Business Environment and Micro Economic Concepts and Models

This assignment focuses on the business environment and microeconomic concepts and models. It discusses the internal and external factors that impact an organization, as well as tools and models used to analyze these factors. The assignment also explores the reasons for auditing the business environment and the ways in which insights can be gained into the microeconomic environment.

A Mobile Phone
Company

INTRODUCTION
Business Environment refers to various internal and external factors that impacts upon
the working of an organisation. The factors cover customers, suppliers, managers, government
and many more which impacts upon the working of an organisation. So it is important for the
companies to take a look over the internal and external factors so as to have a knowledge about
the impacts drawn by these factors on the working of their organisation (Antonaras and
Dekoulou, 2019). The company chosen for the completion of this assignment is Bullitt-group
Ltd which was founded in the year 2009 and is headquartered in Reading, Berkshire, United
Kingdom. The company provides their customers with template, ublist CAT Mobile Phones for
the satisfaction of needs and wants of their customers. So this assignment will start with making
its focus on Micro Environment and end with Macro Environment. There will be different tools
and models which will be used in the assignment so as to know about the impact of internal and
external factors on the working of an organisation. These tools and models are such as PESTLE
Analysis, SWOT Analysis and many more with the help of which it could be known to them
about the ways to remove these issues, their impact and many more. Lastly, the assignment will
also provide the knowledge of reasons of auditing business environment and the ways with the
help of which they could gain insights into Micro Economic Environment.
MAIN BODY
Business Environment and Micro Economic Concepts and Models
Background of the Company: Bullitt-group Ltd is counted under one of the well renowned
brands of UK having a large number of customer base and serving to the customers with their
products and services across the world. The company is aiming at providing their customers with
their products and services at an affordable prices taking in comparison to their customers so as
to satisfy their needs and demands along with covering most of the market share. The company
also provides their customers with high quality products and services at cheaper prices
(Bitkowska, 2019). Along with this, the company also operates with small workforce and over a
number of 75 nations in the world.
Business Environment
It is said to gradual addition of outside expansion to inside powers like providers,
government exercises, client desires, workers, mechanical advancement, financial changes,
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organic market, social patterns, the executives and market drifts that have enormous impacts on
organization with its capacities. At the end of the day, business condition includes occasions,
circumstances and impacts that are encompassed with an association. There are different powers
which are additionally ordered into inside condition and outer condition which includes
unmistakable components having effects on authoritative enacts together with basic leadership.
The natural powers furnishes wide open doors with dangers to the business.
Internal Environment is named to conditions, powers just as circumstances inside
business limits. It principally includes every one of the things that are under the influence of
supervisory crew. It comprises of the components which include presence inside association
limits as it were. In setting to Bullitt-bunch Ltd, the interior condition components are
hierarchical culture, representatives, investors or proprietors, business generosity and assets
(Child, 2015). The person who begins the substance and acquires hierarchical offers share
advertise are said to proprietors. The proprietors of Bullitt-bunch Ltd are Colin Batt, Richard
Wharton just as David Floyd. These individuals have rights to change approaches of business
whenever. The proprietors has fundamental impact with in interior condition of business. The
following key inward component are workers who performs exercises as set by managerial
specialists. At present, chose business have rough 130 representatives who has vital influence in
structuring, producing, advancing just as selling cell phones of the organization with association
with universal brands. Furthermore, hierarchical culture is likewise key interior condition
component which incorporates vision, aggregate conduct of authoritative individuals, qualities,
propensities and convictions joins with activities of individuals. At chose business, authoritative
culture is viewed as establishment of inner condition as it shapes conduct of numerous
individuals alongside moulding accomplishment of firm. Picked element has solid culture which
help it in accomplishing destinations adequately than rivals having feeble culture. Authoritative
assets are additionally considered as a component of interior condition. Assets like physical
assets, budgetary assets, mechanical assets, HR and educational assets are a piece of business
assets. In setting to assets, Bullitt-bunch Ltd has places of business, machines to make portable
bodies and stockrooms to store stock (De Castro, Hogenboom and Baud, 2016). Furthermore,
data assets that organization has are usable information that is required for basic leadership,
monetary assets as far as assets and capital, etc.
