The Business Environment

The business environment

TABLE OF CONTENTS
Introduction......................................................................................................................................3
Task 1: External factors and environmental impact........................................................................3
External factors impacting business organisations......................................................................3
Significance of conducting a PESTLE analysis..........................................................................4
Three-step crisis management procedure....................................................................................4
Factors contributing towards environmental damage and minimising them...............................5
Impact of lack of care for the environment on business profitability and reputation..................6
Task 2: Marketing Booklet..............................................................................................................6
Functions of marketing and how it is different from selling.......................................................6
Purpose of a marketing plan and objectives................................................................................6
Differences between internal and external data and information................................................7
Differences between primary and secondary information...........................................................7
Elements of the marketing mix....................................................................................................8
Task 3: Ethics and culture................................................................................................................9
Benefits of ethical behaviour for organisations...........................................................................9
Effects of organizational culture on business organizations......................................................11
Conclusion.....................................................................................................................................13
References......................................................................................................................................14

Introduction
Business environment can be defined as the sum of all the internal and external elements
like employees, customers, political and legal climate, suppliers, technological and
environmental factors, economic stability and other social factors etc. In this report, the local
business environment and produce materials for the local chamber of commerce will be
evaluated. The external factors and environmental impact will be analysed and will be covered in
the presentation, and a marketing booklet will be produced explaining the functions and
objectives of marketing as well as a marketing plan. Apart from these, a sample handbook for
managers in the start up business will be described covering organisational ethics and culture.
Task 1: External factors and environmental impact
External factors impacting business organisations
The various external factors that affect the local business environment-based functions
can be explained via PESTLE analysis, which constitutes of political and legal climate of the
locality and country, the environmental factors, the social and economic factors.
 Political factors: The current political climate of UK, the direction in which government
is taking decisions regarding the local businesses, the issues of Brexit and other tax-based
implications, policies, tariff and duties, the supply chain and import-export related
decisions can have a direct impact on the local business operations.
 Economic factors: The stability and performance of the economy of UK, the business
cycle stage, the performance of the stock market, consumer confidence and purchasing
capacity, the income level of the people in the community and the labour cost influences
market and business decisions in terms of employment, costing and profitability.
 Social factors: The purchase behaviour of the people such as trends, customer
preferences and taste, cultural and demographical aspects as well as social issues liked
population, lifestyles, buying habits, beliefs, education etc (Kozubikova, Homolka and
Kristalas, 2017).
 Technological factors: The state and advancement in the technology could mean
enhanced automation, use of AI and internet services, which could impact on how a
business functions and the way customer services and marketing is changed.
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 Legal factors: The laws of a particular state or country impacts businesses such as
consumer rights, employee laws, anti-trust laws, health and safety laws, intellectual
property laws etc.
 Environmental factors: The rise in the environment consciousness in people and the
government has made it important for businesses to adhere to environment regulation
laws and standards such as waste management, reducing carbon footprint and even going
green for improving the goodwill.
Significance of conducting a PESTLE analysis
Pestle analysis is a framework for the assessment of the various external factors that
directly and indirectly impact businesses. It helps the business in conducting a feasibility test and
gain deeper insights into what affects and influences the major business decisions which also
tend to have an affect on the profitability, cost effectiveness, manufacture or production,
customer services, marketing, operations and other business functions. It helps business in
looking for opportunities and minimise the estimated and existing threats in the business. It
encourages strategic thinking where the business owners can evaluate all possibilities and make
decisions that help in the achievement of the business and functional goals (Elavarasan and et.al.,
2020).
Three-step crisis management procedure
Crisis management can be referred to the various systematic policies that are initiated for
responding to the crisis situations in any business and development of response strategies.
 Pre crisis: This stage can be described as the warning stage where the problem of the
crisis is discovered by the manager or superior. Mass communications is bypassed and
the higher tiers of the hierarchy is are informed. The situation is analysed and potential
harm is determined, as well the necessary steps that have to be taken beforehand.
Functions like risk assessment and emergency notifications system are implemented.
 Acute crisis: The following stage occurs when the problem becomes visible to the people
outside the organisation and a crisis management team is activated. The team makes use
of the crisis communication s system for notification of the masses regarding the issue.
Effectiveness in communication becomes imperative and necessary guidelines and
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