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Business Environment in Household Sector

University: UK College of Business and Computing

  • Unit No: 1
  • Level: Undergraduate/College
  • Pages: 9 / Words 2182
  • Paper Type: Assignment
  • Course Code: M/508/8973 (RCF)
  • Downloads: 704
Question :

Following questions need to be addressed o complete this report:

  • Determine the key issues related with business environment faced by organisations in ‘Personal & Household Goods’ ‘Super-sector’
  • In ‘Furnishings’ sub-sectors under the ‘Consumer Goods’ industry, assess the impact of at least 2 key issues identified in ‘a’ above.
  • Produce a reflection based on any two challenges that are faced by you in ‘a’ and ‘b’ above
Answer :
Organization Selected : TK Max


To run a business in a successful manner it is important to understand the environment within which the business has to be operated. As there are various factors that can hamper the entire process whether internal and external (Crane and Matten, 2016). Therefore, it is important to know the various components through which company can grow in a better manner. The assignment will throw light on different issues that may arise in business environment in context with Personal & Household Good. Apart form this, possible impact in key issues in furnishing sub sector is mentioned in this report.


a) The key issues in the business environment that are significant for organisations in the “Personal & Household Goods”

Over the last decades, an increase in consumption of goods and services can be seen and it is growing in a rapid speed throughout the world. In context with humans, although it has make the life easier but using a large number of resources has lead to depletion of the same and as a result it has done severe damage to the environment.

Personal and household products encompasses a variety of commodities that are used by customers according to the daily requirements. It includes goods like cleaning and laundry products, luxury cosmetics and beauty products, oral care or OTC medicines and many more. Companies that manufactures these kinds of products faces many issues such as to maintaining the quality and integrity of the product, ensuring customers' safety, focussing on luxury packages and many more (Fernie and Sparks, 2014). The pace of technology is increasing as per the current market situations, therefore, people are waiting for next-generation technology so that they can use it for making life easier. It is helping an individual in performing the task in a better manner. Hence, technology is assisting companies in providing competitive advancement. In context with Personal and Household sectors, now organisations are focussing on developing producing goods that are easy to handle this has save time and cost of customers as well but it is having a great impact on the health of people as physical activities has been reduced due to which health is deteriorating day by day (Harrison, 2013). Along with this, organisation are not being able to manufacture goods as per the needs and wants of customers and because of this, they are moving towards other subsidiary products. As a results sales and profitability is decreasing in this sector.

In context with business environment there are various issues that are faced by the Personal and Household goods sectors, this can be regarding waste, usage of raw materials, laws and legislations related to change in the procedure of manufacturing goods and equipments so that they can stand amongst their standards. Some of the factors are given below in order to understand it in a better manner:

Waste: It is considers as a major issues in business environment which directly have an impact on manufacturing process of ‘Personal & Household Goods’. As they are producing goods in bulk quantity and because of the increase in prices and implementing them, they are unable to sell these commodities as per their set targets (Ahi and Searcy, 2013). Thus, it is vital for company to implement recycling programs in order to reducing the chances of wastage. If any kind of wastage and damage are occur then it largely impact on overall cost of the company. Along with this, it is also important for the organisation to provide flexible working hours, effective procedures and best equipments which may leads in handling waste products within the manufacturing process.

Sustainable development of Raw materials: In business organization, every manufacturer use quality raw materials such as wood, natural resources, environmental citizenship and many more. It is affecting the business in terms of cost as raw materials that are required for manufacturing the goods are relatively higher and in this supplier's cost is also included.

Supply chains: In context with Personal and Household Products, demand and need is uncertain and it is a challenge for most of the organisations in order to remain in the market for a longer period of time. Suppliers are facing problems because of the global financial crisis and issues raised after Brexit in European Union. Therefore, it is dripping down the supply chain disruptions in the nation (Hohenstein, Feisel and Hartmann, 2014).

Government policies and regulations: It is considered as an important factor as sudden changes in policies can create a problem for the organisation and its decision making. Imposing of various taxes, new governmental policies and many are considered in this. This for an instance stop the sales and productivity of the organisation due to which a particular sector can face problem.

Therefore, all the above mentioned points are creating some issues in business environment and these are to be looked out before an organisation can introduce any fresh products. In context with technologies, although it is helping the organisation in manufacturing goods in an effective manner but implementing new and advance technology can create problems for the employees in terms of understanding the mechanism and process. This is slowing down the producing process and because of which problems are arising between superiors and employees. Thus, it is giving rise to conflicts and its affecting the environment at workplace (Wetherly, 2014).

b) Possible impact and key issues in furnishing

Consumer good sector comes under the category in which goods and items are purchased by an individual instead of manufacturers and industries themselves. With the increase in economy demand in products can be seen and it includes food, necessary items, automobiles, luxury items and many more. Trends of consuming goods are changing and it is creating problems for most of the companies to manufacture goods as per the needs and wants of consumers.

