Contemporary Business Environment: Analysis of Bullitt Group Ltd

This report analyzes the contemporary business environment and its impact on Bullitt Group Ltd, a mobile phone manufacturing company. It examines the internal and external factors affecting the company's productivity and profitability. The report also discusses microeconomic concepts and models used by the company. The analysis includes a SWOT analysis of the internal business environment and a PESTEL analysis of the external business environment.

Contemporary Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Business Environment and Micro Economic concepts and models............................................1
Examining the ways and reasons Mobile Phone company needs to audit their External and
Internal Business Environments..................................................................................................5
Insights about Micro Economic environment within business....................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Contemporary Business Environment is the vast area where organizations face the huge
competition in the market. Contemporary refer to the same time period where business perform
their duties in order to achieve organizational goals & objectives. In the business environment,
there are various factors which impact demand as well as supply of the company (Boone and
et.al., 2019). There are various internal as well as external factors which impact the organization
in terms of productivity or profitability. In order to gain competitive advantage this report selects
the Bullitt Group Ltd. It is the mobile phone manufacturing company which deals in consumer
electronic items. Company founded in 2009 by various people and they sell their phones and
other electronic items across 75 countries. This project report based on various topics such as
generates understanding on the internal environment and its interaction with external
environment. In addition, it includes the examination of economic environment within the
business which operated in the UK.
MAIN BODY
Business Environment and Micro Economic concepts and models
Background of the company:
Bullitt Group Ltd is UK based mobile phone manufacturing company which deals
internationally. Company established in 2009 by various people such as Colin Batt, David Floyd
and Richard Wharton. Bullitt Group Ltd design, markets, sell consumer electronics or
manufactures in partnership with global brands (Bullitt Group Ltd. 2019). Organization has
worldwide licence Caterpillar Inc. and outdoor orientation consumer’s electronics for Land
Rover.
Business environment:
It is a collection of internal as well as external factors which affect the organization and
managers have too sure before developing any strategy because it can positivity or negatively
impact the profit margin of the company. These external or external factors includes like
customer needs, employees satisfaction, expectation of consumers, demand & supply of goods,
suppliers, government etc. These factors impact the decision making process of the company
which automatically affect the production as well as profitability of the company (Choo, 2013).
Not only have these factors, various events or market situation also affected the business
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environment. In context of Bullitt Group Ltd, managers have to analyse the whole business
environment in order to identify the factors which can generate opportunity as well as threat for
the organization. So before making any strategic decisions managers have to analyse all the
external or internal factors and implement in well manner to achieve business goal & objectives.
Internal business environment: It includes the various factors which affect the business
operations as well as overall performance of the company. Such as employees performance,
management, working culture, employees behaviour etc. In the organizational context, managers
have to adopt various management practices and leadership styles in order to maximise the
individual performance or satisfy them, so they can perform well or achieve organizational goals
& objectives. In context to Bullitt Group Ltd, internal environment elements such as work
culture, shareholders or owners, business goodwill and resources. Owners and top authority
people have power to make policy as well as modify as per the requirement of business
operations. Employees are the another key element where they have to perform as per the
management guidelines, so managers of Bullitt Group Ltd need to ensure that workers are
satisfied with their work because it furthest improve their performance which increase the
productivity as well. Along with this, if any employee lack in any area so they managers have to
identify the weakness and provide necessary training & development program in order to
enhance their skills which improve the overall performance. If organization not focus on these
elements then furthers it negatively affect the production or reduce the profit margin as well.
Another factor is working culture which needs to be friendly otherwise people not feel
comfortable in the workplace which directly influence their work or reduce the productivity as
well (Dominici, 2019). Managers of Bullitt Group Ltd also focus on infrastructure such as office
buildings, machinery for the production of mobile phones, warehouses to store raw material etc.
At the end, managers have to evaluate all these internal factors before making any strategy or
decisions in respect of the organization. They have to evaluate the requirement of financial
resources in order to complete each business task, so they have to provide necessary funds for
the functioning of business operations.
