Business Environment Analysis for Bkleen Detailing
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This report analyzes the business environment of Bkleen Detailing, a UK-based car service provider. It discusses the use of tools such as SWOT, PESTLE, and Porter's five forces to evaluate the business environment. It also explores management practices that impact employee performance and personal development expected from working at Bkleen Detailing.
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Report (BKLEEN Detailing)
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Table of Contents INTRODUCTION...........................................................................................................................1 TASK 1............................................................................................................................................1 1.1 Appropriate tool to audit and analyse the business environment..........................................1 1.2 Management practices that have desirable impact over employees performance................5 TASK 2............................................................................................................................................6 2.1 Personal development expected from work environment.....................................................6 2.2 Professional development expected to achieve from work environment..............................6 CONCLUSION...............................................................................................................................7 REFERENCES................................................................................................................................8 .........................................................................................................................................................8
INTRODUCTION Business environment is refers to as a collection of internal as well as external factors such as employees, supply and demand, management, customers needs and expectations, clients, suppliers, owners, activities by government, innovation in technology etc. These are the factors which affect the performance of an organisation as it have a direct influence over its working pattern as well as policies in marketplace(Arulrajah, Opatha and Nawaratne, 2015). This report is aboutBkleen Detailing which is a UK based car service provider company that provide service related with car maintenance, servicing, washing etc. This report contains a use of tools in order to evaluate the business environment in which Bkleen Detailing operates. In addition to this it also explains about management practices adopted by company to improve employees performance. At last it contains detail about the personal and professional development that an aspirant get while performing job within Bkleen Detailing. TASK 1 1.1 Appropriate tool to audit and analyse the business environment Business environment is basically refers to as a sum total of internal as well as external factors which have the capacity to influence the business operations. These factors involve employees,demand&supply,clients,supplier,management,activitiesbygovernment, technology development, change in customer demand etc. These all are the factors which develop opportunity as well as threat for the operations performed by an organisation and also plays a crucial role in term of growth and success of company(Guerci and et. al., 2015). Hence an organisation is required to perform regular evaluation of business environment so that strategies can be formulated in order to survive in environment while dealing with all the threats and competition present in market while availing opportunities. Bkleen Detailing is a UK based company which offers services related with the maintenance and cleaning of expensive cars. It maintain a staff thatspecifically trained in order to make use of industries related tools and safest procedure in order to enhance and maintain the automotive appearance which rank from the small details of interior to the brilliant shine overthe outer surface of car(Bohari, Hin and Fuad, 2017). The company is performing well in term of its performance but as the competition is rising in market,it is crucialfor the Bkleen Detailingcompany to perform business environment analysis on regular basis so that strategies can be updated as per changes get 1
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anticipated within marketplace. The business environment analysis can be performed using tools like SWOT, PESTLE and Porter's five force model. These are mentioned below: SWOT Analysis:- It refers to an analytical tool which support in performing internal as well as external environmental evaluation to determining the strength, weakness, opportunity or threat that an organisation have which support them in performing operations in well by formulating effective strategies for availing opportunities with the help of strength and overcoming weaknesses as well as threats(Blockeel and et. al., 2016).The SWOT analysis of Bkleen Detailing is mentioned below: StrengthWeaknesses The biggest strength of Bkleen Detailing is that it maintains specially trained employees that ensuresappearanceofvehiclemustbe perfectlymaintainedi.e.frominteriorto brilliant shine over exterior. The main weakness of Bkleen Detailing is that it make use of big machineries for providing better services but it actually increases the cost of operations to the company. OpportunityThreat Franchising of business proves to be a greater opportunity for the Bkleen Detailingwhich allowthecompanytoexpanditsbusiness operations in several different location(Bull and et. al., 2016). It also help in increasing the customer base. Changes in economical condition of country may leads to affect the customer's spending power which may affect their affordability to the services. This may affect the productivity of the company PESTLE :- It is basically refers to as analytical tool which perform evaluation of six major factors that are present in external environment and may affect the functionality of business up to a great extend. The PESTLE analysis of these factors in term of Bkleen Detailing are mentioned below:ï‚·Political:-It involves the evaluation of political affairs, policies and relations with other nation that have an influence over the business activities. The political condition within UK is stable as well as it holds up positive relation with several countries that are 2
