Case Study Environmental Management for Sustainable Development

Question: Case Study on "Environmental Management for Sustainable Development". Answer: Task 1: Understanding the organizational purpose of business 1.0 Introduction The organization chosen in this assignment is Crocodile Garments, which is a Hong-Kong based organization. The organization was founded in the year 1952 and since then, the company is offering quality garment products to its targeted consumers (Crocodile.com 2016). The company has selected the child and female population as their target market. The company operates within the domestic market and apart from that, the company has also targeted international markets by expanding the business activities in Singapore, Japan and Malaysia. 1.1 Identifying the purpose of different types of business There are mainly three types of business organizations in the world of business. These types are sole proprietorship business, partnership business and private and public limited business. In case of the sole proprietorship business, the business is single aim and that is increasing the income level of the owner or proprietor. This type of business is generally of small size and has limited number of stakeholders. On the other side, partnership businesses are those businesses, which are formed by a group of people because of the partnership deal. In the partnership business, every partner has equal responsibility and rights (Kelly and Ashwin 2013). There are mainly two types of partnership business limited partnership and limited liability partnership. In the limited partnership business, the partners, who are the general partners, are liable for all debts in the business (Kelly and Ashwin 2013). On the other side, the limited partners in the limited liability partnership are liable only for the amount that they have invested at the initial point of the business. The main purpose of this business is to enhance the profit percentage of the partners and minimizing the liability of them (Hurt 2015). On the other side, public limited companies are those, which are properly registered under the specific act of the country and issues shares to the public (Garbarski 2015). The shares of the public limited companies are publically traded in the market. For example, the shares of the public limited company in London are traded through London Stock Exchange. However, in case of the private limited companies, the shares are not sold in t he stock markets like, London Stock Exchange or New York Stock Exchange. However, in any kind of limited company whether it is private limited or public limited, the responsibilities of the shareholders towards the financial liability of the company are limited to the value of the shares owned by the shareholders (Hannigan 2015). The primary aim of a public limited company is to enhance the shareholders value, whereas the primary aim of a private limited company is profit maximization (Gov.uk 2016). Apart from that, these companies need to comply with the environmental policies in order to attract the stakeholders especially the investors towards the business model. Additionally, there are different industries operating in the global market for establishing efficient business activities. Every industry conducts social responsibilities in a different manner. It depends on which business activities the organization is performing. The vision of Crocodile Garments is to deliver quality products to the consumers for building a reputation in global market. The purpose of this organization is to meet the increasing needs and demands of global consumers and apart from that, the company is aimed to comply with the environmental policies of different countries in order to maintain business sustainability (Crocodile.com 2016). The most important factor, which the organization wants to achieve, is to build a healthy brand image in global market. 1.2 Approach of the organization for meeting objectives of different stakeholders There are different internal and external stakeholders of Crocodile Garments including consumers, investors, social community and suppliers. In order to conduct sustainable business, the company performs different activities in order to satisfy the stakeholders. The expectation and demands of the stakeholders are different and therefore, it is necessary for the company to identify and fulfill demands of every possible stakeholder. In this manner, it will be easy for the company to maintain business sustainability. Therefore, Crocodile Garments conduct different sustainable activities for addressing demands of these stakeholders. Following is the activities performed by Crocodile Garments for fulfilling expectations of the stakeholders. Consumers: Consumers are the external stakeholders for the organizations and apart from that, consumers are the most important stakeholders and every organization aims to fulfill demands of the consumers. Nowadays, consumers are more attracted towards eco-friendly products rather than the products, which harm environmental quality (Basgze and Tektas 2012). The needs and demands of the consumers are rapidly changing and on the other hand, the demand of the consumers is to avail high quality products at a reasonable price. In order to meet this expectation of consumers, Crocodile Garments is conducting an efficient market research for understanding the requirements of the consumers (Crocodile.com 2016). In this manner, the company can improve the product quality with the changing