Analylis Primark - 22310 Words

PRIMARK PRIMARK Pay Less Look Good MBA 4B Shahid Ishaq Nafees Akram Shahid Rashid Rana Waheed Zafar SanaUllah Waqas Nayer Sadia Rafaqat Sana Altaf Aun Naqi Zainab Naeem 152 113 154 194 147 179 138 145 166 199 Submitted to Sir Adil Paracha Contents Executive Summary .................................................................................................................................... i Introduction.................................................................................................................................................. 1 Swot Analysis .............................................................................................................................................. 6 Porter‟s Five†¦show more content†¦Unmentionables, in other words. They have been operating for several years and they are currently buying out the Littlewoods stores, several of the best of which will be turned into Primarks and the rest sold for a tidy sum to other retailers. It s a good move that should see the chain expand its empire to reach more customers across the UK. PRIMARK: THE MARKET Primark specialise in low prices. Please note that when I say low, what I really mean is INCREDIBLY LOW. A ladies fashion belt for  £2, a pair of mens fashion jeans for  £8....you re getting the idea. In order for Primark to make a decent enough profit after paying its work force and all its other expenses at these sorts of prices, it needs to sell sheer volume. Bulk sales, in more confined terms. In their method of bulk selling lie several advantages and several disadvantages but be well aware from the start that Primark is not about high price and top notch quality. It is about slightly low but still reasonable quality for a very very low price. V IS FOR VALUE So what is Primark like as a store then? (I hear you ask). Well as aforementioned, Primark sell at low prices and therefore sell in bulk (do remember this point because it will be returned to later). The quality of their stock is by no means anywhere near the best on the high street. You will find better in Marks and Spencer, BHS or Debenhams for example, no question. However, it s not always all about quality - it s also about value

The Watergate scandal and the effects - Free Essay Example

Sample details Pages: 2 Words: 645 Downloads: 8 Date added: 2019/07/30 Category History Essay Level High school Tags: Watergate Scandal Essay Did you like this example? For my signature assignment, I chose the Watergate scandal and the far-reaching effects of its cover-ups! The Watergate Scandal happened in 1972 and involved a number of legal actions designed to assist President Richard Nixon to win his re-election. It involved wiretapping, campaign financing regulations, burglary, and the use of the governments power to jeopardize the other candidates. The thieves were connected to President Richard Nixons reelection campaign and had been caught stealing documents and wiretapping phones. Don’t waste time! Our writers will create an original "The Watergate scandal and the effects" essay for you Create order This impacted many things including government power, media, politics, society, and culture but overall the direct impact it had was the resignation of Nixon. President Nixon denied any involvement and knowledge about the actions resulting in him winning the 1972 election. Although after an ongoing investigation, investigators found that he attempted in hiding the burglaries by bribing and paying them off. He even fired government officials and destroying any evidence of his involvement. Nixon never admitted to any criminal actions but did acknowledge using poor judgment. In the tapes recovered by investigators, Nixon is heard stating Going after all these Jews. Just find one that is a Jew, will you (). In November 1971, Indira Gandhi visited the White House to try to make peace because of the tensions between India and Pakistan. Nixons recorded conversations with National Security Advisor Henry Kissinger during that time uncovered the disrespectful comments for the prime minister of India. He says We really slobbered over that old witch (). The most shocking tapes were when Nixon was heard talking about the scandal telling the crooks Goddamn it, get in and get those files. Blow the safe and get it (). After the Watergate Scandal citizens began an to question the foundation of our government, the separation of powers that the founding fathers had been so proud of. The government has been criticized countless times for keeping important information from the American people. Immediately following the scandal; changes were made to the political system. When the scandal was put on the air for the world to see, citizens were outraged. The influence on how the media portrayed the scandal created a barrier of aggression between the government and the media. Without Washington Post journalists Carl Bernstein and Bob Woodward the Watergate Scandal would have never been a scandal. The reporters claimed that they had not even known the names of the top government officials in Nixons administration (). Following the day after the Watergate Hotel break-in, Bernstein and Woodward issued their report on the Watergate Scandal showing that among the burglars was a member of Nixons reelection committee. After this outbreak, Nixon became more conservative towards the media shutting down connections he had with media. He then provided the press with only brief press releases limiting and choosing his words carefully. Before lawyers were thought to be fair and want justice for whom they are representing but after the Watergate scandal. As Nixons case was being investigated his legal counsel John Dean testified to Congress while providing names that he had suspected to be involved in the scandal. He stated that it was a Conspiracy of obstruction of justice because more than half of the names listed were marked with a star meaning those were lawyers. Today professional ethics education are required in law school because of the Watergate scandal as well as having to take an ethics exam in order to get licensed. In conclusion, the Watergate Scandal showed that the President was not above the law, and it nearly destroyed the remaining faith in American Politics people had. Recently, it resulted in Donald Trump and Hillary Clintons being investigated prior to the election. The Watergate Scandal was an important mark in history that made citizens re-think about trusting the government. It weakened and brought down the power they so rightfully owned and today have changed their ways in order to prevent something like this to happen once more.

Reflective Statement Cit Sem1 Free Essays

Reflective Statement CIT Sem1 In the last two years I have had two major transitions, the first was when I transferred from industry into lecturing, finding myself in a college on the one side of the desk. The second was then being enrolled as a student and discovering myself on the other side of the desk. Both steps have taken me very much away from my comfort zone of getting production lines to work, to all the way back to my university days staring at a blank page trying to get my brain to work. We will write a custom essay sample on Reflective Statement Cit Sem1 or any similar topic only for you Order Now The first session of the CIT course has gone very quickly with a surprising amount of material covered leaving me with a lot to take on board. Watching someone teach seemed to be a good place to begin, our first opportunity was to watch a video of a Vocational lesson taking place with level 2 and level 3 students, a similar setup to my Engineering TFS class. Reflecting on this lesson, some of the strategies I could take from it were the way the lesson was structured with clear instructions at the start, a variety of activities, using the more experienced students to help the first year students, motivating them and consolidating what they have learned. Peer observation was a good opportunity to see how an experienced teacher within my own college and subject structured their lesson and the techniques they used, it also made me appreciate how difficult it is to formally reflect on someone else’s teaching. The Gardner’s theory of various learning styles of visual, kinaesthetic and auditory showed me that not all activities are going to work for all students, hence the need for variety with in the lesson to stimulate the learner. The introduction to the LLUK and the Domain A professional values and practice was probably the biggest step in the course, where you are asked to plan the learning by creating schemes of work and detailed lesson plans. â€Å"Fail to Plan, Plan to Fail†. This was then broken down further in the Domain D where the individual needs of the students being taught had to be considered. This was put into practice, first in a group activity, were a scheme of work was designed and lesson plan extracted from it. This gave a good opportunity to coordinate or efforts as a group and presents our work to the rest of the class. The second opportunity to do this and receive feed back was during the first class observation which allowed us show progression within our teaching and start putting in practice what had been learned so far. Teachers and the Law, was a useful reminder of the responsibility we have as teacher within the class room, that we have a duty of care towards the learner, especially when they are under 18. Not only is it a legal obligation, but it is set out as a contractual duty of care also covered in the LLUK in Domain A and our signed contract of employment. The most inspirational part of the course to date would be the Behaviour Management presentation, which served to confront the teacher’s fear of the disruptive class or impossible child. Developing positive relationships with the students seems to be at the heart of this topic, which in some cases could be time consuming and hard work, but inevitably rewarding. Key skills in achieving good classroom management are rewarding the student with constructive praise, giving clear instruction and introducing novel stimuli and humour to create a stress free environment. In addition to the presentation on Behaviour management, I have been able to sign up to the Behaviour Needs mini course and receive some very useful materials and tools that have help with my class room management to try an make it a more stimulating learning experience. Domain BK1. 