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External Environment refers to the environment which impacts upon the working of an
organisation from outside. It isn't restricted with specific organization or division is named as
external environment. The components that lives outside business limits and have low
controlling intensity of authoritative individuals are the components of outer condition. For
example, Bullitt-bunch Ltd works inside hardware industry and henceforth, every one of the
components that dwells inside entire country are outside variables for the organization. Outer
condition components are general variables like political, natural, lawful, practical, social and
mechanical. Political factor is said to by and large political conditions inside nation. In setting to
UK, there is solidness in ideological groups which causes Bullitt-bunch Ltd to work its exercises
effectively by making great relations with government organizations. Thinking about monetary
factor, it incorporates whole financial framework inside which association works the working
(Dogra, 2019). The financial components which impacts choices of chose firm are monetary
cycle, charge rates, populace level and some more. For example, during swelling, associations
need to pay more for procuring assets and for taking care of costs, ware costs are expanded.
Same is with Bullitt-bunch Ltd, to take care of colossal expenses for assembling cell phones,
costs are expanded somewhat. Next component is social measurement which spreads factors like
traditions, qualities and ethics of society. The chose substance produces cell phone relating to
qualities and frames of mind of society individuals where they works key exercises. Innovative
factor includes worldwide mechanical exchange and updation in data innovation. As Bullitt-
bunch Ltd is steady organization which has embraced refreshed procedures for assembling wide
arrangement of cell phones. The organization non-stop screen innovative improvements an as
needs be outline systems for further interests in mechanical angles. Thinking about legitimate
components, different laws like Contract Act, organization law, Industrial relations Ordinance
and a lot more are actualized by UK government. As every one of these laws are actualized by
chiefs of picked business which shield them from uncalled for rivalry alongside performing
reasonable practices to convey best versatile items. Ecological factor is likewise key component
for the outside condition. Business need to appropriately break down common habitat slants in
which exercises are worked. Changes in common habitat like a dangerous atmospheric deviation,
etc. impacts elements of chose firm with wide results.
Micro Economic concepts and models
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Micro economic refers to financial aspects branch which thinks about individual practices
alongside firms basic leadership for designating rare assets just as connections among the two
factors (Eleonora, 2016). The idea of small scale financial aspects manages creation just as costs
inside single market alongside communication among different markets. Miniaturized scale
financial aspects idea clarifies the manners in which an individual distributes the cash pay among
wide needs and expands fulfilment level in the wake of expending accessible assets.
Few models or theories of microeconomics are as follows:
Production Theory: Production is named to techniques for deciphering contributions for
yields. The hypothesis clarifies about standards for settling on choices about the amount of items
are sold and produced. It delineates connection between ware cost with beneficial components
and amounts of items with profitable elements (Fenwick and Wrbka, 2016). It shows connection
among input changes with change sin yield. Likewise, the model depicts greatest yield add up to
be acquired through business by utilizing fixed volume of assets.
The production function shows relationship among physical contributions just as physical
yields with expressed innovation.
Q= f (a,b,c,....z)
In this, a,b,c,..z are inputs like labour, capital and land.
Q is level of output.
In relation to Bullitt-bunch Ltd, the managers utilizes generation theory to recognize the
degree of output they have accomplished with utilization of level of sources of info. Moreover,
with this theory, managers will be able to decide rewards related with inputs. The maker while
creating Mobile telephones looks to choose those mix of contributions just as joining techniques
which will limit costs revenue driven augmentation.
Utility Theory: Utility is said to fulfilment that an individual gets in the wake of
expending wares. What's more, it estimates value that is acquired by customer from explicit item.
