Analysis of Micro and Macro Environment in Mobile Phone Manufacturing Business

This report analyzes the micro and macro environment factors that impact the manufacturing of mobile phone business. It includes insights on internal and external factors, SWOT analysis, PESTLE analysis, and the reasons for auditing the business environment.

BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Insights of Micro environment in which manufacturing of mobile phone business run &
operate.......................................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business environment considers both internal as well as external factors which directly
affects productivity & performance of organisations. It consist elements such as competitors,
government activities, laws&policies, market trends, economic trends and so on this factors
directly impacts on business operations and activities. It is crucial for organisation to analyse to
identify and analyse micro environmental factors in order make effective strategies and improve
business performance (Vercellone and et. al., 2015). The company which is considered for this
current report is Bullitt-group Ltd. The company deals in manufacturing , marketing & selling,
designing of electronic devices such as mobile phones. Bullitt-group was founder in year 2009
and situated in Berkshire, united kingdom. In present report, different models and techniques is
going to use in order to analyse external & internal factors. The models such as SWOT analysis.
PESTLE analysis, Porters five forces will be followed to identify the impact of macro
environmental factors on organisation. Later, it covers the reasons about why companies audit
their internal & external business environment.
MAIN BODY
Background of the Organization:
Bullitt-group is most renowned company in UK that deals in developing ,manufacturing
and designing of electronic products such as mobile phones. The company offering quality
products in market at affordable price. The customer base of company is high as it operates in
more than 75 countries at national as well as international level. Bullitt-group offers CAT mobile
phones to its customers in order to satisfy and fulfilling their needs. The organisation aims to
provide excellent services to customer at low price in order to build positive brand image at
market. Bullitt-group have skilled workforce that helps in maintaining quality and productivity
(Mazzarol, 2015).
Internal environment consist of members, factors, culture and events inside the
organisation that affects and encourage decision as well as behaviour of humans of companies.
Herein, the members are owners, subordinates, shareholders, directors and many more. The
vision and mission of organisations influence the internal environment as it describes the current
and future position of company. In addition to this, organization structure, culture, policies,
physical resources such as machineries, technology , equipments also affect the environment of

business internally. In context to Bullitt-group Ltd, the company culture and atmosphere is
positive that encourage employees to work with full zeal and helps company to attain goals on
time.
External environment consist of those factors that is out of control and outside the
company such as political system, economy, technology, society and so on. Also, this factors
impacts the activities of businesses. External environment is of et types that is micro
environment and macro environment. Those factors which impact directly to the operations and
performance of company is refer as micro environment. Whereas the factors on which there is
no control of company is termed as micro environment. In this, the company exist in market due
to its capability and brand image. With reference to Bullitt-group Ltd., the company is affected
by external factors but maintains its market by offering good services and unique products to
customers. In addition to this, the company uses advanced technology that assist in building
customer base high. Also, company follows all legal policies in order to effectively operate their
functions (Yang and Ng, 2015).
Micro Economic models & concepts
Micro economic is the study of individual behaviour as well as firms also in order to
make decisions about the allocation of resources and practices. Along with this, it is a branch
social science and economics that affect human actions (Liébana-Cabanillas and et. al.,, 2018). In
addition to this, it identifies how an individual make productive & effective decisions and why
the value of goods is different. The various theories of micro economics is mentioned below:
Theories & models of microeconomics:
production Theory: it is refer to a process of converting raw materials into outputs or it
is the analysis of how production takes place. It includes shipping, manufacturing, packaging and
so on . This theory identifies how much good to be produced and the requirement of raw
material, labour, capital used in production process. With reference to Bullitt-group Ltd, the
manager follows production theory in order to know the consumption level of raw materials,
capital and labour.
Utility Theory: It means the degree of satisfaction an individual feels when consuming a
product or service. This theory believes in individual needs & preferences. This theory helps
organisation in identifying the behaviour of people about how they consume and ranked their
products. In addition to this, this theory examines the choices and behaviour of an individual

towards a particular product. How people rank their choices is wholly depend on their priorities
as well as preferences. In context to Bullitt-group Ltd, the upper level authorities adopt this
theory in order to know the preferences and consumption behaviour of customers so that they
can develop and design products according to their customers preferences. This theory will assist
managers to add those features in mobile phones that is preferred and used by its customer's.
Needs or requirement for auditing and examining business environment
To identify opportunities from the market or to enhance performance, it is essential for
Bullitt-group to audit external as well as internal factors of business environment. This will
benefit the company in order to reduce the threats. Internal audit identifies the weaknesses &
strength of company which assist in reducing the level of risk and threats also. In addition this, it
will help mobile company to attain goals and targets within specified time frame. Also, they can
improve their weak areas and gain success rapidly in market. On contrary, auditing of external
factors assist Bullitt-group to know the perception of customers so that they can develop
strategies as per their requirement and preferences. Also, the managers gain knowledge about
new technologies, environmental laws, political issues, social factors and many more in order to
survive in market for long term. With this, Auditing aid companies to reduce the risk level and
attain targets on specified time. If internal and external environment audited appropriately, the
company have the advantage to ace challenges and solve issues in effective manner. In addition
to this, The strategies are planned and implemented successfully which helps in gaining high
profits a well as market share (Leitão and Alves, 2016).
Reasons Mobile Phone manufacturing company audit their Internal as well as External
Business Environments
The techniques and models used to audit business environment
Auditing and examination of macro environmental factors and internal factors affects the
performance and effectiveness of businesses that are operating at national and international
level. With reference to Bullitt-group Ltd. The upper level authorities uses SWOT analysis
technique in order to do audit of internal factors. SWOT analysis involves strength as well as
weaknesses of company which assist in making effective strategies for the growth of Bullitt-
group. The SWOT analysis mentioned below in detail:
Strength Weakness
 The company is famous in developing  Bullitt-group did not enter in