2 Probably the most nerve wrecking experience of the first session, more so than the lesson observation was the Micro Teaching activity. Looking back, it was actually enjoyable and worthwhile when you could see yourself in the playback, and identify the type of teacher you are, again laid out in Domain BK2. 6 which ask you to evaluate your own practice. This gives me the opportunity not just to suit lessons to fit the learner but also my own teaching style. The exercise made me really think of what goes into the different stages of a lesson, i. e. the BEM principle. â€Å"The view is that we learn more in the first 12 minutes and the last 8 minutes of a lesson† (Duckett. I and Tatarkowski. M; 2005,27), taking that into consideration we should have 3 BEM’s in a typical lesson. The function of a good opening is â€Å"To induce in participants a state of readiness appropriate to the task to follow, through establishing rapport, arousing motivation and gaining attention† ( Hargie. O and Dickson. D 2004,262). Setting out the objectives, displaying them for the students to see, so they know what the expectations of the lesson will be has now become a fundamental part of my teaching. Before we looked into Blooms taxonomy, I thought there were just questions and answers, now I am aware of effective questioning on so many different levels. In the past I have used questioning considerably within my lesson, but would like to develop this skill so that it can be more â€Å"effective†. Conclusion. Experiencing teaching for only one year, with no formal training, was a huge challenge, but one which I felt I dealt with to best of my abilities. The course so far, has enhanced my teaching abilities, which should make me a more reflective teacher willing to try new strategies and learning from want can go wrong in a class and maximising on what went right. (958) References: Duckett,I. and Tatarkowski, M. , 2005. Practical strategies for learning and teaching on vocational programmes. London: Learning and Skills Development Agency, p. 27. Hargie, O. and Dickson, D. 2004. Skilled Interpersonal Communication. 4th ed. London: Routledge, p. 262. How to cite Reflective Statement Cit Sem1, Essays

Economics for a Sustainable Business

Question: Discuss about the Economics for a Sustainable Business. Answer: Introduction The business environment plays an important role in the success of an organisation. Hence, it is important for any organisation to analyse the current business environment in which it operates to plan its strategies and seek growth in the market (Mallick, 2009). On the other hand, analysing the business environment helps in sustainable development of the business. Hence, an organisation must keep a regular watch on its activities and market movements to enhance the performance of its implied strategies (Lall, Lall, Mengistae, 2015). Furthermore, the management of the firm must be aware of the economic factors that influence the growth of the business. It helps to judge the current positioning of the business from the economic point of view and develop strategies that can be helpful in increasing the economic balance of the enterprise. The business report has been developed to analyse the general business environment of Sreeleathers Limited which is one of the small and medium scale enterprise of India. The study analyses the production cost and scale of the business to judge the category of scale in which the business of Sreeleathers Limited lies. Furthermore, the macro business environment of the market has been discussed in which Sreeleathers Limited operates to explain how the external market factors influence its business. Finally, the sustainability practices of Sreeleathers Limited have been presented to judge the long term viability of its business. Business Overview and Environment Name, Location and type of business Sreeleathers Limited is one of the most famous footwear brands headquartered in Kolkata, India. Under the leadership of Satyabrata Dey, the Managing Director of Sreeleathers Group, the organisation has established 35 retail stores in nine different states of India including West Bengal. The enterprise deals in all types of footwear and leather accessories providing high-quality products at an affordable pricing. In 2010, the original name of the company had been changed to Sreeleathers from CAT Financial Services as the organisation has altered its core business to consumer goods from financial services ("Sreeleathers Footwear and Accessories seller", 2016). The Indian based shoe manufacturer and distributor also export their products to the USA, UK, Canada, Bangladesh, Sri Lanka, Myanmar, Indonesia, Singapore and Australian territory. Basically, Sreeleathers Limited is a product manufacturing as well as a retail business organisation operating mainly in the Indian market. Products and Services In the retail business, the organisation primarily deals in all types of footwear products and leather accessories for different types of the target segment. By identifying the underlying requirement of the target customers, Sreeleathers Limited has delivered quality products at a reasonable price range to create a massive client base in Kolkata area and other locations around India (Brummer, 2015). Moreover, the business of Sreeleathers is also famous for one of the biggest wholesaler of footwear industry offered leather shoes and accessories to many parts of India as well as the world. Potential Customers Sreeleathers Limited offers footwear for men, women and kids creating massive market segmentation. In the Indian market, the organisation has divided its market segmentation based on gender and age group of the target demographics. The stores of Sreeleathers Limited offer shoes for kids age between 2 and 12. For young boys and girls, the outlets deliver stylish footwear at a reasonable pricing. For the female segment, the stores display ladies shoes, leather accessories and other products ("Sreeleathers Footwear and Accessories seller", 2016). For men, the organisation has also offered stylish leather shoes, leather accessories such as wallets, bags and other leather manufacturing products. Location of Potential Customers The shoe business of Sreeleathers Limited is mainly operating in Kolkata, India region where the potential customers are massive in numbers. As the organisation has established 35 stores around India including nine other Indian states, the significant customer base has been formed in the other target areas as well. The branding of the leather products to the name of the company has given a significant edge to the business (Batabyal Nijkamp, 2014). Moreover, by offering quality products at a cheaper rate significant demand for shoes and leather accessories of Sreeleathers Limited can be seen from other Asian countries such as Indonesia, Singapore, and Bangladesh. Primary Competitors Being a small sized shoe manufacturing and retail business of the India leather industry, Sreeleathers Limited has to face significant challenges from other market competitors in the target locations. In the primary business location of Sreeleathers, two primary footwear manufacturers and sellers have delivered potential competition to the organisation. Namely, Khadims India Limited and Bata India Limited are the two identified primary competitors of Sreeleathers Limited in the potential target market (Xie Sirbu, 2015). Location of Primary Competitors The primary competitors of Sreeleathers Limited have mainly operated in the Indian market including Kolkata, India. Bata India Limited has got more that 1300 outlets across India whereas Khadims India Limited has 1000 stores all around the country. Basically, Sreeleathers Limiteds operating functions are limited in Kolkata and surrounding state with 35 outlets to serve the people (Ciuriak, 2015). Meanwhile, the organisation is planning to expand the business by introducing 100 more outlets in India. Market share Sreeleathers Limited, being the largest single-brand footwear manufacturer cum retailer in India, has expanded its business in terms of other competitors. Currently, Sreeleathers Limited has got 16 percent of the entire footwear market share in India whereas Bata India Limited has got the biggest market share of 38%. According to the reports, Khadims India Limited has also featured in the list by acquiring 29 percent of the total market share of shoe and leather industry of India. Through the identification of current market scenario, Sreeleathers Limited is competing in a perfect competition situation whereas the enterprise has seemed to utilise the available resources in a better way (Caprotti, 2012). In long-run basis, the increasing demand for Sreeleathers manufacturing products will help the company to reduce the marginal cost leading to higher profitability. Production Costs and Scale Sreeleathers believe in traditional form of business and own around 30 to 40 stores all across India that are situated in total nine states of the country. In comparison to other