demand of the consumers. Therefore, it can be said that the approach of Crocodile Garments for fulfilling the demand of the consumers is efficient. Investors: The demand of the investors is to increase profitability from the growth of the company. Most of the business organizations focus on the sustainability report in order to influence the investors. Similarly, Crocodile Garments has taken a proactive approach for conducting different types of social activities for attracting the investors towards the company. Apart from that, the company has adopted an efficient business model in which the investors can be assured in terms of profitability. The company needs to share the business model with the stakeholders through their annual report (Alexandru and Ioan 2013, p.1436). In order to increase organizational profitability, the company is continuously improving the product quality and range for products in order to satisfy the needs of the investors. Social Community: It is the ethical responsibility of any organization to perform such activities, which helps the social community to improve their life-style. Performing activities for the social community helps an organization to build a healthy brand image, which actually helps an organization to maintain business sustainability. In case of Crocodile Garments, the company is performing many social activities such as charity in order to comply with the environmental policies. The company is also concentrating on the 3R that means Reduce, Reuse and Recycling of the products in order to improve the quality of the natural environment and influence the people to conserve the natural environment (Crocodile.com 2016). Suppliers: The demand of the suppliers is to maintain transparency in terms of business activities. In this manner, the company will be able to maintain long-term relationships with the suppliers, which is helpful for maintaining business sustainability. In order to meet objectives of the suppliers, Crocodile Garments has established a healthy relationship with the suppliers in terms of monitory transaction and other business activities. 1.3 Explaining the responsibilities of the organization along with the employed strategies for performing them An organization has huge responsibilities towards the stakeholders. Therefore, different organizations employ different strategies for fulfilling the responsibilities in accordance with the needs and demands of different stakeholders. As mentioned earlier, the major stakeholders of Crocodile Garments are consumers, investors, social community and suppliers. It is the sole responsibility of the organization to fulfill demands of every stakeholder for maintaining business sustainability. For instance, Crocodile Garments needs to improve the product quality in order to satisfy the consumers, which is a responsibility of the company towards the consumers. Apart from that, the company needs to deliver relevant information to the consumers in order to conduct ethical business. On the other hand, investors should have adequate knowledge regarding the business activities of the company. Therefore, Crocodile Garments is solely responsible for maintaining transparency with the investors as wel l. The responsibility towards the social community is to maintain the environmental quality (Garbarski 2015, p.107). In case of the suppliers, the organization is committed to conduct ethical business practices. Following are the strategies of Crocodile Garments for fulfilling responsibilities towards the above-mentioned stakeholders. Consumers: In order to fulfill the responsibilities towards the consumers, Crocodile Garments has developed an effective communication model, which helps the company to evaluate the needs and requirements of consumers. In this manner, consumers can share their needs and wants with the company and apart from that, consumers can provide their positive and negative feedbacks to the specific representative. Therefore, it can be said that the strategy of Crocodile Garments is to get in touch with the consumers for improving the product quality continuously. Investors: Investors need to know about the entire financial background of the organization at a random basis. The strategy adopted by Crocodile Garment for fulfilling this particular requirement is to publish organizational information to their annual report (Crocodile.com 2016). While publishing the organizational information such as cash flow and profitability along with expected profitability, the company is maintaining transparency. Moreover, the information provided by the organization is not manipulative in nature. Social Community: In order to meet the responsibility towards the social community, the company has taken a proactive approach for taking part in charitable activities. The company has conducted many fund collection activities for the rural population of the community they serve (Crocodile.com 2016). Moreover, the company conducts different social campaigns in which the company provides clothes to the poor people of the operating target market. Suppliers: The organization is responsible for maintaining a healthy communication with the suppliers for maintaining a sustainable relationship. Therefore, the company has adopted an effective strategy for building a healthy strategy with the suppliers. It also helps the organization to monitor the activities of the suppliers along with sharing organizational activities with the suppliers. Task 2: Understanding the nature of the natural environment