending
on this factor.
How to produce?
After selecting a product which helps to gain maximum profit firms is trying to decide the way
they are going to produce it. To produce that product firms are trying to select the cheapest way.
Because of this firms are used to select dense resources to produce that product. Not only are the
dense resources firms trying to find workers who can hire cheaply.
Whom to produce?
Once a firm targets a market it has to select the product according to the same. Always the firms
aim is to maximize their profits. Therefore the firms will mainly targets on the consumers who
have more purchasing power & it helps when pricing the product.
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2. Command economy and problem solving

This economy is called as planned economy or Socialism. The command economy is totally
controlled by the government and the decisions are taken by the central planning committee.
What to produce?
When control planning committees are taking this decision they are trying to ensure the welfare
of the society. So the central planning committees are trying to produce products which are not
harmful to the society.
How to produce?
After selecting a product central planning committees are trying to select a process which is not
harmful to the society. Therefore to take this decision central planning committees are
concerning about factors such as, unemployment of the society, capital density and the welfare of
the society. Central planning committees will help to reduce unemployment by taking decisions
to use those people in production process.
Whom to produce?
After selecting a product the production process central planning committee will decide the
targeted group. In this central planning committee will concern about the whole society as well
as the equal distribution between the social classes.
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3. Mixed Economy and problem solving

This market is a combination of the market economy and command economy. It will help to
secure the social security and the competitiveness of the market. In this market there are
enterprise sector, public ownership and welfare sector. In this market government intervention
are in three types,
Provision or prohibition.
Subsidy or taxation.
Regulations.
What to produce?
In this market private sector is taking decisions to produce products which can give highest profit
and which can meet customer needs and wants to fulfill their demand. But the production should
follow government rules and regulations.
Government is taking decisions to produce products which can secure the social welfare (mainly
the service sector).
How to produce?
In this element private sector is taking the cheapest way to produce a product. Private sector is
using dense resources and cheapest methods to produce a product to reduce the cost.
Government is taking care of the social welfare and they will concern about the capital density
and other social factors to decide the production process. Government will select the process
which is help to secure the social the social welfare, reduce the unemployment and the
environmental protection.
Whom to produce?
When selecting a target group private sector will select the higher income group of the society.
Mostly private sector is only concerning about the highest profit.
Government will select especially the service sector to ensure the social welfare. Therefore the
government will target the whole society.
When concerning about Sri Lanka and UK both countries have mixed economies where both
government and private sectors producing products and services to the society.
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LO 2.2
UK National Fiscal and Monetary Policy

Fiscal Policy
Fiscal policy is modification of spending government or taxation to help macro-economic
objectives by changing level of aggregate demand. Also cant change after approved by the
government and it also give better support to government
Can divide Fiscal Policy into two
1. Discretionary policy Policies which are decided and implemented
2. Automatic stabilization - where economy can be stabilized by processes
Key Forces of Fiscal Policy
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Government plan what it wants to spend
How much need to raise in income or by borrowings
What form and how much from taxes
Done once a year
25
Monetary Policy
Monetary Policy is referred to Central bank. They maintain value and supply of money. In order
to control inflation, stabilize currency. Monetary Policy is one way that government can impact
on the economy by impacting the effective cost of money, the Central Bank can affect the money
that is spent by consumers and businesses.
Figure No.3 UK Budget Deficit

This graph shows how the UK's budget deficit has fluctuated as a percentage of the country's
economic output (GDP)
Figure No.4 Inflation rate
The inflation target is symmetrical because a rate of inflation above the target is considered as
damaging as a rate of inflation above the target.
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UK interest rates
Figure No.5 UK Recent Interest Rate

In recent years. Interest rates have been adjusted to reflect changing inflationary pressure, and
general macro-economic conditions.
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Impact on Business
Fiscal Policy
Fiscal policy will impact on Taxation. Government main income revenue is by tax. This might
put a block to the new investors as well as the old business organization. Tax is a main income
for government and all the organizations should pay taxes on their revenues.
Increase Tax
Reduce Inflation
Monetary Policy
Monetary Policy is there to support Fiscal policy and to manage demand.
Monetary Policy will affect the business in following ways:
Control by money supply
Control over credit
Exchange rate
Interest rate
Business cycle
Spending
Employee
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LO 2.3
UK Competition policy and Regulatory bodies
Competition Policy
Competition policy means the activities carried out two or more business in order to capture a
certain market. Competition is must because it will help businesses to produce quality products
and maximize the benefits to consumers.
It will ensure following factors:
Lower Prices
New Innovation
Improved Service
Great Efficiency
Great Quality
Pillars of Competition Policy
Merger Control - Rule adopted to prevent anti-competitive behavior
Market liberalization Enables new competitors and provide best for consumers
State Aid Control - Is ensure government intervention do not affect the competition
Cartels Formal agreement between competitive firms
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Impact of Competition Policy of Selected organization

