Impact of Market Environment on Lays Company

Impact of martplace Environment on seculars CompanyThe behavior of establishment in their market environment and the signifi understructurece of the global factors that var. discipline demarcation activitiesPapia Hasan PopyExecutive SummaryThis report is based on different types of business information and the issues and constraints within the organization.Name of organization laysChapter 1 Introduction disgraces is a name of a potato chips make from Canadian spuds. The owner of the company is Herman W. amaze. He first started producing potato chips in his machines therefore he finally influenced potato in chips with flavors. Lays was then first snack to be promoted on Television gutter 1944. Soon it became so popular snacks in all over Canada. And by 1977 Lays became the most prefer satisfactory chip brands and dominating over the market. overdue to its flavor and taste Lays many good deal love Lays. They basically manufacture and produce different flavors of potato chips and have able to create their brand value.Chapter 2 Background of the Study2.1 Objective of the study2.1.1 Broad objectiveThe behaviour of organizations in their market environment.The significance of the global factors that shape national business activities.2.1.2 Specific objectiveHow market structure de marchesine the pricing and output decision of businessThe way in which market forces shape organizational responses.How the business and cultural environments shape the behavior of an organizationSignificance of world-wide trade.The feign of global factors on business organization.The impact of policies of the international art communities on business organization.2.2 Methodology2.2.1 Area of studyThe current situation of Bangladesh.2.2.2 Sources of dataWebsite, Outlets, Books, Leaflet and Newsletter.2.3 Limitations of studyCommunication gap.Intolerable traffic jam made dilemma.Net reckon failure while working with net.Chapter 3 Analysis and FindingsTask 8 (LO 3.1) Explain how market structures determine the pricing and output decision of the organization.Market structure It depends on the number of buyers and suppliers in order to run a business.Types of market structure unadulterated competitionPure monopolyMonopolistic competitionOligopolyPerfect competition In this competition there argon many buyers and many sellers. The yields atomic number 18 alike and entrance and exit is rattling easy. If the price is change magnitude then consumer go away move to an another(prenominal) product if the price is extremely game as output depends on buyers demand. Lays is exchange different flavors of potato chips and their contenders ar Sun chips, Alooz and Pringles.Pure monopoly Only one seller who dominate the whole market. They usually charge high price as there is no competitor and spend a lot on branding and R and D. But this is not applicable for Lays as there are many competitors are available in the market.Monopolistic competition There are many se llers but market is dominated by few. Brand loyalty has a competitive advantage and firms are altered by Competitors. Lays product is varies in flavors but all products are potato chips and the price is reasonable. The output depends on the demand of the product.Oligopoly There are many buyers but few sellers. Huge capital needed so debut and exit is very difficult and each seller run intos a particular portion of the market. Price and output is affected by competitors. Lays does not follow this.Task 9 (LO 3.2) Illustrate (with example) the way in which market forces shape organizational responses.I have chosen Lays to place the shape of market forces.Demand Willingness to buy a product and depends on desire and affordability. It is affected due to price, income level, substitute product and competition.Elasticity of demand How bendable the demand is. If price increases then demand returns and vice-versa. If income level remains unchanged and price increases then demand decre ases but if income level increases then demand is stable.Lays is an elastic product so they need to keep their price stable beca part substitute products like Alooz and Sun chips are available in the market and also they are the competitors of Lays. If the price of Lays increases then clients lead switch to Alooz.Supply The quantity of commodities for sale and depends on profit. It is affected by price of raw materials, technology, technique, labor cost etc.Elasticity of tot up If price increases then bring out increases and vice-versa.Lays should not pull in ones horns the essay to increase their price. If price increases the sales may decreases as substitute products are available in the market. They should keep the price stable and provide steady supply of products or else they might lose customers and their sales.Task 10 (LO 3.3) Judge how the business and cultural environment shape the behaviour of the organizationBusiness environment consists of factors that affect the business and its activities.There are few factors which affects business environmentPolitical FactorsLegal FactorsEconomic FactorsSocial and Cultural Factors etc.But I allow for instruction on cultural and social factors which includeDemographic and PopulationHousehold and FamiliesAttitudes to workReligionNationalismAttitudes to male and female rolesEthics etc.Demographic and Population The nation of Bangladesh is about 18 cores approximately so more labor is available for work and there is also an increase in demand for goods. Lays have better opportunity to do business here because of the large population which makes available of labors and buyers.Household and Families Now a days there are huge number of joint families compared to single families. So buying behavior will be more for joint families.Attitudes to work The working environment inside the factory of Lays is friendly and women are participating there in large numbers.Religion Most of the people of Bangladesh are Mus lims. So Lays should supply halal products.Nationalism In Bangladesh nationalism is less as people are purchasing more imported product then their Countrys product.Attitudes to male and female roles Now a days both men and women are working together in the same environment.Ethics Lays is doing business ethically.Political factors decision taken by government about the public expenditure and victorious taxes. This involves the political stability of a country which favors business. Sometimes government gives grant, subsidy and loans on low interest rates for the development of a business. They maintain the al-Qaida of a country thus developing communication links.Enhancing skills of population Now a days education and training courses are available to make population skilled in their desired field. This will increase the efficiency of labors which will favor business for Lays.Task 11 (LO 4.1) Discuss the significance of international trade to the organizationInternational trade D oing business