in which the organization operates 2.1 Explaining how economic system attempts to allocate resources in effective manner There are mainly three types of economic systems present in this world market economy, planned economy and mixed economy. Market economy is such an economy, where the decisions related to the use of resources and the prices of goods and the people in the country decide services. On the other side, in case of planned economy, the government of the country takes the decisions related to the use of resources and pricing. The mixed economy is the combination of these two economic systems (Kline 2014, p.70). The resource allocation mechanism in the market economy is driven by the free interactions of the market forces. This indicates that in the market economy, the consumers decide what needs to produce; producers decide how that needs to be produced and the purchasing power of the customers decides for whom to produce (Hossain 2014, p.751). The government decides the resource allocation mechanism in the planned economy by creating a centralized planning. This means, the government decid es what to produce, how to produce and for whom to produce. In case of the mixed economy system, the resource allocation is determined by the demand and supply of the market forces. In UK, the economic system is of free market economy, where the consumers decide what to produce, companies take the decision regarding how to produce and the purchasing power of the consumer decides whom to produce (Dosi et al. 2015). Now, if there is inflation in the economy, then the money supply in the economy will grow up and due to that the expense level of the consumer will rise and the companies will be able to employment more people. The economic system will influence the companies to allocate resource that is more human. On the other side, the companies in the economy will be able to pay minimum wage to each of the employees. 2.2 Assessing the impact of monetary and fiscal policy on Crocodile Garments and its activities The monetary and the fiscal policy of a country have several effects on the business of an organization. In case of the business of Crocodile Garments, the business of the company can be affected and its activities can be changed due to the changes in the fiscal and monetary policies of the government of the country (Rey 2015). The effects are shown below: Fiscal Policies and its Impact Increasing VAT (Value Added Tax): Value Added Tax or VAT is a consumption tax that is applied on a product or service at the time when the value is added to the product or service at the production as well as final stage. If the government of UK increases the rate of VAT, the indirect cost of the company will increase because the maintenance cost or accounting cost of the company will grow up (Dosi et al. 2015). However, the impact of VAT is more on consumers than the company. If the rate of VAT increases, then the prices of the products will also increase because it is an indirect tax that the consumer requires to pay while purchasing the product. Due to this, the company will require to change the price level of the products (Craig and Campbell 2012). Increasing Income Tax If the government of UK increases the rate of income tax, then the cost of the Crocodile Garments will grow up because the company will require paying more taxes on its PBT. This will actually de-motivate the company growing the income level (Rey 2015). However, the company can manage the income tax through proper tax planning. Monetary policies and impacts Reducing interest rate In case of Crocodile Garments, this monitory policy will help the company to borrow high amount at low cost. Therefore, the spending of the organization will also increase for this activity. Increasing Money Supply The monetary policy in a country aims to influence the consumer spending and aggregate demand in the market by using the interest rates and the different monetary tools. In case of UK governments monetary policy, the aim is to keep the inflation rate in the economy within the target of CPI 2% +/- 1. Now if the money supply in the UK economy is increased due to the monetary policy, then the aggregate demand in the market will also grow up and this will increase the revenue of the Crocodile Garments (Legislation.gov.uk 2016). The company will increase the production. At the same time, due to the increased money supply in the market, the company will be able to employ more employees. As the interest rates will be low due to the increased money supply in the market, the total costs of Crocodile Garments will decrease and the investment opportunities will increase. 2.3 Evaluating the impact of competition policy and other regulatory mechanism on the activities on Crocodile Garments Competition policy helps the organizations to gain competitive advantage and this policy helps the business organizations to conduct fair trade in the domestic and international market. This policy prevents collusion among the firms and therefore, power can be distributed among the firms equally. In other words, competition policy helps to prevent one organization to gain excessive market power. Moreover, the aim of the government is to prevent business monopoly, which is indirectly improving the overall economy of the country. The competition policy of UK government has been stated under the Competition Act 1998 (Legislation.gov.uk 2016). This act aims to investigate about the suspected abuses of the monopoly businesses in order to protect