Budget of Strong and Strengthening Economy - Case Study Example

Lidl UK Sells Mangetout from Zimbabwe + Introduction While many people across the word buy and sell property on retail shops, a large number of the British public have discovered the most convenient places to carry out their shopping. The introduction of supermarkets in Europe since the beginning of the 19th century has brought much relief to the people. People can access variety of products under the same roof, and this has resulted to their regular visits to the supermarkets. Supermarkets hold a crucial position in the retail economy since they possess a great deal of power over consumers and producers (Grant & Vidler 2000.p.66-73). While many upcoming and old supermarkets have a long way to go, many others have made great efforts utilizing their power, in an ethical manner to progress. Brief Explanation of the Title Lidl is among the fast growing supermarkets in Europe. The company was started as a grocery wholesaler back in 1930, in Germany (Grant & Vidler 2003.p.90-93). Since then, the company has established many networks thus becoming part of the largest grocery retailers in the European countries. In 1973, the company opened the first store in Germany. Beginning 1990, Lidl opened stores outside Germany. Lidl stores are now found in nearly all countries in Europe. The secret behind this holds to their pride in the provision of top quality products at the most convenient prices. Lidl Company is managed by well-dedicated personnel with their ambition to win the trust of as many customers as possible in Europe. This has helped in the establishment of more stores and development of opportunities for imports and exports (Bamford & Grant 2000.p.105-109). Lidl was established in the U.K in 1994. Since then, the company has had a consisted growth and has made up to six hundred stores with a recruitment of more than eleven thousand employees. Lidl uk is among the best Europe discounters offering the lowest prices for products. They have increased their market share in Europe during the 1990s. This has significantly improved from seven per cent in 992 to ten percent in 2004. Lidl U.K has significantly expanded their sources and range of products including horticulture over the years. Within their premises, there has been a great variety of horticultural products sourced from different countries of the world. The establishment of the intra-European Union trade has led to the achievement of their success which has enabled increased imports of fresh fruits and vegetables even during the off-season. During the era when companies sold blackberries and mangetout from various countries throughout the year, the significance of the seasonal organic products retreated at the beginning of the nineteenth century. The desire for the local and seasonal foods in Europe has led the increased trade among the most dedicated companies like the Lidl in U.K and enhanced extended importation from as far as Zimbabwe. Mangetouts are available for sale at a reasonable price in all Lidl stores in the U.K. The development of communication and transport means has had great effects in achievement of their success (Great Britain, 2013.p.23-29). Classification of the Economic and Political Situation in the UK Lidl, like any other business, is aimed at generating profits through the conversion of inputs into outputs. However, their business exists within the external environment that consists actions of other parties acting outside the business. The economic and political/legal systems within the country play a critical part in the progression of the business. The economic system entails an organization of the country’s economy to distribute scarce resources. This is faced with varied periods of faster and slower b growths. The progression of a business is best when the economy is booming and during the periods of improved living standards (Great Britain 2006.p.93-106). The operation of a business is done within the frameworks of a political system. Leal systems create rules and regulations that govern the operation of a business. Government policies may support or discourage a business depending with its operations. The scene of the U.K supermarket is a small-scale version of the British economy. Its economic backdrop indicates poor economy within many countries in the U.K. Thus, the economic recovery is faced with great challenges caused by low wages and flexible working contracts entitled to workers within a particular organization. This has resulted to a feeling of undermining the consumer confidence as well as the grocery companies. Over the years, the recession impact has greatly affected the spending patterns of consumers and the disposable incomes. The significant reduction of product prices by Lidl has resulted to the migration of customers from other supermarkets in the U.K. lidl itself had witnessed a 30 per cent reduction of its products’ prices during the economic recession periods compared to other supermarkets. Lidl was seen to experience an approximate 13 percent increase in the volume of sale in 2011. This was caused by the inflation and the rise of fuel costs (Battisti et al., 2009.p.54-63). The British economy is among the fastest growing economy. Their overall GDP has risen by 0.8 per cent over the years, surpassing their previous peak in output. However, this does not mean that each individual in the U.K gets a bigger slice. Britain has experienced an increased population, and this has greatly lowered the GDP per person. Although the rate of unemployment has decreased to around 6 percent, there are still a large number of unemployed individuals. The employed people have also experienced a higher inflation leading to the fall of their wages (Blythman 2005.p.90-97). The prices of property have risen while exports still remain weak. Additionally, households in the U.K are much squeezed between lower incomes per person while at the same time; a higher cost of living is bothersome. This has become a great challenge for the U.K government and to the Bank of England in their attempt to straighten things out (Great Britain 2005.p.68-76). The U.K democratic government has led to its stable political situation. The people also have the right to vote out dictatorial leaders. Elections are held every four years. The U.K government offers subsidies to organizations that set up businesses in areas of high unemployment. Therefore, the political position of U.K is suitable for investors as it gives them a firm ground to work. Range of Stakeholders The company’s stakeholders are mainly the individuals and organizations that are affected in some