companies, Sreeleathers do not sell any product of other brands and manufacture all its products in its own factories. Hence, to analyse the costs of production and scale of business of Sreeleathers Limited, there is a need to observe the fixed costs and variable costs of the company that are discussed herein below: Fixed Costs: The fixed costs of the company mainly include the tangible assets that have been purchased by the firm. It can be seen from the financial statement of Sreeleathers Limited presented in Appendix A and Appendix B that the revenue of the company has increased between 2014 and 2015irrespective of a fall in the value of fixed assets of the company (Nissanke Thorbecke, 2008). Hence, it can be seen that the increase of sales or production is not much dependent fixed costs of the company. Variable Costs: Sreeleathers Limited is highly dependable on its retail store across the country. Hence, the labour expenses, maintenance expense of stores, financial expenses, raw materials purchased and employee benefits makes the variable costs of the company. Looking at the income statement of the company, it can be seen that the revenue increased from Rs. 582 million to Rs. 690 million with an increase in the variable costs from Rs. 447 million to Rs. 565 million (Savides, 2015). Hence, it can be seen that the increase in the sales or production is highly influenced by the variable costs. Furthermore, it can be seen that the leverage ratio of the firm is not that high to make it a large scale firm (Sahu, 2015). On the other hand, the annual fixed cost is much less than the annual variable costs. Hence, Sreeleathers Limited can be recognised as a small scale or a medium scale firm operating primarily in the Indian market. Macro Business Environment Political System India is the largest democracy of the world that runs on the federal form of government. It is important to note that the political environment of the market is highly influenced by the factors such as politicians interest, government policies and ideologies of different political parties. Furthermore, the taxation system of the country includes taxes like income tax, sales tax, services tax that are imposed directly by the central government (Seker Seker, 2011). Currently, the Indian market is facing an instable political burden due to change of government and introduction of new laws and business policies. The introduction of GST has become a burden for the medium scale business. The current GST rate has been decided to be around 10 percent over the cost of production that is to be charged to the customers (Antonopoulos, 2016). Hence, the implementation of the new GST policy will create problem for the businesses. Furthermore, changes made in the business regulations also create b urden over the company that may impact its operations in the future (Chaudhuri, 2007). A company maintaining a high amount of assets needs to pay wealth tax that acts as an extra burden over the business. Furthermore, the tax on importing of raw materials such as leather from other countries has also increased for the company. Hence, the political factors act as a threat for the business in the Indian market. Inflation, Unemployment and Interest Rate The current inflation rate in India has reduced from around 11 percent to 4.5 percent in the recent years, which is a good indication for shoe manufacturing company. The reduction in the Average Price Level of products in the market allows the business to carry on its operations with a stable pricing policy (Wolf, 2011). Hence, it is a good sign for the company. The inflation rate of India is presented in the figure given below: Figure: Inflation Rate Source: (Tradingeconomics.com, 2016) Furthermore, the unemployment rate in the country reduces in the previous years that increase the opportunity for the business to expand its operations (Gupta Choudhry, 2015). The increase in the level of employment will increase the purchasing power of the buyers that acts as a positive sign for the business. The unemployment rate of India is presented in the figure given below: Figure: Unemployment Rate Source: (Tradingeconomics.com, 2016) Additionally, the interest rate has reduced in the current year to 6.5 percent that increase the business opportunities in the Indian market (ZaccaiÃÅ'ˆ, 2007). The small and medium scale businesses can easily acquire loans at lower interest rate for the expansion of business. Hence, it can be seen that the reducing interest rate acts as a positive sign for the business of Sreeleathers Limited. Figure: Interest Rate Source: (Tradingeconomics.com, 2016) Currency Exchange Rate Sreeleathers export products to different Asian countries such as Bangladesh, Myanmar, Sri Lanka, Indonesia, Singapore, Canada and the United States. Hence, it deals with different currencies from various countries that increase the financial risk of the firm. Hence, it prefers dealing with countries that have higher value of currency as compared to India Rupees to increase its profitability (Klein Dutta, 2015). Currently, the fall of the value of Indian Currency as compared to the US dollar has benefited the company from export trade. On the other hand, Indonesia is a potential foreign market for Sreeleathers because of its high demand for Indian leather products (Pal, 2015). Furthermore, the fall in the value of the Great Britain Pound has negatively impacted the foreign trade of Sreeleathers Limited in the UK market. Report shows that the company has incurred a huge loss in the UK market. Hence, it can be seen that the fluctuation in the value of currency highly impacts the forei gn trade of a medium scale business like Sreeleathers. Comments and Justification It can be seen from the above analysis that the overall macroeconomic environment of the country will be favourable for the business of Sreeleathers in the upcoming future other than the rising tax in the Indian market. It can be seen that the inflation rate and the interest rate in the Indian market has fallen in the recent years and is expected to fall more in the upcoming years. On the other hand, the products of the company are normal in nature. Hence, the recession occurring in the market may lead to fall of demand of the products, which may impact business of Sreeleathers negatively. On the other hand, the current economic climate in the country works in favour of the business because there is no chance of occurrence of recession in the upcoming five years. Considering the unemployment rate and talent pool in the labour market, it can be seen that there are a huge number of low priced skilled employees available in the Indian market. But, the high rate of inflation in the count ry will impact the operating cost of the company in the upcoming future. On the other hand, the changes in the import policy of the Indian government had made it difficult for Sreeleathers to import leather from foreign markets in lower price. Currently, the fall of the value of Indian Currency as compared to the US dollar has benefited the company from export trade. Furthermore, the fall in the value of the Great Britain Pound has negatively impacted the foreign trade of Sreeleathers Limited in the UK market. Report shows that the company has incurred a huge loss in the UK market. Hence, it can be seen that the current economic climate of the country is supports the growth of business in the Indian market, but the foreign export leads to increase in the financial risk of the company. Sustainability Practice of the Business Positive and Negative Externalities of Production Process In the products manufacturing business of Sreeleathers Limited, there are significant positive as well as negative externalities feature in the production process. The increased demand of products has led to the measures to improve the supply. As a result of the scenario, more workers have found employment opportunity in the production process. In manufacturing section, both skilled and unskilled labours have been benefitted due to the multi-section production units of Sreeleathers Limited leading to positive externalities to society (Lesourne, 2007). As far as negative externalities of the production process in concerned, the manufacturing units of Sreeleathers Limited has consumed natural leathers that create massive environmental issues. In this way, the production process of the firm generates negative externalities. As a result of the consequences, the government of India has issues notable regulations on leather industry to restrict the combustion process utilised in product manufacturing. Thus, the environmental pollution has been controlled to a significant level (Nomidis, 2015). Positive and Negative Externalities of Consumption The consumption of Sreeleathers Limiteds products has some positive as well as negative externalities as well, to say the least. Understandably, the government of India as increased tax on leather purchasing. Hence, as the demand for leather is increased due to consumption, it ultimately benefits the social public (Chaudhuri, 2007). Significantly, in this way, the consumption of products leads to positive externalities providing benefits to the rest of the social community. Invariably, the financial structure of the government has been boosted due to a surge in consumption of leather products. The leather consumption has brought fresh environmental challenges and issues for the social human beings living within the target market. For instance, due to increase in consumption of leather products, the demand and supply structure of the product has been changed radically. Also, workers working in the leather industry have to face health issues as well (Lansiluoto, 2007). By considering the negative externalities of the