Contemporary Business Environment

This study material provides an in-depth analysis of the contemporary business environment, including macro and micro analysis, competitor analysis, and competitive advantage. It covers the concepts of external business environment, PESTLE analysis, SWOT analysis, and Porter's Five Forces analysis. The material also discusses the objectives, STP analysis, and the importance of auditing the internal and external environment. Suitable for students studying business and management courses.

Contemporary Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Macro analysis.............................................................................................................................1
Micro analysis..............................................................................................................................3
Objectives....................................................................................................................................4
Competitor analysis.....................................................................................................................5
Competitive advantage.................................................................................................................6
STP analysis.................................................................................................................................7
7P's to formulate strategy.............................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
In present era, business environment keeps on changing with passage of time due to
presence of factors including employee engagement, competitors, government regulations and so
on. Contemporary business environment refers to situations as well as ideas existing in present
time within external business environment (Boone and Et. Al., 2019). It describes the concept of
particular system that examines business enterprise as open addition to adaptive system. It
considers macro along with micro environment concerned with business that has dynamic nature.
In this essay, Bullitt-Group Ltd. Is selected as base organisation which is leading mobile phone
company in UK. It covers information about Mobile Phone entity, relevant Business
Environment as well as concepts. It also includes the ways and reasons the company needs to
audit the internal and external environment along with some of the ways through which they can
gain insights about micro economic environment.
MAIN BODY
Macro analysis
Overview of organisation: Bullitt-Group Ltd was established by Richard Wharton,
Colin Batt along with David Floyd in 2009 at Reading, UK (Bullitt Group Ltd. 2019). The
company provides numerous alternatives ranging within high prices till value mobile sets. It
executes its activities in consumer electronics industry. It is among the international mobile
phone addition to electronics business which designs, produces, distributes and sells Bullitt'
mobiles in partnerships with various global brands.
Macro analysis:
Macro analysis is said to the examining circumstances that resides within economy as
whole despite as particular sector. It covers elements of external business environment. The
external business environment is not limited with specific organisation and its factors exists
outside the organisational boundaries and the members of firm have low controlling powers for
such factors. In context to Bullitt-Group Ltd, external environment elements are factors
including political environmental, technological, social, legal and economical. The tool that is
used by organisational managers of respective mobile phone company to audit external business
environment is PESTLE Analysis that is a framework which assists in external environment
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scanning along with framing effective strategies in accordance to dynamic circumstances. The
PESTLE analysis for the mobile company is as follows:
Political: This factor comprises various elements including business lobbying,
corruption, stable politics and unaccountability. Within UK, constitutional monarch have
authority to run the country under influences of system of parliamentary. Consequently, UK's
political system is considered as stable and stable which caters abundance opportunities to
Bullitt- Group Ltd so to perform its operations properly. Furthermore, the legislations that
political systems have governed are favourable with the institution that puts positive effects on
its performance and workings.
Economical: In present era, United Kingdom is considered to have diverse economy that
shows that it has powerful economic position in connection to other nations. Changes in
variables including currency rates, economic cycle, trade exchange rate and interest rates
hampers profitability practices of an institution in other countries (Perera, 2017). Considering
Bullitt- Group Ltd, its manufacturing activities gets disturbed during economic cycle changes
because of acquisition of raw material needs more investments that results in negative effects on
profit reserves of the company.
Social: Social standards of populations residing in United Kingdom are generally high
and dynamic which causes changing situations for organisations due to frequent changes in
attitudes and behaviour of consumers. Managing social class is important or Bullitt- Group Ltd
but the duration of conditions when perception of population shifts from selected brand to
another companies it decreases customer base along with impacts on sales as well as profit
margins in negative manner.
Technological: The market of UK has best technological access. The company like
Bullitt Group Ltd has staff members having specialisation in innovation technology as well as
have quality innovative skills which aids in acquiring emerging technologies to manufacture
mobile phones and devices with updates techniques. It impacts positively on the entity as arise of
some technological changes in consumer electronics sector helps in grabbing opportunities to
utilise advance techniques as well as launching innovations totally different from rivals that
grabs attention of wide customers resulting in improving image of company at global level.
Legal: Political systems of United Kingdom have governed several legislations for
electronics industry. Some are intellectual property laws, digital payment regulation and
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electronic transaction act. In order to operate activities in such industry, it is essential for all
entities to follow these legislations properly. Within Bullitt- group Ltd, all the governed
legislations are followed successfully that impacts positively on business to maintain effective
relations with political authorities addition to properly plan future. At same time, changes in
amendments or provisions of one of the law by government, them modifications in practices
accordance to new laws are to be needs by the company that may hamper its workings and
operations that impacts negatively on business.