high quality mobile phones which
automatically builds its market position
stronger.
 Bullitt-group follows differentiated
strategy in order to attract more customers
by its unique products.
 The company have highly skilled and
educated staff that assist in developing and
designing quality products which in turns
raises its sales as well as profitability level.
 Bullitt-group uses intense strategies in
manufacturing process so that they can use
innovative technologies in developing
products. This aid company in gaining
market share which further leads to more
profits (Knoke, 2018).
underdeveloped countries
successfully. Which makes company
presence less in markets and decline
its market share. The competitors
have the advantage to enter in this
markets and builds their position.
 The company policy that is charging
fixed price, sometimes creates
dissatisfaction in customers and they
change their buying decision.
Therefore, the sales decline.
 The limited number of distribution
channels is the weakness of Bullitt-
group. As they are not properly able
to reach customers at global level.
The upper level authorities should
develop strategies in order to retain
customers and expand sales.
Opportunity Threat
 Bullitt-group market position is strong, if
it manufactures new product and bring it
in market. It does not need to invest high
amount in marketing activities. This will
lead to save time & cost of company.
 The company have the opportunity to
expand its business at global,level or in
different sectors which increases its
customer base & sales also.
 Bullitt-group have the chance to increase
its sales volume by aware and educate
 The mobile company face issues in
legal proceedings as the laws are
different and vary as per product
standardization.
 Competitors such as shure, Fierece
decrease the market share and sales
volume of Bullitt-group.
 Mobile companies market is
penetrated which sometimes act as a
threat and affects its sales.
 Company non reachability in

people through online media. This will
enhance its market share & revenue.
underdeveloped markets provide
opportunity to rivals to expand their
sales as well as profitability.
From the above analysis, it has been identify that Bullitt-group can overcome with its
threats by expanding its activities in underdeveloped markets that assist in gaining competitive
advantage at marketplace. The strong reputation of company declines the marketing cost if it
brings and manufacture new product in market. With this, Bullitt-group can expand sales and
revenue by reaching to customers worldwide.
The model which the managers used to do auditing of external factors is PESTEL
analysis. It is a tool that identifies the factors that affect growth and performance of businesses.
It involves factors such as political, social, environmental, economical, technological & legal
factors. This helps organization to make those plans which is beneficial and increase
profitability of company. PESTLE analysis of mobile manufacturing company Bullitt-group is
discussed below:
Political factors: The factor that causes companies to change their products, brand perception
ans so on. It involves elements such as corruption, market lobbing, government interferences,
political stability and many more. In context to Bullitt-group, the company is operating in united
kingdom and its political stability is fair and good. This aid companies to execute business
activities effectively as well as appropriately. In addition to this, the rules and policies made by
political parties develops an opportunities for companies to enter into other markets easily. This
will help Bullitt-group Ltd. to increase its market in other sectors also and gain more market
share (Klenke, 2017).
Economical factors: Economical factors such as exchange rates, inflation rates, current
rates, customer willingness, income level effects the companies functions. The economic
position of united kingdom is good. With reference to Bullitt-group, the buying power of people
of UK is good and they are easily purchase those products which are different and of good
quality. The Bullitt-group is famous for its quality and creativity that helps company to increase
their sales and capture more market. With this, if any changes take place in the economic

