Business External and Micro Economic Environment

Business External
And
Micro Economic
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Business environment and micro economic concepts and models.....................................1
2. External Audit....................................................................................................................8
3. Limitation of Micro Economics.........................................................................................9
RECOMMENDATION.................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
In modern time, business environment is changing and fluctuated with the time as well as
nature in order to conduct different types of operational activities that happen within organisation
(Aćimović and et.al., 2014). Contemporary business environment is defined as on-going
procedure that move due to different elements such as sudden changes in demand and supply,
customer interest and changing taste & preferences. There are defined different elements like
suppliers, inner and external factors, competitors that present impact on the efficiency of an
organisation. To understand the concept of the report selected organisation, Alcatel Lucent Nokia
this is a French global telecommunication company. The report identify all the micro
environments, organisation can consider different aspects such as supply as well as demand,
internal analysis, elasticity etc. These aspects impact on the business profitability in positive
manner.
In this report discuss on different topics like supply and demand curve, price elasticity,
internal auditing and PESTLE of the selected organisation. Along with, there are consisting of
external audit in which involve SWOT Analysis that enables to understand the strength,
opportunity, weakness and threat of the business.
MAIN BODY
Overview of company:
Alcatel Lucent Nokia is a French company that operate business activities in global
telecommunication equipment. The company headquarter established in Boulogne Billancourt,
France. It was founded in 2006, December 6 by the merger of France based Alcatel and U.S.
Depended Lucent. On November 3, 2016 Nokia acquire the company and merger with the
network of Nokia division. The company has been dealing into different areas such as mobile,
fixed, IP technologies, converged networking hardware, software and services with different
operations across the 130 countries.
1. Business environment and micro economic concepts and models
Business environment is set of the internal and external activities which is defined how to
environment fluctuated due to different activities. It is consisting of government activities,
suppliers, workers, technological modification, requirement of customer, changes in economy,
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market aspects etc (Darlington, 2017). Due to cultural trends require to strategic planning and
analysis competitive activities that show impact on the procedure of business in enormous way.
Demand: It is a economic principle where consumer demand of particular products and
services from the company. To fulfil the requirement of existing products and services known as
the demand in the term of economic. As per the demand of product customer willingly pay the
amount in favour off item bought. The link between quality of product and price is shown by the
curve which is change as per the demand of product and changes of product price. It is effective
economic principle that defined that when the price of product increases so demand of products
goes down and when price of product decrease so demand of the commodity is increase. So both
have negative relations and both factors impact on the on price for longer period of time
(Cardoso, 2017).
As per the above curve it is understanding that quality of commodity bought on effective
price which is known as demand curve. This graph presented that price and goods have negative
relation. If price increase so quality goes down and if price decrease so quality demand increase.
Supply: It is part of the economic principle where the amount of goods commercially
available. The term of supply defined that when customer demand the products and company
supply on time that particular products. In essence, value and amount create where involve
positive relationship because when price increase so supply increase and price decrease so
supply decrease (Kalitanyi, 2019).
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