According to the utility theory, purchaser will consume those items which will improve their
utility just as satisfaction, considering the pay they have for spending. It gives a structure to
assessing elective decisions that people or associations make. Utility hypothesis expect that the
choice by individual are made according to utility augmentation rule, that says best decision is
what gives most extreme fulfilment to leader. As decisions are compelled by costs just as buyer
pay, objective customer don't make spendings on extra unit of items except if its peripheral
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utility is identical or more than that of unmistakable product (Grant, 2016). Subsequently, item
costs are related with minimal utility just as positioning by customers for decisions are done in
like manner. In setting to Bullitt-bunch Ltd, the organization producers cell phones subsequent to
dissecting the consumer loyalty level and inclinations so clients increases most extreme utility
from the cell phones. By following the hypothesis, advertisers investigations singular conduct for
cell phones and on such premise they positions the decisions ward to inclinations. It further help
the element to make those telephones on mass amount that are generally liked and have capacity
to upgrade
Examining the ways and reasons Mobile Phone company needs to audit their External and
Internal Business Environments
The tools techniques used for auditing of business environment
The auditing of business environment is linked with analysing the impact which are faced
by firm from those factors which are operating at external and internal level. In relation with the
factors which are operating at internal scale tools such as SWOT is used by Bullitt-group Ltd.
This tool is used for documentation of strong points, weak factor, threat and opportunity in order
to make effective decision at work place (Grubor and Marić, 2015). The SWOT Analysis of firm
is executed in detailed as:
Strength Weakness
 The firm named as Bullitt-group Ltd is
mainly used for manufacturing qualitative
cell phones.
 The firm focuses on delivering high
quality differentiated mobile phones in
partnership with other business who are
operating at global scale.
 The firm are having skilled and productive
members of the staff that are valuable in
analysing the trends that are arising at the
market place and according to that
 The chief weakness of firm is that
they are having very less channel of
distribution as they are only
focusing on adopting exclusive
policies. Thus managers are
selecting best marketing sellers for
retailing their products at market
place.
 The firm have fixed higher price for
their goods and this puts a limit on
the number of customer who will
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marketing activities are carried out to
enhance sales of firm.
 The firm have opted for both generic and
intense growth strategies in order to do
innovation in products according to the
new technologies.
purchase their goods (Hamilton and
Webster, 2018).
 In the underdeveloped countries
company is not able to enter
themselves successfully and this is
the main reason behind achieving
limited shares at international scale
in relation with their competitors.
Opportunity Threat
 They are having the best chance for
expansion of their channel of distribution
at different sector across the globe.
 The sales volume of the firm can be
enhanced by using various online
platforms in order to enhance their sales of
mobile phone (Jenkins and Williamson,
2015).
 The mobile phones which are already
existing have achieved great success and
this is considered as the opportunity for
development of new good & enhancement
of product portfolio.
 Bullitt-group Ltd is having tough
competition with Fierece and this is
the main reason behind their decline
in sales volume.
 The firm is having high threat of
marketing penetration of different
brands in the area of smartphone
marketing area.
 The firm is also facing threat of
lawsuit with the area of diverse
market as there are change in law of
product standardization.
 The emergence of independence is
also a big risk for Bullitt-group Ltd
The tools which are used for analysing the external business environment are known as
PESTEL. The management of Bullitt-group Ltd uses this tool in order to carry out its audit in
external environment. This consist of various components which are operating in external
environment. This is the most vital tool in order to scan the factors of external atmosphere thus
framing of judgement according to changes which are taking place in the exterior environment.
The PESTLE investigation for Bullitt-group Ltd is evaluated below as:
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Political: It is the factor which includes elements such as market lobbing, corruption,
political stability as well as bureaucracy as the part of political factor. It has been said that UK
has a constitutional monarch which is mainly done under a parliamentary system. Therefore, it is
concluded that political factor of UK is quite stable and fair which assist in providing various
opportunities to the management team of Bullitt-group Ltd. in order to perform their business
functions in an effective manner (Malik, 2015). Apart from this, it has also been said that all the
rules and legislations which are governed by the political parties are in the favour of chosen
organisation in a positive manner.
Economical: In this context, it has been said that as compared to other countries, UK is
having strong and fair economic position in the world. If there is any kind of change arise within
the factors such as exchange rate, inflation rate, current rates and many more might affect the
overall business functionality. Therefore, it has been said that any kind of modifucations arise
within the economic system might affect the whole process of manufacturing of Bullitt-group
Ltd. Hence, price of materials might get increase and in order to acquire them huge amount of
investment is needed which affects the whole profitability of the company in a negative manner.