Competitive Advantage
A competitive advantage is an advantage over competitors gained by offering consumers greater

value, either by means of lower prices or by providing greater benefits and service that justifies
higher prices.
Competitive Commission
Its an independent body that makes healthy competition is carried out in the market by business
firms. Also ensuring Business firms are benefited as well as consumers.
Role of Regulatory Bodies
Government
Government is the only body who has power of influencing and implementing regulations on
Prices. On goods and services such as Water board but before implementing they should inform
to the public through parliament
Generalized system of preferences
GSP is the system of preferential trading through which the European Union extends preferential
access to its markets for imports from developing countries.
The New GSP+", system allows duty-free access to the EU for approximately 7,200 products
from small and vulnerable developing countries. Sri Lanka was accommodated under GSP+ as a
special case to enable recovery of development of the economy after the Tsunami Disaster.
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Central bank of Sri Lanka

CBSL is responsible for regulating financial system of the country, Their 2 main objectives are
1. Maintaining economic and price stability
2. Maintaining financial system stability
CBSL handles Sri Lankas foreign exchange management functions on behalf of government
Staff regulatory body

Consider about salary, age limit, leaves, EPT and ETF Benefits to employees
Health and safety regulatory bodies

Promote health care programs for employees
Standard regulatory bodies

The Standards will be given to the business such as ISO 14001 for Waste Management System,
ISO 14001:2004 for environment management. And also some certificates such as SLS,
CODEX.
Consumer based regulatory bodies

This consider about packaging system by mentioning Expiry date, Manufacture date and Price.
Influence of Regulatory Bodies

Regulatory bodies play a major role in a countries economic system. The regulations were
implemented for the betterment for business organizations and consumers but it can go in either
way. A firm should cross all the barriers come from external environment and should make use
of the scarce resources.
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LO 4.1
International Trade
Trading Between two or more countries is known as International Trade. Also known as trading
transactions between people leaving in different countries
Advantages
A Country may import a product which is not available or cannot be produced
Utilization of resources
Benefits to Customer
Utilization of surplus produce
Disadvantages
Over Specialization
Import of harmful goods
It may lead to war
One country gain other country loses
How UK Business is affected by International Trade

The international trade, the economies will grow faster because of foreign investment. The
companies can target lot customers by expand their business into other countries. International
trade can bring new technologies into the country by having economies open. Country offers the
most attractive investment opportunities. UK business organization if they dont involve in this
international business they can only sell and trade their product and might loss customers from
other countries. Because of the different geographic location all the countries are depend on
other countries products. As a result the economic will be important.
On the other hand they will be able to face more competitors there. And also the tax and rules
and regulations are also can be a barrier for this organization when it is export business. And also
the foreign exchange will also affect the business greatly.
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LO 4.3
Impact of Policies in European Union

The European Union (EU) is an economic and political partnership between 27 democratic
European countries. With a population of almost 500 million, the EU generates an estimated
30% share of the nominal gross world product. The EU has developed a single market through a
standardized system of laws which apply in all member states, ensuring the freedom of
movement of people, goods, services and capital. It maintains common policies on trade,
agriculture, fisheries, and regional development. A common currency, the euro, has been adopted
by sixteen member states. It has developed a limited role in foreign policy, having representation
at the WTO, G8 summits, and at the UN.
Impact of European Union in UK Business
EU mainly include manufacturing sector to boost enterprises EU economy. Estimates show that smalland medium-sized enterprises (SMEs) have raised. 6% of the EU GDP.
Benefits
Euro It has reduced currency consideration faced by European Countries
Harmonized standards technical and Safety Standards
Movement of people UK Citizens have right to live and spend in any European Countries
Policies of EU
Common Industrial Policy
Common monetary Policy.
Common agricultural Policy.
Taxation.
Foreign and Security Policy.
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Common Industrial Policy.
This policy helps to encourage merging industries in UK such as BBC

microcomputers.
This policy helps to expand the businesses by adding low tax rates. Influences on
trade agreements and giving subsidizing.
Common monetary Policy.
Decisions regards the monetary policy is taken by the economic and Monetary Union.
All countries in EU are using Euro (E) as the common currency. But UK is still not using
Euro (E) as the common currency.UK is using sterling pound (E) as the currency.
Because its not easy to convert pound to Euro.
Common agricultural Policy.
Common agricultural policy is the single largest policy across the EU
All the agricultural products which are exporting to other European countries and
which are importing from other European countries should be high quality, safe
and sufficient quantities.
Should maintain a high standard of Environment care and animal welfare.
All members should follow the same rules when they are deciding the tax rates.
EU is directly influencing to the VAT rates. To make a fair competitions.UK
Taxation
should consider these rules and regulations when deciding the tax rates. These
rates will influences to the organization.
Foreign and Security policy.
Under This policy all European countries are getting together to speak and act as one in the
world.
All Nations are getting together to do the disarmament operations, Rescue tasks and to give
military advice and assistance.EU is doing these things to support third countries in world to
eliminate the terrorism.
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Recommendations and Conclusion

