(solved) Business Environment Analysis
Added on 2020-10-22
11 Pages3792 Words97 Views
Business DevelopmentLeadership ManagementHigher EducationMechanical EngineeringPolitical Science
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ReflectiveAccount
Table of Contentsa. Analysis of the micro environmental factors using Porter's five forces model ................4b. Analysis of the value chain analysis of the firm ...............................................................7c. Explanation of appropriate adaptations of the selected firm ............................................8d. Reflection on the usefulness of an academic model ..........................................................9CONCLUSION .............................................................................................................................10REFERENCES .............................................................................................................................11.......................................................................................................................................................11
Business environment is defined as all external as well as internal factors that influencesthe business (Burns ed., 2012). These factors include customer needs and expectations,employees, economic changes, market trends, social trends, innovation in technology,governmental activities, suppliers, supply and demand, owners, etc. The business environmenthelps in identification of business opportunities, resources, assists in planning, profitability ofbusiness and improvement in overall performance and growth of company. In this essay, thecompany which is considered is Britvic. This is a soft drink producer of British and it is locatedin Hemel Hampstead. This company manufactures soft drinks under its own name. This softdrink company was founded in the mid twentieth century in Chelmsford. In this essayidentification of external macro factors that affect business are described. Moreover, analysis ofmicro environmental factors using Porter's five forces model and internal business environmentof the firm is explained. In the end, the explanation of appropriate adaptations of the firm aregiven and reflection on the usefulness of an academic model is described. Organisations operates in surroundings and here it has to perform according to thedifferent factors known as the macro factors. This includes various forces that shapeopportunities and also pose threats to the organisation. The macro forces consists of six differenttype of forces like Political, Economical, Social, Technological, Ecological and Legal. In contextof Britvic, a soft drink company of UK the influence of these factors on business is describedbelow- Political Factors- Every business is limited by the political environment of the country.This factor includes laws, pressure groups and government agencies (Bunse and et. al. , 2011).These influences and restricts sub sector of soft drink in UK to make decisions of business. Forinstance, Britvic organisation has to make decisions according to the political rules nadregulations. Marketing decisions are highly influenced and affected by the development ofpolitical surrounding. Ecological Factors- The ecological factors are important as they are natural resourcesrequired as input by marketers and these affects the marketing activities. Britvic organisation asan example of the soft drink sub sector company focuses on important trends in the ecologicalenvironment. This company emphasis on growing shortage of raw materials and concern towardsrenewable resources.
Social factors- These factors are related to society's basic values, preferences andbehaviours. Sometimes organisations causes culture blunders because of the failure of businessin understanding the foreign cultures. The sub sector of soft drink in UK considers social factorsbefore launching any new product. Technological factors- The emerging technology regularly has to be introduced in thecompany for attracting more number of customers. The sub sector of soft drink in UK shouldintroduce new technology in the process of making soft drink for enhancing it's value in front ofothers. Economical factors- The economic factors are those factors which affect the purchasingpower and spending patterns of the consumer (Bosch-Mauchand, and et. al. , 2013). For instance,an organisation must not start exporting products to a country before estimating that customerscan spend money for the product. Legal Factors- The legal factors are the rules, regulations and norms that are enforced bythe government. These laws are followed by the organisations to implement and operate businesswithout ant problem. The sub sector of soft drink industry in UK follows every rule andregulation while doing business. a. Analysis of the micro environmental factors using Porter'sfive forces model The understanding of micro factors by the organisation is important as these factors affectthe planning and preparation of the long term business strategy. The various microenvironmental factors that affect the business are shareholders, media, suppliers, customers,competitors and employees. These are described below- The impact of employees A business cannot be successful if the company cannot attract targeted customers. Thecompany should identify it's ideal customer types and it should develop and present effectivemarketing campaign for building customer base and generating revenue streams. Availability of employeesthe employees and workers coordinates and operates in producing, selling and servicinggoods or products that operates the business (Abidi, De Leeuw, and Klumpp, 2015). Thepresence of qualified and motivated employees in business is important for economic success.For instance, if the company operates in a highly technical business, it has to provide moresalary for attracting limited and specialised workers.
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