beyond the boundaries of a country.International trade is important for expansion of business and increasing profit. To acquire resources and to humiliate cost international trade is important. It creates an identity in other countries and also get tax advantage.Lays is doing international business.Global Business Lays is also doing global business. They have exertion plants in different countries of the world. Now they want their production plant in Bangladesh.Multinational Company Lays is having their operation across the globeMicro Multi-National Companies Companies doing business through internet and Lays is not doing business through internet.Reasons behind increased growth of International BusinessLays is a Canadian company doing business globally to get technological advancement, easy and quick communications, existence of trade agreements among countries and Bangladeshi government is more liberal to the companies who want to do business here.Bangladesh is no w developing so Foreign Direct investment is very important for us. It creates employment opportunity, GDP growth and exchange of knowledge, technology, technique, culture etc. Lays is a inappropriate company so they are investing money in our country.FDI in BangladeshFDI in Bangladesh has whatever opportunities and threats which includeThe opportunities are huge markets, availability of labor at low cost, natural resources, low production cost, liberal government and citizens etc. So Lays can take advantages in Bangladesh.The threats are political instability of Bangladesh, lack of infrastructural facility, unavailability of some raw materials, lack of skilled human resources and efficient management etc. These factors must be observed by Lays before doing business in Bangladesh.Task 12 (LO 4.2) Analyse the impact of Global factors on the organizationImport- Goods and service purchased from other country.Export Goods and service sold in other country.Free trade- Allowing people of a country to buy and sale their product as per their want.Exchange rate Price of one country currency in term of other country currency.Protectionism Establishing artificial barrier to discourage foreign trade in order to save the interest of local industry.Barriers to trade are three types.Natural BarriersTariff barrierNon-tariff barrierNatural barrier- Natural things include distance, language, social system, legal system and culture and government has no control on this barrier. As Lays is a multinational company they need good infrastructure like proper distance route to supply their product and service to customer without it Lays will not be able to reach their products to customers which results in losing customers. Proper language should be utilise inside the organization and with the customer in order to maintain good relationship. If employee does not serve with proper language with customers and employee, they will fail to earn customer objective and organization objec tive too.Tariff barriers It is imposed by government which makes imported goods costly it affect Lays a lot because they are multinational company and they import huge amount of product from various countries. If the cost is high they would not able to bring the sufficient amount of products in Bangladesh and it will affect their position in their market place. Due to high cost less product is supplied to customers so tendency of using imported product is affected. It also reduces competition from foreign product.Non-tariff Barriers- It is imposed by government other than tax/duty/Levy.Quota A limit on quantity for certain goods that can be imported. If Lays do not import the quantity of product they need for customers demand they would not able to serve people which will have a great impact on.Embargo Complete ban against importing from exporting to certain country. Lays cannot supply their product to those countries where trade stoppage is given.Customer regulation Make the entry hand for foreign product.Dumping Selling product at a very low price to out-perform competitor in order to capture new market. This is resist by Anti-Dumping law set by government to protect local industries.Task 13 (LO 4.3) valuate the impact of policies of international trading communities on the organization.International trading creates international links among countries which is good for business.International Trading Communities include SAARC, G8, BIMSTEC etc.If Bangladesh did not take part in the international trading communities it will affect Bangladesh and Lays will not be able to do business. There will be no free trade among the member of the countries. The tax duties will be high and the product price will be also high as a result there will be less demand and supply of international products, which will affect Lays. Protectionism will be greater. Exchange of raw materials will be less.so there will be less production of Lays which will create bad impact in the socie ty. Exchange of culture and values will be hampered. It will mainly affect Bangladesh as they will lose their neighbour as intumesce as their helping opportunity.Task 14 Give a decision whether business environment of Bangladesh is favourable for starting the operation/ manufacturing plant/ showroom/ branches of the organization or not. Give proper justification behind your decision. Do you have any recommendation regarding these issues?Lays can start their operations in Bangladesh because potatoes are produced in Bangladesh in large quantities. They can get labors at low cost and tax advantage as Bangladesh government is liberal to foreign investors. They can increase their sales and their brand name in Bangladesh and the political situation is stable now. I would like to suggest some recommendation to Lays before operating in Bangladesh.Chapter 4 RecommendationAs many substitutes are available in the market so they must focus on quality.They must focus on price because Alooz is c harging Tk 15 for each while Lays is charging Tk.30 for each mini pack.If they do not decrease their price they must provide superior quality product to create their brand image.They also must focus on their pacaging so that it looks attarctive so that customer get influenced.They must go for horse cart rally to make people aware about their product.They must offer some short term incentives to promote their product. Such as givng gifts for children.Chapter 5 ConclusionLays is undoubtedly an established organization that emphasize on maintaining quality product and use endorsement in advertisement for their promotion. Although there are many difficulties, Lays has very good brand image and customer acceptance for take up quality product. They are going for continuous survey for the development of their products and service.References1. Lays. 1944. Lays Potato Chips Simply Made. Simply Good. (TM). ONLINE Available at http//www.lays.ca//simplygood/. Accessed 15 March 14.Bibliography Diary composeLecture given by Kashfiya mam