Environmental: The government of United Kingdom is now a days concerning more
about its environment and for this, they have started educating society to preserve resources as
well as developed numerous environmental standards (Botha, Kourie and Snyman, 2014). The
government has banned resources including brominated flame retardants and many more that
releases toxins in water as well as air. Bullitt- Group Ltd produces mobiles through reducing
using these resources that impacts on its image in positive aspects.
Micro analysis
Micro analysis is termed to analysing nearby environment wherein firm operates. Micro
environment includes the circumstances that are in direct contact with entity as well as affects
routinised operations. The factors within such environment are properly analysed and effectively
controlled by the business unit. Elements of internal business environment are shareholders,
organisational culture, resources and shareholders. Micro environment of Bullitt- Group Ltd is
audited by using the tool of SWOT analysis. The tool helps in reviewing as well as identifying
pertaining existing strengths and weaknesses of company along with pertaining threats and
opportunities to frame decisions for upcoming time period. The tool is very useful to develop
awareness about all the internal factors. The SWOT analysis for Bullitt- Group Ltd is as follows:
Strength Weaknesses
 Bullitt- group Ltd is more dedicated
towards manufacturing mobile phones with
huge quality in accordance with customer
needs.
 The institution offers differentiated mobile
products through making partnership
 One of the weaknesses of Bullitt-
Group Ltd is its constrained supply
chain because of following
protected policies such as managers
makes wide decisions to choose
marketers to make sales of their
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contracts with other brands globally.
 The company hires experienced manpower
who have potentiality to examine market
needs so that further production and
marketing operations are performed
properly in order to increase sales quantity
of mobile phones.
 By adopting growth strategies together with
generic competitive strategies helped in
manufacturing innovations through latest
techniques.
mobile phones.
 The institution has set high values
for its various mobiles and devices
that reduces its customer base in
relevance to other businesses
(DesJardins and McCall, 2014).
 Selected firm fails to penetrate
properly in numerous
underdeveloped nations that causes
limited market shares within global
market as compared with rivals.
Opportunity Threat
 Business in consumer electronic industry
provides opportunity to Bullitt- Group Ltd
for strengthening its distribution network to
distinct countries.
 The organisation can gain enhancement in
its sales volume by using online mediums
so to deliver mobile phones as well as other
devices to distant places (Greenhaus and
Kossek, 2014).
 Within tough competition, manufacturing
innovations and providing products at low
prices can help in achieving penetration
among underdeveloped nations and
increasing international market shares.
 Within consumer electronic
industry there is fierce competition
that is major threat for Bullitt-
Group Ltd.
 The emerging isolationism is
another threat pertaining with the
entity.
 Threat from penetration of other
brands in the mobile phone market
is also connected with the chosen
company.
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Objectives
Bullitt- Group Ltd has objective of working with leading global brands to manufacture
innovative mobile phones that are not launched by other business and to deliver experience that
others companies can't deliver. In addition, the company has objective of expanding sales
volumes to customers who yet have not used any Bullit's products and expanding distribution
system to reach distant customers (Hamilton and Webster, 2018). The organisation has another
objective of gaining revenue of more than UK £100.3M and selling phones to around all
countries till 2022.
Competitor analysis
Competitors analysis is defined as analysing competitors of the business. It assist
companies to make assessment about strengths along with weaknesses of existing addition to
potential competitors. This type of analysis provides offensive addition to defensive strategies
fro identifying threats with opportunities (Dälken, 2014). It is essential element within business
strategy. The effective tool to analyse competition associated with the company is Porter's Five
Force analyses. The management team of Bullitt- Group Ltd effectively uses the tool to analyse
key competitors and pertaining competitive environment. The Porter's five force model includes
following forces:
Industrial rivalry: In consumer electronic industry of UK, various mobile phone
companies executes their key activities. Some of them are Binatone, Kazam, Vodafone and
Wileyfox. Due to presence of all these companies, there is high competition. Although, there is
no difference in mobile phones of these entities, yet they tries to make differentiation in terms of
services as well as applications offered. Bullitt- Group Ltd competes well in such industry
through always trying to make some thing innovative and unique in its smart phones.
Bargaining power of suppliers: Within the industry, two suppliers plays huge functions
to deliver raw materials needed to manufacture mobile phones. They are hardware suppliers and
software developers. This says that the suppliers bargaining power is high in nature that may
even results in making alterations in decision making by Bullitt- Group Ltd due to different
requirements that suppliers carries.
