External Factors Impacting Business: Brexit, Climate, Social Media Use

This report examines the external factors influencing businesses, specifically focusing on Marks and Spencer. It analyzes the impact of Brexit, including reduced foreign investment, supply chain disruptions, and employment challenges. The report also explores the effects of climate change, such as disruptions to business operations, increased costs, and the emergence of new opportunities like web portals and electric cars. Finally, it investigates the use of social media in boosting productivity, sales, and profits through leveraging social advertising, brand awareness, improved search engine optimization, and increased conversion opportunities. The report concludes that businesses must adapt to these external factors to thrive. The report references several academic sources to support its claims.

Understanding
Business

Table of Contents
INTRODUCTION...........................................................................................................................1
Main Body.......................................................................................................................................1
1. Three areas of business which are influenced by Brexit.........................................................1
2. Effects of climate change on global business.........................................................................2
3. Use of social media in increasing productivity,sales or profits..............................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
A business is referred to as efforts of individual or a group of person carried out to
achieve predetermined financial goals (Boons and Lüdeke-Freund, 2013). The efforts of person
involves are aimed to selling of products and services so that ideal revenue could be generated.
This assignment taken into consideration the working of Marks and Spencer. It is a retail
organisation carrying out its operation in the United Kingdom. This assignment aims to identify
impact of external business environment upon the company. The influence of climate change
will be ascertained along with effective use of social media for revival of business.
Main Body
1. Three areas of business which are influenced by Brexit
Brexit is referred to situation in which the government of United Kingdom decided to
leave European Union. It can be defined to act of withdrawal of responsibilities of UK from the
European union (Kirkman, B.L. And et. al., 2011). A referendum was passed in which 51.9% of
the people voted to part its ways with the EU. The opposing prime minister who opposed to this
referendum immediately stepped down and appointed Theresa May to lead the country. It
definitely carried a significant impact upon the functioning of the business organisation. The
major influences which are carried out by Britain exiting European union are as follows:
Less foreign investment: The first major impact which has been experienced by the
country is that United Kingdom is no longer perceived as a business Hub. The less preferences of
ideal business location will significantly decline the foreign investment which is availed by the
country prior to the referendum. However the finance ministry is making numerous efforts to
stabilise the economy. The corporation tax is reduced by 20% so that more and more people are
tempted to carry out their business operations in the country. The fall in the stock of foreign
direct investment will impact the productivity of the country and reduction in technological and
managerial know-how. Therefore it can be ascertained that such decline in the foreign
investment tend to create more difficulties for business corporation to carry out their operation in
the country. The VAT system which has been adopted by the country tends to create extra
pressure upon the business organisation which ultimately increases the costs of offerings by the
company (The impact of Brexit on your business, 2017).
Procurement and supply chain: Procurement refers to the arranging of inputs which are
necessary for the production process and simultaneously delivering it to the prospects. The major
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implication of the exiting of European union is that it leads to abolishing of free trade agreements
between the UK and EU. The latest tariffs which will be imposed will increase the cost of
sourcing raw material from other nations. This feature will carry an impact upon the exports of
finished products by the country and make sure that competitiveness of offerings declines. Under
such circumstances, business organisations have to ensure that contingency plans are kept in
place and are able to absorb the impacts of changes in forces of market.
Employment: The third major issue which is encountered by the country is employment
sector. The immigrants from other union nations were sources of human capital for major
organisation which could only be possible due to the free movement of labour. The overseas
labour now does not wish to work in this country which have resulted in scarcity of employable
labour. A research conducted have identified that over 47% of the skilled workforce in the
country is planning to leave Britain in coming 5 years. The reason being unsuitable immigration
policy by the country. However on the positive side, existing unemployed British people will
have a chance to get a job and improve their lifestyle.
2. Effects of climate change on global business
Climate change is also infamous by the name of Global warming, it tends to observe and
record changes in the average temperatures on surface of earth. The major cause which has been
identified for the change in the climate are burning of fossil fuels. The reason behind the changes
is burning of fossil fuels results in the releasing of some harmful gases which gets trapped into
atmosphere and damage the ecosystem (Schaltegger, Lüdeke-Freund and Hansen, 2012).
The major changes which have been experienced are the melting of polar ice caps which
have resulted in rising on sea-level. The patterns of rainfall and storms have been more frequent
and unpredictable. The habitat of animals is under threat of wildfire and have emerged to be a
major contributor to the human deaths. This change in the climate definitely impacts upon the
functioning of business organisation in a significant manner. The situation such as flood and
drought are likely to cause disruption in the business operations. The consumption of fossils are
to be regulated by the government which persuades a business to opt for expensive environment
friendly approaches which tend to increase cost of production (Zott, Amit and Massa, 2011).
