Auditing Business Environment of Bullitt-group Ltd.

This assignment focuses on auditing the internal and external business environment of Bullitt-group Ltd. using SWOT analysis. It discusses the strengths, weaknesses, opportunities, and threats of the company and suggests ways to expand its market globally.

Assignment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Business Environment & Micro Economic Models & Concepts................................................1
Internal Audit & Strategy............................................................................................................1
Micro Economic concepts as well as models..............................................................................5
Examining the ways and reasons Mobile Phone company needs to audit their External and
Internal Business Environments..................................................................................................6
Insights about Micro Economic environment within which mobile phone business operate...10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
Books & Journals......................................................................................................................12
Online:.......................................................................................................................................13

INTRODUCTION
Business Environment includes different internal as well as external elements which
highly affects the the overall working of the company. These factors consist of suppliers,
customers, government, managers and so on which influence the working of business entity in a
negative and positive manner. Therefore, it is very essential for the management team of a
company to consider all the factors which affect the business activities of the organisation
(Antonaras and Dekoulou, 2019). In order to complete the report in an effective manner, Bullitt-
group Ltd. has been chosen as the base company which is established in 2009. Along with this,
headquarter of the company is loacted in Reading, Berkshire, UK. It is said that company
generally provides various products and services to their users which helps in satisfying the
requirements and wants of customers. Therefore, this assignment help in focusing on both micro
as well as macro environment. In addition to this, there are various tools, techniques and models
used by management team of the company which are PESTLE and SWOT analysis.
MAIN BODY
Business Environment & Micro Economic Models & Concepts
Background of the Organisation: Bullitt-group Ltd. is one of the well known business
organisation or brand within the marketplace of UK. They mainly provide their products as well
as services in the whole wide world which helps them in making their customer base strong. It
has been analysed that company mainly provide services to the users which can easily be
affordable by any one and assist them in order to capture huge market share. In addition to this,
company mainly operates with small amount of workforce in around 75 nations across the world
(Beaverstock, Hall and Faulconbridge, 2017).
Internal Audit & Strategy
It has been analysed that there are various factors within internal environment are going
to be discussed below in an effective manner.
 Mission & Objective of the company: The primary mission of the company which is
Bullitt-group Ltd. is to conduct regular basis of improvement within the service level so
that work can be done in an ethical manner by considering all the factors of environment.
 Financial Resources: It is said that there are various key resources with the help of
which workers will be able to perform their task efficiently. Therefore, all these affect the
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working of an organisation in both positive and negative manner. In the present context
of Bullitt-group Ltd. Company is not having adequate amount of funds which negatively
affect the overall development and growth of the organisation at the marketplace
(Bianchi, 2017).
 Physical and Human Resources: In order to conduct the whole work in an effective
manner, it is essential for the organisation to have enough amount of both human as well
as physical resources in order to conduct each and every task in an effective and efficient
manner. In the present context, all these resources negatively affect the whole
performance of the company as they do not have enough resources.
 Management Structure: It has been said that company adopt collaborative structure and
culture within their organisation which mainly incudes Hierarchical Structure helps in
conducting their work in an effective manner.
 Work Environment: It define as the business environment provided to the employees so
that they can perform their all the functions in an appropriate manner. It has been said
that there is positive working environment within the company which leads to increase
the overall performance.
 Labour Management Relationship: In the present context of Bullitt-group Ltd.
Managers maintain positive and strong relationship with their employees so that they can
get greater opportunities at the marketplace (Bitkowska, 2019). Along with this, they will
be able to get overall career development.
 Technological Capabilities: By the each passing time it has been said that capabilities of
the business organisation is enhancing day by day which provide them ample number of
opportunities at the marketplace. For beating the level of competition arise within the
marketplace, managers need to do various improvement within their technologies aspects.
Business Environment
It has been said that business environment is the sum total of both internal as well as
external factors which highly influence the overall business functions at the competitive
marketplace. Business environment might includes factors such as government exercises,
workers, client desires, financial changes, technological advancement, social pattern, financial
changes and many more (Butler and Ko, 2015). It is essential for the organisation to emphasis on
the business environment as well as on the various ongoing activities which assist in identifying
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the impact which will be developed on a business organisation due to some factors arise within
the environment. In the market, there are different forces and elements which impacts upon the
working of an organisation in both the positive as well negative ways. All these factors highly
affect the overall business functions in both positive as well as negative manner. Business
environment categorised into two ways which includes internal as well as external environment.
