For my report I will be looking at two businesses, a small business and a large business. My large business is called Asda and my small business is called Snippers.

My opinion on this area, not being so attractive is that there is not too much to do there and the shop on its own is not very attractive. The shop is quite dull.

Other hairdressers are next to and nearby to the shop. Such as another hairdressers called Hair Cuts. They share the same services as Snipper's, but have one difference, which is that Charlie's Hair and Beauty is more of a Black African shop, they do other hair products such as hair extensions, and weaves. Charlie's Hair and Beauty is open to all races and cultures but is more frequent with Black African customers. They have different prices of services and products, which put Snippers' in a place where there is lots of competition.

A disadvantage for Snippers is that it does not have a large area. The shop space is small, which makes the shop from inside quite dull. The walls are not the best colour, but the shop it self is arranged quite nicely inside. Another disadvantage is that it is not possible for a person to travel to Snippers by car, as there is no parking space.

Businesses need to locate somewhere people can see it. This will also increase the chances of attracting more consumers, therefore increasing sale revenue. It will also help to widen the appeal to their secondary target market. A primary location is at the corner as it has bigger frontage.

Businesses also need to check the amount/intensity of competition in and near their location. It will not be wise for a small start-up to locate near big, established businesses that sell the same or similar product. However, this will allow businesses to benefit from economies of scale. Electrical companies usually do this. It gives the business an access to a major customer base and can reduce the cost of deliveries.

Business Aims and Objectives

The first aim of every business is to provide "quality goods" and "quality services"

Asdas main aim is to "provide a service that delights you" (Quote a).

Their agricultural mission statement is to be Britain's top Value Retailer of British fresh meat, products and dairy products, quality and food safety whilst being documented as Britain's best retail for a long term growth. In other words Asda is trying to put the message of quality and product standards across. They are emphasising their unique selling proposition.

The objectives that my business has are:

* Survival - They need to survive in order to make the business run and to be an independent organisation.

* Market Power - Asdas marketing needs to reach a high standard for customers to be attracted to them. They can do this by carrying surveys to investigate on what the customers' needs and wants are. Asda desires to attract the customers' eye. In order to attract customers' they need high market power in advertising. Asda can attract customers through many forms of advertising. They have already succeeded highly through their television advertising putting a message across of buying high quality goods and saving a lot of money. Other forms of effective communications they can invest are in local newspapers and radio stations. They also need to make themselves stand out to the other markets and companies, which share the same goods and services as them. Within the supermarket chains Asda are known to be cheap and aim themselves from the lower middle and to everyone above that of different classes.

* Efficiency - A good organisation needs an efficient marketing strategy. They also need all the objectives stated above and below to be efficient. This will then meet good standards. A good efficient company needs good efficient staff to make a good efficient organisation.

* Quality - The quality of their goods and products need to meet the customers' needs and satisfaction. If the quality of the good or service is good, they will have more customers.

* Innovation - Asda are bringing in new ideas, routines, and methods of work, materials and products. Asda have a retail department in each store, which most supermarket stores do not have. This is an innovation for them. Innovation creates more responsibility for all the employees.

* Image and reputation - They need Image and reputation for them to attract the public eye. In my opinion, I think that Asda is a good store but can approve their image of the store. Asda have a reputation of being one of the best stores in the U.K. One of their objectives is reputation. Asda have achieved that by becoming one of the best stores out of 10 in the U.K. If Asda wants to continue to survive they should achieve their image as, in their logo. If they have a better attraction, the more customers they will obtain. Linking all these resources together, the more customers you will get will help the company to survive further in the future. They will receive more revenue and profit. That will then shape in with reputation, market power and a good organisation.

* Environment - "Our aim is to identify any negative effects they have on their environment through a process of continuous monitoring and improvement in the way they manage their day to day business operations" (Quote b).

* Satisfying - Asda needs to satisfy their customers and their employees' needs, for them to be a well running organisation. They can do extra marketing by handing out surveys asking the public what services and products satisfy them the most. They can then reach in to the services and meet the customer satisfaction.