consumption, the government of India has promoted artificial leather footwear so that the negative externalities can be controlled in a significant process. Impact of Sustainability Practice on Long Term Business Viability On the basis of economic perspective, the viability of a business relies on consistency and customer profile. Understandably, for long-term sustainability of business, Sreeleathers Limiteds current business practices are considered as truly supportive. Meanwhile, the increasing demand for company manufactured products has significantly contributed to the growth structure of the firm leading to new employment opportunities. Moreover, since the makeover of the business in 2010, the organisation has registered improved revenue year on year basis supportive for long-run business viability. In the contemporary business scenario, the fierce competition from other two market giants such as Bata India Limited and Khadims India Limited has forced the management of Sreeleathers Limited to make significant changes in business operations. As a result of the existing market competition and demand, Sreeleathers Limited is willing to open new outlets to make the brand more successful in other marke ts (Gth Sksvuori, 2012). Through the understanding of existing market strategy and benefits of business practices of Sreeleathers Limited, it can be stated that in long-term business perspective, the organisation has significant sustainability (Lin, 2014). Conclusion The business study report critically investigates the general business environment of Sreeleathers Limited to identify the business viability structure in a long-term scenario. The existing business framework and customer profile of the shoe manufacturer and retailer company have significantly promoted perfect competition situation in the target market. Also, the product costs and scale analysis of the business provide a detailed idea of the factors leading to a minimum cost of production. Through the identification of the variable costs and business size, the overall business functions of Sreeleathers Limited have been featured in the report paper for further consideration. Decisively, the macro business environment in India has been thoroughly discussed in the study report to identify the relation between economic growth and business prosperity of the firm. Apparently, the business of Sreeleathers has promoted sustainable management practices delivering absolute positive as well as negative externalities in both production and consumption. Undoubtedly, Sreeleathers Limited has obtained long-term sustainability in the Indian leather industry to become one of the leaders of the pack. References Annual Report 2015. (2016).www.sreeleathers.com. Retrieved September 2016, from https://www.sreeleathers.com/SL/AnnualRpt2015.pdf Antonopoulos, R. (2016).Gender perspectives and gender impacts of the global economic crisis. Batabyal, A. Nijkamp, P. (2014). Positive and Negative Externalities in Innovation, Trade, and Regional Economic Growth.Geographical Analysis,46(1), 1-17. https://dx.doi.org/10.1111/gean.12027 Brummer, J. (2015). Business ethics: Micro and macro.J Bus Ethics,4(2), 81-91. https://dx.doi.org/10.1007/bf00383560 Caprotti, F. (2012). Environment, Business and the Firm.Geography Compass,6(3), 163-174. https://dx.doi.org/10.1111/j.1749-8198.2012.00478.x Chaudhuri, A. (2007). Consumption Emotion and Perceived Risk: A Macro-Analytic Approach.Journal Of Business Research,39(2), 81-92. https://dx.doi.org/10.1016/s0148-2963(96)00144-0 Ciuriak, D. (2015). Macro-Structural Linkages and Business Dynamism.SSRN Electronic Journal. https://dx.doi.org/10.2139/ssrn.2695885 Gupta, S. Choudhry, N. (2015).Globalization, Growth and Sustainability. Boston, MA: Springer US. Gth, W. Sksvuori, L. (2012). Provision of Multilevel Public Goods by Positive Externalities: Experimental Evidence.The B.E. Journal Of Economic Analysis Policy,12(1). https://dx.doi.org/10.1515/1935-1682.3207 India Interest Rate | 2000-2016 | Data | Chart | Calendar | Forecast | News. (2016).Tradingeconomics.com. Retrieved September 2016, from https://www.tradingeconomics.com/india/interest-rate Klein, L. Dutta, M. (2015).Economics, econometrics and the LINK. Amsterdam: Elsevier. Lall, S., Lall, S., Mengistae, T. (2015).Business Environment, Clustering, And Industry Location. Washington, D.C.: The World Bank. Lansiluoto, A. (2007). Suitability of self-organising maps for analysing a macro-environment an empirical field survey.IJBIS,2(2), 149. https://dx.doi.org/10.1504/ijbis.2007.011616 Lesourne, J. (2007). Managers' behaviour and perfect competition.European Economic Review,9(1), 43-60. https://dx.doi.org/10.1016/0014-2921(71)90009-2 Lin, H. (2014). Government-Business Partnership Formation for Environmental Improvements.Organization Environment. https://dx.doi.org/10.1177/1086026614554716 Mallick, S. (2009).Modelling macroeconomic adjustment with growth in developing economies. Aldershot, Hants, England: Ashgate. Nissanke, M. Thorbecke, E. (2008).Globalization and the poor in Asia. Basingstoke [England]: Palgrave Macmillan. Nomidis, D. (2015). The Fallacy of the Perfect Competition Theory.SSRN Electronic Journal. https://dx.doi.org/10.2139/ssrn.2736690 Pal, R. (2015). Cournot vs. Bertrand under relative performance delegation: Implications of positive and negative network externalities.Mathematical Social Sciences,75, 94-101. https://dx.doi.org/10.1016/j.mathsocsci.2015.02.007 Sahu, T. (2015).Macroeconomic variables and security prices in India during the liberalized period. Savides, H. (2015). International Positive Production Externalities under a Transfer Payment Scheme - The Case for Cooperation.SSRN Electronic Journal. https://dx.doi.org/10.2139/ssrn.1218342 Seker, M. Seker, M. (2011).Effects of Licensing Reform on Firm Innovation. Washington, D.C.: The World Bank. Sreeleathers Footwear and Accessories seller. (2016).Sreeleathers.com. Retrieved September 2016, from https://www.sreeleathers.com/foundation.php Wolf, C. (2011).China and India, 2025. Santa Monica, CA: RAND. Xie, J. Sirbu, M. (2015). Price Competition and Compatibility in the Presence of Positive Demand Externalities.Management Science,41(5), 909-926. https://dx.doi.org/10.1287/mnsc.41.5.909 ZaccaiÃÅ'ˆ, E. (2007).Sustainable consumption, ecology and fair trade. London: Routledge.

Economics for a Sustainable Business

Question: Discuss about the Economics for a Sustainable Business. Answer: Introduction The business environment plays an important role in the success of an organisation. Hence, it is important for any organisation to analyse the current business environment in which it operates to plan its strategies and seek growth in the market (Mallick, 2009). On the other hand, analysing the business environment helps in sustainable development of the business. Hence, an organisation must keep a regular watch on its activities and market movements to enhance the performance of its implied strategies (Lall, Lall, Mengistae, 2015). Furthermore, the management of the firm must be aware of the economic factors that influence the growth of the business. It helps to judge the current positioning of the business from the economic point of view and develop strategies that can be helpful in increasing the economic balance of the enterprise. The business report has been developed to analyse the general business environment of Sreeleathers Limited which is one of the small and medium scale enterprise of India. The study analyses the production cost and scale of the business to judge the category of scale in which the business of Sreeleathers Limited lies. Furthermore, the macro business environment of the market has been discussed in which Sreeleathers Limited operates to explain how the external market factors influence its business. Finally, the sustainability practices of Sreeleathers Limited have been presented to judge the long term viability of its business. Business Overview and Environment Name, Location and type of business Sreeleathers Limited is one of the most famous footwear brands headquartered in Kolkata, India. Under the leadership of Satyabrata Dey, the Managing Director of Sreeleathers Group, the organisation has established 35 retail stores in nine different states of India including West Bengal. The enterprise deals in all types of footwear and leather accessories providing high-quality products at an affordable pricing. In 2010, the original name of the company had been changed to Sreeleathers from CAT Financial Services as the organisation has altered its core business to consumer goods from financial services ("Sreeleathers Footwear and Accessories seller", 2016). The Indian based shoe manufacturer and distributor also export their products to the USA, UK, Canada, Bangladesh, Sri Lanka, Myanmar, Indonesia, Singapore and Australian territory. Basically, Sreeleathers Limited is a product manufacturing as well as a retail business organisation operating mainly in the Indian market. Products and Services In the retail business, the organisation primarily deals in all types of footwear products and leather accessories for different types of the target segment. By identifying the underlying requirement of the target customers, Sreeleathers Limited has delivered quality products at a reasonable price range to create a massive client base in Kolkata area and other locations around India (Brummer, 2015). Moreover, the business of Sreeleathers is also famous for one of the biggest wholesaler of footwear industry offered leather shoes and accessories to many parts of India as well as the world. Potential Customers Sreeleathers Limited offers footwear for men, women and kids creating massive market segmentation. In the Indian market, the organisation has