Internal Environment is the environment which can easily be controlled and managed by
all the management team of the organisation (Child, 2015). It refers to the factors which are
mainly available within the organisational premises and can easily be controlled by the managers
of the company. In the present context of Bullitt-bunch Ltd, the internal environment elements
includes investors, hierarchical culture, assets, representatives, business generosity and many
more. In the current business organisation, there are around 130 representatives which highly
influence the working condition of the company. All these elements and factors might affect the
overall functions of Bullitt-bunch Ltd. but can easily be controlled and managed by the staff
members.
External Environment define as the environment which mainly arise outside the
organisational premises and can not easily be controlled and managed by management team of
the company. The elements that arise outside the business boundaries and do not have enough
controlling intensity by the authorised team of the company. For instance, Bullitt-bunch Ltd
perform their business functions inside hardware industry which highly influenced by the
external environment. Some of the external environment includes variables such as political,
environmental, legal, social, technological as well as economic condition. If there is any kind of
modifications arise in these factors, they highly influence the business functions in a negative
manner (De Castro, Hogenboom and Baud, 2016).
Market Structure define as the feature of market which can be organisational as well as
competitive. These market structure helps in identifying the competition level as well as pricing
policy adopted by the management team. There are various kinds of market structure which are
Monopoly market, Perfect Competition, Monopolistic Competition Market as well as Oligopoly
Market. In the present context of UK market situation, it has been said that there is oligopoly
market as there are only few marketers in the country. But on the other hand, these are the sellers
which cover huge market share and the reason behind this is that they operates business
functions at large scale (Dogra, 2019). In the present context of Bullitt-bunch Ltd., it has been
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identified that company is mainly operating at small level as there are high level of competition
at the marketplace and they do not have enough capability to take risk.
Laws of Supply and Demand: It is the law according to which, relationship among
buyers as well as sellers of resources will be explained. In general, it has been said that it is the
law which emphasis on the impact about the relationship among the accessibility of a specific
commodity & the demand for which specific product have their price. It is a general context, in
which it can easily be said that when demand of the product is high then the supply of that
product is low, this as a result increases the price of product as well as services at the competitive
marketplace (Eleonora, 2016). According to this law it has been said that, demand of a product
reduces if the price of that product increases and customer avoid buying those products and
services.
According to the law of supply, the higher the price of goods, seller will be able to
strengthen the economic system but less number of customers will be able to buy that product
and services. In the present context, if this law will be applicable within the functionality of
Bullitt-bunch Ltd., company will be able to provide improved, innovated and enhanced services
to the users as in the market of oligopoly, it is essential for the organisation to offer something
unique and different to their customers in order to maintain their sustainability at the marketplace
(Fenwick and Wrbka, 2016).
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With the assistance of above mentioned diagram, it can easily be identified that the
business organisation is earning maximum amount of profits at the point in which MR=MC.
Therefore, in case of modification or change within MC, this will not affect upon the market
price.
Micro Economic concepts as well as models
Micro economic define as a science which helps in identifying the manner in which
people take decisions at small level. It refers to the science which helps in identifying the
behaviour of individual as well as firm in order to take decisions to satisfy their needs and wants
(Fernandes, Crasta and Hans 2018). There are few theories along with models of
microeconomics which are going to be discussed in an effective manner as follows:
Few models and theories of microeconomics:
Production Theory: Production refers to the procedure of combining different inputs or
raw material in order to produce required output for the consumption. In simple words, it refers
to the process where inputs effectively converted into outputs which help in satisfying the needs
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and wants of customers. Production functions helps in identifying a technical relationship among
the input and output of the organisation.
Q= f (a,b,c,....z)
In this, a,b,c,..z are different types of inputs elements such as labour, equipments, capital and
land.
Q is the level of output.
In the present context of Bullitt-bunch Ltd, it has been said that managers of the company
use generation theory in order to identify the degree of whole output which they have attained
with the usage of sources of info (Grant, 2016). Furthermore, with the assistance of this theory,
management team of the company will be able to identify the whole rewards which is associated
with the inputs. Along with this, while creating or manufacturing Mobile phones, managers need
to examine all those mixtures of share just like joining method which helps in reducing the cost
of the company.