* Equality - "We aim to make sure that no job applicant, existing colleague, customer or supplier is less favourably treated on the grounds of their gender, marital status, sexual orientation, disability, race, religion, colour, nationality, ethnic origin or age and that no one is disadvantaged by conditions, requirements or practices which cannot be shown to be just and fair". (Quote c)

These are all social objectives, but Asda mainly consists of Satisfaction and image and reputation as they were in the top 10 best stores in the UK.

Snippers' long-term aim is to sustain the business and make a profit.

My chosen business's main objectives are to:

* Sustain as a business and expand

* Make a profit

* Improve the quality of goods or services.

* Market Power

They can meet these objectives by working hard and market power. For them to reach out to their customers, they should hand out leaflets and make surveys on how the public think they can improve their services.

The objectives for Snippers are; to increase sales and sales revenue, survival, training for new qualifications, environmental issues, satisfying customers, quality and innovation of the customers' hair cut. The main objective that Snippers targets is profit, as it is a sole trader company and is also private limited.

For Snippers to survive it will need more research of other companies, so they can make more changes and can be more competitive. They would also need to improve the quality of their service, by getting staff with more qualifications in hair and beauty due to the fact that this company is based on hair and beauty.

Functional Areas

Every large business has their functional areas. As Asda is a large business, it has functional areas that are listed below.

The functional areas that large businesses have are:

* Human Resources/Personnel department

Help the business pursue its goals by planning, recruitment and developing an appropriate workforce. Personnel management are concerned with welfare of employees.

Asda employ 150,000 colleagues who have a reputation for being the best and friendliest in the industry, and work with over 2,800 suppliers. The human resources departments' main function is to recruit select and develop staff.

This means finding the right people, training and developing them so they achieve their maximum potential and creating systems that achieve high levels of confidence and motivation.

They are also responsible for:

Recruitment and retention - Which consist of job descriptions and person specifications

Dismissal - Demoting employees or firing them

Redundancy - A situation which employment is ended because the employees' skills are no longer needed by the business

Motivation - Making the staff perform better at work by creating a friendly business culture and satisfying them e.g. bonuses, and appraisals

Professional development and training - Training the staff by a professional or someone who is experienced in training and helping people to develop their skills

Health and safety and conditions at work - Making sure that everyone is safe. They require firms to provide all employees with a secure and risk-free working environment

Liaison with trade unions - Negotiating with the trade unions by the employees, which means that when employees have a complaint with work, they would negotiate with the trade union

All employees at Asda are members of a trade union, this means that if any changes to the business are made, the employees would be asked for their opinion and all decisions would be consulted with them. Also if the employees have something to say, or have a complaint to make, they would negotiate with the trade union.

Snippers' do not have a human sources department, all decisions about staff and other topics are made by the owner.

Within a small business, with perhaps two employees, responsibility for human resources will lie with owner, while small companies may have one person whose job it is to look after issues relating to staff.

* Finance & Accounts department

The main activities of the finance department are to:

* record all business transactions

* measure the financial performance of the business

* control the finances and cash flow so the business stays solvent, i.e. does not go bankrupt

* take timely financial decisions by comparing the predicted performance with actual performance

Asda have a financial department, which creates services such special offers and money back guarantees. For an example Asda have used a 28-day Guarantee financial service.

28 Day Guarantee

28 Day Guarantee If you are not happy with your purchase simply return it in its original condition, with proof of purchase, within 28 days of purchase and we'll give you a full refund or replacement* To qualify for an exchange or refund, products returned need to be complete with all components and original packaging. *Excludes Entertainment products

Electrical warranty We want you to be delighted with the electrical products you buy from ASDA. Therefore, in addition to our 28 Day guarantee, we guarantee all electrical products* for a year from the date of purchase. Simply return any faulty product with proof of purchase for a repair/exchange or refund. *Electrical items are defined as mains operated 220/240 volts. (N.B. this does not include mains charged products.) The ASDA Guarantee is in addition to your statutory rights.

