Business and the Business Environment (Unit 1) L/508/0485
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Added on 2021-02-22
Business and the Business Environment (Unit 1) L/508/0485
Added on 2021-02-22
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Unit Title and Number:Business and the Business Environment (Unit 1) L/508/0485Table of Contents Q 1) Identify the positive and negative impacts the macro environment has upon business operations, supported by specific examples.Q2) Conduct internal and external analysis of specific organizations in order to identify strengths and weaknesses.Q3) Explain how strengths and weaknesses interrelate with external macro factorsReferenceQ1PESTELPESTEL is simple method to analyse the macro environment.Political -Marketing decisions are highly dependent on changes in the political environment.1
The political environment includes: legal regulation by laws; regulation and control of business activities by government and other bodies; political changes in the country and the world.Current laws affect all marketing decisions and actions in companies: on product, prices, distribution and communications.The political environment and political changes generally have a bearing on the conditions for normal business operations. Political stability and predictability are prerequisites for a more successful business.Example: KFC is affect by the government police on regulation of fast food operationThe government control the marketing of fast food ,because of the health.Economic-The economic environment includes the general economic conditions in the country over a period of time that affect the company's ability to serve its customersCurrent economic conditions and changes in the economy are crucial for the success of each organization's marketing strategy. The economic factors cover an analysis of the general state of the country's economy (inflation, gross domestic product, interest rates, exchange rate, unemployment, etc.) and the ratio between small, medium and large business, between private and state property, and the type of competition, etc.Example; Fast food is with high demand ,because of the busy way of life. KFC and other fast foods restaurants sell more of their products ,paid more tax and support the economic of the countrySocial-Culture is too broad a concept. People live in a specific environment that shapes their views, values and norms of behaviour.The cultural environment in which the business operates affects the structure of demand, the needs and preferences of different user groups.This factors includes age, gender, numeracy, natural growth, birth rate, mortality, population migration, educational and social group and etc (Marshall, n.a).Example –KFC should offer Halal (food allowed for Muslims)meat in the region with the Islamic population Technologic-The most dramatic factor determining the lives of people is technology and therefore one of the determining conditions for the effective development of marketing and its successful adaptation to the needs and preferences of the client is the use of the Latest achievements of the scientific and technological progress.The development of modern technologies in the fields of production, communications, transport, etc. radically changes the standard of living of society, and hence the way people meet their needs.The requirements of the consumers for the quality of the goods and services offered,the ways of acquiring them, the conditions and the convenience of their purchase arechanging.Example:Now You can order Your food directly to Your home or office.KFC and a lot of fast food restaurants has their mobile app .With one klick your food arriving within one hour fresh and warm.
Unit 1:Business and the Business Environment NSAB505B1EnvironmentThe environment is a factor of global importance for the economy of each country and affects equally all enterprises in its territory.The threats and opportunities depends of four main trends in the environment; 1)Restriction of raw materials, 2)Increased energy costs 3) pollution 4)State intervention in the process of rational use and reproduction of natural resources and in the protection of the environment.EXAMPLE: Raw material is very important for every company, as it is the basematerial for producing final products. Production of the company can be highlyinfluenced by raw material restrictions and increase in . With this, profitability of thecompany automatically reduces. Legal/LawIn this factor includes health and safety, consumer rights, prohibitions, tax, customs, and any other government policy (Marshall, n.a).EXAMPLE: All these legal policies should be followed by management team of KFC in order to provide safety and security to their employees. As per the above mentioned analysis it has been concluded that, all the aboveexplained external factors highly affect the working of an organisation. Along withthis, it has also determined that if managers of chosen company consider theseelements effectively, it will be beneficial for the growth and image of wholeenterprise. For example, if company implement effective legislations within theircompany, it will aid the company in enhancing their brand name as well as motivatesthe employees working within the company. Like health and safety measures, paytaxes on time and many more can help the company in maintaining theirsustainability for a longer period of time. Along with this, managers should use latestand upgraded technologies so that they can provide high quality products andservices to their customers. Q2IntroductionKFC founder Colonel Sanders is a typical example of the American Dream. Born in 1890 in Kentucky, USA. Harland's father died quite early and only six years old began cooking for his younger brother and sister. He worked as a fire brigade, conductor, insurance agent and others until 1930 when he arrived in Corbin where he bought a small gas station. When Sanders been 40 years old he involve in culinary business .Sanders dedicates much of his time to creating, developing and refining a recipe that later became known worldwide as the Original Recipe of KFC. It consists of 11 herbs and spices and adds unique flavor to the chicken through the special way of preparation - a pressure that preserves its thick aroma and juiciness. The face of Colonel Sanders is today a synonym of the largest and most sought-afterPage 3
chicken products chain in the world - KFC with over 15,000 restaurants in over 79 countries (Biography.com Editors, 2014).KFC is introduced in Great Britain in 1965 in Preston. Now in United Kingdom has around 890 restaurants and over 24 000 employees. It is the first fast food chain which was enter into the marketplace of China and now it is the biggest company with largest market share. KFC provides wide range of fast food products which includes fries, soft drinks, fried chicken, breakfast, desserts and many more. Strengths1) The main advantage of sandwiches offered by KFC is that they are made from chicken meat rather than minced meat that is highly appreciated by consumers.2 ) KFC offers not only different types of hamburgers, but only menus with chicken3 ) They offer home or office supplies, this expanding their potential customers4) Their product range offers more fresh products than their main competitors - Mc Donald’s.5) Try to accentuate not only the freshness of their sandwiches, but to present them as a kind of healthy food - promotional "sandwich crunch - sesame bread, juicy chicken meat, fresh salad, light mayonnaise sauce"6) Good positioning of the labour market among young people - offering flexible employment and part-time work, making them one of the preferred employers amongyoung peoples and learners.7) They don’t offers only sandwiches ,they offer also baked beans ,mash potatoes , coleslaw and etc8) Offer discounts specifically for students who hold internationally valid International students identity cards for discounts .9) Brand awareness is the main strength of the company10) KFC has a franchise and licensing system11) KFC takes care of product quality and high level of service.12)They start to offer vegetarians meal as well (Bhasin, 2017).Weaknesses1)In most of the countries where they operate they are hiring employees with a minimum wage, which creates a bad image for a certain group of people, who do not
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