Social: It is said that within the marketplace of UK, social standards of individuals are
quite high which might affect the whole functionality of business organisation as there is changes
in customer’s trends and preferences on a continuous basis (Panayides and Song, 2015). In
reference to the present organisation which is Bullitt-group Ltd, it has been concluded that
changes in the human perception toward mobile phones leads to switch the company.
Technological: In the present context it has been analysed that technological access of
the country is quite high. In reference to Bullitt-group Ltd. it is said that workers have high
quality innovative skills as they can easily adopt upgraded technologies. This as a result, provide
positive impact on the working of company at the competitive marketplace which assist them in
order to grab ample number of opportunities at the market. Along with this, it will assist in
producing high quality products which gain various positive response from their customers.
Legal: It is said that, within UK, different types of legislations such as intellectual
property act, electronic transaction act is developed by the political systems of company.
Therefore, it is essential for every organization which deals in electronic sector need to follow all
the legislation in an appropriate manner. In reference to Bullitt-group Ltd, managers of the
company adopt and follow all the laws in an effective manner and develop policies accordingly.
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Similarly, if there is any kind of modifications in the laws arise then the company have change
their techniques so that they can perform their activities effectively (Prowle and Lucas, 2016).
Environmental: In today’s world, each and every organisation show their concern about
the environment so that they can use available resources effectively. For example, there are some
resources which need to be adopted by the management team so that they can secure the
environment. Resources like leads, brominated flame retardants as well as cadmium which
releases toxins among air & water need to be banned so that there must be positive environment
available.
Needs for auditing business environment
The firm named as Bullitt-group Ltd need to focus on making plan in order to audit both
their internal and external business environmental factors as they are beneficial in order to
identify the opportunities which are prevailing at the market area and also threat factor. The
internal audit is conducted for mobile phone industry by analysing the strong factor and
opportunity so that weak areas can be easily overcome thus achieving their desired targets and
enhancing business growth. On the other side in order to analyse these business activity external
auditing is required in order to know about the change which are taking place in perception of
individual, laws, environmental aspect, political system and changes within technology so that
business can retain their presence for long time duration at market area.Apart from this auditing
is mainly used for executing studies, observation and also the risk factor which are harmful
similarly they should be controlled on time in order to achieve good result (Schaltegger and
Burritt, 2017). When both the environment are audited properly then this is beneficial for
managers in order to address all the challenges in an effective manner at Bullitt-group Ltd. The
plans and strategies are also formulated in order to perform all business operations in effectual
and planned way.
Insights about Micro Economic environment within which mobile phone business operate.
UK's environment have 78.9 score which makes the whole economy at 7th position
within 2019. Along with this UK has free, international trading, independent and developed
economy. It has been positioned as 6th biggest global economy consist 3.3% of overall world
GDP (UK's economic environment. 2019). In order to gain detail insights about the micro
economic environment, managers of Bullitt-group Ltd adopt research methods, observation,
survey techniques and many more. Along with this they also use reports, journals and statistics
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related to electronic sector (Sergi, 2019). This as a result assist in identifying the whole market
situation in an effective manner.
CONCLUSION
With the assistance of above mentioned report it has been concluded that it is very
essential to examine the current market situation so that policies and strategies will be developed
in an appropriate manner. The key factors among internal environment includes owners,
resources, owners, goodwill, board of directors and many more. PESTLE as well as SWOT
analysis helps in examining both internal and external environment which helps in developing
strategies and plans according to the changing situations.
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REFERENCES
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Sergi, B. S. ed., 2019. Modeling Economic Growth in Contemporary Russia. Emerald Publishing
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Online:
Bullitt Group Ltd. 2019. [Online]. Available through: <https://bullitt-group.com//>
UK's economic environment. 2019. [Online]. Available through:
<https://www.heritage.org/index/country/unitedkingdom>
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