The finance department are also in charge of; Cash Flow (Monitoring income/revenue, monitoring expenditure, preparing accounts), and raising finance (shares and loans).

All the costs that Asda and Snippers' have to pay for:

* Supplies

* Wages/training for employees.

* Utility bills

* Cost of raw materials

* Investing in new machinery.

* Advertising

* Transport

* All resources

The management accounting information system is used for:

* Planning

* Decision making and control

It is concerned with future financial events. The management accountants will need to be able to answer questions.

The chief accountant, who is usually on the management board, will have to work closely with department heads when preparing budgets and monitoring financial progress.

* Administration department

The administration department manages all the clerical work such as Collecting and distributing mail, keeping records, Organising meetings and Responding to enquiries.

Every business needs to be organised in order to achieve all its aims and objectives. If there was not an administration department, dealing with customer service would be tough. There would be no systems for:

* Recruiting new students or employees

* Dealing with customers

* Dealing with suppliers

* Entering students for examinations

* Paying wages and handling cash

The purpose of the administrative system in a business is to create an ordered routine which enables the business to function smoothly. It co - ordinates or brings together the various parts of the business so that they all work towards the same goals. In some companies, administration is seen as an unimportant or minor activity, and can be under - resourced. On the other hand, administration can assume to be too big a role and the business can become intrusive with too many unnecessary procedures.

For controlling and monitoring work to be done properly, the aspect of administration requires a high level of supervision and well - motivated staff.

Production Transport

Sales

Administration System

Catering/Security

Personnel Finance Maintenance

* Research and development (R&D)

The purpose of R&D is to enable an organisation to complete successfully and achieve a permanently sustainable competitive market edge over its competitor's edge over its competitors by becoming more efficient or profitable and giving customer's added value.

To achieve these activities, the R&D section could include:

* Developing new products, materials and processes

* Creating new services

* Changing or producing existing products

* Finding new uses for the products

* Testing products for strength, quality, safety, etc]

* Collecting, analysing date from worldwide research which could be of help to the business.

All R&D investment involves in taking risks. There is no guarantee of commercial success and the majority of R&D expenditure ends in failure, however, as with any high risk activity. This is a big disadvantage for a business.

These are examples of risks involves in R&D:

* Over 90% of ideas fail

* Other Businesses can copy ideas

* Even when UK businesses have discovered new ideas, they are not always successful in using them to produce new products and services.

However R&D can range from very simple designs changes, which require little new investment and a carry a low risk.

There are many reasons why businesses have R&D departments:

* They offer better designs and more advanced products (especially technology products)

* Be in a better position then there competitors

* Develop and improve existing products, for example Microsoft software packages are regularly up dated.

* Find new ways in producing current products cheaply, which may result in high profit its

* R&D may result in profit making new products

* Production and Operations department

The Operations department is responsible for organisations and obtain resources for the business to function effectively.

Production is the economic activity needed for the manufacture of a product.

Production is responsible for providing goods that meet the publics' demands. Asda has its own company production. It has its own brand clothes, and food packaging, only for bakery they make and fish.

Resources or factors

Of production

Land Enterprise

Factories Capital Offices

Labour

Farms

The production department make sure that all their products that are sold are to be the highest quality goods, so therefore of their products are good; it will make the customers happy which will lead to more revenue.

They check their quality by quality control (QC) and by quality assurance (QA).

The quality control would inspect, sample and test quality at various points in the manufacture of a product or delivery of a service.

Quality assurance is checked during or after production, however they also use organisation approaches to quality, which then makes quality a responsibility for everyone. For great quality assurance, total quality management (TQM) is recognised as important in every business, if a business wants to increase its sales and meet its customer's demands.

Production is the economic activity needed to manufacture or create products (goods or services) with exchange value, i.e. which people are willing to buy.

The function of production is to change inputs to outputs, i.e. produce the goods and services that are to be bought by customers.

Production is responsible for:

* Making the goods or providing the service

* Making the right quantity at the right price at the right time with the right quality.