divided its market segmentation based on gender and age group of the target demographics. The stores of Sreeleathers Limited offer shoes for kids age between 2 and 12. For young boys and girls, the outlets deliver stylish footwear at a reasonable pricing. For the female segment, the stores display ladies shoes, leather accessories and other products ("Sreeleathers Footwear and Accessories seller", 2016). For men, the organisation has also offered stylish leather shoes, leather accessories such as wallets, bags and other leather manufacturing products. Location of Potential Customers The shoe business of Sreeleathers Limited is mainly operating in Kolkata, India region where the potential customers are massive in numbers. As the organisation has established 35 stores around India including nine other Indian states, the significant customer base has been formed in the other target areas as well. The branding of the leather products to the name of the company has given a significant edge to the business (Batabyal Nijkamp, 2014). Moreover, by offering quality products at a cheaper rate significant demand for shoes and leather accessories of Sreeleathers Limited can be seen from other Asian countries such as Indonesia, Singapore, and Bangladesh. Primary Competitors Being a small sized shoe manufacturing and retail business of the India leather industry, Sreeleathers Limited has to face significant challenges from other market competitors in the target locations. In the primary business location of Sreeleathers, two primary footwear manufacturers and sellers have delivered potential competition to the organisation. Namely, Khadims India Limited and Bata India Limited are the two identified primary competitors of Sreeleathers Limited in the potential target market (Xie Sirbu, 2015). Location of Primary Competitors The primary competitors of Sreeleathers Limited have mainly operated in the Indian market including Kolkata, India. Bata India Limited has got more that 1300 outlets across India whereas Khadims India Limited has 1000 stores all around the country. Basically, Sreeleathers Limiteds operating functions are limited in Kolkata and surrounding state with 35 outlets to serve the people (Ciuriak, 2015). Meanwhile, the organisation is planning to expand the business by introducing 100 more outlets in India. Market share Sreeleathers Limited, being the largest single-brand footwear manufacturer cum retailer in India, has expanded its business in terms of other competitors. Currently, Sreeleathers Limited has got 16 percent of the entire footwear market share in India whereas Bata India Limited has got the biggest market share of 38%. According to the reports, Khadims India Limited has also featured in the list by acquiring 29 percent of the total market share of shoe and leather industry of India. Through the identification of current market scenario, Sreeleathers Limited is competing in a perfect competition situation whereas the enterprise has seemed to utilise the available resources in a better way (Caprotti, 2012). In long-run basis, the increasing demand for Sreeleathers manufacturing products will help the company to reduce the marginal cost leading to higher profitability. Production Costs and Scale Sreeleathers believe in traditional form of business and own around 30 to 40 stores all across India that are situated in total nine states of the country. In comparison to other companies, Sreeleathers do not sell any product of other brands and manufacture all its products in its own factories. Hence, to analyse the costs of production and scale of business of Sreeleathers Limited, there is a need to observe the fixed costs and variable costs of the company that are discussed herein below: Fixed Costs: The fixed costs of the company mainly include the tangible assets that have been purchased by the firm. It can be seen from the financial statement of Sreeleathers Limited presented in Appendix A and Appendix B that the revenue of the company has increased between 2014 and 2015irrespective of a fall in the value of fixed assets of the company (Nissanke Thorbecke, 2008). Hence, it can be seen that the increase of sales or production is not much dependent fixed costs of the company. Variable Costs: Sreeleathers Limited is highly dependable on its retail store across the country. Hence, the labour expenses, maintenance expense of stores, financial expenses, raw materials purchased and employee benefits makes the variable costs of the company. Looking at the income statement of the company, it can be seen that the revenue increased from Rs. 582 million to Rs. 690 million with an increase in the variable costs from Rs. 447 million to Rs. 565 million (Savides, 2015). Hence, it can be seen that the increase in the sales or production is highly influenced by the variable costs. Furthermore, it can be seen that the leverage ratio of the firm is not that high to make it a large scale firm (Sahu, 2015). On the other hand, the annual fixed cost is much less than the annual variable costs. Hence, Sreeleathers Limited can be recognised as a small scale or a medium scale firm operating primarily in the Indian market. Macro Business Environment Political System India is the largest democracy of the world that runs on the federal form of government. It is important to note that the political environment of the market is highly influenced by the factors such as politicians interest, government policies and ideologies of different political parties. Furthermore, the taxation system of the country includes taxes like income tax, sales tax, services tax that are imposed directly by the central government (Seker Seker, 2011). Currently, the Indian market is facing an instable political burden due to change of government and introduction of new laws and business policies. The introduction of GST has become a burden for the medium scale business. The current GST rate has been decided to be around 10 percent over the cost of production that is to be charged to the customers (Antonopoulos, 2016). Hence, the implementation of the new GST policy will create problem for the businesses. Furthermore, changes made in the business regulations also create b urden over the company that may impact its operations in the future (Chaudhuri, 2007). A company maintaining a high amount of assets needs to pay wealth tax that acts as an extra burden over the business. Furthermore, the tax on importing of raw materials such as leather from other countries has also increased for the company. Hence, the political factors act as a threat for the business in the Indian market. Inflation, Unemployment and Interest Rate The current inflation rate in India has reduced from around 11 percent to 4.5 percent in the recent years, which is a good indication for shoe manufacturing company. The reduction in the Average Price Level of products in the market allows the business to carry on its operations with a stable pricing policy (Wolf, 2011). Hence, it is a good sign for the company. The inflation rate of India is presented in the figure given below: Figure: Inflation Rate Source: (Tradingeconomics.com, 2016) Furthermore, the unemployment rate in the country reduces in the previous years that increase the opportunity for the business to expand its operations (Gupta Choudhry, 2015). The increase in the level of employment will increase the purchasing power of the buyers that acts as a positive sign for the business. The unemployment rate of India is presented in the figure given below: Figure: Unemployment Rate Source: (Tradingeconomics.com, 2016) Additionally, the interest rate has reduced in the current year to 6.5 percent that increase the business opportunities in the Indian market (ZaccaiÃÅ'ˆ, 2007). The small and medium scale businesses can easily acquire loans at lower interest rate for the expansion of business. Hence, it can be seen that the reducing interest rate acts as a positive sign for the business of Sreeleathers Limited. Figure: Interest Rate Source: (Tradingeconomics.com, 2016) Currency Exchange Rate Sreeleathers export products to different Asian countries such as Bangladesh, Myanmar, Sri Lanka, Indonesia, Singapore, Canada and the United States. Hence, it deals with different currencies from various countries that increase the financial risk of the firm. Hence, it prefers dealing with countries that have higher value of currency as compared to India Rupees to increase its profitability (Klein Dutta, 2015). Currently, the fall of the value of Indian Currency as compared to the US dollar has benefited the company from export trade. On the other hand, Indonesia is a potential foreign market for Sreeleathers because of its high demand for Indian leather products (Pal, 2015). Furthermore, the fall in the value of the Great Britain Pound has negatively impacted the foreign trade of Sreeleathers Limited in the UK market. Report shows that the company has incurred a huge loss in the UK market. Hence, it can be seen that the fluctuation in the value of currency highly impacts the forei gn trade of a medium scale business like Sreeleathers. Comments and Justification It can be seen from the above analysis that the overall macroeconomic environment of the country will be favourable for the business of Sreeleathers in the upcoming future other than the rising tax in the Indian market. It can be seen that the inflation rate and the interest rate in the Indian market has fallen in the recent years and is expected to fall more in the upcoming years. On the other hand, the products of the company are normal in nature. Hence, the recession occurring in the market may lead to fall of demand of the products, which may impact business of Sreeleathers negatively. On the other hand, the current economic