Business External and Micro Economic Environment

Business external and
micro economic
environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Internal audit................................................................................................................................1
External audit...............................................................................................................................4
How they can gain insights into Micro Economic environment..................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment is collection of citizens, institutions and factors that may as well as
may not be controlled by organisations. Few forces that are part of business environment are
market conditions, government, suppliers, media, conditions of economy, technologies and
multiple companies (Ablaev, 2015). It presents opportunities and threats for all businesses.
Organisational managers properly analyses and evaluates the external and internal environment
so that they can frame relevant strategies or plans to react on the forces. The understand external
and micro economic environment, Nokia is selected that is consumer electronics organisation
established in 1865. it is one of the contributor within mobile telephone industry that has
provided assistance in developing GSM, 3G as well as LTE Standards. The essay examines how
and why Mobile Phone Company needs to audit their internal as well as external business
environment. It further covers how they can gain insights for micro economic environment.
MAIN BODY
Internal audit
Organisational overview: Nokia is one of the Finnish multinational telecommunication,
consumer electronics as well as information technology company that was founded by Eduard
Polón, fredrick Idestam along with Leo Mechelin in the year 1865. the headquarters of the entity
are located at Espoo, Finland (Nokia, 2019). Nokia contributes greatly in mobile telephone
industry and is considered as largest worldwide vendor of smartphones as well as mobile phones.
It continues its operations as major patent licensor in context to various mobile phone vendors.
The company accounts for exporting 21% of mobile handsets and devices to other countries.
Internal environment is also known as micro environment that is composition of
various elements that resides within boundaries of the entity which can affect as well as can be
affected through activities, choices along win decisions of management. The elements within
internal environment are work processes, management practices, corporate culture, stakeholders,
internal resources, manpower and business policies. All these elements directly or indirectly
impacts the working of company. At same time, organisational authorities have full control over
all these factors. The institutions that do not consider elements of internal environment while
structuring strategies or plans ends up with drastic circumstances. In context to Nokia, internal
1