the interests of the customers. Due to the competition policies of UK government, the management at Crocodile Garments is bound to maintain the price level about the cost because the Competition Act 1998 restricts the selling of products below the cost level (Legislation.gov.uk 2016). Similarly, the firm cannot set the price at much high level because if the firm does this, then the Competition Act 1998 will consider that pricing as the abuse of monopoly power. At the same time, the management at Crocodile Garments cannot deal with the suppliers at very low price because that will be again considered as the use of power (Legislation.gov.uk 2016). On the other side, the Employment Rights Act 1996 in UK states about all the rights of the employees and employers in the business organizations in UK (Legislation.gov.uk 2016). Therefore, the management at Crocodile Garments is bound to set their activities in such a way so that every employee can have equal rights. No discrimination is done based on gender, race or religion. Task 3: Understanding the behavior of Crocodile Garments in the market environment 3.1 Explaining how the market structure determine the pricing and output decision of business There are several types of market structure available in the economies of different countries. Mainly four types of markets can be noticed in different countries as well as in UK and these are perfectly competitive market, monopoly market, monopolistic market and oligopoly market. A market can be considered as a perfectly competitive market, when there are many buyers and sellers, every seller has similar right to sale the products, and there is no entry or exit barrier in the perfectly competitive market. In this type of market, the sellers have no control over the prices of the products (Mirman, Salgueiro and Santugini 2015). As there are numbers of seller in the market with equal rights and the buyers have all the information about the market, no one can influence the price and output level in the market. The market forces set the output decision. On the other side, in a monopoly market, there is only one seller and there are many buyers in the market. Due to this, the seller has all the power to take the decision regarding the price and output level. If the seller notices that there is high demand in the market, the seller can increase the price level without increasing the output much (Andersen and Vetter 2015). On the other side, the seller can also increase the output level by keeping the price at same level. In case of monopolistic market, there are many producers or sellers and many buyers. However, the products of every seller are different from each other. In this type of market structure, the output level is set as per the level of competition in the market (Nikaido 2015). For example, if the Crocodile Garments operates its business in the monopolistic market and one competitor of Crocodile garment increases the output level and decreases the price level in order to compete at the higher level, the Crocodile Garments will also increase the output level and decrease the price level so that it does not lose the existing customers. Oligopoly market is that market, where there are few producers or sellers and they dominate the market. There are many buyers in the oligopoly market and the products are differentiated or homogeneous. In this type of market, the output level is determined by the level of production of each of the seller or producer in the market (Geras' kin and Chkhartishvili 2015). 3.2 Illustrating the way in which market forces shape organizational responses There are several factors, which are known as the primary market forces for a business organization and these are demand and supply in the market, the price level, the inflation rate and recession level (Worthington and Britton 2009). These market forces can affect the activities of the business organizations in several ways (McDonald 2012). For example, if there is high demand for the fashionable mens shirt in the market of UK, then the Crocodile Garments can easily enhance their production and at the same time can increase the price level of the products. Similarly, if the price level of the products of the competitors is low, then the management at Crocodile Garments is bound to maintain the price of the products at low level (Minford et al. 2015). If there is recession in the economy, then the company requires increasing the prices of the products in order to recover the cost of the manufacturing (Li and Liu 2013, p.1402). The garments industry or market is a type of oligopoly market, where few firms operate their business and dominate the market and each of the firms are interdependent and highly influenced by the market forces. The firms in the garment industry are highly influenced by the demand or tastes and preferences of the customers in the market (Kelly and Ashwin 2013). At the same time, they are interdependent on each other (Geras' kin and Chkhartishvili 2015). For example, there is high demand for the cotton shirts in the market in UK and Crocodile Garments is able to sale the cotton shirts at a moderate price level. Now, as there is high demand for the cotton shirts, the competitors of Crocodile Garments will also produce the cotton shirts and as Crocodile Garments is selling the cotton shirts at moderate price level, the competitors will not be able to charge high price for the cotton shirts (Chakravarty 2016). Therefore, it is clear that the competitors of the Crocodile Garments are depen dent on it in case of setting the price level of the products. On the other side, if there is inflation in the market and one of the competitors of Crocodile Garments increases the prices of the products in order to cover the cost, the Crocodile Garments will also increase the price level. 