Contemporary Business Environment

This document provides an overview of the contemporary business environment and its impact on organizations. It discusses the internal and external factors that influence business operations, including the microeconomic concepts and models used in decision-making. The methods and reasons for auditing the external and internal business environments are also examined.

Contemporary
Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Business Environment & Micro Economic concepts as well as models................................1
Examining the methods and reasons Mobile Phone organisations required to audit their
External as well as Internal Business Environments..............................................................5
Insights about Micro Economic environment within which mobile phone business operate.8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
Books and Journals...............................................................................................................10

INTRODUCTION
Contemporary business environment is define as quite dynamic, challenging and
competitive. It is considered as a dynamic business environment as it has ever changing mood
which affects the overall trading procedures. It includes some essential factors such as
employees, customers, supply & demand, regulations, management and many more. In order to
increase the understanding about contemporary business environment, Bullitt-group Ltd. Is
chosen as the base organisation (Antonaras and Dekoulou, 2019). It is an international mobile
phone & consumer electronics business organisation founded in the year 2009. Headquarters of
the company is located at Berkshire, UK and is established by David Floyd, Colin Batt and
Richard Wharton. Company mainly sell their products in around 75 countries and mainly have
their presence in some key markets which includes UK, China and USA. This report includes an
overview of the Mobile Phone Company, in addition to this both internal as well as well as
external business environment are going to be examined in an effective manner. Furthermore,
how these business organisations gain insights into Micro economic environment.
MAIN BODY
Business Environment & Micro Economic concepts as well as models.
Organisational Overview: Bullitt-group Ltd. is an international mobile phone business
organisations which is one of the well known brand across the whole wide world. It is an entity
which was founded in the year 2009 who mainly design, sell, manufactures and market
electronic devices or gadgets in association with global brands. It main purpose or aim is to
provide high quality mobile phones to their customers which can easily be affordable by them
without doing any kind of compromise with the quality (Bullitt Group Ltd. 2019). Bullitt-group
Ltd. mainly operates within consumer electronic industry and sell their products and services in
around 75 nations. It is an organisation which has very limited staff members which helps them
in order to perform their goods and services at the marketplace.
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Business environment
It refers to an environment which includes all the internal as well as external factors
which highly influence the overall functioning of management, customers, staff members,
demand, supply as well as business regulations. It has been said that any kind of external
addition in the internal forces such as government rules and regulations, suppliers, customer
expectations, economic changes, employees, supply and demand, technological innovation,
social trends and market trends influence the performance as well as functionality of a business
organisation. In general, business environment includes different types of situations, events or
occasions which affects the overall process of business in both positive as well as negative
manner (Bitkowska 2019). There are different types of forces which are classified into internal
and external environment which consists of various factors who might influence the activities
along with functioning of business organization together with decision making process. Apart
from opportunities business environment provide various threats to the organization operating
their business functions at the marketplace. Both internal as well as external environment are
going to be discussed and analysed below so that positive decision can be developed.
Internal environment refers to the elements, conditions, situation as well as forces arise
within the boundaries of business entity. Generally it includes all those things which are
controllable and manageable by the staff members of the company. Therefore it has been
analysed that all the factors which are available within the organizational boundaries are known
as internal elements. In the present context of Bullitt-group Ltd, some of the most essential
internal environment includes culture of the organization, staff members, owners and
shareholders, resources, equipment’s and so on. Owners are the one who start the business entity
and develop a strong market share to beat the competition. In reference to Bullitt-group Ltd
owners of the company are Colin Batt, Richard Wharton & David Floyd. These are the personnel
who have full right and authority to modify strategies and policies of the company any time to
meet the expected goals and objectives. Hence it can clearly be said that owners plays very
essential role within the organization and develop strategies to attain their goals effectively
(Child, 2015). Another integral part of the company includes employees who mainly perform
their functionality according to the set standards. If we talked about present organization, there
are around 130 staff members who plays very significant role in order to manufacture, design,
sell and promote products of the company at the marketplace with the help of international
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brands. In addition to this, another significant element is organisational culture which consist of
values, vision, habits as well as beliefs of individuals who are working in the organization. In
context of the chosen business entity, foundation of the company is it’s organisational culture
which assist in shaping the behaviour and attitude of many people together with shaping the
success of the firm. Apart from this, strong culture of the organization helps in accomplishing
organizational objectives in an effective and efficient manner. Furthermore, internal environment
includes resources which consists of technological, financial, physical as well as human
resource. All these resources help in attaining goals and objectives of the company in an
appropriate manner. Bullitt-group Ltd has their own office premises, machines and equipment in
order to manufacture products, warehouse to keep the stock safe and secure for longer period of
time (De Castro, Hogenboom and Baud, 2016). All these internal environment elements together
help in achieving predetermined goal and objective within stipulated time frame and in effective
manner.
