Examining the Reasons and Ways to Audit the External & Internal Environment of a Mobile Phone Company

This report discusses the importance of auditing the external and internal environment of a mobile phone company. It explores the factors that influence the business environment, such as political, economic, and technological factors. The report also delves into the use of SWOT analysis and other techniques for auditing. The case study focuses on Bullitt-group Ltd., a mobile phone company operating in the UK.

CONTEMPORARY
BUISNESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Business Environment & Micro environment ............................................................................3
Internal Audit & Strategy............................................................................................................3
Business Environment.................................................................................................................4
Concepts and models of Micro economy ...................................................................................6
Examining the reasons and ways a Mobile Phone company has to audit their External &
Internal Environment of a Business ...........................................................................................7
Insights about Micro Economic environment within which mobile phone business operate...11
CONCLUSION..............................................................................................................................11
REFERNCE...................................................................................................................................14

INTRODUCTION
Business environment consists of various internal and external environmental factors
which is affecting the functioning of overall company. These factors are those which consists of
various stakeholders such as government, customers, suppliers, managers and others. They all
affect a company in both positive and negative manner. Such all factors are very important for
considering business activities in the organisation (Ghadafi, Toha and Setiabudidaya, 2017). In
this report Bullitt group Ltd. Us the company which has been chosen for analysing its operations
by usage of various tools. This company was established in the year 2009 and its headquarters
are present in Berkshire, UK. This company provides various product & services which can help
them in satisfying needs of their customers. This report is based on usage of certain factors such
as PESTLE analysis, SWOT analysis and various other techniques which can be used by
management team of this company.
MAIN BODY
Business Environment & Micro environment
Background of company: Bullitt-group Ltd. Is a well established brand having presence
in UK. They are mainly providing services which helps in establishing a strong base of
customers (Sriminanggaand Samopa, FSundarapandiyan. and Babu,2016). This company
provides services at affordable prices so that they are able to capture a huge share in market.
They operate around 75 countries across world.
Internal Audit & Strategy
There are some factors in internal environment as discussed below:
Mission & Objective of the company: The major mission of Bullitt-group Ltd. Is to do
regular improvements based on their service level which can help in conducting of work in a
more ethical manner (Rastogi, N.I.T.A.N.K. and Trivedi, 2016).
Financial Resources: It can be said that there are some of the key resources which can
help workers in performing their work in an effective manner. All such have effect on overall
working of the organisation. In Bullitt-group Ltd. Company suffer from availability of sufficient
amount of financial resources which affects their growth & development.

Physical & Human Resources: For carrying down of the whole work in an effective
way. This is essential for Bullitt-group Ltd. so that they are having sufficient physical and human
resources which can help in effective functioning of company.
Management Structure: A company has to adopt a collaborative structure. In case of
Bullitt-group Ltd. There is a hierarchical structure which can help in conducting of work in an
appropriate manner (Widya Yudha, Tjahjono and Kolios, 2018).
Work Environment: It is defined as the business environment in which employees
perform their functions. A positive working environment is very necessary in Bullitt-group Ltd.
So that overall performance can be increased.
Business Environment
Business environment is sum of internal and external factors which influence function of
a business in the competitive environment. Business environment consists of factors such as
financial changes, client requirements, technological advancements, government exercises and
many others (Sarwar, Ramachandran and Hosseinian-Far,2). It is important for every
organisation to lay emphasis on their business environment so that they their overall impact can
be identified in the overall business environment. In external market there are some factors
which impact function of a business in positive & negative manner.
Internal Environment this is the environment which is inside a organisation and this can
be managed and same time controlled by management of any organisation. this consist of factors
which are available with the organisation (Gürel and Tat, 2017). in case of Bullitt-bunch Ltd.
Various internal environment factors include hierarchical culture, investors, generosity of
business and many other such factors. In present business organisation, there are 130
representatives which posses a very high affect on functions of Bullitt-bunch Ltd.
External Environment it can be defined as those factors which cannot be controlled and
ate out of the premises of the organisation. Such elements are out of control of any business
organisation. In case of Bullitt-bunch Ltd this company has to perform their business functions in
the hardware industry which is influenced by all the external forces. Some of external factors
present in external environment are legal, social, technological, economic factors all such posses
a high impact in the internal functioning of any organisation.

Market Structure is defined as that feature of market which is organisational and also
competitive at the same time. Market structure is very helpful in identification of the overall
level of competition in the market. There are different types of structure in market such as
Monopoly market, perfect competition, Monopolistic competition and oligopoly market (Abdel-
Basset, Mohamed and Smarandache, 2018). In context of UK situation of market it can be said
that there is presence of Oligopoly market as there are few big marketers present in this country.
There is also a situation where there are sellers who are covering the huge segment of market and
the main reason is they are having business operation on large scale. In Bullitt-group Ltd, it is
identified that company is operating at a small scale and then also they are experiencing a very
high competition level as they are no having capacity to take high amount of risks.
Laws of Supply & Demand: According to this law there is always a relationship which
exits between buyers and sellers. This is a law which has a emphasis on relationship of a
commodity with its demand in market. In this law It has been said that when a product has high
demand then supply is less and this results into increase in its prices of the products & services in
the competitive environment (Shi, 2016). In this law it has also been said that demand of a
product reduces when prices is increased and in this customers generally avoid buying products
whose prices are rising.
According to law of supply, the higher prices of goods seller can help in strengthening of
economic system but there will be less of customers who are willing to purchase those products.
In present scenario, this law will be applied on Bullitt-group Ltd as this company can provide
innovated, improved and enhanced services to their users in the oligopoly market (Engmann,
Benadiva and Humaidan, 2016). It is important for every organisation that they are offering
something unique which can help thiphem in their survival in the market for a longer period of
time.