External business environment: It included all the factors which are related to the
outside of the business which influence or impact the business operations. External factors also
break down into two categories such as macro or micro environment. In context of Bullitt Group
Ltd which deals in electronic market so they have to evaluate those external factors which impact
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the whole electronic industry. Generally, external factors include the political, economic, social,
technological, environmental or legal. In the UK, political stability is most important because it
affect the business operations. It include various government policies, exchange rates, trade,
tariff etc. In context of Bullitt Group Ltd, political stability is the opportunity for the company
which helps in making good relations with government agencies. Economic factors include the
overall performance of business and their contribution in the economy for the growth purpose. It
include the various elements such as inflation rate, interest rate, change in demand or supply etc.
So managers of Bullitt Group Ltd have to build their strategy through analysing all the economic
factors which can impact the demand or supply of their mobile phones. In social factors, it
include the cultural trend, demographics, population etc. Here customer taste and preference will
change according to the market demand or population. So Bullitt Group Ltd has to make their
strategies through measuring these factors and include the mobile features accordingly.
In technological factors, organizations adopt latest technology in order to survive in the
market for the longer period. So organizations have to ensure that, they innovate always
something new in their products in order to maintain customer's interest in the company. Such as
Bullitt Group Ltd also include some innovative features in their mobile phones which make them
popular among the customers (Halinen and Törnroos, 2015). In environmental factors,
organization get affected because of its surroundings, impact on climate, geographical change
etc. Before making any strategy Bullitt Group Ltd have ensure that their operational activities
does not harm the environment and any employees’ rights. In legal factors, company have to
follow all the rules, regulation, standards etc. which required in order performing their work in
well manner. Basically, all the above mention external factors influence the business operations
and manager's decision.
Micro Economic concepts and models
In the micro economics, organization study individual behaviours that how it will affect
the decision making process of the business. Along with this, how they allocate the resources in
order to complete their task or achieve organizational goals & objectives. Micro economic
concepts deals with production or prices in the single market and get interacted with other
various markets. With the help of micro economics concept, they explains that how people
allocates their income in order to satisfy needs or increase the satisfaction level after using their
services.
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Models or theories of microeconomics are as follows:
Production theory: This theory used to convert raw material into finished goods and this
theory provides some principles such as make decisions regarding quantity of products which
going to sole or manufacture. Basically this theory show the relationship between price of
commodity and productivity factors where each input will change the results of outputs (Hart,
Rašner and Łukoszová, 2012). Organizations try to utilize their resources in optimum level
which provide them maximum output that further helps in achieving business goals & objectives.
The production function shows relationship among inputs or outputs by using latest
technology:
Q= f (a,b,c,....z)
Herein, a,b,c,..z are inputs like labour, capital, material and land.
Q is level of output.
Managers of Bullitt Group Ltd use this production theory in order to identify that how
much quality of they have to put as input to get the desired outcomes. Along with this, managers
linked the rewards system with outputs if any employee achieves that level of output. Before
starting manufacturing Mobile phones, they have to evaluate the combination of inputs or
methods which provide desired outcomes with minimum cost and maximum profit margin.
Utility theory: This theory is about the satisfaction level of individual which they get
after consuming products & services of the company. It also measures the key benefits which
consumer obtains from the specific products because it helps the managers take future decisions.
According to utility theory, customer only consume those goods which provide them maximum
utilization and satisfaction with the amount which they willing to pay for that product. This is the
framework which also used to evaluate the alternative options for consumers as well as
organisations. This theory assumed that, individual decisions are based on the principle of utility
which maximise the satisfaction level on minimum price. So As per the utility theory, consumer
wills consumer those products which will maximise their utility as well as happiness, considering
the income they have for spending. It provides a framework for evaluating alternative choices
that individuals or organisations make. Utility theory assumes that the decision by individual are
made as per utility maximisation principle that says best choice is that which provides maximum
satisfaction to decision maker (Hilton and Platt, 2013). So managers make their decisions
through analysis their choice for the commodity. Product price also associated with marginal
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utility where they provide ranking as per the choice of consumers. In context to Bullitt Group
Ltd, they manufacturer mobile phones after analysing that how individual satisfy and what are
the preferences for them which force them to increase their utility regarding mobile phones. With
the help of this theory, researcher analyse individual behaviour regarding phones and what are
the preferences they use at the time selecting mobile phones. It help the managers of Bullitt
Group Ltd to manufacture phones in bulk which are on highly demand in the market.