External environment: It refers to the environment which is not limited with a specific
company and are not easily controllable by the management team of the company. Such factors
does not involved within the organisational premises but are available at outside the company
known as external environment. For example, Bullitt-group Ltd. perform their business functions
within electronics industry therefore, each and every elements available in the whole nation
considered as external factors. External environment factors includes social, political, legal,
environmental, economical as well as technological. Political factor are those which includes
overall political situations arise within a country. In this context, it has been analysed that within
UK there is political stability which assist in operating business functions in a successful manner.
Along with this, companies make positive relationship with the government as they help them in
gaining various opportunities at the marketplace. If talking about economic factor, it is one of
the most essential factor as it consist of the whole economic system of the country where the
organization operates its business functions (Dogra, 2019). Some of the key elements which
highly influence the decision making process of the company are tax rates, economic cycle,
population level and so on. For example, at the time of inflation it has been said that companies
need to pay more amount of money in order to purchase resources and for covering the overall
costs, prices of goods and services increased. This example best suits on Bullitt-group Ltd, as
they require huge amount for manufacturing mobile phones, this as a result price of the products
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are increased. Another element is cultural dimension which includes various factors such as
values, customs, morals of society and many more. Therefore, it is required by the management
team of selected company that they must consider each and every aspect so they can develop
products according to the requirements and demands of consumers. This will assist in attracting
more and more customers towards their organization at the marketplace which increases the
overall profitability of the company. In addition to another external environment factor,
technological factor plays very crucial role as they largely influence decision making procedure
of an organization while they perform their business functions at the marketplace (Eleonora,
2016). Bullitt-group Ltd is one of the most stable organisation who adopt various updated
technologies in order to produce high quality products and services. Along with this,
management team of the company monitor on a regular basis about the new modifications in
technology and develop strategies for investing more to gain competitive advantage. It is also
very essential for the management team to consider all the legal factors while doing business
operations some of these laws and regulations includes company law, contract Act, Industrial
relations and so on. All these laws must be implemented within the workplace by the managers
in order to protect themselves from any kind of unfair practices and beat the competition in a
positive and healthy manner. This as a result help them in order to perform their business
functions in an appropriate and fair way at the competitive marketplace. At the end one of the
most significant element is environmental factor which is required to examined by the
management team while doing business operations. Proper evaluation of environment along with
trends and requirements of customers assist in conducting activities in positive manner. It has
also been seen that if any kind of changes arise in environmental factor it might affect the whole
decision making process of the organisation.
Micro Economic concepts as well as models
Micro economics defines as a branch of economics used to study the behaviour of
individual and decision making of organization to allocate scared resources as well as
interactions between both the variables. It has been said that the according to the concept it deals
with manufacturing and pricing policies within a particular market and interaction between
different markets. Micro economics explain in detail manner about the methods in which an
individual allocates their income in order to satisfy their requirements (Fenwick and Wrbka,
2016).
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Few models & theories of microeconomics
Production theory: Production defines as a process of converting raw materials into
finished outputs. This is the theory which discuss about the principles of developing decisions
about the overall quantity of products manufactured and sold. It shows about relationship among
products price with productive elements & quantities of goods and services with productive
factors. It discuss about the relationship between input changes along with change in output.
Apart from this, it is the model which describes maximum output amount which is obtained with
the help of business by adopting fixed volume of elements and resources.
In the present context of Bullitt-group Ltd, managers adopt production theory in order to
examine the level of output or results they have attained by the application of inputs. Along with
this, managers identify rewards linked with the inputs. While produce mobile phones by the
manufacturer they identify those combinations of input and output which will assist in reducing
overall cost of the company and maximises the profitability (Grubor and Marić, 2015).
Utility theory: Utility defines as the satisfaction of an individual get after consuming the
products and services. In addition to this, it measures the usefulness which is obtained by users
from a particular product or commodity. According to this theory, customers will consume only
those products which will satisfy their requirements and desire, also considered the level of
amount they have spent to buy the products and services. Along with this, it also assumes that
decisions taken by people are made according to utility maximisation principle, which says that
the best choice is that which give maximum amount of satisfaction to the users. In reference to
Bullitt-group Ltd, manufactures of the company produce Mobile phones after examining the
level of satisfaction of customers so that they can maximize the utility after buying the products.