From above graph it can be identified that business organisation can earn maxi mum
amount of profits at point where MR=MC. If there is any type of modification or changes taking
place in Mc then this will not be having nay effect on the market price.
Concepts and models of Micro economy
Micro economic can be defined as science which can help in identification of how people
can make various decision (Niu, Song and Xiao, 2017). It is referred to as science which can
help in identification of behaviour of a individual so that decision can be taken according to
wants and needs. Some of theories and models are discussed below:
Few models and theories of microeconomics:
Production Theory:Production us referred to as a procedure for combing various inputs
and raw materials so that required output can be produced for consumption purpose. This is a
process where inputs can be effectively converted into outputs so that needs can be satisfied

according to their customers. Production function is very helpful in identifying a technical
relationship between input & output of a organisation.
Q= f (a,b,c,....z)
In this, a,b,c,..z are various inputs elements such as equipments, labour, land and capital.
Q is level of output.
In present scenario, Bullitt-bunch Ltd, it is said that managers in a company are using
generation theory so that they can identify the level of output which they have been able to
attain with deployment of various resources. Assistance of this theory will be helpful for the
management team so that rewards can be associated with their inputs. In context with creation
and manufacturing of mobile phones managers will be examining all the available resources
which can help in reduction of cost of company (Yan, Xiaand Bao, 2015).
Utility theory: It is said that utility theory is based upon belief of individuals and their
preference. According to this theory buyers consume this products which helps them in
improvement of their satisfaction level. They provide a structure which can help in measurement
of elective decision which have been made by various individuals so that their needs can be
satisfied. Utility theory is a positive firm of theory which is useful in identification of choices
and individual behaviour (Gupta, and Mishra, 2016). In general sense it has also been said that
utility is the amount of satisfaction level which is attained by a individual when they are
consuming a product or a service. In case of Bullitt-group Ltd this company is selling mobile
phones at same time they are also analysing customer loyalty and inclination so that they are able
to maximize the level of satisfaction of their customers. Hypothesis will be very helpful in
investigating the customer's tendency so that various modifications can be made according to
their target segment of customers only.
Examining the reasons and ways a Mobile Phone company has to audit their External & Internal
Environment of a Business
The techniques used in order to examine & audit a business environment
Auditing is a process of studying if various external and internal factors which have a
impact on various business activities and functions of a organisation. In Bullitt-group Ltd,
manager will be using SWOT analysis to make a analysis of internal factors. This analysis will
help in understanding such factors of a company which is having internal as well as external
effects.

Strength Weakness
 Bullitt-group has a competent and
skilled staff who is able to handle all
the issues which arise in the course of
business. This is very helpful in
increasing their productivity &
profitability level of company (Ng and
Bloemraad, 2015).
 This brand is famous for their high
quality products which is helping them
in serving in era of high competition.
 This firm is having very intense generic
strategies which is helpful in launching
of new and innovative technology
which helps in having a competitive
advantage.
 Bullitt-group is having a strategy which
is if fixed price this leads to rigidity and
sometimes affects the choices of their
target customers in a negative manner.
 Overall channels of distribution is very
less in company which leads to limited
presence and declined in their overall
sales.
 Bullitt-group Ltd. has a less reach in
countries which are developing state or
are not at all developed which again
leads to less share of market. This
leads to increase in opportunities for
their competitors and is a big weakness
for Bullitt group.
Opportunities Threat
 Bullitt-group has a chance that they can
expand their operations across various
markets at international level by
increasing their distribution network.
 Usage of growing technology such as
digital media platforms are very helpful
in increasing sales and attracting more
customers.
 The overall brand image of Bullitt
group is very high which makes to
feasible for them in attainment of high
profitability percentage as they can
save their cost by investing very less in
 One of biggest rival firms of Bullitt
group is Fierce which is affecting
position if Bullitt group in a negative
manner and also has a adverse effect on
their overall sales (Nagarsheth, Wicha,
and Zou, 2017).
 This company is facing many challenge
as they are using a price penetration
strategy but then also they have not
been bale to keep their prices
competitive enough with their other
rival companies.
 They are facing lot of problems because