climate in the country works in favour of the business because there is no chance of occurrence of recession in the upcoming five years. Considering the unemployment rate and talent pool in the labour market, it can be seen that there are a huge number of low priced skilled employees available in the Indian market. But, the high rate of inflation in the count ry will impact the operating cost of the company in the upcoming future. On the other hand, the changes in the import policy of the Indian government had made it difficult for Sreeleathers to import leather from foreign markets in lower price. Currently, the fall of the value of Indian Currency as compared to the US dollar has benefited the company from export trade. Furthermore, the fall in the value of the Great Britain Pound has negatively impacted the foreign trade of Sreeleathers Limited in the UK market. Report shows that the company has incurred a huge loss in the UK market. Hence, it can be seen that the current economic climate of the country is supports the growth of business in the Indian market, but the foreign export leads to increase in the financial risk of the company. Sustainability Practice of the Business Positive and Negative Externalities of Production Process In the products manufacturing business of Sreeleathers Limited, there are significant positive as well as negative externalities feature in the production process. The increased demand of products has led to the measures to improve the supply. As a result of the scenario, more workers have found employment opportunity in the production process. In manufacturing section, both skilled and unskilled labours have been benefitted due to the multi-section production units of Sreeleathers Limited leading to positive externalities to society (Lesourne, 2007). As far as negative externalities of the production process in concerned, the manufacturing units of Sreeleathers Limited has consumed natural leathers that create massive environmental issues. In this way, the production process of the firm generates negative externalities. As a result of the consequences, the government of India has issues notable regulations on leather industry to restrict the combustion process utilised in product manufacturing. Thus, the environmental pollution has been controlled to a significant level (Nomidis, 2015). Positive and Negative Externalities of Consumption The consumption of Sreeleathers Limiteds products has some positive as well as negative externalities as well, to say the least. Understandably, the government of India as increased tax on leather purchasing. Hence, as the demand for leather is increased due to consumption, it ultimately benefits the social public (Chaudhuri, 2007). Significantly, in this way, the consumption of products leads to positive externalities providing benefits to the rest of the social community. Invariably, the financial structure of the government has been boosted due to a surge in consumption of leather products. The leather consumption has brought fresh environmental challenges and issues for the social human beings living within the target market. For instance, due to increase in consumption of leather products, the demand and supply structure of the product has been changed radically. Also, workers working in the leather industry have to face health issues as well (Lansiluoto, 2007). By considering the negative externalities of the consumption, the government of India has promoted artificial leather footwear so that the negative externalities can be controlled in a significant process. Impact of Sustainability Practice on Long Term Business Viability On the basis of economic perspective, the viability of a business relies on consistency and customer profile. Understandably, for long-term sustainability of business, Sreeleathers Limiteds current business practices are considered as truly supportive. Meanwhile, the increasing demand for company manufactured products has significantly contributed to the growth structure of the firm leading to new employment opportunities. Moreover, since the makeover of the business in 2010, the organisation has registered improved revenue year on year basis supportive for long-run business viability. In the contemporary business scenario, the fierce competition from other two market giants such as Bata India Limited and Khadims India Limited has forced the management of Sreeleathers Limited to make significant changes in business operations. As a result of the existing market competition and demand, Sreeleathers Limited is willing to open new outlets to make the brand more successful in other marke ts (Gth Sksvuori, 2012). Through the understanding of existing market strategy and benefits of business practices of Sreeleathers Limited, it can be stated that in long-term business perspective, the organisation has significant sustainability (Lin, 2014). Conclusion The business study report critically investigates the general business environment of Sreeleathers Limited to identify the business viability structure in a long-term scenario. The existing business framework and customer profile of the shoe manufacturer and retailer company have significantly promoted perfect competition situation in the target market. Also, the product costs and scale analysis of the business provide a detailed idea of the factors leading to a minimum cost of production. Through the identification of the variable costs and business size, the overall business functions of Sreeleathers Limited have been featured in the report paper for further consideration. Decisively, the macro business environment in India has been thoroughly discussed in the study report to identify the relation between economic growth and business prosperity of the firm. Apparently, the business of Sreeleathers has promoted sustainable management practices delivering absolute positive as well as negative externalities in both production and consumption. Undoubtedly, Sreeleathers Limited has obtained long-term sustainability in the Indian leather industry to become one of the leaders of the pack. References Annual Report 2015. (2016).www.sreeleathers.com. Retrieved September 2016, from https://www.sreeleathers.com/SL/AnnualRpt2015.pdf Antonopoulos, R. (2016).Gender perspectives and gender impacts of the global economic crisis. Batabyal, A. Nijkamp, P. (2014). Positive and Negative Externalities in Innovation, Trade, and Regional Economic Growth.Geographical Analysis,46(1), 1-17. https://dx.doi.org/10.1111/gean.12027 Brummer, J. (2015). Business ethics: Micro and macro.J Bus Ethics,4(2), 81-91. https://dx.doi.org/10.1007/bf00383560 Caprotti, F. (2012). Environment, Business and the Firm.Geography Compass,6(3), 163-174. https://dx.doi.org/10.1111/j.1749-8198.2012.00478.x Chaudhuri, A. (2007). Consumption Emotion and Perceived Risk: A Macro-Analytic Approach.Journal Of Business Research,39(2), 81-92. https://dx.doi.org/10.1016/s0148-2963(96)00144-0 Ciuriak, D. (2015). Macro-Structural Linkages and Business Dynamism.SSRN Electronic Journal. https://dx.doi.org/10.2139/ssrn.2695885 Gupta, S. Choudhry, N. (2015).Globalization, Growth and Sustainability. Boston, MA: Springer US. Gth, W. Sksvuori, L. (2012). Provision of Multilevel Public Goods by Positive Externalities: Experimental Evidence.The B.E. Journal Of Economic Analysis Policy,12(1). https://dx.doi.org/10.1515/1935-1682.3207 India Interest Rate | 2000-2016 | Data | Chart | Calendar | Forecast | News. (2016).Tradingeconomics.com. Retrieved September 2016, from https://www.tradingeconomics.com/india/interest-rate Klein, L. Dutta, M. (2015).Economics, econometrics and the LINK. Amsterdam: Elsevier. Lall, S., Lall, S., Mengistae, T. (2015).Business Environment, Clustering, And Industry Location. Washington, D.C.: The World Bank. Lansiluoto, A. (2007). Suitability of self-organising maps for analysing a macro-environment an empirical field survey.IJBIS,2(2), 149. https://dx.doi.org/10.1504/ijbis.2007.011616 Lesourne, J. (2007). Managers' behaviour and perfect competition.European Economic Review,9(1), 43-60. https://dx.doi.org/10.1016/0014-2921(71)90009-2 Lin, H. (2014). Government-Business Partnership Formation for Environmental Improvements.Organization Environment. https://dx.doi.org/10.1177/1086026614554716 Mallick, S. (2009).Modelling macroeconomic adjustment with growth in developing economies. Aldershot, Hants, England: Ashgate. Nissanke, M. Thorbecke, E. (2008).Globalization and the poor in Asia. Basingstoke [England]: Palgrave Macmillan. Nomidis, D. (2015). The Fallacy of the Perfect Competition Theory.SSRN Electronic Journal. https://dx.doi.org/10.2139/ssrn.2736690 Pal, R. (2015). Cournot vs. Bertrand under relative performance delegation: Implications of positive and negative network externalities.Mathematical Social Sciences,75, 94-101. https://dx.doi.org/10.1016/j.mathsocsci.2015.02.007 Sahu, T. (2015).Macroeconomic variables and security prices in India during the liberalized period. Savides, H. (2015). International Positive Production Externalities under a Transfer Payment Scheme - The Case for Cooperation.SSRN Electronic Journal. https://dx.doi.org/10.2139/ssrn.1218342 Seker, M. Seker, M. (2011).Effects of Licensing Reform on Firm Innovation. Washington, D.C.: The World Bank. Sreeleathers Footwear and Accessories seller. (2016).Sreeleathers.com. Retrieved September 2016, from https://www.sreeleathers.com/foundation.php Wolf, C. (2011).China and India, 2025. Santa Monica, CA: RAND. Xie, J. Sirbu, M. (2015). Price Competition and Compatibility in the Presence of Positive Demand Externalities.Management Science,41(5), 909-926. https://dx.doi.org/10.1287/mnsc.41.5.909 ZaccaiÃÅ'ˆ, E. (2007).Sustainable consumption, ecology and fair trade. London: Routledge.