Therefore, change in consumer behaviour and increasing capabilities of new technologies is helping the organisation in transforming the working of retail industry. Furnishing sector is facing a lot of problems as internet shopping has increased because of which retailing shops that are dealing in the same sector have to reshape their industry which is consuming much of their time (Wallace, 2017). Basically, companies are facing problems in four perspectives that are functions, technology, quality and delivery.

Newcastle Furniture is a renowned company in United Kingdom and they are providing services from past 30 years and it is known as a respectable organisation. From the points that are mentioned above in part 'a' although the firm is a big but they are facing some or the other problems for example:

Supply Chains: With the recent activities of Brexit, United kingdom has departed themselves from European Union. This step has created a global financial crises because of which the deals between different countries have got affected. A proper establishment of customer services is hampered because of which providing services to right people is not being conducted in a better manner. Other than this, for accomplishing the entire process in an effective manner, sector of supply chain is costing a high process due to which firms that are dealing in furnishing sectors are facing issues.

The impact that is facing by most of the companies is that, delivering of materials form one place to another is not being possible. Therefore, it is creating problem in delivering the products right on time. As a result, it is affecting brand image of the company and people are moving towards other organisations that are dealing in same field. In context with Newcastle Furniture, they are facing problem in generating more and more money and because of this, firm's growth and productivity has declined.

Governmental regulations and policies: It is considered as an issue for the business as in recent times, regulatory bodies of most of the nation are more concern about the ecology and they are making policies for companies so that government can bridle the access use of natural resources this will help them in controlling the same. As a result regulatory bodies has set limits for utilising the natural resources. Although policies are made for the benefits of customers and company and also to protect the environment but it is having a great impact on the entire process of business operations (Yifu, 2013). This has bind organisations in optimising the resources and due to this, Newcastle Furniture company is unable to deliver the best quality of products. Therefore, most of the companies before establishing their companies are considering the policies and regulations that are formulated by the regulatory bodies. Hence, if the law is according to the norms and is not creating much issues than company is happy to launch their business. Economy and revenue generation of an enterprise is much affected by this.

Raw materials: It is consider as an important factor, with the help of this, firm tries to incorporate all the raw materials so that they can convert them into final products which can be delivered to its end customers. Regulations and utilisation of raw materials can be linked with one another. For example: if regulatory bodies implement any new policies regarding minimum use of natural resources than suppliers may find difficulty in delivering raw materials to respective organisations (Kim, Trimi and Chung, 2014). As a result, it is having a great impact on the performance of the enterprise because Newcastle Furniture company is facing shortage in raw materials due to which they are not being able to deliver the products right on time to its clients. Changing in trends is also affecting the business and in context with Newcastle Furniture company, they have imported a large number of raw materials that are according to the existing trends and as per the recent scenario, customers are asking for additional functions like new design incorporated with extra features because of which company's expenditure is increasing.

Henceforth, all the factors that are mentioned above is having some or the other impact on entire business operations. So, it is necessary that enterprise consider all the elements that are creating problems in order to run their business in a better manner.


From the above report it has been concluded that, there are many issues that are faced by the organisations so as to establish or run their business in an effective manner. For having effective business environment it is necessary that companies maintain a healthy workplace where employees can sit and perform their task in a better manner. There are many factors that can hinder the entire process thus, firm must consider all the issues that can create a problem this will enable them in making proper strategies and plan of action through which enterprise can eliminate the issues. In Newcastle Furniture company, I was working as a manager and I faced a number of problems that are related to supply chain, like I had to manage the entire process between suppliers and organisation. For getting raw material right on time I had to maintain a healthy relation between distributors and the firm as well. While conducting this process I have learned about pitching and negotiation skills as this helped me in making decisions or taking initiatives in order to fix a profitable deal. During my initial years of working I was not having much information regarding the policies and regulations that are formulated by the regulatory bodies for various sectors. Therefore, after gaining experience in this company I have learned a lot many things like what kind of laws and regulations are required for performing a particular task. Along with this, it is helping me in making strategies and plan of action under the laws that are formulated by regulatory bodies. Henceforth, working in a leading company helped me a lot in enhancing my existing skills and knowledge and it will help me a lot in doing my future job. Therefore, all the things that I have learned while doing this job will aid me in performing the task effectively if any organisation will give me a chance than I will grab the opportunity and perform accordingly.

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