Utility Theory: It has been said that utility theory based on the beliefs on individuals
preference. As per this theory of utility, it is said that buyers consume all those items or products
which will help in improving the utility such as satisfaction. It provides a structure in order to
measure elective decisions which is made by the individuals or firms in order to satisfy their
needs and wants. Utility theory is considered as a positive theory which helps in identifying the
behaviour and choice of individual (Grubor and Marić, 2015). In general words it has been said
that Utility refers to the amount of satisfaction an individual person get when they consume
products and services. In the present context of Bullitt-bunch Ltd, the business organisation
manufacture cell phones in order to examine and analyse the loyalty of customers and
inclinations so that customers raise most intense utility from the mobile phones. With the help of
adopting hypothesis, advertisers will investigate the tendency of customers so that they can
make changes in their process accordingly.
Examining the ways and reasons Mobile Phone company needs to audit their External and
Internal Business Environments
The techniques used for auditing & examining of business environment
Auditing consist of internal & external factors that impacts the operations as well as
activities of a firm. In context to Bullitt-group Ltd, the manager of the company used SWOT
analysis at internal level (Hamilton and Webster, 2018). This analysis assist organisation to
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know its weaknesses and strength so that strategies can be planned effectively at workplace.
Below is the detailed description of SWOT analysis of company:
Strength Weakness
 Bullitt-group have qualified and talented
staff who handles the issues easily and
carry its operations effectively. This
increases its productivity as well as
profitability (Jenkins and Williamson,
2015).
 The company is famous for high quality
manufacturing of cell phones, it is easy for
firm to attract new customers.
 The products of Bullitt-group is creative
and innovative that helps company to
compete with its rivals in the market and
expand its operations globally.
 The firm follows intense as well as generic
strategies so that they can bring new
features and technologies in its product
(Malik, 2015).
 The company prefer fixed price
strategy which sometimes changes
the mindset of people while
purchasing its product.
 The distribution channels is less so
that company is not able to reach
globally which decline its sales. As
the company mainly focuses on
exclusive policies (Jovanović and
Miljanović, 2015).
 Bullitt-group lacks to reach
underdeveloped countries properly
which reduces the level of market
share. In addition to this, this will
give an opportunity to competitors
to enter in underdeveloped markets
and builds their position.
Opportunity Threat
 Bullitt-group have a chance to expand its
market globally, as company can also
increase its distribution channel.
 By using digital technologies or using
online platforms for creating awareness
increases the volume of sales & revenue g
Bullitt- group (Vialichka, 2017).
 The brand image of company is high and
 The biggest competitor of Bullitt-
group is Fierece that affects the
market position and profitability
adversely (Nesteruk, 2017).
 The firms face challenges in
marketing its products as the market
in which it deals is highly
penetrated.
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attain success in market that helps firm to
develop new products which is easily
accepted by customers. In addition to this,
this will decline marketing cost of the
company if it brings new product in
market (Panayides and Song, 2015).
 The firm sometimes face issues in
legal formalities as it changes
according to product
standardization.
 Bullitt-group Ltd have high risk of
emergence of independence.
By analysing it has been conclude that Bullitt-group can expand its business globally
which rises its market share and sales. The brand reputation is high in company as it leads to
decline in coat of marketing activities when company launches new product. The organisation
uses PESTEL analysis to analyse external business factors that impacts its performance and to do
auditing of external environment (Philips and Kim, 2016). PESTEL analysis is an important tool
to analyse external environment in order to make changes and improvement in performance of
companies. The PESTLE analysis of Bullitt-group is discussed in detail below:
Political: It refers to the factor which consist of elements like corruption, market lobbing,
bureaucracy, political stability and many more as the most essential part of this element. It has
been identified that United Kingdom has a constitutional monarch generally done under a system
of parliament. This as a result says the political factor of the country is quite stable which in
return help in gaining various number of opportunities at the marketplace (Plakhtiy, 2017). In the
present context of Bullitt-group Ltd. Managers gain various positive response which assist them
in order to conduct their business operations in an effective and efficient manner. It has also been
examined that all the rules, regulations and laws implemented by the government of country are
in the favour of current company. Furthermore, in order to gain long term benefits, managers
need to develop strategies and policies after examining the political condition of the company.