* Using resources efficiently

Production will be responsible for providing sufficient goods to meet customer demand. Additionally, as the case study above demonstrates, other activities can include:

* Maintaining and improving

* Maintenance and control of machinery and equipment

* Ensuring adequate stocks of raw materials and finished goods

* Meeting the specific needs of customers

* Controlling production methods and planning the scale or amount of production

* Controlling costs and working efficiently

* Marketing and Sales department

They're responsible for:

* Marketing research - data collection, analysis and presentation

* Customer care and service, dealing with customer complaints and problems

* Sales promotions and advertising

* Preparing sales budgets and forecasts

* Providing support services to sales staff, credit clearance and credit control

* Sales administration, for example, processing orders and preparing quotations and invoices

* Identifying and implementing the marketing mix.

In order to fulfil these responsibilities, the marketing department will have to work closely with the finance, purchasing, production and transport departments.

Asda market them selves by producing their own logos on for their production.

Examples of Asdas marketing logos are:

This represents a Range of healthier, fun products for kids

This logo represents a range of lowest priced food and general merchandise essentials.

The other ways in which they market themselves are by, advertisements on the radio, newspapers, TV, company trucks, delivery. Making special offers is a way of marketing, and reaching out to others.

The principles of marketing are to:

* Understand customer needs

* Understand and keep ahead of the competition

* Communicate effectively with its customers to satisfy customer expectations

* Co - ordinate its functions to achieve marketing aims

* Be aware of constraints on marketing activities

One marketing aim could be to 'increase sales'; one marketing objective could be to increase sales by 8 percent over the next two years.

* Customer Services department

Services offered to customers before and after a sale.

After sale services are only available after a customer has made a purchase. Pre-sales services are for customers who have not yet purchased. Customer service is the way in which the organisation deals with its customers. Effective customer service is the key to the success of every business. It is used to attract new customers and retain existing ones. It is an essential part of non-price competition and a means of differentiating the organisation from its competitors. Every business should aim to achieve continuous improvement in its customer service as a way of achieving sustainable competitive advantage.

Customer services are a part of marketing. They have to deal with customer complaints and customer issues.

Customer services also have to seek to ensure customers are satisfied with goods or services. They either purchase or consider doing so. They also provide credit facilities, which allow customers to borrow money. Asda has a customer services decks in their store where customers can go to ask for help and find out any information needed.

* Distribution department

The channel of distribution is the method by which goods and services reach the customer.

There can be no effective demand if goods and services are not made available to locations where customers are able to buy them. A whole network of organisations may be needed to supply a product to end users and other businesses where this demand exists. Shops, offices, factories, leisure centres, etc. are the entire physical environment in which products are sold.

The more often a product changes hands the more expensive it becomes because everyone in the chain needs to be paid.

Asda distributes their goods in their own Vans.

With the help of all functional areas in Asda, Asda were voted in the 100 best companies' article published in The Sunday Times. They reached to a position of the 31st best company in the U.K

31 Asda___________

Supermarkets

Annual sales £13.2bn

Staff numbers 127,513

Male: female ratio 36:64

Under-35s/over-55s 46%/11%

Staff turnover 28%

Earning £35,000+ 1%

Typical Job Shop-floor assistant

Snippers' is a small business run by a sole trader, which therefore means that it doesn't have many functional areas. They have a customer services, as they get complaints, comments and get asked questions.

Relationships between and the use of I.T in functional areas

The marketing department is related with the administration department as their information is on databases, which is a part administration.

Documents, which are needed for the marketing function, come from many departments, for example:

* The production department provides the lists of all materials, quantity of material, and the delivery dates.

* The distribution department provides delivery schedules, and other delivery information.

* The finance and accounts department provide; prices, costs, methods of payment and credit.

Customer services and Human resources department have a key relationship between the two because, if a customer makes a complain about an employee, the information will be sent straight to the human resources as, all records and dismissals if necessary are done through them, however the employee will not be dismissed but warned.