The Ancoombra Tea Factory has 168employees currently. But it is not enough because this is
large business organization which distributes tea all over the island. Due to the lack of employees
Ancoombra tea factory takes more time to place the order and it will lead to loss of market share
and customers. So Ancoombra Tea Factory needs to solve this problem by recruiting more
employees.
As above mentioned in the report there are some strengths, weaknesses, opportunities and threats
to the organization. To achieve higher positions in the industry is to overcome on weaknesses
and taking advantages from opportunities and finding solutions for threats.
To enter into the UK Ancoombra Tea factory should have better plans, should do market
researches and should invest more money on the business. Before enter to the market strategic
management should study about the behavior of UK market, UK policies, laws, UKs cultural
and social background, and UKs trends about their tastes and should create better strategies to
face those factors effectively.
The Ancoombra Tea Factory should to market analysis before entering UK market because it
will be more effective for their long term survival in Tea Sector in UK. More researches will
help the Tea factory to find the market opportunities by overcoming them effectively and
efficiently the garment can compete well within the UK organizations.
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References
1. Ancoombra Tea Factory Proprietor Mr.Ziyaudeen (Telephone Number : 066 2224254)
2. Lecture Notes
3. Meezans Group Sri Lanka (Online) (cited 24th June 2012) Available From <URL:
http://www.meezans.com/factory/index_anco.html >
4. Economies Online (Online) (cited 24th June 2012) Available From <URL: http://economicsonline.co.uk/ >
5. Inflation Rate (Online) (cited 24th June 2012) Available From <URL:
http://economicsonline.co.uk/Global_economics/Inflation.html>
6. Interest Rate (Online) (cited 24th June 2012) Available From <URL:
http://economicsonline.co.uk/Global_economics/Monetary_policy.html>
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Appendices
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Awards and Trophies
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Business Environment

BTEC EDEXCEL HND DIPLOMA IN (MANAGEMENT & HUMAN RESOURCE)

Ancoombra Tea Factory

Unit 1: Business Environment

I would like to thank my lecturer Mrs.Lasanthi Gunasekara.

Impact of Competition Policy of Selected organization ............................................................................. 30

Demand and Supply Curve

UK Recent Interest Rate

Importance of dealing with Stakeholders

Types of Organizations Available in Sri Lanka

Indirectly by the Government

Directly by the Government

According to Profit & Non Profit Orientation

According to Legal Status

Sales revenues each year

Owns and Runs by one or a few

Sell Goods and Services Locally

Employee less than 50 People

Operates Locally or internationally

Employee Between 50-250 People

Has Household names, easily recognized logos

Factories, offices & outlets are located in other locations

More than 250 employees

National & multinational Business

Usually small Scale

Baring the profit or losses

Two or More persons associated

One stage beyond the sole trader

Each Partner Contributed an agreed amount of capital

Agreed method of profit sharing, salaries & interest

3. Public Limited Company

Owned by a wide range of investors

4. Private Limited Company

Shares are only transferable directly

No Privilege to sell shares in the stock market

Name Should be included Ltd, or Limited

Owned by Limited Number of investors

Ancoombra Tea factory

Figure No.1 Stakeholders Map

Owner should have good relationship with the stakeholders. His

Instant payment, satisfaction, development purchasing.

Fulfill legal requirements and make way to produce best

To Provide loans and get interest

Get high quality tea with an affordable cost

How the company produce and marketing techniques used

To fair return to their work

Use factory without polluting or disturbing

Table No.1 Objectives of Stakeholders

Why they are dealing

To make sure all managerial activities are carried out in a

To Provide loans and get interest and make good financial

Build the satisfaction and make good relationship with them

To get valued product for the money

To overtake and improve their business

Process of producing high quality tea

To have a eco-friendly environment

Table No.2 Importance of Dealing with Stakeholders

Ancoombra Tea Factory provides these important factors to the employees

Chance to make own decision

Free Health checkup once in a month

Customer Expectations and Satisfaction

Ancoombra tea factory won Prestigious 5 `S` Award (Given by Japan)

5C is meant by 5 Pillars of an organization. This Award proves that Physical Environment in

Figure No.2 Demand and Supply Curve