Contemporary Business Environment: Natural, Cultural, and Business Factors

This document explores the natural, cultural, and business factors that shape the behavior of organizations in the contemporary business environment. It discusses the importance of communication strategies, the influence of the natural and cultural environment, and the impact of economic factors. It also includes a PESTLE analysis and a SWOT analysis of Glaco Smith Kline (GSK), a UK-based pharmaceutical company.

Contemporary Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
Natural, cultural and business environment that shape the organisation behaviour...................2
PESTLE analysis.........................................................................................................................4
SWOT analysis............................................................................................................................5
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
The contemporary Business environment is considered as very competitive and having
huge pressure from modern marketing by which they can go behind producing effective
products, price to achieve best possible outcomes. Herein, it is essential for every marketer to
develop best communication method with potential stakeholders by which they can achieve best
advantages within competitive scenario. Therefore, every author in regards with marketing team
says that every organisation consist inevitably cast in the role of better communicator as well as
promoter. By having such kind of skills they are able to implements on those strategies by which
they can achieve its targeted goals within short period of time (Barr and et. al., 2018). This is the
way in which various communication strategies comes from individual's mind for making their
business attractive in front of their customers or competitors. Whereas, business environment
consist several kind of factors like internal or external includes employees, clients, customers,
government policies, demand and supply etc. along with external factors like political, legal,
economical, social and so on. Those assorted factors directly influence entire business activities
of functions of particular firm negative or positively both. But at the same time by having such
kind of influence from so many factors always encourage firms to gain further business
opportunities for betterment of future. It is helpful for firms to gain huge profit with successful
growth of business. Thus, it makes business attractive or sustainable within competitive scenario.
For running several kind of operations and functions together within firm always needs to have
ample number of resources so that they can make or provide services accordingly. It is essential
for business to regularly focus on entire marketing strategies as well as current and future trend
to reduce negativity from various tools and techniques. With the help of business can become
more successful within dynamic nature (Hamilton and Webster, 2018).
Present assignment is based Glaco Smith Kline company short form is GSK. It is UK
based firm which is generally operating worldwide with the turnover around £27.9 billion. On
the other side, this firm has been divided in three parts like pharmaceutical, biotechnology as
well as consumer goods. While segmenting its market within various aspect than they faced large
number of issues or problems as environment consist different types of factors like economic or
non-economic. Generally this firm produce ample number of medicine for every diseases.
Moreover, discussion will be based on cultural, business, natural environments that shape the
entire behaviour of selected organisation.
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Natural, cultural and business environment that shape the organisation behaviour
Natural environment: This type of environment considered as ultimate source of so
many inputs like raw materials and energy in which firms are bale to use their productive
activities. On the other side natural resources within the country or region determine as a basic
factor that identifying overall business activity in it.
Cultural environment: It refers to the set of practices, beliefs, behaviours and customs
that directly influence several kind of people along with their standard of living. Thus, this
cultural environment shapes so many ways in which every individual able to create unique ideas
along with influencing ideologies as well as personalities (Gruber and et. al., 2015).
Business environment: It refers to the combination of individuals, other forces and
institutions all that are outside and control different types of business organisation but depends
upon entire working performance as well as sustainability of business.
From the above mentioned different businesses of environment directly influencing
several functions and activities of GSK thus, they influenced by them. As business environment
includes internal or external factors so that respective firms is highly required to use sufficient
resources by which they can their business successful along with able to implements on so many
aspects for further improvement in future.
Economic environment impact on the business-
Economic environment considered as important part that plays crucial role in order to
consider several factors that have direct impact on business in both way positively or negatively
as well. By focusing on different types of economy environment business can have great
knowledge about current and future factors by which they can get huge impact on negative way
(Vita and Case, 2016). Therefore, it is necessary for them to produce several kind of policies that
increase business value and sustainability at marketplace. Moreover, in 2016 British has been
announced several issues from European Union. At that time majority of people was wide due to
referendum of economy that influenced business. Thus, firms have been workers together to
overcome assorted issues. In regards with GSK company as it deals with different types of
medicines so that this firm got influenced while procuring its raw material for better
manufacturing procedure from assorted regions. On the other side, due to Brexit respective firm
has been influenced from so many factors of this issue, those are mentioned below:
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Economic systems: It refers to the several kind of resources used by firms within the
competitive scenario for providing best products to economy. Thus, it is necessary for firms to
execute on different types of plans or ideas in order to achieve targeted business goals. For
further improvement, firms should use large number of resources while manufacturing different
types of services or products. With the help of this they can attain predetermined goals without
facing any issue. On the other side income which is considered as most essential factor within
economic environment (Matijević, Vrdoljak and Filipovıć, 2015). It indicates ability of
customers like how they are spend money on products given by the marketer. Therefore, despite
having higher income customers will not spend so much on several goods as per their desires.