The Human Resources department are linked with every department, because in each department they have employees of the company, and as the human resources department keep records off all employees, it gets involved with everyone, even people who work on the shop floor.

Quotations are documents which show a firm list of prices and costs at which goods and services will be supplied, or at which work will be done. The information for them will come from many departments, for example:

* The production department provides delivery dates, lists of materials, quantities of materials, technical specifications

* The distribution department provides, methods of delivery, delivery schedules, storage

* The accounts department provides; standard prices, standard costs, methods of payment, credit clearance.

The examples of I.T uses are:

* Mobile, telephones

* Video and tele - conferencing

* Lap - top computers

* Email

* Multi - media communications

The use of I.T in business:

* Networked computers & keeping computers records (In every department)

* Documents on word processor, spreadsheets, presentations packages

* Sending and receiving messages by telephone, email or fax

* Files on staff, customers and products

* Electronic filing scans

* All clerical work (administration)

* Use of intranet (internal), use of internet (external)

The I.T department supports all departments with networked PC's.

The I.T and the Administration department are linked because administration uses I.T support, which works on word processing, databases, electronic communications, electronic transactions and accounts (Spreadsheets). These two departments also work with the finance and accounts department as, accounts are all spreadsheets, all spreadsheets are done in the administration department, and the administration department is used with I.T support. All functions are linked.

The I.T department is also linked with the Human Resources department, because, Human resources keep records and details of all employees, which are saved on modern technology (computers), which is used in I.T support.

Another use of I.T in functional areas is Internet and email. Emails are sent through Internet on computers to inform other staff if there are any meetings or to send them any kind of information.

Both internal and external channels of communications are more and more supported by I.T, with computer managing information. Information received by one department or section can be further processed before it is passed onto other departments through the organisation's computer network.

Communication Methods - Internal and External

Internal communications are a form of communication within an organisation including written, verbal, and electronic (email, intranet)

A small business, (sole trader or partnership) is likely to have few employees; therefore its internal organisational structure is likely to be informal.

Internal communication methods are those, which are used within the business for communication between workers and owner.

The most usual methods of internal communication that a small business would use are:

* Face to face,

Advantages

Disadvantages

The message can be clearly communicated

Non verbal communication, such as gestures and facial expressions, may act as a barrier to effective communications

* Telephone,

Advantages

Disadvantages

* Enables long distance communication to take place

* Enables immediate communication to take place when necessary

* There is a possible chance for the lines to be unclear, having no reception.

* There is non-verbal communication to give the listener any clues

* Memorandum (memo)

Advantages

Disadvantages

A written record of the message is kept

Piece of paper can get lost or ignored so they're in no guarantee that the message is received.

* Report

Advantages

Disadvantages

A report can contain detailed information such as figures.

A report is a formal method of communication; therefore it needs time to prepare.

External communications is when all communications is with outside stakeholders e.g. customers and suppliers.

Efficient internal communications are important, but an organisation's external communication is vital. Its business diagnosis will be threatened if it neglects its external communications. An organisation needs to communicate externally with:

* Customers and clients

* Suppliers of materials, other physical inputs and business services

* Local and national authorities that deal with matter such as taxation, planning permission, environmental protection, competition, investment grants, trading and health and safety

* Groups concerned with environmental matters and the welfare of low paid workers.

* The media and the general public on matters that can either damage or improve the company's public image

Organisations must make sure that the quality of their external communications is as high as possible and select the most effective media for communicating information.

Asda and Snippers both use internal and external communication methods. Not only in them to business are these methods used but in every large and small business.

Everyone in a business communicates, for example:

* Workers communicate with supervisors and each other

* Managers communicate with their staff

* Employers will need to communicate with the workforce and external groups

* Sales and marketing will communicate with customers

Methods that are suitable for internal users are unlikely to be appropriate with external ones. Memos, for example, are only used internally. Whatever method is chosen will depend upon:

* The size and the workforce and its location - for example, people may be spread over several buildings or floors

* What is being communicated - for example, complex instructions will require a different approach from a simple announcement.

