Introduction to the Business Environment

This report provides an introduction to the business environment, covering topics such as the importance of quality, marketing, market segments, marketing mix, and macro and micro environment. It also includes a SWOT and PESTLE analysis of Waitrose Limited.

Introduction to the
business environment

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
SECTION 1.....................................................................................................................................1
a. explanation of importance of quality.......................................................................................1
b. explanation of marketing.........................................................................................................1
c. explanation of needs and wants...............................................................................................1
d. marketing segments and their examples..................................................................................1
e. explanation of marketing mix..................................................................................................1
f. explanation of macro and micro environment..........................................................................2
SECTION 2.....................................................................................................................................2
a. SWOT analysis of the organisation.........................................................................................2
b. PESTLE analysis of the organisation......................................................................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Business environment can be defined as the combination of different factors that are required to
be focused by an organisation (Eling and Schaper, 2017). This report is segregated in two
different sections. First one is based upon explanation of different terms. Second part is based
upon the organisation Waitrose Limited. This assignment covers various topics such as
explanations of marketing mix, macro and micro environment etc. Apart from this SWOT and
PESTLE analysis are also conducted in this report.
SECTION 1
a. explanation of importance of quality
Quality is very important to be focused by an organisation so that all the long-term
business goals such as highly satisfied customers could be achieved. It is essential for a company
to attain competitive advantage for business.
b. explanation of marketing
Marketing can be defined as sharing values and features of specific products with the
targeted audience so that sales could be maximised. With the help of it, organisations attract
large number of customers by making them aware about the products that are sold by them.
c. explanation of needs and wants
Needs are the required elements that should be acquired by an individual to survive. Wants
can be defined as the things that are desired by an individual to have comfort in life. Needs are
the necessities and wants are desires (Gaganis, Pasiouras and Voulgari, 2019).
d. marketing segments and their examples
When a company segregate its market in different parts then it is known as market
segment. It is divided on the basis of different customers who are targeted by the entity. Main
purpose of it is to identify needs of specific group of customers and target them so that growth
for business could be acquired. The different examples of market segments are behavioural,
demographic, psychographic, geographic etc.
e. explanation of marketing mix
Marketing mix can be defined as the combination of four different elements of marketing
which are product, price, place and promotion. All of them are required to be focused by all the
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companies to attain success in future. It is one of the best strategic management tool which helps
marketers to formulate effective strategies for growth of business and meet business goals.
f. explanation of macro and micro environment
Macro environment can be defined as the combination of external forces that are affecting
functionality of a company. Some of the examples of factors of it are political situations,
economic growth, changes in customer’s preferences, technological advancement, competitors,
etc. Micro environment is the collection of internal factors that are required to be focused by an
entity to carry out operations systematically (Prajogo, 2016). The examples of it are engagement
of employees, productivity, funding for the company, liquidity, etc.
SECTION 2
a. SWOT analysis of the organisation
SWOT analysis of Waitrose Limited:
Strengths Weaknesses
The market image of the company is very
good which helps it to generate higher
profits.
Global presence of Waitrose is very low
which is limit its market share.
Opportunities Threats
The organisation can expand its business in
different markets so that it can enhance the
market share.
The level of competition in retail is very
high. There are various competitors of
Waitrose. These are Tesco, ASDA etc.
b. PESTLE analysis of the organisation
PESTLE analysis of Waitrose Limited:
Political Economic
Instability of UK’s political party affect the
business execution of Waitrose because it
results in changes in trade policies.
Unemployment rate in UK is low which is
facilitating Waitrose to enjoy higher economic
growth that help it to develop business.
Social Technological
Taste and preferences of customers changes
with time and it is focused by Waitrose so that
it can meet expectations of customers.
In order to attain growth in the market
Waitrose Limited is using latest technology to
market its products and resolve queries of
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clients in stores.
Legal Environmental
Laws and policies of government changes
frequently in UK which is affecting business of
Waitrose Limited as it is not possible for it to
make modifications in organisational policies
frequently as it may result in lower
productivity (Virglerova, Dobes and Vojtovic,
2016).
Waitrose Limited is taking part in CSR
activities so that it can establish a positive
market image and be at the top position in the
market.
CONCLUSION
From the above project report it has been concluded that all the companies should analyse
the business environment. Different elements that are focused by them are quality, marketing,
market segment, marketing mix, needs and wants of customers. In order to analyse business
environment PESTLE and SWOT could be used.
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REFERENCES
Books and Journals:
Eling, M. and Schaper, P., 2017. Under pressure: how the business environment affects
productivity and efficiency of European life insurance companies. European Journal of
Operational Research. 258(3). pp.1082-1094.
Gaganis, C., Pasiouras, F. and Voulgari, F., 2019. Culture, business environment and SMEs'
profitability: Evidence from European Countries. Economic Modelling. 78. pp.275-292.
Prajogo, D. I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International journal of production Economic. 171.
pp.241-249.
Virglerova, Z., Dobes, K. and Vojtovic, S., 2016. The perception of the state's influence on its
business environment in the SMEs from Czech Republic. Administratie si Management
Public. (26). p.78.
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