Another one is inflation rate which is an economic indicator of an economy. It refers maximising
prices without increasing in wages always gives low result into buying power of customers. Due
to these assorted issues, GSK mainly needed to focus on those factors that influence business in a
negative way. In order to improve this process they should develop better ways for execution of
large number strategies to overcome such kind of ways so that they can easily attain high goals.
Having positive impact at workplace they can face such kind of economy issues like tax rates,
inflation and many more. At the same time unfavourable economic condition GSK face few
issues but applying unique concepts and theories they are able to overcome these sorts of factors
to achieve positive outcomes in a successful manner (Malik, 2015)(Lee, J2015).
Economic policies: It consist fiscal and monetary policies that identifies future goals of
an organisation. Due to this, firms are needed to formulate several kind of strategies by which
they can maximise growth of economy through attaining competitive advantages through
focusing on geographical area. Therefore, it is essential for several firms to adopt better economy
policies by which they can easily manage or control entire financial procedures used by firms to
achieve targeted objectives within short period of time. In regards with GSK they are opting few
policies for running business successfully.
Economic conditions: It refers to the present status of economy within the particular
country or region. These sorts of economic conditions always influence entire cycle of business
in which firms operates their activities in a proper way. Thus, these sorts of conditions have
direct impact on firms in both positive or negative manner. In relation with GSK they generally
develop best products as medicines in order to satisfy consumer's needs and wants in an effective
manner.
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PESTLE analysis
It refers to the analysis of a particular concept within the principles of marketing.
Furthermore, concept of marketing used by firm as a tool in order to track different types of
environmental factors due to launch new business and any goods or services at marketplace.
With the help of conducting PESTLE analysis companies can get best ways to bring innovative
thoughts in order to reach high goals or objectives. This analysis in regards with GSK, has been
given below:
Political factors: This factor plays significant role as it identifies factors those have been
influence GSK along with its profits within the certain market or country. As this brand deals
with drugs in so many countries along with expose itself within the several kind of political
environment as well as politics systems risk (Kurtz and Berston, 2019). As political factor is
stable within UK so that it is important for this company to take hazard for developing legal
framework for contract enforcement. By having several kind of rules or regulations from
healthcare sector they are needed to focus on product labelling so that they can fulfil drug
manufactures requirement.
Economic factors: This factor consist savings rate, inflation rate, foreign exchange rates
and interest rates along with overall economic cycle that identifies demand aggregate investment
within the economy. This factor directly impact on competitive scenario of respective firm as
they are drug manufacture so that they needed to have effective growth rate by which customers
can easily spend money on their drugs. Therefore, GSK should have stability of host country
currency. It helps them to achieve competitive advantages and bring improvement within health
care sector (Nikitina and Lapiņa, 2019).
Social factors: Culture of economies and so many ways of doing such things that
influence overall organisational culture within the environment. There are several values, beliefs
and attitudes of population plays significant role in how marketers at GSK, they will understand
several needs of their consumers towards medicines. Therefore, respective firm should focus on
demographics and populations skills in order to develop better society along with they should
concentrates on education standards within GSK industry. Through reviewing such kind of
factors they can make people health better and attain predetermined goals (Namvar and et. al.,
2018).
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Technological factors: Technology is considered as fastest way for firms by which they
can have large number of techniques in order to achieve targeted goals and objectives in an
appropriate manner. In regards with GSK, there are huge techniques or tools formulated by this
firm to gain competitive advantages in an effective manner. Thus, they have positive impact
from this environmental factor so that they can easily offer drugs to people for developing value
chain structure within the health care sector. Thus, it is necessary for this respective organisation
to adopt some unique strategies by which they can develop best possible strategies through
implementation on new techniques. On the other side, adoption of new tools and technologies
always makes this firm different from others so that they can achieve competitive advantages
into medical sector.
Legal factors: Within the so many countries, there are different types of legal framework
along with institutions in order to protect intellectual property rights of company. Therefore, firm
should be careful determine before entering new market that can lead to theft of firm's thus, it
shows the competitive edge. There are few legal factors used by GSK while entering new
marketplace like employment law, health and safety law and so on. All these assorted laws have
direct impact on firms positively (Tarabasz, Selaković and Abraham, 2018).
Environmental factors: There are several factors that have different types of norms and
environmental standards that have direct impact on organisation's profitability. Within the
country often states can influence several kind of laws and liability. In regards with GSK, it is
necessary for them before entering new market as well as starting new business within the
existing market in which firms should identify different types of environmental standards that
comes under the climate change, weather, air and water pollutions and many more. For
improvement they needs to consider all these things so that they can achieve desired goals along
with business profits in a proper way.