Examining the ways and reasons Mobile Phone company needs to audit their External and
Internal Business Environments
Internal business environment will be audited with the help of SWOT analysis where
Bullitt Group Ltd identifies the opportunity, weakness, strength or threat of the company. All the
discussion mentioned below:
Strength Weakness
 Bullitt Group Ltd manufacture quality
phones and it will be assured by the
various customers.
 Company produce wide range of
mobile phones which satisfy the needs
of individuals.
 Bullitt Group Ltd has skilled people
who help them to achieve their targets
or goals (Hislop and et.al., 2014).
 Company have limited distribution
network which limit their sales as well
as revenue.
 Few mobile phones have high prices
which limit their customer base.
 Due to limed market shares business
enables to expand their business in
international market.
Opportunity Threats
 Bullitt Group Ltd has opportunity to
expand their product reach through
increasing distributional channel.
 Company can sell their mobile phones
by using online platform.
 Bullitt Group Ltd can innovate new
features to target new customer group.
 Market penetration is the biggest threat
for the company.
 Because of high brand names in the
same sector increases the competition.
 Huge competition in the market also
impacts the production as well as
profitability (Honig, 2014).
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External business environment will conduct by using PESTEL analysis which help the
organization to scene all the external factors which can impact the production as well as
profitability. These factors disused below:
Political: These factors include the various elements such as corruption, bureaucracy,
governmental policy, political stability etc. In UK, constitutional monarch runs in the
parliamentary system and here governmental is stable which is the biggest opportunity for Bullitt
Group Ltd to operate their operations in the nation. Along with this, all the government policies
and legislation are in the favour organization which makes them capable to perform their
business activities which positively impact the company.
Economic: In this factor, economy only focuses on the overall profitability of the
company. UK has strong economic position which is beneficial for the domestic company.
These factors include inflation rate, exchange rate, currency rate etc. all factors influence the
productivity as well as profitability of the nation. In context of Bullitt Group Ltd, they get
hampered when economic cycle change due to increase on the price of raw material (Moyer and
et.al., 2012). Managers of the company analyse all these factors and then make decisions
accordingly. Increase in the price of raw material will negatively impact the business.
Social: In the UK, people have high standard of living which impact the social trend. So
organizations have to identify the preferences, demand or attitudes of consumer regarding
products. In context to Bullitt Group Ltd, social class are the main components because change
in the consumer’s taste and preference will impact the demand of Mobile phones because of
variety of features they introduce. People can easily switch to another brand which reduces the
sales as well as revenue of the company.
Technological: In the UK, here organisations have strong technology access such as
Bullitt Group Ltd has skilled people who have excellent quality and expertise in the field of
innovation. Company adopt latest technology for the manufacturing of mobile phones and they
also provide new features through regular updated. It will impact positively because it increases
the demand of new featured mobile phones. With the help of it, Organizations identify the
opportunity by using advanced technique or innovative features (Sehitoglu, Ross and Köseoglu,
2017). It will helps in attracting huge customers or maximise their reach globally to expand their
operations.
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Environmental: Government of UK is more concerned about the environment because
resources are limited and the population will continuously increase. So they wanted to educate
people that they have to utilize resources in optimum level which provide maximum output. In
context of Bullitt Group which manufacture electronic items so they required brominated flame
retardants, lead and cadmium releases toxins which were harmful for the use. So it banned to use
at the time of manufacturing mobile phones. But Bullitt Group Ltd uses these resources in very
less which improve their image or become positive factor for them. So before making any
strategy they have to consider all the factors which impact the sales as well as revenue of the
company.
Legal: It includes various legislations or rules regarding electronic market such as electronic
transaction act, intellectual property laws etc. these are governed by authoritative bodies. Every
organization which related to the electronics industry has to follow these regulations otherwise
government will interfere in their business operations which is not beneficial for them.
Management of Bullitt Group Ltd effectively follows all the legislation which positively impacts
the business. Organizations have to update themselves because any change in the regulation they
have identify and then modify their practices accordingly otherwise it negatively impact the
operations as well as profitability.
