Case Study on Business Environment

BUSINESS

TABLE OF CONTENTS
CASE STUDY.................................................................................................................................1
TASK 1............................................................................................................................................1
a) Terminology business environment in the context of Local fish and chip shop................1
b) Business Analytical model and circumstances of fish and chip shop................................1
c) Possible available funding options for relocation of shop.................................................3
REFERENCES................................................................................................................................4

CASE STUDY
TASK 1
a) Terminology of business environment in the context of Local Fish and Chips Shop
Business environment is analysed as the combination of internal and external
environmental factors that affects a company's operating conditions in the market. It is also
analysed as a collection of people, entities and other significant factors that may or may not be in
the control of an organization. It can influence the performance, growth, survival and
profitability (Fernando, 2011). It is considered that every business enterprise operate in different
environment due to the existence in isolation. Such type of environment will affect the business
and itsactivities prominently.
As per the above given scenario, Fish and Chip also operates their business in a
competitive environment which highly affects their operations. Their sales and profitability have
been declining, due to an increase in similar shops selling similar meals at competitive prices.
Apart from this, there are some external factors such as laws and legislation, changing
employment laws, supply of raw materials, increasing loan interest etc. Moreover, it is difficult
for a fish shop to operate in this competition as they are not financially strong and needs some
strategies to relocate their business. There are two business environments such as micro and
macro. Suppliers, employees, competitors and market intermediaries are other major factors that
affect operations of fish and chip shop.
b) Business Analytical Model and Circumstances of Fish and Chip Shop
As per the above given scenario, PESTLE Analysis Model is used to analyse the macro
environmental factors that have a major impact on fish and chip shop. It involves some important
factors that clearly provide an understanding about problems and issues faced by any company in
an external environment.
 Political: These factors focus upon the influence of government interventions on
business. It involves government policies, political stability or instability, tax policy,
labour laws, environmental laws and trade restrictions (Teece, 2010). According to case
study, business of fish shop is also affected by the government policies, increase in taxes,
1