With the help of this theory, marketers identify individuals behaviour towards mobile phones and
then develop products according to their preference. Along with this, it will also provide
assistance to manufacture that they can produce phones in bulk quantity which are most
preferred by the customers.
Examining the methods and reasons Mobile Phone organisations required to audit their External
as well as Internal Business Environments
Methods for business environment auditing
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For examining the internal business environment, managers of Bullitt-group Ltd adopt
SWOT analysis so that they can examine the internal capability of the company. SWOT analysis
for Bullitt-group Ltd are going to be conducted as follows:
Strength Weakness
 Bullitt-group Ltd produce high quality of
products which are mobile phone
considered as one of biggest strength of
the company (Hamilton and Webster,
2018).
 Along With this they adopt differentiated
method in order to gain competitive
advantage at the company where they
provide different and unique mobile
phones to their customers.
 Management team of Bullitt-group Ltd
adopted intense growth strategy along with
generic competitive strategy which
provides innovations in products.
 Apart from strength, one of the
biggest weakness of Bullitt-group
Ltd is that they have very limited
distribution network. For example,
managers need to examine carefully
about the marketers. (Fenwick and
Wrbka, 2016).
 Prices of the products are quite high
as compared to other competitors
which is considered as the weakness
for the company.
Opportunity Threat
 Bullitt-group Ltd gain range of
opportunity in order to expand their
business channel in different countries.
 Along with this by using online methods
for doing business functions might
increase the overall sales and profitability
of the company.
 High level of competition is
considered as biggest threat for of
Bullitt-group Ltd.
 Along With this, emerging
isolationism is also a threat for the
company.
 Company faces high level of threat
of market penetration by other
companies deals within same
industry.
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On the other hand, in case of external business environment managers of Bullitt-group
Ltd use PESTLE analysis so that they can effectively conduct external environment audit. It is
considered as an essential framework used by management team in order to scan external
environment as well as to develop effective strategies as per the changing environment. PESTLE
analysis are going to be discussed effectively for Bullitt-group Ltd are as follows:
Political: It is the first and foremost element which includes corruption, political stability,
bureaucracy and market lobbying (Jenkins and Williamson, 2015). It has been identified that
UK have constitutional monarch mainly run under a parliamentary system. Therefore, political
system of UK is quite fair as well as stable which creates various opportunities to Bullitt-group
Ltd. Along with this, all the legislation and law governed by the political parties provide positive
impact on the overall functionality of business entity.
Economical: It is identified by the management team that UK have very strong economic
position at the world as compared to other countries. Any kind of essential changes within
elements such as exchange rate, currency rate, tax rate, inflation rate provide positive results to
the organization dealing within the country. The procedure of manufacturing of Bullitt-group Ltd
highly affected if there is any kind of modifications arise in economic cycle due as the prices
increases and to buy them requires huge amount of investment which affects the overall
profitability (Malik, 2015).
Social: In UK, the social standards of individuals are quite high which might change the
overall situation of business entity. In the present context of Bullitt-group Ltd, social needs of
individual changes on a continuous basis which requires development of new ideas and strategies
by the management team. In order to gain positive response from customers it is essential to
fulfil all the needs and requirements which leads to increase their overall sales and profitability.
Technological: As compared to another countries, UK has strong technological
advancements. In relation to Bullitt-group Ltd staff members of the company are highly skilled
and expertise in order to use new and updated technologies which provides positive response to
the company. If there is any kind of technological development arise within the country, they are
capable enough to adopt updated techniques. This will assist in developing high quality mobile
phones so that large number of customers will be attracted towards the company and make
positive brand image across the whole wide world.
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Legal: There are different types of legislations within UK which includes intellectual
property laws, electronic transaction act and so on developed by the government of country.
Each and every organisation deals within electronics industry needs to follow all the legal
requirements in order to perform their functionality in an effective manner. In reference to
Bullitt-group Ltd, managers follow all the legislations in an appropriate manner so that they can
develop positive relationship with the political system of the country (Panayides and Song,
2015).
Environmental: It has been said that government of UK is highly concerned for the
whole environment and for this they create awareness among individuals. For example, some of
the harmful resources such as lead, brominated flame retardants and cadmium creates negative
toxins among water and air which need to be banned by the government used at the time of
producing mobile phones. As a result, Bullitt-group Ltd need to reduce the consumption of such
resources which affects the whole environment.
