Limited-time offer! Save up to 50% Off | Solutions starting at $6 each  

(PDF) Business Environment: Assignment

Added on - 09 Dec 2020

Trusted by +2 million users,
1000+ happy students everyday
Showing pages 1 to 4 of 11 pages
Business environment
Table of ContentsINTRODUCTION...........................................................................................................................1TASK...............................................................................................................................................1a) Current environmental influence on Apparel Retailers sub sectors...................................1b) Value Chain model to analyse internal business environment of Apparel Retailers industry................................................................................................................................................3c) Adaptations of firm in response to external business environment....................................6d)Usefulness and limitations of Porter's forces model in business environment...................7CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................8
INTRODUCTIONBusiness environment is an aggregate of all internal and external factors that directly orindirectly affects operations of company. These two factor can influence each other for instance,health and safety regulation is external factor that can affect internal environment of a businessorganisation. Business environment include factors like, competitors, suppliers, technology,government activities, economic trends and consumers.In this report, chosen organisation here isASOS which is an online fashion retailer. This company mainly sell mix of their own brandproducts across the globe. This company is having156,000 employees working under them andthey contribute around £4.8in UK economy (Chetwood and et. al., 2014).In this projectdiscussions have been made on porter's five model in order to identify and analyse currentenvironment on taken business sector, value chain model to analyse internal businessenvironment of company and appropriate adaption of a firm. In addition to this, reflection of anacademic model has also been included in this report.TASKa) Current environmental influence on Apparel Retailers sub sectorsBusiness organisation functions can adversely affect by macro and micro environment.Porter's Five forces is a business tool that can help an organisation to improve their competitiveposition. This model effectively analyse the source where the power lies in a competitivesituation. This model is especially designed in order to help managers and financial professionalsto examine macro and micro factors to take best advantage of situation and overcomeweaknesses in order to avoid and mistake.Porter's five forces of competitive position analysis:Supplier Power:There are various sector in power like, power of supplier and ways in which theiractivities affect cost and supplies of an organisation. Meanwhile, there is a large amount ofpower in the hands of supplier, that is they can easily switch to other. For example, there are fewsuppliers in a market and large number of buyers then power is in the hands of supplier (Craneand Matten, 2016). They can easily drive up prices of a product and services according to theirwish. Therefore, it is necessary for Apparel Retailers industry to examine and evaluateuniqueness of their products, their strength and relative size in order to gain competitive1
advantages. It is also essential for this company to evaluate cost of switching from one businesssupplier to other.BuyerPower:Buyers have most important power in their hand which can directly affect functioning ofbusiness. For example,if there are few buyers in market of a product then they have power tobring down prices (Gharajedaghi, 2011). Therefore it is essential for Apparel Retailers industryto consider each and every buyer important to their organisation. It is necessary for company toevaluate numbers of buyer present in market for a product. In addition to this, it is mostimportant for this organisation to examine cost of each buyer from switching one supplier toother. Buyer power can affect functioning of business to lower down their product prices. Forthis is very essential for Apparel Retailers industry to improve quality of their products andservices and create more attractive offers.Threat of Substitution:It is situation where a close substitution of a product available in a market, it increases asituation where a consumer can easily switch their alternative from one product to another. Thereis various factor which influence a consumer to switch these are, price and quality for a relatedproduct. This will affect company in order to reduce their power to attract buyers towards theirproducts and services. This factor can easily affect Apparel Retailers industry to achieveeffective probability and increase the threat of switching consumer's. Availability of substitutescan create more competition in a marketplace and reduce profit potential of an organisation.Therefore, it is essential for Apparel Retailers industry to make their products and services ofsuperior quality and maintain affordable range of price and analyse each and every situation ofmarket in order to reduce this threat (Gilboy, 2016).Threat of new entry:It is a situation when profitable market attracts different types of new entrants. But thereare barriers which can hamper entrance of new entries these factors are, capital requirements,economies of scale, government policies and patents. This will decline profitability rate ofcompany. It become more easy for any new entrants to enter in a market when there are lessbarriers. This factor can adversely affect Apparel Retailers industry productivity as morecomposition results in more production without increase in number of consumer this results inoverproduction and wastage of their products and services. Therefore, it isessentialfor Apparel2
desklib-logo
You’re reading a preview
Preview Documents

To View Complete Document

Click the button to download
Subscribe to our plans

Download This Document