3.3 Judging the way in which business and cultural environment shape the behavior of Crocodile Garments The behavior of a business organization like, Crocodile Garments is highly influenced by the business and cultural environments. In order to identify the effects of business and cultural environments in shaping the behavior of the Crocodile Garments, it is important to analyze the business and cultural environments of the business with the help of PESTLE framework. The analysis is stated below: Political: The political environment in UK is much favorable for the business organizations like, Crocodile. The low interest and tax rates charged by the government of UK have influenced the management of Crocodile Garments paying all interests and taxes properly. These policies of the government have influenced the company rejecting any kind of tax avoidance and fraudulence in the business (Serra, Pointon and Abdou 2012). At the same time, the government of UK has mandated the transparency in the business, which has also influenced the Crocodile Garments behave in a transparent manner. Economic: The current situation of UKs economy is much stable than five years back. However, after the Brexit, the value of pound has decreased and it has affected not only the economy of the country but also the financial positions of the business organizations. However, this type of situation has influenced the business like, Crocodile Garments performing in a better way. The company has influenced to invest more for further development of the business (Hammer et al. 2015). At the same time, as the economic condition is not much sound, the business has concentrated on maintaining the transparency so that the foreign investors get attracted towards the investment at Crocodile Garments. Social: The people in different communities in UK are much fashionable and very adaptive in nature. The culture of the people in the society is mixed culture, which has influenced the management at Crocodile Garments implementing the cross-cultural business management system within the organization. As the people in the society are very conscious about their rights and thoughts, the organization has taken special care of the employees rights and valued the views of the employees (Shen 2014). At the same time, the organization has also taken care of the quality of the products because the people in the society are also very specific about their social classes. Technological: UK is much advanced in technology. The advanced technological environment has helped the organization handling the situations when there is scarcity of raw materials. With the help of advanced technology, the company is able to manufacture the products with the help of substitute raw materials (Fletcher 2013). Moreover, the advanced technology in UK has influenced the garments manufacturer like Crocodile Garments changing the fashion of the people. Legal: In UK, every organization is bound to maintain certain legal guidelines like, Employment Rights Act, 1996, National Minimum Wage Act 1998, Health, and Safety at Work Act 1974. All of these legal guidelines have influenced the organization maintaining a proper working environment at the workplace and providing proper remuneration and safety to the employees (Hammer et al. 2015). Environmental: The people as well as the government in UK are very conscious about the natural environment of the country. The Climate Change Act 2008 has influenced the management at Crocodile Garments maintain the sustainability of the natural environment while operating the business activities (Shen 2014). Task 4: Assessing the significance of the global factors that shape national business activities 4.1 Discussing the significance of international trade to UK business organization In case of the UK business environment, the service-based organizations are highly influenced by the development of global economic. On the other hand, the UK market is full of service-based organizations operating in the overseas market for taking advantage from the global economy. International tread is one of the most important to UK organizations, as it helps the organizations to gain superiority in competitive market. Globalization is the major reason for which UK organizations are expanding in international market. Following are the benefits of international trade. Advantage of new market segment: An international expansion allows the organizations to develop new market segments by targeting new consumers. In this manner, the organization can increase production as well as the profitability at the same time (Li and Liu 2013, p.1402). Moreover, a new market segment helps an organization to introduce new product design for influencing needs and demands of the newly retained consumers. Overcome stagnancy of domestic market: If the domestic market environment is saturated in terms of market competition and viability, then it can influence an organization to expand business in international market. In case of the UK market, the business possibilities are very high. However, the market is stagnant in terms of demand of domestic products. Therefore, it influences the organizations of UK to expand business in international market