Bargaining power of buyers: Buyers within the industry have high bargaining powers.
Product differentiation is one of the ideal mechanisms to add values to the buyers. Increasing
choices, new technological trends addition to updates within current technology in mobile phone
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industry provides buyers more powers. In order to enhance sales volume, Bullitt- Group Ltd have
to reduce their product prices as per the negotiations made by the buyers otherwise buyers will
switch to the competitors' products that impacts negatively on their profits and image.
Threat of entry: Consumer electronics industry is already well established industry in
which threat of new entrant is low as huge capital in context to huge manufacturing costs,
development costs as well as research is required to compete within the sector (Arvidsson, 2014).
Other then this, barriers in terms of patents makes it complex for new competitor to enter as they
needs to develop innovative phones before effectively competing (Jenkins and Williamson,
2015J). In context to Bullitt- Group Ltd, the force is low as it is not easy to the small business to
develop themselves in limited time span as well as compete with strong organisations.
Threat of substitute: Availability as well as presence of substitute commodities are great
threat for successful survival of entity as it can enforce a business to reduce its product prices.
Threat of substitute is another force which impacts more on performance of Bullitt- group Ltd.
Threat of substitute in pertaining industry is moderate that do not affect operations of the
company as it have uniqueness in its mobiles and their features that are offered to customers.
Competitive advantage
Competitive advantage is said to condition which puts a firm in favourable as well as
superior business position. These conditions allows the organisation to generate superior margins
as well as more sales as compared with its market competitors. It is attributed to numerous
factors such as distribution network, customer service, branding, intellectual property, quality of
offered products and cost structure. In context to Bullitt- group Ltd, managers uses two kinds of
competitive advantages which are as discussed:
Cost advantage: Herein, entities can attain superior performance through manufacturing
similar quality commodities but at lower prices. When selected institution wants to achieve cost
advantage, they sells mobile phones at same prices that the competitors offers but gains huge
profit margin due to lower manufacturing costs (Jin, Ji and Gu, 2016). Using using leadership
strategy, Bullitt- Group Ltd pursues to attain cost advantages. Higher profit margins assists in
price reductions, huge investments in innovation procedures that ultimately helps in offering
greater customer values.
Differentiate advantage: The another mechanisms that allows a business to attain
competitive advantage. It is achieved through offering unique commodities and at same time
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charging premium prices for it. Company like Bullitt- Group Ltd uses differentiation strategy to
achieve such advantage as well as position themselves more by using branding, new product
development and advertising despite of efficiency or process innovation. The customers have
mentality to pay more for for unique featured and best quality mobile phone.
STP analysis
STP analysis is one of procedure that link overall market with the ways an entity chooses
a particular market to compete. It involves three aspects that are segmentation, targeting and
positioning. It is generally used to make an effective targetted plan. The STP analysis for Bullitt-
Group Ltd is as follows:
Segmentation: It is said to dividing entire consumer market into various homogeneous
groups. In other words, market segmentation is grouping individuals having similar needs as well
as smaller segments showing similar purchase pattern. It is done for product differentiations as
well as targeting particular group to earn more revenues. In context to Bullitt- Group Ltd,
segmentation of its mobile phones are as follows:
Geographic segmentation: Herein, The company segments the entire market as per the
geographic locations (Johnston and Marshall, 2016). They segments the market according to
region and density. In region, they have segmented around 70 countries as well as regions
globally. In density, they have segmented as per urban and rural.
Demographic segmentation: Herein, market is segmented in distinct variable including
income, age, life cycle stages as well as gender. In context to age, they made groups between
population of age group of 18 years to 65 years. In terms of gender. Market is segmented as per
male and female. Students, professionals together with employees are part of their occupational
segmentation.
Behavioural segmentation: Herein, main segmentation aspects are personality, user
status, degree of loyalty and benefits sought. Managers of Bullitt- group Ltd segments the market
into various aspects. In degree of loyalty, market is segmented into switchers, hard core loyals
and soft core loyals. In user status, market is segmented into potential users, regular users and
first time users.
Targetting: When managers of Bullitt- group Ltd are cleared with their segments, they
they understand each character and works on targetting those groups that will deliver them more
benefits. Targeting is very essential in STP analysis. The targetted groups for mobile phones are
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age group of 18 years to 65 years those are students and professionals and have huge brand
loyalty.