member of UN(Aithal, 2016). This is a greater advantage forBkleen Detailing as it doesn't require to revise the organisational policies as government is stable.ï‚·Economical:-The UK ranked as fifth largest economy, hence there is a stability of economy among the consumers. In addition to this UK is also consider as one of the popular destination for the FDI. This is also consider tobe one of the positive factor toward the growth ofBkleen Detailing as they can target the consumers easily for availing the car maintenance related services and also be able to get fund to invest more business for enhancing the level of performance.ï‚·Social:-UK holds up the population of approx 66.4 million by 2018 which ensures a big consumer market. Apart from this, east England holds up highest average cars or van per household and its rate is about 68% of respondents. Hence, it is a biggest advantage for Bkleen Detailing as there is a huge scope for the serving the consumer and increasing the customer base.ï‚·Technological:-UK is consider as most technological advanced country as London is a greater hub for technological and finance related institute(Fozer and et. al., 2017). This is a positive factor for theBkleen Detailing as it can install the new machineries or technology in order to improve its services or expanding the business practices. This will support in achieving greater success at marketplace and deal with competitive advantage.ï‚·Legal:-The legal environment of UK country is very strict toward the application of law where each organisation is required to comply with some basic law in order to service in marketplace. These legislations are related with the Employment Act 1996, Equality Act 2010 etc. which protect the right of consumers and ensure the fair treatment at work place. In addition to this there are also some rights like minimum wages, holiday pay, sick pay, maternity and paternity leaves and may more. Hence, in order to survive in market of UK Bkleen Detailing is required to follow these laws as the violation of these laws may affect the brand image in marketplace. ï‚·Environmental:-The government, local councils, newspapers and many other are being presenting their concern and putting efforts toward creating the environmental awareness which help in reducing the negative impact of economical growth over the environment. Hence government is very strict toward practices related with environmental safety and security(Rastogi and Trivedi, 2016). This may proves to be a threat forBkleen 3
Detailing as it deals in offering services related with car cleaning and maintenance which leads to wastage of water and also make use of harmful chemicals for creating shine over car. So that government when take a strict action toward it that this may affect its performance. The evaluation of PESTLE will support theBkleen Detailing in determining the number of threat and opportunity that are present in environment in which it operates so that appropriate actions can be taken in to consideration in order to achieve sustainability a and perform well within the marketplace(Aithal, 2016). Despite of all these, the evaluation of industry in which an organisation operate must also be consider while performing the business evaluation as it help in determining the actual position of a p0articular company within the industry in which it operates. Hence, by performing the porter's five force model forBkleen Detailing it become easier to determine the its performance as well as future position within industry and its business environment as well. It is explained below: Bargaining power of buyer:-The bargaining power of the consumers within the industry have the capability to hold out the services at the lower price in order to manage the consumer base. Within the automotive and car service industry the bargaining power of customers are moderately higher. This is because there are several brand as well as service centres which are available from where the consumers can avail services. This affect the practices of the Bkleen Detailing and also create a tougher competition within the marketplace. Bargaining power of supplier:-The bargaining power of supplier is relatively lower as there are number of suppliers present in the market which offer spare parts to Bkleen Detailing constantlythat includes OEM parts and OES parts which support them in offering better services. Therefore, it is advantageous for the Bkleen Detailingas it can deal the spare parts of the vehicles at relatively lower price and can also switch to other dealers when they require raw material to be at lower prices. Threats of substitute:-The substitute for such kind of services are already being present in the marketplace which rank from smaller to big players. As most of the car service providers are offering same services which affect its market performance(Mathooko and Ogutu, 2015). Some of them are the road side or smaller service centres that provides services at relatively lower price as compare to other established businesses. Apart from this majority of car dealers 4