All communications take place within communication networks such as:

* A chain network - Formal contact

* A circle network - Communication between people on the same level

* A wheel network - Sales departments report to the heads office

* An All channels network - Brainstorming

In Asda you would see customers and staff using verbal communication, as they are face to face. If the customers were to be using the handset they would be using verbal communication but, through a phone.

Other communications customers use are through internal communication like asking questions or writing customer comments on their web address, or maybe through email.

Snippers deal with the same thing. They communicate with customers verbally, either with visual, through the phone, or face-to-face contact. Customers do not and cannot communicate internally through electronic message, as Snippers does not have a web address or email.

External Influences - Competition

There are many external influences that effect competition. Asda has many rivals such as, Tesco, Sainsbury's, and Safeway's, Somerfield, Budgens and Waitrose. All these superstores sell the same products, provide similar services, and have similar functional area and the external influences at this point would be the company reputation and the popularity.

My local Asda store doesn't have many local competitors, as it is located in an industrial area. Therefore they don not have any competitors within a few kilometres radius, however Asda does have national competition

The location is also a very important factor for e.g. Asda is located in more of an isolated place then other supermarkets. This way they only tend to have local customers and people who know about it. There are not as many Asda stores as Tescos or Sainsbury's that's another factor that effects competition. Tescos has many stores including Tesco Express and Tesco Metro. These are located widely across many high streets and in many towns.

Many people tend to go to Asda for shopping rather then Sainsbury's the reason being is the cheaper prices for e.g. a packet of Maryland cookies at Tesco's would be set at 52p and at Asda it would be 10p cheaper. Asda have cheap prices when it comes to poultry, dairy, and hair and care products and all other products sold by them.

Asda is well known through advertising on Television whereas Tescos is just a supermarket well known as it is seen on nearly every high street.

Other external influences are the customers and their disposable income. Asda is a place visited by people of all socio economic groups. However it is aimed at the lower- middle class people.

External Signs could also be an influence for e.g. Asda has light green writing stating Asda. The colour and style tells one that it's not as expensive. Tescos and Sainsbury's have more of an attractive sign encouraging one to go and purchase from there.

Asda shows a good competitive side, as they have been the lowest price supermarkets in the U.K for six years. This makes the other supermarkets highly competitive.

Snippers' is in a non - busy location. It has a calm atmosphere, it is not to busy yet not so quiet, however they still have local competitors within a few kilometres radius. They do not have any competition with advertising apart from window advertising, such as, posters. They have customer competition through this and by their prices.

External Influences - Environment

The government have business regulations towards businesses.

Examples of some are:

* Laws - Make environmental damage illegal

* Charges - are made to restrict pollution

* Clean air act & environmental protection act - sets limits on the emissions businesses can make into the air

* Businesses exceeding the limits can be fined

* Landfill Tax - disposes of waste by burying it in the ground. Aims to encourage businesses to produce less waste use more environmentally - friendly methods than dumping it.

* Road pricing - businesses contribute to air pollution through use of business vehicles: Roads prices and charges encourage businesses to use less environmentally damaging ways of transporting goods.

* Planning Permission - Where government allows building to take place in areas where environment damage is not great. Business will have to meet certain conditions, such as repairing damage to landscape.

* Taxes on diesel and petrol fuel - Encourage businesses to search for energy saving ways on transporting goods. They also aim to reduce the number of journeys made by customers.

Asda have there own environmental policy.

ASDA's Environment Policy

We recognise that the activities and services we operate can potentially have a negative effect on our natural environment. Our aim is to identify, monitor and reduce any direct negative effects we have on our environment through a process of continuous monitoring and improvement in the way we manage our day to day business operations. We also try to influence our colleagues, customers and suppliers as this can also help reduce the effect we have on the environment.

ASDA is committed to:

. Compliance with the following as a minimum operating requirement:

- National and international environmental legislation

- International treaties and agreements

2. Reducing greenhouse gas emissions from our stores and distribution centres:

- Reducing energy consumption

- Introducing new energy efficient and clean technologies.