From the above mentioned PESTLE analysis it can be said that, if GSK continuously
focusing on different types of factors they can develop more better strategies in order to
accomplish desired goals on time. Therefore, by having positive influence from those factors
they can meet desired needs and achieve fixed goals (Schaltegger and Burritt, 2017).
SWOT analysis
Strengths: Main strength of GSK is to earn high quality towards goods and services
across the globe. On the other side, people have huge trust on this brand as GSK always put huge
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investment or affords in order to develop or research towards manufacturing drugs for any kind
of sickness. Therefore, GSK considered as one of the best drug distributor who always advertise
their products and use qualitative as well as quantitative in an appropriate manner. Therefore,
strength of this organisation is based on its reputation that always find better to conduct specific
research, development and so many things.
Weaknesses: Every large organisation always have weakness side in which GSK also has
weak point. Thus, the biggest weakness of this organisation is most of the dugs patents are
running out it can expire sooner and later. It means drugs will be provided by cheapest rates it
direct influence overall cost strategies of GSK (Renwick and et. al., 2016).
Opportunities: There are different types of opportunities for GSK that always increase
profit of firm in a perfect mode. Due to rapid change within the illness world there are ample
number of opportunities for this organisation to find new drugs in order to satisfy people wants
and needs in an appropriate manner. Another opportunity for this firms like they can expand its
business into the BRIC countries. By having such kind of opportunities they increase overall
productivity of firm.
Threats: One of the major threat of GSK is high competition from other pharmaceutical
organisations like Astra Zeneca, Novartis, Pfizer therefore, competition is so much high. There is
another threat of this firm is maximising desire for genetic drugs due to tough situation of
economy globally along with cheaper price. Thus, it always depends upon consumers and their
future plan. Therefore, there are large number of competitors of this firm, for betterment of this
they should make few factors to achieve organisational goals.
According to the above given PESTLE and SWOT analysis this can be said that if GSK
always able to follow several kind of legal rules and laws given by government always influence
entire business activities of respected firm. Another side, by using this analysis in a particular
way they can achieve positive outcomes in an appropriate manner. Thus, it is necessary for
respective firm to use these assorted analysis by which they can generate effective income with
high sales and revenue. Further it helps them to gain competitive advantages at marketplace.
Thus, it shape organisation in an significant way (Raziq and Maulabakhsh, 2015).
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CONCLUSION
From the above mentioned report is has been concluded that, business environment is
refers to the competitive aspect that is coping with the modern marketing which help in
developing a good product. This will directly contributes in improving the overall performance
of company at market place. In addition of this, business culture is also refers to the crucial
aspect that influence the who business activities and its operation as well. This is the reason that,
company needs to analysis the business environment before expanding their business activities.
In also includes economics environment impact by which company can sustain within the market
for longer period of time. Furthermore, contemporary business environment also increase
competitive and dynamic aspect that is affected through the changes that occur within the
environment. For this, every business organisation who wants to expand their business need to
evaluate as well as analysis the surrounding that directly support in improving the positive
performance and at the same time also minimising the negative impact. In this various tools and
aspects are implemented by the company to evaluate the overall culture and its impact. In
addition of this, PESTLE analysis is also play a crucial role in evaluating the factors that affect
the company and its activities as well. As this tool also determine the legal, environmental social
and many more factors that affect on the organisational function. With the help of this, business
organisation can easily operate their functions that improve the productivity and performance of
company.
Apart from this, it has been concluded that SWOT analysis is one of the important tool or
determining the actual execution or performance of company. By using this, organisation can
evaluate its growth level and at the same time also identify the threats. It can be reduce the
negative impact over the operations functions. As market economy function and the role of
government also define their huge impact because it is necessary for the business to follow the
same. If company can implement all the rules and regulation while running their enterprise then
they easily accomplishing its positive and competitive image. As GSK is effectively follow all
the different type of rules and regulations that established by government of the country. With
the assistance of this, company can attain their targeted goals and objectives in stipulated time
frame. It also provide huge opportunities to the company in spreading their awareness that invite
more and more consumers over its services. It positively affect the firm in positive manner as it
support in developing competitive image. Therefore, it is crucial for company to follow all the
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rules that set by the government authorities to attain competitive success at global market and
make their unique image in-front of customers. This will assist in inviting more and more
consumers towards its services. It become effective in in increasing market share and
profitability level. All these can be contributes in making strong customers base that support in
generating higher success at competitive market place.
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