This existing business practices which are adopted for agriculture, infrastructure and construction
are tend to be altered. The perception of the prospects towards organisation that is environment
friendly tends to be more favourable. It has been ascertained that people are tend to pay more for
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offering which are developed in a sustainable manner. Agriculture is biggest source of raw
material for organisation which are threatened by the rise in temperature. The scarcity of inputs
is one of the major manner in which business organisations have been impacted significantly
(Veleva and et. al., 2015). The organisations catering their services in the insurance sector have
regulated its pricing plans or have declined services to people residing in the coastal region. The
company have now adopted a contemporary approach in which price of carbon to be included in
investment decisions which are to be carried out by the organisations.
The changes in the climate have provided some opportunities for business organisation to
expand. The emergence of web portals and electric cars can be credited to situation of global
warming in the environment. It is been forecasted that in coming 25 years there will be an
tremendous growth in this sector. The organisation in carrying out their operations in the
manufacturing domain will also be able to attain a superior business position by adoption of
opportunities which helps in minimizing costs. The organisations can place their industries
where there is an abundance supply of the solar energy. Despite these alteration the carbon
emission is growing at a steady rate. Last year 2016 was recorded to as one of the hottest year
ever since. It is essential to take necessary steps towards sustainable future so that business
operations can be carried out in disruption free manner.
3. Use of social media in increasing productivity,sales or profits
Entrepreneurs define social media tactics being 'next big thing' in the present market.
Therefore it is very important to take assistance from these powerful fashion so that favourable
results are attained. This has emerged to be one of the best domain for marketing of products and
services. The recent data collected suggested that over 80% of the marketer believe that it is an
important tool to market products and service of the company. Therefore it have emerged to be
an crucial tool for the revival of business. Some of the approaches are as follows:
Leveraging social advertising: The advertisement of on social platforms have tend to be
more effective than ever. The Ad revenue for Facebook which stood at 9.16 billion which
justifies the preference of organisation in marketing their products on this social platform. The
another reason for which it has been emphasized is that costs of ad is comparatively lower and
targeted reach makes it ideal platform to market products and services of the company (The
Importance of Social Media in Business, 2017).
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Brand Awareness: It is referred to be another approach through which revenue
generation of the company could be enhanced. It aims to make people more aware about
existence of the brand and persuade them to avail products and services of the company. The
CMO's have identified that approximately 82.3% out of total respondents believe that brand
awareness of an organisation. To pursue in the most ideal manner it is very crucial to identify
target audience with a brand and create conversation so they could be loyal to a business and
make sure profits are enhanced.
Improve search engine optimisation: there is stated to an direct connection between
social media presence and search engine optimisation. The properties and feature which are
possessed by the company tend to reflect higher on the google search results. These helps in
providing doorways to consumers looking for similar products. The stronger existence on the
web results in higher exposure for brand resulting in improved revenue collection (Tollin and
Vej, 2012).
Increase conversion opportunities: The presence on social media provides organisation
with an opportunity to get access to reach an untouched class of people. Therefore a business can
be make efforts to ensure that prospects are turned into customers for organisation. The tool of
interaction assists a business into manifesting positive relations with the organisation and
ultimately opting to avail products and services of the company.
CONCLUSION
It can be concluded from the above report that there are numerous external business
factors which tend to influence the working of the company. The exit of Britain from European
union provided with business organisation with unstable political and economic environment to
carry out their operations. In addition to that the changes in the climate tend to affect business
more negatively by making it difficult to avail inputs and increasing costs of production. Lastly it
is stated that social media presence have turned out to be beneficial for organisation as it
increases market awareness, reach and presence which leads to availing improved revenue for
business.
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REFERENCES
Books and Journal
Boons, F. and Lüdeke-Freund, F., 2013. Business models for sustainable innovation: state-of-
the-art and steps towards a research agenda. Journal of Cleaner Production. 45, pp.9-
19.
Kirkman, B.L. And et. al., 2011. Managing a new collaborative entity in business organizations:
Understanding organizational communities of practice effectiveness. Journal of Applied
Psychology. 96(6), p.1234.
Schaltegger, S., Lüdeke-Freund, F. and Hansen, E. G., 2012. Business cases for sustainability:
the role of business model innovation for corporate sustainability. International Journal
of Innovation and Sustainable Development. 6(2), pp.95-119.
Tollin, K. and Vej, J., 2012. Sustainability in business: understanding meanings, triggers and
enablers. Journal of Strategic Marketing. 20(7), pp.625-641.
Veleva, V. and et. al., 2015. Understanding and addressing business needs and sustainability
challenges: lessons from Devens eco-industrial park. Journal of Cleaner Production.
87, pp.375-384.
Zott, C., Amit, R. and Massa, L., 2011. The business model: recent developments and future
research. Journal of management. 37(4), pp.1019-1042.
Online
The Importance of Social Media in Business. 2017. [Online]. Available through:
<https://www.lyfemarketing.com/blog/importance-social-media-business/>.
The impact of Brexit on your business. 2017. [Online]. Available
through:<https://www.iod.com/news/navigating-brexit-for-business/articles/the-impact-
of-brexit-on-your-business>.
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