3. Reducing ozone depleting gases from our stores and distribution centres:

- Reducing refrigerant gas losses through effective planned maintenance

- Phasing out the use of CFCs

4. Reducing acidifying gases' emissions from fleet transport:

- Reducing road miles travelled through the use of reverse logistics

- Giving preference to moving goods from road to rail, wherever commercially viable

5. Minimising packaging on own brand product:

- Ensuring that packaging volume and weight are limited to the minimum adequate to maintain the necessary level of safety, hygiene and quality for the packed product as well as the aesthetic acceptance of the customer

- A key consideration during the packaging design process is to minimise its impact on the environment when packaging is disposed of as waste

6. Continually improving waste management practices at store level:

- Recovering and recycling increasing tonnages of cardboard waste generated

- Recovering and recycling increasing tonnages of plastic waste generated

7. Encouraging customer recycling through the provision of 'bring back' facilities:

- Glass containers; clear, amber and green

- Aluminium and steel containers

- Plastic containers

- Newspapers and magazines

- Textile and shoe banks

8. Encouraging colleagues and customers to use 'green' transport:

- Addressing colleague and customer travel through the development of 'Green Travel Plans' for all new store builds

- Promoting colleague car share schemes

- Encouraging colleagues to 'get on their bikes' through the Colleague Discounted Bicycle Initiative.

9. Disseminating environmental best practice guidance to all ASDA colleagues:

- ASDA 'Energy and Environment' best practice intranet website:

* 'Colleagues at Work' offering advice on energy saving, energy surveys, general waste, paper waste, recycling, transport and water

* 'Colleagues at Home' offering advice on energy efficiency at home including information on appliances, heating, insulation, lighting and quick tips

0. Responsible store development:

- Increasing the percentage of store development on Brownfield sites

- Continually improving store design to increase efficiency in energy consumption

- Developing, designing and operating our stores and distribution centres to Reduce their environmental impact while achieving customer satisfaction and business growth.

Asda are very concerned about the environment and are sticking to their environment policy very well. They are not just encouraging the business to be green friendly but they are also encouraging their customers and their staff to also recycle and use green transport.

Snippers' does not have any environmental issues, as it doesn't recycle as much as Asda, however unregulated businesses will tend to look for the cheapest available supplies of inputs and methods of working. This is mainly true if they are working in a competitive market where these is pressure to keep their prices low.

External Influences - Economy

The state of economy is affected upon the country. The country's wealth is created as supply households with the goods and services that they demand.

Money flows through the economy from households to businesses as goods and services are purchased. Money is returned to households in the form of wages, salaries, rents, interests and profits.

The aims for managing the economy are to:

* Promote steady and sustainable economic growth in order to make people better off;

* Control inflation and keep prices stable - this is necessary for economic growth;

* Reduce employment - this is a social and an economic aim;

* Achieve a positive balance of payments - this will enable the country to pay for the goods that it imports from abroad;

* Maintain a stable exchange rate - this will help UK businesses to trade with other countries

In order to understand what is happening in the economy, the government and businesses use 'economic indicators'. These are taken from official figures published by the Office for National Statistics (ONS).

Economic activities can be found from the high streets to your home. Economic activity is geared towards providing goods and services that people need and want and are prepared to pay for.

The UK economy can be known as one of the large markets where goods and services are exchanged between business and households and businesses and other businesses.

The voluntary, private, and public sectors are all a part of the economy, as the economy can be divided into three.

Voluntary Private Public

Personal Corporate Financial Local and central government

The UK today has a mixed economy. There is both private and public ownership of resources and decisions about what, how much, for whom and where to produce are split between the government (the public sector) and privately run businesses (the private sector). In a mixed economy the government also sets targets for the economy as a whole, such as targets on inflation, on economic growth and on the amount of money in circulation. The government will get involved in markets in an attempt to meet these targets.

These targets send out signals to businesses and affect the way in which a business will operate.

Asda and Snippers' are both involved with the economy, as they are both businesses set up either in the private or the public sector part of the economy.

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