Economical: In the present context, as compare to other countries UK have very strong
economic condition in the whole wide world. It has been said that if there is any type of
modifications arise in the factors such as inflation rate, exchange rate, employment rate and
many more, it directly affects the whole economic condition of the country in both positive as
well as negative manner (Prowle and Lucas, 2016). In the present context of Bullitt-group Ltd.
Any kind of modification might affect the whole performance of the company. This as a result
increase the cost of materials and for this managers need to pay huge amount which negatively
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reduces the profitability of company. With the assistance of knowing various economical factors
company will develop policies and strategies in such manner that they will reduce the negative
impact on the working of business functions.
Social: It has been identified that individuals within the marketplace of UK have high
standards which affect the operations of business entity (Raman, Garg and Thapliyal, 2019).
Managers of the organisation need to develop products and services according to the taste, needs
and preferences of customers so that they will gain various advantages at the market. In the
present context of Bullitt-group Ltd, it is analysed by the management team that there are some
changes within the perception of human being which leads them to change the product company.
For this, managers need to examine the needs and wants of customers so that they can modify
their current strategies accordingly and gain various competitive advantages at the marketplace.
Technological: In the context of UK, it has been analysed that technological access of
the country is quite high which make them one of the most advanced country across the world. In
this case, Bullitt-group Ltd. Managers hire highly skilled staff members so that they can easily
innovate new products by adopting upgraded technologies. With the help of this, positive
advantages will be gain by the company at the competitive marketplace (Schaltegger and Burritt,
2017).
Legal: It has been analysed that UK have various types of legal policies and legislation
which need to follow by each and every individual company to perform their functions in an
ethical manner. Some of these laws are electronic transaction act, intellectual property act and
many more. In the present context of Bullitt-group Ltd, management team of the company adopt
all these laws in an appropriate way and develop policies & strategies accordingly. If there is any
kind of modifications arise within the legal policies than managers need to change their
techniques which affect the overall working in a negative manner (Serb and Cicioc, 2015).
Environmental: It has been said that every individual in today’s world are more concern
about the surroundings. There are some resources which are used by management team in order
to produce their products. Government of UK ban the usage of resources such as leads,
cadmium, dominated flame retardants and many other chemicals which affects the overall
environment in a negative manner (Tabachnikova and Vinokurova, 2019).
Needs for auditing business environment
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With the help of conducting an audit for identifying both internal as well as external
environment factors which as a result provide various opportunities for the company. In the
context of internal audit, SWOT analysis is conducted by the management team so that they will
be able to identify their strong as well as weak areas within given time frame. Along with this, in
order to overcome from weaknesses, managers develop strategies and policies for the same
(Sergi, 2019). On the other hand, in case of external auditing it is necessary for the management
team to conduct this on a regular basis so that they can maintain their sustainability at the
marketplace for a longer period of time. With the help of auditing both the business environment,
managers of the company will be able to get various benefits in order to effectively face
challenges arise in front of Bullitt-group Ltd. After that, effective plans and policies are
developed so that business operations will be done in an appropriate manner.
Insights about Micro Economic environment within which mobile phone business operate.
It has been identified in a survey that environment of United Kingdom scored 78.9 which
as a result help them in getting 7th position for strongest economy practice within 2019. in
addition to this, UK is the country which have free international trading, developed economic
system as well as independent working condition. Apart from this, it has also been examined that
UK is having 6th biggest position in the global economy which includes around 3.3% of GDP
(UK's economic environment. 2019). furthermore, for getting detail insights on the micro
economic condition, management team of Bullitt-group Ltd. use observation, research methods,
survey techniques, interview and many other methods. In addition to this, they also adopt
journals, reports, articles, statistics and many other secondary sources which are associated with
the electronic industry. With the help of this, managers will be able to know the current market
situation effectively and then develop strategies and policies to get positive results (Sims, 2017).
CONCLUSION
As per the above stated report, it is concluded in an effective manner that it is very
important for the management team to examine both internal as well as external market so that
they will be able to develop effective policies accordingly. In this, both PESTLE and SWOT
analysis assist in identifying internal and external environment. Along with this, law of demand
and supply help in identifying the current demand and supply ratio so that positive working
condition will be provided to the staff members.
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Online:
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