Economics for a Sustainable Business

Question: Discuss about the Economics for a Sustainable Business. Answer: Introduction The business environment plays an important role in the success of an organisation. Hence, it is important for any organisation to analyse the current business environment in which it operates to plan its strategies and seek growth in the market (Mallick, 2009). On the other hand, analysing the business environment helps in sustainable development of the business. Hence, an organisation must keep a regular watch on its activities and market movements to enhance the performance of its implied strategies (Lall, Lall, Mengistae, 2015). Furthermore, the management of the firm must be aware of the economic factors that influence the growth of the business. It helps to judge the current positioning of the business from the economic point of view and develop strategies that can be helpful in increasing the economic balance of the enterprise. The business report has been developed to analyse the general business environment of Sreeleathers Limited which is one of the small and medium scale enterprise of India. The study analyses the production cost and scale of the business to judge the category of scale in which the business of Sreeleathers Limited lies. Furthermore, the macro business environment of the market has been discussed in which Sreeleathers Limited operates to explain how the external market factors influence its business. Finally, the sustainability practices of Sreeleathers Limited have been presented to judge the long term viability of its business. Business Overview and Environment Name, Location and type of business Sreeleathers Limited is one of the most famous footwear brands headquartered in Kolkata, India. Under the leadership of Satyabrata Dey, the Managing Director of Sreeleathers Group, the organisation has established 35 retail stores in nine different states of India including West Bengal. The enterprise deals in all types of footwear and leather accessories providing high-quality products at an affordable pricing. In 2010, the original name of the company had been changed to Sreeleathers from CAT Financial Services as the organisation has altered its core business to consumer goods from financial services ("Sreeleathers Footwear and Accessories seller", 2016). The Indian based shoe manufacturer and distributor also export their products to the USA, UK, Canada, Bangladesh, Sri Lanka, Myanmar, Indonesia, Singapore and Australian territory. Basically, Sreeleathers Limited is a product manufacturing as well as a retail business organisation operating mainly in the Indian market. Products and Services In the retail business, the organisation primarily deals in all types of footwear products and leather accessories for different types of the target segment. By identifying the underlying requirement of the target customers, Sreeleathers Limited has delivered quality products at a reasonable price range to create a massive client base in Kolkata area and other locations around India (Brummer, 2015). Moreover, the business of Sreeleathers is also famous for one of the biggest wholesaler of footwear industry offered leather shoes and accessories to many parts of India as well as the world. Potential Customers Sreeleathers Limited offers footwear for men, women and kids creating massive market segmentation. In the Indian market, the organisation has divided its market segmentation based on gender and age group of the target demographics. The stores of Sreeleathers Limited offer shoes for kids age between 2 and 12. For young boys and girls, the outlets deliver stylish footwear at a reasonable pricing. For the female segment, the stores display ladies shoes, leather accessories and other products ("Sreeleathers Footwear and Accessories seller", 2016). For men, the organisation has also offered stylish leather shoes, leather accessories such as wallets, bags and other leather manufacturing products. Location of Potential Customers The shoe business of Sreeleathers Limited is mainly operating in Kolkata, India region where the potential customers are massive in numbers. As the organisation has established 35 stores around India including nine other Indian states, the significant customer base has been formed in the other target areas as well. The branding of the leather products to the name of the company has given a significant edge to the business (Batabyal Nijkamp, 2014). Moreover, by offering quality products at a cheaper rate significant demand for shoes and leather accessories of Sreeleathers Limited can be seen from other Asian countries such as Indonesia, Singapore, and Bangladesh. Primary Competitors Being a small sized shoe manufacturing and retail business of the India leather industry, Sreeleathers Limited has to face significant challenges from other market competitors in the target locations. In the primary business location of Sreeleathers, two primary footwear manufacturers and sellers have delivered potential competition to the organisation. Namely, Khadims India Limited and Bata India Limited are the two identified primary competitors of Sreeleathers Limited in the potential target market (Xie Sirbu, 2015). Location of Primary Competitors The primary competitors of Sreeleathers Limited have mainly operated in the Indian market including Kolkata, India. Bata India Limited has got more that 1300 outlets across India whereas Khadims India Limited has 1000 stores all around the country. Basically, Sreeleathers Limiteds operating functions are limited in Kolkata and surrounding state with 35 outlets to serve the people (Ciuriak, 2015). Meanwhile, the organisation is planning to expand the business by introducing 100 more outlets in India. Market share Sreeleathers Limited, being the largest single-brand footwear manufacturer cum retailer in India, has expanded its business in terms of other competitors. Currently, Sreeleathers Limited has got 16 percent of the entire footwear market share in India whereas Bata India Limited has got the biggest market share of 38%. According to the reports, Khadims India Limited has also featured in the list by acquiring 29 percent of the total market share of shoe and leather industry of India. Through the identification of current market scenario, Sreeleathers Limited is competing in a perfect competition situation whereas the enterprise has seemed to utilise the available resources in a better way (Caprotti, 2012). In long-run basis, the increasing demand for Sreeleathers manufacturing products will help the company to reduce the marginal cost leading to higher profitability. Production Costs and Scale Sreeleathers believe in traditional form of business and own around 30 to 40 stores all across India that are situated in total nine states of the country. In comparison to other companies, Sreeleathers do not sell any product of other brands and manufacture all its products in its own factories. Hence, to analyse the costs of production and scale of business of Sreeleathers Limited, there is a need to observe the fixed costs and variable costs of the company that are discussed herein below: Fixed Costs: The fixed costs of the company mainly include the tangible assets that have been purchased by the firm. It can be seen from the financial statement of Sreeleathers Limited presented in Appendix A and Appendix B that the revenue of the company has increased between 2014 and 2015irrespective of a fall in the value of fixed assets of the company (Nissanke Thorbecke, 2008). Hence, it can be seen that the increase of sales or production is not much dependent fixed costs of the company. Variable Costs: Sreeleathers Limited is highly dependable on its retail store across the country. Hence, the labour expenses, maintenance expense of stores, financial expenses, raw materials purchased and employee benefits makes the variable costs of the company. Looking at the income statement of the company, it can be seen that the revenue increased from Rs. 582 million to Rs. 690 million with an increase in the variable costs from Rs. 447 million to Rs. 565 million (Savides, 2015). Hence, it can be seen that the increase in the sales or production is highly influenced by the variable costs. Furthermore, it can be seen that the leverage ratio of the firm is not that high to make it a large scale firm (Sahu, 2015). On the other hand, the annual fixed cost is much less than the annual variable costs. Hence, Sreeleathers Limited can be recognised as a small scale or a medium scale firm operating primarily in the Indian market. Macro Business Environment Political System India is the largest democracy of the world that runs on the federal form of government. It is important to note that the political environment of the market is highly influenced by the factors such as politicians interest, government policies and ideologies of different political parties. Furthermore, the taxation system of the country includes taxes like income tax, sales tax, services tax that are imposed directly by the central government (Seker Seker, 2011). Currently, the Indian market is facing an instable political burden due to change of government and introduction of new laws and business policies. The introduction of GST has become a burden for the medium scale business. The current GST rate has been decided to be around 10 percent over the cost of production that is to be charged to the customers (Antonopoulos, 2016). Hence, the implementation of the new GST policy will create problem for the businesses. Furthermore, changes made in the business regulations also create b urden over the company that may impact its operations in the future (Chaudhuri, 2007). A company maintaining a high amount of assets needs to pay wealth tax that acts as an extra