The companies of all sizes are obliged to comply with the laws and regulations of the country. All the organization should be aware of the fact that there are many different risks of infringing opposition regulations. The companies will also have to understand the procedure of developing a compliance plan that fulfills the requirements. A successful compliance plan allows an organization to reduce the risk of association in competition law infringements, and the expenditures resulting from anti-competitive activities.
Issue 1:The CFP is a code of behavior for organizing European fishing fleets and for preserving the stocks of fishes. The CFP has been implemented to organize ordinary reserves, it provides equal access to EU waters and grounds of fishing to all European fishing fleets. The CFP also permits fishermen to compete in a fair manner. Reserves can be renewable, but they are limited and predetermined. Most of these fishing reserves are being overfished. As an outcome, EU countries have taken action to make sure that the European fishing business is in control and does not intimidate the fish inhabitant’s mass and production over the long term.
Issue 2: The EU legislation offers the common principles of food protection which comprise of the constraints on groceries production to consign simple food on the market, for traceability of groceries, for the arrangement of groceries, for the extraction or recollection of hazardous groceries positioned on the market.
Issue 3: The legislation on the free movement of individuals aims at getting rid of all obstructions to the lack of restrictions and providing the similar rights of the local citizens of an EEA State and their members of the family within the EEA by eradicating any inequity on the basis of the ethnic group. The UK industry can hire employs from anywhere in the EU. Business dealings are controlled when employees are hired from non- European countries. Tesco Company has set up a time limit to weekly operational hours as now employees at Tesco are only allowed to work for 48 hours in a week.
Issue 4: Now Tesco has liberty to decide whether it is going to get rid of existing security principles or not. Even if it is going to take place, then even the companies that are going to export their products to EU will have to fulfill the entire legal requirement.
The GDP of the UK regarding volume was expected to have increased by more than 0.4% between 2015 and 2016, unchanged from the preliminary approximation of GDP publicized on 27 April 2016. It is the 13th successive quarter of effective development since 2013. In between 2015-2016, GDP in terms of volumes increased by 2.0%, revised down up to 0.1 percentage points.
The Consumer Prices Index increased by 0.3% in the year 2016, unrevised from April. The increment in transportation expenditures, eatery and lodges charges, and the cost of telecommunication services were the primary increasing providers to bring changes in the charges.
Tesco is considering switching to the consumer prices index scheme to analyze its defined benefit scheme and criteria of retirement funds and its provisions.
Questions to Answers:
(2)
Now that Britain has come out of the EU What could be done about the issues? Solve problem this is the issue and what could be done about these issues if the UK lives the EU related the grocery sector (Tesco in the UK)
The chairperson of the Tesco Company has warned that all the big businesses could shift their center of operations out of London as Britain is all set to leave the European Union. Apparently, the company has planned to hold a referendum to solve this issue. According to Allan (2015), Tesco will have to manage to shift its headquarter from London to some other city that is accepted by the European Union.
Common fisheries policy
According to Stewart & Carpenter (2016), the rights of UK fishing allowance have turned out to be contentious and are being misunderstood by local fisherman (Stewart & Carpenter, 2016). After the entire EU fishing restrictions are being planned by the ruling body of fisheries ministers, now it is in the hand of each member of the state to allocate its share among their personal fishing fleet. The issue of Common fisheries policy is going to create a huge problem from Tesco fishing fleet as Brexit would call for a re-negotiation of rights of fishing for British fishermen, with indecisive results. It is considered that such negotiations will severely affect that business and trading relationship with Tesco, Britain, and the European Union.
Free movement of goods
BREXIT is going to create a big problem for Tesco as the company will have to start from the scratch to plan new agreements with different countries. Tesco will have to face complicated challenges if it is a part of Britain as the companies in UK willing to do business with EU member states will have to work according to the laws and regulations of European Union. Tesco will also have to renew their contracts and agreements. There is no single market access for Tesco after Brexit; it has created a huge problem for Tesco to continue their operations in Britain.
Competition regulation
Brexit is not going to make a huge impact on the way competition policy is functional in Britain and the European Union. The only issue that companies such as Tesco will face is that that it will lose the facility to manipulate openly and persuade the upcoming developments of European Union’s competition law.
Free movement of labour
Another issue that arises with Brexit is that the free movement of labor around the European Union is going to end (Walker, 2016). It means Tesco will not be able to hire the employees from another state that is a member of European Union. The immigration process will become more complicated for the labourers, and even Tesco will have to fulfill the requirements of EU laws and legislation of labor movement policy and the principles of Britain’s labor movement policy as well.
Question 3
The industrial competition will further increase the requirement for domestic products that is going to having a negative impact on Tesco. The increment in taxes on products will also pessimistically affect the production and sales services of Tesco and it may think of closing down its headquarter in London.
Tesco will not even think of entering into the business in the UK as the laws have become stricter and the company will have to work according to the laws and regulations of Britain and EU at the same time. The only way through Tesco can carry on their operations is that they comply with the standards of EU and Britain’s law. Tesco can positively request to renegotiate quota shares, as new arrangements are not so effective for the businesses.
Conclusion
The current paper analyzes that Brexit will unenthusiastically affect the businesses throughout the UK including Tesco. According to Tugby (2016), the boss of Tesco, Dave Lewis states that Brexit is going to create a lot of issues for their company (Tugby, 2016). The prices are going to increase; the new taxes will disappoint the stakeholders, and new policies and arrangements can be ineffective for supermarkets like Tesco. The company will possibly think of moving its headquarter from London and will have to renew their agreements with the countries that are part of European Union.
List of References
Stewart, B. & Carpenter, G., 2016. What would Brexit really mean for the UK’s fishing industry?. [Online] Available at: http://theconversation.com/what-would-brexit-really-mean-for-the-uks-fishing-industry-56312 [Accessed 26th July 2016].
Tugby, L., 2016. Tesco boss Dave Lewis insists grocer wouldn’t be ‘disadvantaged’ by Brexit. [Online] Available at: http://www.retail-week.com/sectors/grocery/tesco-boss-dave-lewis-insists-grocer-wouldnt-be-disadvantaged-by-brexit/7008639.fullarticle [Accessed 26 July 2016].
Walker, P., 2016. John McDonnell: Brexit will end free movement of people. [Online] Available at: http://www.theguardian.com/politics/2016/jul/01/john-mcdonnell-brexit-will-end-free-movement-of-people [Accessed 26 July 2016].