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also provide car servicing benefit as a bundle service to customers over packages which also affect the market share of Bkleen Detailing Threat of new entrant:-The threat to new entrant is relatively higher for the sector as the new player are not required to invest more in order to start operating their business in this sector. Hence the threat is relatively higher as number of automotive services players are also trying to open up their centres for providing such services. Some of the commonly established services centres are Maruti Service centres, Tata Motors Services centre, Hyundai Motor services and many more. This is proves to be a threat to Bkleen Detailing as it has to deal with both existing as well as newly entering care service providers. Rivalry:-The automotive sector is growing at a rapid speedasthe spending power of consumers are also increasing. Hence in order to keep the customers satisfied more efforts are being put by automotive companies to offer bundled services where they offer 2-3 starting care services free and later they charge for it. In order to offer these services larger number of service centres are being opened by them(Zhao and et. al., 2016). In addition to this other players are also behind dealing within car services on individual basis which increases the competition within the sector. Hence the competition within the industry is relatively higher for Bkleen Detailing which may sometimes affect the customer base. 1.2 Management practices that have desirable impact over employees performance The employees performance plays a crucial role within the growth and success of an organisation as the productivity of organisation depends over the quality of performance exerted by an employees(Inkinen, Kianto and Vanhala, 2015). Therefore, it is crucial to manage the performance of employees to ensure better output. TheBkleen Detailing perform several kind of management practices in order to influence employees performance. These are mentioned below:ï‚·Training & Development :-In order to ensure better and quality of performance from the employees, Bkleen Detailing focuses toward organising regular training session for their employees. This support in providing them an opportunity to enhance the skills and capability of employees while keeping them motivated toward the work. This help in encouraging the level of performance.ï‚·Performance evaluation :-Under this, targets are being set up by the managers and then within the specific period of time the analysis is being performed over the actual performance of an individual by comparing it with the planned one. This support in 5
determining the gap and reason behind it so that appropriate action can be taken into consideration. ï‚·Recognition and reward:-In this, Bkleen Detailing mainly focuses toward evaluating the performance and the employees who are performing well are being recognised among the existing employees(Selden and Sowa, 2015). In addition to this they are also being rewarded over their efforts which help in motivating them to perform well. TASK 2 2.1 Personal development expected from work environment TheBkleen Detailing company is performing well in the market and also put more emphases toward the quality of operations. Therefore, by working within this organisation I would be able to achieve my personal development target for a better future career. By working as a Supervisor within Bkleen DetailingI would be able to enhance my interpersonal skills as their I required to manage the people by communicating with them regarding regular tasks and issues they are facility. In addition to this I would also become able to develop my time management skills by ensuring the availability of stock on timely manner. These all contribute towardenhancingtheemployabilityskillsandcapabilitythatfurthercontributetoward enhancing my level of performance toward the better career development. Despite of this the Bkleen Detailingfocuses toward providing specific training to its employees that are related with the industrial tools. Hence by working with them I would be able to enhance my knowledge related with several tools, spare parts and other information in term of automotive sector which support in future practices. 2.2 Professional development expected to achieve from work environment TheBkleen Detailing is an organisation that offer car maintenance related services and consider to be most growing sector these days as the demand of people related with keeping the four wheeler is increasing to maintain the status. Therefore the decision to start up career with theBkleen Detailing will proves top be fruitful to me as it support me in achieving the professional as well as personal development of mine. As per my evaluation I have determined that the working environment ofBkleen Detailing is very cooperative as well as believes in improving the performance by brining innovative ideas from the staff members. Therefore, it would be pleasure for me to work in such an environment which help in developing my 6
management as well as leadership skills which proves to be very crucial for each profession or job. In addition to this it will also support me in developing my skill of working in a team which help me in cooperating and coordinating with my mates in my current as well as future job too. Henceitsupportmeinensuringmyprofessionaldevelopmentwhileworkinginthis organisation. CONCLUSION From the above mentioned information, it can be summarised that understanding of business environment plays a crucial role within the performance of an organisation. This is because there are number of factors that are present in business environment which may affect the performance of an organisation. Therefore, an organisation must regularly evaluate the business environment by using tools like PESTLE, Porters five force model and SWOT analysis which help in determining the opportunities as well as threat that are present in internal as well as external business environment that are required to consider while performing business operations. 7
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