conditions of UK, this will directly affect the overall manufacturing process of mobile company.
This will sometimes decline the profitability level of Bullitt-group.
Social factors: Those factors that affect the people of societies. It includes factors such as
customs, values, traditions, beliefs, norms and many more factors. The perception of people
towards brands is depending on these factors. The standard of people of UK is high and changes
rapidly according to the new trends and culture. In context to Bullitt-group, the manager of the
company needs to alter their products as per the demand and needs of people in order to survive
in market for long term. If it is not, the company can go in loss which leads to shut down
business operations (Govers and Go, 2016).
Technological factors: In today's world, people prefer to buy those brands which is new
and innovative in market. People of UK like to use advanced and upgraded technology as the
technological access of UK is high. With reference to Bullitt-group, the company uses advanced
technology in their designing and manufacturing process. They offer new technologies in their
product in order to match with people's perception. This will aid company to increase its
customer base and earn high profits. Along with this, the company develops opportunities and
gain competitive edge in the market which directly impacts sales and market position positively.
Legal factors: These factor includes policies , rules & regulations, patents, copyrights,
trademarks and intellectual property rights. The legislations of UK includes acts such as
electronic transaction act, intellectual property act etc. that is followed by companies of UK. In
context to Bullitt-group Ltd, the upper level authorities follow all rules and laws which is made
by the government of UK in order to do functions effectively. In addition to this, If any changes
arises,the company need to alter their process as per the laws so that activities can be executed
effectively. Also, following all the legislation help company to perform activities without
government interruption (Filatova, 2015).
Environmental factors: Nowadays, people are more contributing and concerned towards
the environment. The choices of people is changed as they can shift towards eco-friendly
products which do not harm the economy and beneficial for them also. In context to Bullitt-
group, the company uses environmental friendly products in their packaging and design of
product so that they can contribute towards the welfare of the economy. This will help them to
make positive image in the mind of its customers which in turns raises the level of sales and

customer loyalty. In addition to this, using economical products reduces the manufacturing cost
of Bullitt-group Ltd.
Porter's five forces
A framework that assist companies in identifying strengths as well as weaknesses. The
model was proposed by Michael porter in year 1980 which consist of five factors that analyse the
competitive position of company at marketplace. These forces helps to develop competitive
strategies and gain profit within the market (Dierksmeier, 2016). Porter's five forces might
reduce the profitability, market share, revenue and so on. this five forces of porter are discuss in
detail below in relation to the mobile manufacturing company Bullitt-group which are as
follows:
Bargaining power of buyers: These factor identifies how consumers takes decision of
buying a product and how the perception of buyers effects businesses. In context to Bullitt-
group, the bargaining power of customers is weak as they use fixed charge policy as customers
are not able to low the price that they charge. The customer base of company is strong that
remains customer loyal towards the brand for long time. Bullitt-group spent money in research
and development in order to bring new features in its product which helps company to engage its
customers and builds its brand image stronger.
Bargaining power of suppliers: The power of suppliers in Bullitt-group is high as they
have less distribution channels. The suppliers can take the advantage of charging their fees high
due to its less number of suppliers in the market. Bullitt-group does not have choice rather than
fulfilling the needs of suppliers. The switching cost of suppliers is high and directly impacts the
revenue of company adversely. Therefore, in order to supply its product globally, the managers
of the company has to be maintain strong relationship with its suppliers as it is the hands of
suppliers to increase its sales and profitability.
Threat of new entrants: The threat is low of new entrants because of two reasons. First,
the coat of generating this businesses is high and the second is the brand image of Bullitt-group.
But the threats can be high from the side of existing brands. For instance, Fierece is the biggest
competitor of Bullitt-group and can harm its business adversely by manufacturing products and
bringing new features which is unique in market. More players also effect its business in future,
this will remain the threat weak to moderate. Therefore, it is important for company to strengthen

its market position by offering good services services to customers so that the threat of new
entrants remains low (Brückner and et. al., 2015).
Threat of substitutes: The threat of substitute is high for Bullitt-group. As many new
companies enter in the market and offering products at low prices which attract the customers
and changing their buying decision. In order to maintain its market, the company need to develop
new goods that is different from its rivals. In addition to this, the upper level authorities need to
build effective strategies so that their customers remain loyal and did not shift to other brands.
Bullitt-group can add new feature in its mobile phones so that they can engage their customers
for long time (Becker, 2017).
Competitive Rivalry: The competition level among the competitors in technological
industry is high. There are many competitors of Bullitt-group such as shure, Fierece and so on.
The company quality product and brand image reduce this threat up to some extent. The
manufacturing companies invest large amount in market surveys, research and development in
order to identify customer needs and market trends so that they can make strategies and compete
in market effectively. All these elements creates a high competition among the competitors and
the competitive rivalry high.
Insights of Micro environment in which manufacturing of mobile phone business run & operate.
UK's environment score is 77.6 that makes economy to gain 7th position in 2019. in
addition to this, united kingdom is developed & independent economy and low international
trading cost. The UK consist of 3.4% of GDP and has positioned 5th in global economy. To gain
knowledge and information about insights of micro economic environment, the upper level
authorities of Bullitt-group uses research methods such as survey, observation, experimentation
and so on. With this, the reports, statistics and journals are used by mangers which is related to
the field of electronics. This will help company in analysing the overall market conditions in an
appropriate and effective manner (Agbim, Oriarewo and Zever, 2014).

CONCLUSION
From the above study, it has been analysed that auditing of micro and macro
environmental factors plays a crucial role in developing plans as well as strategies in a proper
manner. The internal factors consist of goodwill, owners, resources, directors and so on. SWOT
analysis assist in examining strength and weaknesses whereas PESTLE analysis helps in
analysing those elements which affect performance & effectiveness. In addition to this, Porters
five forces framework assist company to identify the competitive position and make strategies as
per the market and customer trends.

REFERENCES
Books & Journals
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