Analysis of Micro and Macro Environment of Pure Scooters

This report analyzes the micro and macro environment of Pure Scooters, a specialist electric scooter company in the retail sector. It includes a PEST analysis and Porter's five force analysis to determine the opportunities and threats to the business. The report also evaluates the strengths and weaknesses of the organization.

Pure Scooters
Management Report
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Contents
INTRODUCTION................................................................................................................................3
MAIN BODY........................................................................................................................................3
Identification of micro and macro environment of business......................................3
Determining strength and weakness of organisation....................................................6
CONCLUSION....................................................................................................................................7
REFERENCES.....................................................................................................................................8
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INTRODUCTION
Business environment can be define as the surrounding in which
organisation is conducting its business activities (Wang and et.al., 2016).
It includes various factors such as suppliers, customers, government and
so on. It is crucial for organisation to analyse and evaluate different
faction in order to conduct business task in effective manner. This report
is based on Pure Scooters. This organisation is specialist in developing and
creating specialist electric scooter and performing its business operations
in retail sector. Founder of this organisation is Adam Norris. Pure scooter
company is offering its products in various cities of Europe. This report
includes analysis and evaluation of micro and macro environment of
business. Different opportunity and threat to business is also determined.
Apart from this strength and weakness of company is analysed properly.
MAIN BODY
Identification of micro and macro environment of business.
There are several factors of business that is affecting micro and
macro environment of business. This factors will help in determining
different opportunity and threat to business (Lock, 2014). Business
environment includes different market trends and all those factors which
have impact on organisation as well as its performance. In order to
analyse opportunity and threat to pure scooter in respective sector PEST
analysis and Porters five force analysis is conducted.
PEST Analysis
 Political factor – Pure scooter organisation is established in UK
market and the government and political party of UK area is
developed different rules and regulation in favour of retail sector. So
stability of UK government is great opportunity of respective
company as retail sector companies will be able to enhance its
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business performance. Stability of government as well as creation of
rules for increasing retail sector activities will have positive impact
on respective company. High trade restriction will affect the sales of
company in other market areas.
 Economic factor – This factor has significant impact on overall
performance as well as productivity of company. UK country has one
of the growing and developing retail sector and this factor will help
respective company to develop and create high quality products
(Hussain, Tso and Chao, 2016). Economic factor include GDP rate,
interest rates, exchange rate, employment rate and many more.
High growing rates of UK economy will help retail sector to perform
its business activities in better and effective manner.
 Social factor – Social factor is majorly related to customers
preferences and needs. It is essential for company to create and
develop products and services which is able to meet with the needs
of customers. Pure Scooter organisation is dealing in retail sector as
well as focusing on developing product and services which is as per
requirements of customers. UK market areas has high standard
population that is ready to use new and innovative products. This
can be consider as opportunity for retail sector to develop high
quality products and increase profits of business.
 Technological factor – Pure Scooter company is creating electronic
bikes which include high technology. UK market area has one of the
advance and innovative technology in all over the world and this will
be very helpful for retail sector companies to create and develop
high quality products. It is crucial for organisation to use more
updated and advance technology in the world as this will help in
performance business task in more effective manner.
Porters five force analysis
 Threat of new entrant – Pure scooter company is developing and
creating products in retail sector (Malik, Dincer and Rosen, 2016). It
is very diffucut for new entrant company to perform in business
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operation in UK retail sector. New entrant organisation require cost
and capital in order to perform its business functions. So this threat
will have low impact on respective company.
 Bargaining power of supplier – There are various suppliers that is
offering its raw material and other services to company. Pure
scooter company is collecting different raw material from different
suppliers. This organisation will not be much affected by the
bargaining power of suppliers. There is very less switching cost to
change suppliers of company.
 Bargaining power of buyer – This company is offering products and
services to different types of customer (Walker and Roser, 2015).
bargaining power of one customer will not have impact on business
where as large number of customer bargaining will lead to affect the
overall performance company is respective market area. so this
force will face high impact on decision making of respective
company.
 Threat of substitute – There are different company in retail sector
that is developing and creating products and services which able to
meet with the needs of customers. Various companies of retail
sector is creating bikes products which is substitute of electronic
bikes. This farce will have impact on overall all performance of
company.
 Threat of rival companies – This company is offering its products
and services in high competitive environment. This is one of the
major threat to business and rival companies force will have high
impact on business and its operation. In order to overcome this
threat respective company needs to create better strategies that
will support in gaining competitive advantage over other companies.