way by the company’s activities, whether it is the company’s role to supply products, act as an employer, or in generating revenues that help to boost the local economies (Gray 2014.p.72). a. Employees. The Lidl U.K utilizes a certain range of internal communication channels that help to keep their employees informed about all contexts of their work. Employees within the organization are granted with best positions whereby justice is fully exercised. Employees can air their opinions in a democratic way. The company has established town hall where employees and the executive team hold meetings. There is maintenance of regular communication with unions within numerous Lidl sites around the world. b. Shareholders. The company engages with its shareholders through their annual general meeting. Communication is done via webcasts, one-to-one meetings and on roadshows. Shareholders are allowed to raise their concerns during the general meeting whereby, all concerns are taken into consideration (Simmonds 2008.p.90). c. Partners and contractors. The Lidl U.K never works in isolation. Like majority of the established stores in Europe, the company conducts responsible and safe operations with great dependence on the capability and performance of their partners and suppliers. Many individuals have benefited from the establishment of the company in U.K. these include suppliers on both vegetables and horticulture, both local and international. d. Local communities. The company engages with the local communities through regular meetings as well as via public consultations. The company executives hold meetings with various community representatives from various parts of the country. This helps in building a better relationship with communities, an important tool in their existing operations. Communities are considered important for new projects. The company presence in various communities may bring a significant change in a particular area. Its importance is majorly experienced through the creation of jobs and the support for many community projects of development. e. Non-governmental organizations. Lidl U.K relies on consultations on their new projects. Their major consultants are the relevant international and local Non-governmental organizations. f. Customers. A large number of consumers in many countries in Europe took part in the company’s global tracking research programs held in 2012. Customers answered questions on how they rated Lidl on their satisfaction compared to its key competitors (Ramsey 2007.p.24-35). This was based on the degree to which consumers identify their trademark and use their merchandises. Good sources of feedback for the company are mainly the social media, interviewing customers, focus groups and online communications. Information gathered from the sources are used in the realization of the company weakness and strengths. Critical Analysis of the Government Objectives The U.K governments key objective is to achieve a strong, sustainable and a well-balanced economic growth that shall be evenly shared across the nation. The establishment of business opportunities for investors like the Lidl groceries is considered to be the main initiatives for the country’s growth of the economy. The government has an object to make U.K the best place to start and grow a business. To ensure this, the government has exercised democratic governance where the majority opinions count. Flexible rules and regulations have been enacted among which fight for the rights of every citizen in establishing a business (Salmon & Crook 202.p.104). For the enhancement of a more balanced economy, the government is aimed at encouraging more investments and exports. Another key objective of the government is the creation of a more educated workforce. Workers would, therefore, work from experience and on their expertise. Other key government objectives include; Improvement and maintenance of quality and effectiveness of all public services Promoting efficient and fair tax system with incentives to save, invest and work with great maintenance of effective budgetary framework. Securing efficient marketing in financial services. Ensuring a cost effective management of all government’s debts. The promotion of a global financial stability and the economic stability in U.K. Much of the U.K government’s efforts are directed on the control of inflation. The U.K is faced with varied trends of negative and positive growth. The government is also focused to removing these recessions. The government’s greatest desire is the achievement of a continual growth that never brings about inflation. Ensuring this would be a great turning point for the country’s economy. This would ensure continuous and standardized salaries for employees. The U.K government should look forward to establishing better payment policies that would favor employees. This would help them live with accordance to the attained standards of living in the country. Within the next period of not more than five years, the government should ensure standardization of quality of products. This would ensure an improved customer trust on products made within Britain. This is due to the evidence that the majority of the U.K citizens prefer imported goods to goods produced within Britain. References Lists BAMFORD, C. G., & GRANT, S. (2000). The UK economy in a global context. Oxford, Heinemann. BATTISTI, A. B. D., MACGREGOR, J., & GRAFFHAM, A. (2009). Standard-bearers: horticultural exports and private standards in Africa. London, IIED. BLYTHMAN, J. (2005). Shopped: the shocking power of British supermarkets. London, Harper Perennial. GRANT, S., & VIDLER, C. (2000). Economics in context. Oxford, Heinemann. GRANT, S., & VIDLER, C. (2003). Heinemann economics for AQA. Oxford, Heinemann Educational. GRAY, W. (2014). Including the Isles of Scilly. Bath, Footprint. GREAT BRITAIN. (2005). Cott Beverages Limited and Macaw (Holdings) Limited: a report on the acquisition by Cott Beverages Limited of Macaw (Holdings) Limited. London, Stationery Office. GREAT BRITAIN. (2006). Budget 2006 a strong and strengthening economy: investing in Britains future: economic and fiscal strategy report and financial statement and budget report, March 2006. London. The Stationery Office. GREAT BRITAIN. (2013). Energy subsidies: ninth report of session 2013-14. Vol. 1, Vol. 1. London, Stationery Office. RAMSEY, V. (2007). Construction law handbook. London, Thomas Telford. SIMMONDS, D. (2008). Statutory Adjudication a Practical Guide. Oxford, John Wiley, & Sons. SALMON, K. T., & CROOK, J. A. (2012). Cases on the enforcement of construction adjudication. Milton Keynes, Author House. Read More