Business Environment Factors and Company Performance Report

This report analyzes the importance of business environments for company success in international markets, focusing on the internal and external factors influencing business operations. The report uses the Driscoll model to detail the student's learning from the MGT501 course, focusing on a case study of Just4you Surprise Planners. It examines micro and macro environments, including suppliers, competitors, customers, economic and political factors, social and cultural influences, and technological advancements. The analysis emphasizes the importance of understanding these factors for strategic decision-making, particularly for aspiring entrepreneurs. The report references several academic sources to support its claims and outlines the impact of various environmental elements on business performance, including ethical decision-making and internal environmental management.

Running head: BUSINESS ENVIRONMENT
BUSINESS ENVIRONMENT
Name of the student:
Name of the University:
Author Note:

1BUSINESS ENVIRONMENT
The aim of this paper is to discuss the importance of business environments in the
successful operation of the companies in the international markets. Through this module I have
gained knowledge about some very important matters related to the internal and external
business environment. In order to understand the environment and its impact upon the business,
it is important to understand the definition and functions of business. It is any kind of
commercial activity that connect the buyers and sellers depending upon that is offered within the
products and service area (Ibrahim & Harrison, 2019). Business can be sole
proprietorship, partnership, corporation, and Limited Liability Company which can be both local
as well as international. In this paper, all the studies regarding this course will be analysed
focussing in the company named Just4you Surprise Planners based in New Delhi.
This particular course has been exciting for me as I have gained in depth knowledge
about the impact of business in the economy and growth of any market and consequently the
country. Through this course, outlined with journals, texts and various case studies I have grown
knowledge that there are certain factors which impress the business by making its operate more
successfully. Here are external factors in which the political situation, economy, legislation,
technological growth, social situations and economical environments regulate the growth. In
addition to this the customers, competitions and suppliers play important role in their
functionality (Chang et al., 2019). Similarly, internal environment includes the factors like
employees, corporate culture, physical resources and organization structure.
In order to explain what I have learnt from this module, I will be following Driscoll
model so that I can detail what I have learnt and how I will be using this in the future
development. The external environment that I have understood from this course are related to the
suppliers, marketing intermediaries, competitors, publics and shareholders. On the other hand the

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macro external environment includes the situation of the markets. All of these factors have
effective control over the policies, strategies and operations of the companies. The larger
business firms keep on competing with one another not only for increasing sales but also for
other reasons. In the monopoly market there is no existence of competitors therefore, the
customers d not get scope for bargaining reading the price or for that matter the quality of the
products and services (Bhandari & Bhandari, 2017). On the contrary, the normal market in any
part of the world has a lot of competitors regarding the selling of the products, pricing structures,
product quality and most importantly the popularity of the products or services. For doing this
the competitors follow various techniques like competitive pricing, advertisements and quality of
the products and services. The more the competitors are operative the more the company feels
pressurised with their performance (Pererva, Nagy & Maslak, 2018).
The suppliers and marketing intermediaries take care of the arrangements of the raw
materials, selling and reaching the customers more effectively. These people play important roles
in the stocking and transporting of goods from their production sites to their destinations. In tese
the supply of raw materials are uncertain, the firms cannot enhance their productions (Kuria &
Kimutai, 2018). Similarly when the market intermediaries fail to match the capabilities of the
firm, the customers cannot get their ordered products delivered. In both the cases, the firms fail
to perform ultimately and face loss.
The customers are the most important factor who effectively regulate the performance of
the firms. They show their demands based on which the companies produce gods and services.
They are important because they invest their money in buying the products and using those
hence it is essential that the companies keep their customers happy all the time. The service
providing companies like Just4you Surprise Planners, therefore feel the pressure more as

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providing services according to the capability of the customers. The company acts in many ways
to attract potential consumers so that it can gain competitive advantage.
The micro environment that affect the operations of the firms are economic and political.
The economy of a country relates to the GDP and per capita income of the people that enhances
the buying capacity of the people. In case of Just4you Surprise Planners, it is operating in the
Indian market where the people have a mediocre buying capacity that supports the business
(Bhandari & Bhandari, 2017). In addition to this, the economic environment is supporting
growth of the company hence it is surviving. The political factors relate to the corruption level of
the ministers in the state or national level. The political system assures that business will be done
in a perfect market where the issues regarding law and order and other legislative issues will not
be present.
The social and cultural factors manipulate the companies by putting heavy social costs.
Depending upon culture, the advertisements are to be changed. This regulates whether people
have high demand for good quality products and services or they will be focussing on the price
structure (Sokolitsyn, Ivanov & Sokolitsyna, 2019). The technological advancement in the
market helps the company to communicate more effectively with the customers and make the
production process more effectively.
In the case of Just4you Surprise Planners, proper information about the market like that
the Indian market needs to be analysed before starting the business or for that matter improving
the performance. The knowledge of the company gets increased in analysing the factors affecting
the business environment. As I want to be an entrepreneur in the near future I need to gain
knowledge about these related categories so that before making any decision for my own
company, I can assure that risks are not creating barriers for my company. The ethical decision

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making process can motivate me to gain knowledge about the various laws and facilities
available in the market so that I can strategize the methods while operating in the market. These
will only ensure that I will manage the internal environment especially the employees on the
organisation

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References:
Bhandari, M., & Bhandari, S. (2017). Impact of Business Environment on the Performance of
Nepalese Business Organization. Journal of Interdisciplinary Studies, 6, 54.
Bhandari, M., & Bhandari, S. (2017). Impact of Business Environment on the Performance of
Nepalese Business Organization. Journal of Interdisciplinary Studies, 6, 54.
Chang, L., Lu, H. J., Lansford, J. E., Bornstein, M. H., Steinberg, L., Chen, B. B., ... & Pastorelli,
C. (2019). External environment and internal state in relation to life-history behavioural
profiles of adolescents in nine countries. Proceedings of the Royal Society B, 286(1917),
20192097.
Ibrahim, E. B., & Harrison, T. (2019). The impact of internal, external, and competitor factors on
marketing strategy performance. Journal of Strategic Marketing, 1-20.
Kuria, E. W., & Kimutai, G. (2018). Internal organization environment and project performance
in construction firms within nairobi city county, kenya. International Journal of Project
Management, 3(1), 1-13.
Kuria, E. W., & Kimutai, G. (2018). Internal organization environment and project performance
in construction firms within nairobi city county, kenya. International Journal of Project
Management, 3(1), 1-13.
Pererva, P., Nagy, S., & Maslak, M. (2018). Organization of marketing activities on the
intrapreneurship. Mind Journal, (5), 1-10.

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Sokolitsyn, A. S., Ivanov, M. V., & Sokolitsyna, N. A. (2019, September). Cognitive Model of
Organization Activity in the Consulting Market. In European Conference on Innovation
and Entrepreneurship (pp. 988-995). Academic Conferences International Limited.