marketing and promotional activities. of many legal formalities which they
have to comply with so that they can
survive in the market.
From above analysis it can be concluded that Bullitt-group is willing to expand its market
globally and this will help them in having a larger share of market and more sales. The overall
bard reputation of this company will also increase if they are launching new and innovative
products with time (Turley, Cremasco, and Astarita, 2015). They are using PESTLE analysis
so that they can analyse their external environment and then make changes accordingly.
Political: This is the factor which is concerned with various elements which are present
in external environment of the company such as political stability, bureaucracy, market lobbing,
corruption etc. all of these have a impact on a company and its operations. In present case of
Bullitt-group Ltd. Managers of this company has positive response which is helping them to
conduct their business functions in a more effective manner. Various rules, regulations, Laws
which are made by the government of their country has to be adhered compulsorily by Bullitt-
group Ltd. Also, for getting long term benefits managers have to make strategies & policies after
political condition have been examined.
Economical: UK is a country which is having a very strong economic conditions across
all the countries in the world. There are many types of modification such as exchange rate,
inflation rate GDP percentage and employment rate which are having a direct impact on the
overall economic stats of this country. In case of Bullitt-group Ltd, any modification has a major
affect on the performance of whole company. This results in to increase in cost of their raw
materials this leads to negative impact on overall mindset of employees as they are not willing to
accept very frequent changes. Company has to make strategies so that negative impact can be
reduced or minimized (Joyce and Fearon, 2015).
Social: This factor is concerned with the social behaviour of people of UK. Every
individual has its own set of preferences, taste which changes with person to person. It is
necessary that every organisation is developing products and modifying their service accordance
with such preference of their target customers. In Bullitt-group Ltd, it is analysed that
management will have to make various changes which are required to be done according to their

target customers demands and requirements. This can help them in increasing their sales by
attracting more customers.
Technological: In UK it is analyses that technological advancements are very high and
this country is always ahead in accepting new technology at a very fats speed. In Bullitt0group
Ltd there is a workforce which consist of highly skilled managers who are continuously involved
in bringing innovation in their products by adopting the latest technology (Williams2015) . This
has lead to having a competitive advantage by this company.
Legal: This factor consists of various legal laws and regulations of a country. In UK there
are many legal laws which have been made by the government,. In case of Bullitt-group Ltd this
brand also has to compulsorily adopt such type of laws in functioning of their business
operations. Also, if there is any modification in such legal laws and regulations then those also
have to be done so that they do not have to suffer from any penalty or fine.
Environmental: It is said that each individual is concerned about their surroundings in
which they are operating. There are some resources which are used by management team in their
production. Government of UK has banned usage of resources like dominated flame retardants,
cadmium,leads,and many other chemicals which is effecting the external environment in a
negative manner (Jiang, Li and Zhu, 2015).
Needs for auditing business environment
Over the years, auditing is said to be one of the crucial element that helps a company in
looking into different range of aspects that are linked with both external along with internal
factors. With the help of this, different number of strategies could be developed to sustain within
the market for a longer period of time. In present context, if it is talked about internal audit then,
SWOT analysis is being performed by the business organisation i.e. Bullitt-group Ltd. This is
where, management team has got to know about both the weaknesses along with the strengths as
well. Here, it can be said that in order to overcome different weaknesses that the company is
having, then there are various strategies, that can be developed and policies as well for sustaining
within the market in a short span (Sart, Agathos and Ma, 2016). On the other hand, if it is talked
about external auditing then there is particularly an analysis that has been performed and i.e.
Pestle analysis by management department of Bullitt-group Ltd. Here, it can be said that for a
business organisation like Bullitt-group Ltd., company has maintained developed various
strategies so that it could effectively sustain within the market for a specified time frame.

Considering both the type of audits in relation to business environment, where management of
Bullitt-group Ltd. will become able to get different types of benefits in relation to profit margins,
sales and productivity as well (Pelto, 2019Maqin,and Hendri, 2017). On the other hand,
considering this audit all the goals and objectives can effectively be attained in specified time
frame.
Insights about Micro Economic environment within which mobile phone business operate.
Based on a particular investigation, UK's business environment has specifically scored
around 78.9 and this has helped them in getting a good position within the strongest economy
practice in the year of 2019 (7th Position). Along with this, it is also said that United Kingdom is
particularly a nation that consists with free international trading, developed various economic
system and also maintained independent working conditions for the businesses at both small and
large scale (Aran, Sirota and Butte, 2015). On the other hand, it is also said that United Kingdom
is holding 6th position among all the global economic conditions i.e. enclosed with approximately
3.3% of GDP. Away with this, there are some of micro economic condition that Bullitt-group
Ltd's management team is required to focus so that it could effectively manage consider
different observations, perform various research methods, conduct interview, develop survey
techniques so that to pull out favourable outcomes.

CONCLUSION
With the help of above mentioned report, it is being summarised that for a business
organisation it is much required to manage both external along with internal factors. Including
this, it is said that there are many ways that can effectively be considered as strategies or the
tools like Swot Analysis or Pestle, which directly aid in meeting the needs and requirements of
customers through pulling out favourable information in specified time frame. Along with this,
considering an effective supply chain management, a firm may directly reach to the next level
through developing effective working conditions.

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