rather than being limited to the domestic market. Product or Service diversification: The nature of business is one of the major factors, which influences an organization to go beyond the national borders. More significantly, it is important to build a global essence for some products to be accepted by the consumers. For example, if an organization is providing telecommunication service in the UK market, then it is necessary to be a multinational corporation for gaining trust of the consumers. On the other hand, introducting new service packages along with products would help the company to expand in international market in an effective manner. Specialized products: There are some products, which are specialized and it is not possible to exploit the profitability in the domestic market. In order to gain opportunity of large market, it becomes important for the UK based organizations to expand their business in international market. Contribution of international trade to the GDP of UK: As per the latest national statistics in UK, the international trade has contributed 30% to 32% of the total GDP of the country. However, the national statistics have also disclosed that in the last year, the country had trade deficit of 36.6 billion from the trade of goods and services. In 2015, the exports of the company fell by 2.3 billion (Ons.gov.uk 2016). The fall in the trade of goods was 8.2 billion, which was offset by the increase in the export of services of 5.9 billion (Ons.gov.uk 2016). However, as there are several future opportunities in the emerging markets, it can be expected that in future the country will achieve trade surplus. 4.2 Analyzing the impact of global factors on UK business organization The term international business refers to the organization expansion across the national borders. In this kind of business expansion, the organizations can increase consumer base along with organizational profitability and global essence. In this era of business environment, every organization focuses on business expansion in the international market. In case of the UK based organizations, the aim of the organizations is mostly to export products in the overseas market for increasing profitability. Several factors influence the UK-based organizations to expand in the international market. PESTEL is an effective framework for evaluating the external market forces in business (Wetherly and Otter 2011, p.351). Following are certain factors, which influences organizations in the UK market to expand in the international market. Political factors: International business expansion depends on the political stability of the targeted country, which is a global factor (Al Khattab et al. 2012, p.169). If the political background of a country is unstable, it will be obvious that the business policies of that country will be unstable. Therefore, political instability of a country can affect international expansion of CG negatively. Economic Factors: Global business is directly associated with the global economy. This factor affects the buying power of the buyers along with the market demand of products and services. Most of the UK business organizations are operating their businesses in developing countries. On the other hand, economical recession, inflation and other economical crisis reduce the product demands of the UK organizations (Grigorescu and Badea 2013, p.65). Therefore, it can be said that economic stability of the country has effect on overseas tread of CG. Social Issues: The social trend is evolving rapidly and therefore, needs and expectations of the consumers are changing. However, in this changing trend of consumers buying behavior, UK based organizations are conducting efficient consumer evaluation in order to maintain business sustainability. In case of the UK market, most of the population is aged and therefore, organizations are paying extra cost for the retired employees. On the other hand, the demand of fast moving goods is lower than the demand of medicines and accommodation. In case of CG, the business development of the company can be effected by the changing social trends. Technological Factors: The technological factors are one of the most important factors, which affect the growth and development of an organization. The UK business environment is highly innovative in terms of technological aspects. Since 2010, the use of social media increased among the aged groups as well (Ayres 2013, p.1541). Therefore, it can be said that technological innovation is what organizations are opting in order to promote their offerings (Micheli et al. 2012, p.51). It helps the business organizations to attract consumers from competitive market. Therefore, CG needs to response quickly in order to adopt innovative technology in order to increase customer retention in international market. Environmental Protection: An organization needs to comply with the environmental policies in order to maintain business sustainability. UK organizations use the support of media in order to promote their sustainable practices with the stakeholders. However, the UK media can conduct negative publicity of an organization, which affects business growth and development negatively (Economicshelp.org 2016). In order to conduct sustainable business, CG needs to conduct corporate social responsibilities in an efficient manner. Legal Factors: In order to maintain business sustainability, an organization should comply with the changing legal frameworks. Currently, the UK government has implemented