Evaluation of opportunity and threat to business
There are different opportunities for pure scooter company that will
help in growth and development of business. It is crucial for organisation
to analyse its threats as this will affect the overall performance of
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organisation. Different opportunity and threat are for Pure scooter
company is mention below in detail.
Opportunity – There are number of opportunity available to pure scooter
company that will help in performing organisational activities in effective
manner. Stability of UK government will lead to enhance business task
and activities of respective company. This company is developing new
and innovative products that is able to full fill the requirements of
customers. High population with high standards will support in enhancing
sales of pure scooter company. It is an opportunity for respective
company to new and different marketing techniques as this will help in
attracting more and more customers towards company. UK market area is
able to offer new and advance technology to pure scooter company. This
will help respective company to gain competitive advantage over other
rival companies.
Threat – There are some threat to respective business that will affect the
overall performance of organisation (Tonchia, Tonchia and Mahagaonkar,
2018). High interest rate charged by UK government will lead to have
impact on sales as well as profits of respective company. high trade
restriction of political party is all threat to business as this will affect sales
of pure scooter company in new or different country. Due to this
respective company will not be able to enhance its business functions in
other market area as well as it will have impact on customer base of
respective company. strong rival companies and highly competitive
environment will have major negative impact on business.
Determining strength and weakness of organisation.
There are various strength and weakness respective company that
is affecting its overall performance and productivity of company. It is
essential for company to identify and analyse its strength and weakness
as this will help taking better decision for overall growth and development
of business.
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Strengths – Pure scooter company is developing and creating highly
innovative products in order to meet with the demand of customers.
Electronic bike and scooter will not have impact on environment and does
not increase pollution. Due to this element respective company has
develop strong image in market area. This company is considered as
specialist in electric scooter retailer. Its networking and supply chain
management system is considered as its major strength. Because of this
respective company is able to provide shipping of product with in 24
hours. This is will lead to have impact on customer relation. Pure scooter
company is able to develop strong relationship with its customers as well
as gain their trust.
Weakness – There are some weakness for this company such as it is not
able to properly manage its financial resource (Wetherly, 2014). Lack of
capability of employees to use financial resources will lead to affect the
overall performance of company. This will lead to have impact on
productivity and profitability of business. Pure scooter company is develop
highly innovative products but it has lack of awareness in market area.
Due to lack in marketing activities and inappropriate utilization of
marketing tools is considered as its weakness. This affect the sales of pure
scooter is respective market area.
CONCLUSION
From the above report it can be concluded that there are different factors
of business environment that will affect overall performance of business. It
is important for company to analyse different factors in order to develop
better and effective strategies. This will support in gaining competitive
advantage over other companies. Support from political party and
government will help in conducting business task and activities in correct
manner as well as increasing sales of company.
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REFERENCES
Books and Journal
Wang, Q. and et.al., 2016. A critical review of thermal management
models and solutions of lithium-ion batteries for the development of pure
electric vehicles. Renewable and Sustainable Energy Reviews, 64, pp.106-
128.
Lock, M.D., 2014. The essentials of project management. Ashgate
Publishing, Ltd..
Hussain, A., Tso, C.Y. and Chao, C.Y., 2016. Experimental investigation of
a passive thermal management system for high-powered lithium ion
batteries using nickel foam-paraffin composite. Energy, 115, pp.209-218.
Malik, M., Dincer, I. and Rosen, M.A., 2016. Review on use of phase
change materials in battery thermal management for electric and hybrid
electric vehicles. International Journal of Energy Research, 40(8), pp.1011-
1031.
Walker, P.D. and Roser, H.M., 2015. Energy consumption and cost analysis
of hybrid electric powertrain configurations for two wheelers. Applied
Energy, 146, pp.279-287.
Ping, P., and et.al., 2018. Investigation on thermal management
performance of PCM-fin structure for Li-ion battery module in high-
temperature environment. Energy conversion and management, 176,
pp.131-146.
Tonchia, S., Tonchia and Mahagaonkar, 2018. Industrial project
management. Springer.
Wetherly, P., 2014. The business environment: themes and issues in a
globalizing world. Oxford University Press.
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Bah, E.H. and Fang, L., 2015. Impact of the business environment on
output and productivity in Africa. Journal of Development Economics, 114,
pp.159-171.
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