Identify the needs for auditing business environment:
Before entering in the market in order to start new business, businessman has to analyse the
entire business environments which make them capable to identify the opportunity as well as
threat for them. In context of Bullitt Group Ltd, they need to audit internal as well as external
business environment to analyse positive as well as negative impact for their business operations.
With help of internal auditing, managers of Bullitt Ltd able to analyse their strength, weaknesses,
threats or opportunities. Along with this, external auditing used to measure those factors which
can impact the demand of mobile phones and further influence the production or profitability.
Auditing is important to measure the risk for the company, so they further make their strategies
accordingly or build policies which make them capable to attract huge customers which generate
high demand (Stolovitch and Keeps, 2019). It further helps in improving productivity as well as
profitability. These are the reasons that Bullitt Group needs to done internal or external auditing.
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Insights about Micro Economic environment within business
In the micro economic environment, there are various factors such as demand & supply,
distribution channel, competitors, market size, share etc. It will depend upon the type of industry
which organization deal. UK's economy scores 78.9 which make them hold 7th position out of
other countries in 2019. UK is independent or international trading economy which can freely
trade in the world. It is ranked as 6th largest international economy which holds 3.3% of total
world GDP (UK's economic environment. 2019). In context of Bullitt Group Ltd, which deals in
electronic industry where they generates $ 12,075 million in 2019. It will be possible because of
technical development and revenue also which expected to increase around 5.2%, market size
approx. US $ 14,812 million by 2023. Currently user penetration of the organizations in
electronic industry is 38.8% and which expected to rise 51.2% till 2023. Office of National
Statistics, 2019 sais that current UK's population is about 66 million that is 86% between the age
group of 12 to 18 years and 94% adults who uses mobile phones.
In order to gain insights from micro environment, Bullitt Group Ltd should selected
research method such as survey, observation etc (Wiseman, 2012). It helps in analysing the
market demand as well as consumers demand which make the able to make their strategies
accordingly.
CONCLUSION
From the above discussion it has been concluded that business environment include the
various factors which impact the production as well as profitability. Internal as well as external
factors need to evaluate before making any kind of strategy in relation to business operations.
Internal analysis will be done with the help of SWOT analysis and external with the help of
PESTEL. Both tools help in providing the various opportunities as well as threats which need to
consider before making any strategy in context of business operations.
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REFERENCES
Books & Journals
Boone, L. E. and et.al., 2019. Contemporary business. John Wiley & Sons.
Choo, C. W., 2013. The art of scanning the environment. Reframing Environmental Scanning,
p.7.
Dominici, G., 2019. From marketing mix to e-marketing mix: a literature overview and
classification. International journal of business and management. 4(9). pp.17-24.
Halinen, A. and Törnroos, J. Å., 2015. Using case methods in the study of contemporary
business networks. Journal of business research. 58(9). pp.1285-1297.
Hart, M., Rašner, J. and Łukoszová, X., 2012. Demand forecasting significance for
contemporary process management of logistics systems. In Congress Proceedings-CLC
2012: Carpathian Logistics Congress. TANGER Ltd..
Hilton, R. W. and Platt, D. E., 2013. Managerial accounting: creating value in a dynamic
business environment. McGraw-Hill Education.
Hislop, D. and et.al., 2014. The process of individual unlearning: A neglected topic in an under-
researched field. Management Learning. 45(5). pp.540-560.
Honig, B., 2014. Entrepreneurship education: Toward a model of contingency-based business
planning. Academy of Management Learning & Education. 3(3). pp.258-273.
Moyer, R. C. and et.al., 2012. Contemporary financial management. Nelson Education.
Sehitoglu, Y., Ross, G. and Köseoglu, M. A., 2017. Business ethics research in the hospitality
industry: topics, methods and trends. International Journal of Bibliometrics in Business
and Management. 1(1). pp.80-96.
Stolovitch, H. D. and Keeps, E. J., 2019. Handbook of human performance technology.
Improving individual and organizational performance worldwide.
Wiseman, J., 2012. An evaluation of environmental disclosures made in corporate annual
reports. Accounting, Organizations and society. 7(1). pp.53-63.
Online
Bullitt Group Ltd. 2019. [Online]. Available through:
<https://bullitt-group.com//>
UK's economic environment. 2019. [Online]. Available through:
<https://www.heritage.org/index/country/unitedkingdom>
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