Requirement of auditing business environment
Bullitt-group Ltd. required to audit its both internal and external business environment as
analysis of environment assist in examining the available threats and opportunities for the
company. In the present context of chosen mobile phone organisation, internal environmental
audit is useful in order to know their strength as well as weaknesses. Along with this, there main
purpose is to overcome the weaknesses and threats which might affect there overall business
functions in a negative manner (Sergi, 2019). Similarly, external environment auditing is also
needed so that understanding about changing laws, political systems, technological up gradation
can be identified within given time period and managers will take decisions accordingly. In
addition to this, auditing is essential in order to study, observe or assess the risks which might
affect the functioning or activities as well as control them within stipulated time frame. If both
internal and external environment will be examined effectively then the managers can positively
address all the challenges and create strategies & policies for smooth functioning of business
operations.
Insights about Micro Economic environment within which mobile phone business operate.
Micro economic environment are the factors which includes suppliers, competitors,
demand, distribution chain as well as market size which are associated with a specific sector. are
concerned with particular industry. It has been identified that the economic environment of UK
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scores 78.9 which develops the economy at 7th freest in year 2019. UK itself has international,
independent trading along with developed economy. It is the country which is ranked at 6th
position at largest international economy consist of 3.3% GDP of the whole world (UK's
economic environment. 2019). It has also been analysed that Bullitt-group Ltd. deals in electronic
industry which generates overall US$12,075m within the year 2019. According to office of
National Statistics, it has been seen that the present population of UK is around 66 million. It is
also examined that out of which almost 86% people among the age of 12-18 years as well as
94% adults make use of mobile phones on a daily basis. In addition to this, with the assistance
of technological development, overall revenue of such sector expected to increase at 5.2% by
2023. Till then, the consumers penetration of organization within the sector is 38.8% and is
expected to grow till 51.2% by 2023.In order to gain insights on micro economic environment,
managers of Bullitt-group Ltd adopt various research methods, observation tools as well as
survey techniques. Along with this, they also use different types of journals, statistics and
reports which consists of all the required data.
CONCLUSION
With the help of above discussion, it has been concluded that it is very essential to
understand the changing business environment so that management team will be able to develop
new strategies and policies. Appropriate analysis of the environment assist in examining
available threats and opportunities. It has further been identified that there are two main types of
business environment which are internal and external. Both these environments highly influence
the functionality of enterprise in both positive and negative manner. Apart from this it has also
been discussed that internal environment includes staff members, resources, owners, goodwill,
board of directors as well as culture which can easily be managed and controlled by the
management team. But on the other hand, external environment includes technological, social,
economic, political, legal and environmental factors which are not controlled by management of
the company.
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REFERENCES
Books and Journals
Antonaras, A. and Dekoulou, P. eds., 2019. Cases on Corporate Social Responsibility and
Contemporary Issues in Organizations. IGI Global.
Bitkowska, A., 2019, September. Business Process Management vs Modeling of the Process of
Knowledge Management in Contemporary Enterprises. In International Conference on
Business Process Management (pp. 319-323). Springer, Cham.
Child, J., 2015. Organization: contemporary principles and practice. John Wiley & Sons.
De Castro, F., Hogenboom, B. and Baud, M., 2016. Introduction: Environment and society in
contemporary Latin America. In Environmental Governance in Latin America (pp. 1-
25). Palgrave Macmillan, London.
Dogra, J., 2019. Contemporary studies in environment and tourism.
Eleonora, G. B., 2016. Management and leadership-features in the contemporary
context. Manager. (22). pp.101-109.
Fenwick, M. and Wrbka, S. eds., 2016. Legal Certainty in a Contemporary Context: Private and
Criminal Law Perspectives. Springer.
Grant, R. M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley &
Sons.
Grubor, A. and Marić, D., 2015, September. Contemporary consumer in the global environment.
In CBU International Conference Proceedings (Vol. 3, pp. 028-036).
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Jenkins, W. and Williamson, D., 2015. Strategic management and business analysis. Routledge.
Malik, M., 2015. Value-enhancing capabilities of CSR: A brief review of contemporary
literature. Journal of Business Ethics. 127(2). pp.419-438.
Panayides, P. and Song, D. W. eds., 2015. Maritime logistics: A guide to contemporary shipping
and port management. Kogan Page Publishers.
Prowle, M. and Lucas, M., 2016. Management accounting in the contemporary business world.
Palgrave.
Schaltegger, S. and Burritt, R., 2017. Contemporary environmental accounting: issues, concepts
and practice. Routledge.
Sergi, B. S. ed., 2019. Modeling Economic Growth in Contemporary Russia. Emerald Publishing
Limited.
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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