burden over the business. Furthermore, the tax on importing of raw materials such as leather from other countries has also increased for the company. Hence, the political factors act as a threat for the business in the Indian market. Inflation, Unemployment and Interest Rate The current inflation rate in India has reduced from around 11 percent to 4.5 percent in the recent years, which is a good indication for shoe manufacturing company. The reduction in the Average Price Level of products in the market allows the business to carry on its operations with a stable pricing policy (Wolf, 2011). Hence, it is a good sign for the company. The inflation rate of India is presented in the figure given below: Figure: Inflation Rate Source: (Tradingeconomics.com, 2016) Furthermore, the unemployment rate in the country reduces in the previous years that increase the opportunity for the business to expand its operations (Gupta Choudhry, 2015). The increase in the level of employment will increase the purchasing power of the buyers that acts as a positive sign for the business. The unemployment rate of India is presented in the figure given below: Figure: Unemployment Rate Source: (Tradingeconomics.com, 2016) Additionally, the interest rate has reduced in the current year to 6.5 percent that increase the business opportunities in the Indian market (ZaccaiÃÅ'ˆ, 2007). The small and medium scale businesses can easily acquire loans at lower interest rate for the expansion of business. Hence, it can be seen that the reducing interest rate acts as a positive sign for the business of Sreeleathers Limited. Figure: Interest Rate Source: (Tradingeconomics.com, 2016) Currency Exchange Rate Sreeleathers export products to different Asian countries such as Bangladesh, Myanmar, Sri Lanka, Indonesia, Singapore, Canada and the United States. Hence, it deals with different currencies from various countries that increase the financial risk of the firm. Hence, it prefers dealing with countries that have higher value of currency as compared to India Rupees to increase its profitability (Klein Dutta, 2015). Currently, the fall of the value of Indian Currency as compared to the US dollar has benefited the company from export trade. On the other hand, Indonesia is a potential foreign market for Sreeleathers because of its high demand for Indian leather products (Pal, 2015). Furthermore, the fall in the value of the Great Britain Pound has negatively impacted the foreign trade of Sreeleathers Limited in the UK market. Report shows that the company has incurred a huge loss in the UK market. Hence, it can be seen that the fluctuation in the value of currency highly impacts the forei gn trade of a medium scale business like Sreeleathers. Comments and Justification It can be seen from the above analysis that the overall macroeconomic environment of the country will be favourable for the business of Sreeleathers in the upcoming future other than the rising tax in the Indian market. It can be seen that the inflation rate and the interest rate in the Indian market has fallen in the recent years and is expected to fall more in the upcoming years. On the other hand, the products of the company are normal in nature. Hence, the recession occurring in the market may lead to fall of demand of the products, which may impact business of Sreeleathers negatively. On the other hand, the current economic climate in the country works in favour of the business because there is no chance of occurrence of recession in the upcoming five years. Considering the unemployment rate and talent pool in the labour market, it can be seen that there are a huge number of low priced skilled employees available in the Indian market. But, the high rate of inflation in the count ry will impact the operating cost of the company in the upcoming future. On the other hand, the changes in the import policy of the Indian government had made it difficult for Sreeleathers to import leather from foreign markets in lower price. Currently, the fall of the value of Indian Currency as compared to the US dollar has benefited the company from export trade. Furthermore, the fall in the value of the Great Britain Pound has negatively impacted the foreign trade of Sreeleathers Limited in the UK market. Report shows that the company has incurred a huge loss in the UK market. Hence, it can be seen that the current economic climate of the country is supports the growth of business in the Indian market, but the foreign export leads to increase in the financial risk of the company. Sustainability Practice of the Business Positive and Negative Externalities of Production Process In the products manufacturing business of Sreeleathers Limited, there are significant positive as well as negative externalities feature in the production process. The increased demand of products has led to the measures to improve the supply. As a result of the scenario, more workers have found employment opportunity in the production process. In manufacturing section, both skilled and unskilled labours have been benefitted due to the multi-section production units of Sreeleathers Limited leading to positive externalities to society (Lesourne, 2007). As far as negative externalities of the production process in concerned, the manufacturing units of Sreeleathers Limited has consumed natural leathers that create massive environmental issues. In this way, the production process of the firm generates negative externalities. As a result of the consequences, the government of India has issues notable regulations on leather industry to restrict the combustion process utilised in product manufacturing. Thus, the environmental pollution has been controlled to a significant level (Nomidis, 2015). Positive and Negative Externalities of Consumption The consumption of Sreeleathers Limiteds products has some positive as well as negative externalities as well, to say the least. Understandably, the government of India as increased tax on leather purchasing. Hence, as the demand for leather is increased due to consumption, it ultimately benefits the social public (Chaudhuri, 2007). Significantly, in this way, the consumption of products leads to positive externalities providing benefits to the rest of the social community. Invariably, the financial structure of the government has been boosted due to a surge in consumption of leather products. The leather consumption has brought fresh environmental challenges and issues for the social human beings living within the target market. For instance, due to increase in consumption of leather products, the demand and supply structure of the product has been changed radically. Also, workers working in the leather industry have to face health issues as well (Lansiluoto, 2007). By considering the negative externalities of the consumption, the government of India has promoted artificial leather footwear so that the negative externalities can be controlled in a significant process. Impact of Sustainability Practice on Long Term Business Viability On the basis of economic perspective, the viability of a business relies on consistency and customer profile. Understandably, for long-term sustainability of business, Sreeleathers Limiteds current business practices are considered as truly supportive. Meanwhile, the increasing demand for company manufactured products has significantly contributed to the growth structure of the firm leading to new employment opportunities. Moreover, since the makeover of the business in 2010, the organisation has registered improved revenue year on year basis supportive for long-run business viability. In the contemporary business scenario, the fierce competition from other two market giants such as Bata India Limited and Khadims India Limited has forced the management of Sreeleathers Limited to make significant changes in business operations. As a result of the existing market competition and demand, Sreeleathers Limited is willing to open new outlets to make the brand more successful in other marke ts (Gth Sksvuori, 2012). Through the understanding of existing market strategy and benefits of business practices of Sreeleathers Limited, it can be stated that in long-term business perspective, the organisation has significant sustainability (Lin, 2014). Conclusion The business study report critically investigates the general business environment of Sreeleathers Limited to identify the business viability structure in a long-term scenario. The existing business framework and customer profile of the shoe manufacturer and retailer company have significantly promoted perfect competition situation in the target market. Also, the product costs and scale analysis of the business provide a detailed idea of the factors leading to a minimum cost of production. Through the identification of the variable costs and business size, the overall business functions of Sreeleathers Limited have been featured in the report paper for further consideration. Decisively, the macro business environment in India has been thoroughly discussed in the study report to identify the relation between economic growth and business prosperity of the firm. Apparently, the business of Sreeleathers has promoted sustainable management practices delivering absolute positive as well as negative externalities in both production and consumption. Undoubtedly, Sreeleathers Limited has obtained long-term sustainability in the Indian leather industry to become one of the leaders of the pack. References Annual Report 2015. (2016).www.sreeleathers.com. Retrieved September 2016, from https://www.sreeleathers.com/SL/AnnualRpt2015.pdf Antonopoulos, R. (2016).Gender perspectives and gender impacts of the global economic crisis. Batabyal, A. Nijkamp, P. (2014). 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