different legal frameworks for the domestic and international businesses such as minimum wages and recirculation policy (gov.uk 2016). Not complying with the legal frameworks will affects business development of CG negatively. Apart from the above mentioned factors, there are many other factors, which have affected the business organizations in UK. One of those factors is the international trade. At the current scenario, the percentage of import is higher than the percentage of export in UK. Most of the large business organizations in UK are importing the labor from the countries like, China and India in order to achieve the competitive advantage (Economicshelp.org 2016). This indicates that the international trade is helping the UK business organizations achieving the competitive advantage in the market. If the business organizations achieve the competitive advantage due to international trade, then their profit level also grows up, which influence the positive contribution towards the economy of the country. On the other side, several market opportunities have high impact on the business organizations in UK. One of them is the lowest corporate tax rate. In this current scenario, the corporate tax rate on the profit is 20% for the companies, which earn yearly profit of 300000 or less than that and 21% for the companies, which earn yearly profit above 300000, whereas in USA, the corporate tax rate is 39.1% and in Australia it is 30% (Economicshelp.org 2016). This lowest corporate tax influences the business organizations developing their business in UK economy. The annual growth rate of UK economy also influences the business organizations. The annual growth rate of UK economy is 2.7% and it is Europes the second healthiest economy after Germany. Due to the high economic growth, the business organizations in UK are getting more opportunities for business expansion because the amount of investment has increased in the business organizations in UK. The current investment statistics of Europe has disclosed that 80% of the total FDI investment has been done in the businesses in UK (Ealbusiness.co.uk 2016). The World Trade Organization has also contributed towards the growth of the UKs business organizations. The deal with the WTO in December 2013 has provided great business opportunities to the small business organizations in UK. This particular deal has provided the scope of starting 100000 new small businesses in UK, which have contributed 30 billion to the UK economy (Wto.org 2016). There is another factor that has high impact on the business organizations in UK and that is the emerging market opportunities. In a survey in recent past that is in 2012, it has been identified that 83% of the UK business organizations are looking to the emerging markets in the developing country for business growth. The business organizations in UK are mostly interested to invest in the emerging markets of India, China, France, Singapore, USA and Germany (Mizudesign.com M 2016). Protectionism has also impact on the development of the business organizations in UK. The government of UK has realized that if there is more protectionism, there is less scope for import and exports or international trade. Due to this, the government of the country has implemented fewer tariffs and other barriers for international business, which has helped the organizations in further business development (Mizudesign.com 2016). 4.3 Evaluating the impact of policies of the European Union on UK business organizations European Union Policies affects the business activities of CG (Crocodile Garments) in an effective manner. Following are the EU policies and its impact on the CGs business development and the overall UK economy. Employment policy: Government of UK has implemented employment policy in which CG should provide training to the employees in order to improve organizational efficiency. However, a certain economic recession would force the employees to accept low wages (Bolton, Laaser and Mcguire 2016, p.589). On the other hand, government has implemented different training programs for increasing employment. It affects the business environment of CG positively and therefore, the CG can conduct sustainable business on domestic and international market. Inflation policy: The European Union (EU) has implemented this policy for handling instable economical situation. In order to handle such situations, the government increases the interest rate and therefore, cost of product price goes high (Euintheus.org 2016). In this particular market situation, spending of people reduces and therefore, product demand of CG may reduce. Taxation Policy: The government has implemented this policy for helping the organization in contributing to the social community. Apart from that, following this particular policy, government can also contribute in organizational development of domestic and international organizations. Therefore, it can be said that this policy of EU helps CG to maintain business sustainability. 5.0 Conclusion While concluding, it can be said that todays organizations are implementing consumer centric strategies for satisfying different types of stakeholders. Apart from consumers, investors, social community and suppliers are the stakeholders of an organization. Strategies of an organization depend on the business process and external environment. This paper shows how different types of organizations used to stay connected with their stakeholders. 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