Positioning: In this, various aspects are used to place the mobile phones in front of the
targetted groups. Bullitt- Group Ltd positions its mobile phones in front of targetted segments by
using social media promotions, hoardings and direct marketing.
7P's to formulate strategy.
Marketing mix includes set of actions as well as tactics used by an institution for
promoting the products (Khan, 2014). In context to Bullitt- Group Ltd, the 7Ps are as follows:
Product: Bullitt- Group Ltd mainly emphasis on hardware, software along with internet
services. Organisational product range is vast and it manufacturers CAT mobile phones that
includes CAT S41, CAT S60, CAT S61, CAT S31 and so on. The company uses differentiation
product startegy in which they manufactures mobile phones having different features in context
to rivals.
Place: Bullitt group Ltd is headquarters at reading, UK. The mobile manufacturing entity
has established its existence in more than 75 nations. The company has strong presence in 3
nations that are China, USA and UK. The entity foirst opened its retail store at Reading and now
have diverse stores and also provides its phones through E commerce access.
Price: Bullitt group Ltd uses economy pricing strategy in which they sets its pricing
structure low, keeping marketing as well as promotional costs to as possible as minimum. The
flash sales are major components of Bullitt's pricing strategy.
Promotion: Promotion is one of the strong pillar within marketing mix. Promotions of
Bullitt's mobiles are done through TV, social media, direct marketing and so on mechanisms.
The company uses unique promotional strategy to attract more consumers towards the products.
As per the view of its marketers, advertising is one of best promotional form for engaging
targetted consumers for positioning brand.
People: In relevance to Bullitt- Group Ltd, uncountable manpower works and performs
activities in distinct departments like information technology, manufacturing, sales management,
customer relationship management and marketing. To manage internal people, company uses
rewarding system strategy and on the job training activities so that they can properly perform all
the roles in effective ways (Steers and Nardon, 2014).
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Physical evidence: All the information connected with mobile phone are published on
organisational websites along with posts various images as well as videos that acts as physical
evidence for huge customer base.
Process: Bullitt- Group Ltd administrators adopts various methods at entity to integrate
selling exposures. The company sells its mobile phones using networking distribution strategy in
order to sell the volume of phones to distant places.
CONCLUSION
As per the above essay it has been concluded that for an entity understanding changes
that exists in the business environment is very essential if they wants to sustain in market for
longer duration. Organisations devise realistic plans together with ensures effective
implementations to cope up with contemporary business environment. The workings of all
companies depends on its internal and external environment. To audit micro environment,
SWOT analysis is best where as for auditing macro environment, PESTLE analysis is best.
Competitors analysis is done through Porter's Five force mechanisms in order to analyse
competitive level in the industry. An organisation can attain competitive advantages through
either cost advantage and differentiate advantage.
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REFERENCES
Books and Journals
Arvidsson, N., 2014. Consumer attitudes on mobile payment services–results from a proof of
concept test. International Journal of Bank Marketing. 32(2). pp.150-170.
Boone, L. E. and Et. Al., 2019. Contemporary business. John Wiley & Sons.
Botha, A., Kourie, D. and Snyman, R., 2014. Coping with continuous change in the business
environment: Knowledge management and knowledge management technology.
Elsevier.
Dälken, F., 2014. Are Porter’s five competitive forces still applicable? A critical examination
concerning the relevance for today’s business (Bachelor's thesis, University of Twente).
DesJardins, J. R. and McCall, J. J., 2014. Contemporary issues in business ethics. Cengage
Learning.
Greenhaus, J. H. and Kossek, E. E., 2014. The contemporary career: A work–home perspective.
Annu. Rev. Organ. Psychol. Organ. Behav. 1(1). pp.361-388.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Jenkins, W. and Williamson, D., 2015. Strategic management and business analysis. Routledge.
Jin, J., Ji, P. and Gu, R., 2016. Identifying comparative customer requirements from product
online reviews for competitor analysis. Engineering Applications of Artificial
Intelligence. 49. pp.61-73.
Johnston, M. W. and Marshall, G. W., 2016. Contemporary selling: Building relationships,
creating value. Routledge.
Khan, M. A. ed., 2014. Diverse Contemporary issues facing business management education.
IGI Global.
Lal, M. and Davis-Ngatai, P.S., 2018. A competitor analysis.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Steers, R. M. and Nardon, L., 2014. Managing in the global economy. Routledge.
Online:
Bullitt Group Ltd. 2019. [Online]. Available through: <https://bullitt-group.com//>
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