Analysis of Business and Commercial Awareness Essay - MGT4225

This essay delves into the realm of business and commercial awareness, providing a comprehensive analysis of key concepts and their practical applications. It begins with an overview of business planning, highlighting its significance in achieving organizational goals, and then explores the micro and macro environments influencing business operations. The essay examines factors such as competitors, customers, and economic trends. A significant portion of the essay is dedicated to a case study on Ryanair Airlines, analyzing its challenges related to employee contracts and the impact of micro and macro environmental factors. The analysis explores how top management teams and strategic planning play critical roles in addressing these issues, and suggests various strategies for overcoming obstacles and achieving business success. The essay also emphasizes the importance of adapting to changing market conditions and the role of effective planning in mitigating risks and seizing opportunities.

AN ESSAY ON BUSINESS AND COMMERCIAL AWARENESS
AN ESSAY ON BUSINESS AND COMMERCIAL AWARENESS
Name of the Student
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Date of submission

1AN ESSAY ON BUSINESS AND COMMERCIAL AWARENESS
The study of business process, business planning and business strategies has empowered
me to face the challenges of the industries. I have always wondered how these big organisations
in the market play so well and make huge profits. How their business runs so smoothly. This
confusion got solved after studying this course related to business planning. A business plan is
documentation of the business process that consists of how the business will achieve its goals. It
is a layout of plans including marketing strategies, financial data and operational framework. A
business plan is the most fundamental tool that an organization needs before starting its business
process. A start up especially in its budding phase prepares a plan to support its ultimate goal.
That will outline everything from forming a team to deciding the operational foot print to
marketing sales and salaries. A business plan is essential for any investing firm like banks or
venture capitalist they need the robust business plan before putting money into it (Prajogo,
2016).
A company may fail in achieving its goals if they don’t have a process planning framework and
execution of the plan. There is many such organisation that has faced challenges in this
competitive market and failed to stand out or even perform properly. A great business plan
outlines all the costs and the impact of each decision a company takes. The plan must include an
overview of the industry of the business that it will be a part, and how it wins over itself its
potential competitors. Elements of business planning are product and services identification,
market analysis, competitor analysis, market strategies, financial planning, budgeting and human
resource maintenance (Page and Söderbom, 2015).
The factors that a business considers before forming the strategies are the micro and macro
environment in which it will be running. The micro environment is the environment in which the
company is operating. The functioning of the micro environment is directly impacting the firm.

2AN ESSAY ON BUSINESS AND COMMERCIAL AWARENESS
The factors are competitors, customers, shareholders, suppliers and employees. Each element can
impact the firm directly and have the power to modify the business process (vom Brocke, Zelt
and Schmiedel, 2016).
A macro environment is in which the firm operates in an economy and a society. There are
factors which are not under control by the firm. It is condition that exists in the economy as a
whole, In general it includes trends in gross domestic product, inflation, employment, spending,
and monetary and fiscal policy (Van Reenen, 2018). I studied many case studies on industries
and its issue relating to micro and macro environmental changes. Almost every changes that it
was done on the industry was more or less related. It can be concluded that most of the industries
face the same kind of issues around the world (Hair et al. 2015).
Based on the data of Ryanair Airlines which is a low cost carriers in Europe. It works in It
twenty eight countries around Europe as a flying carrier. In current days the company is facing
large disruption in services due to strikes. The employees are demanding monetary contracts on
the basis of the law of the nationality of the workers and not based on the Irish law. I shall be
analysing the micro and macro business environment of the company to understand how all these
factors can be modified to get the required outcome. If the scenario is taken into consideration I
can relate the problem of organization to a combination of micro and macro environment.
Analysis as per the micro environment suggests that employee are integral part of an
organization and they form the part of the company (Schaltegger et al. 2016). The employees are
unhappy with the policy of the Airlines. They are demanding country specific contract regarding
their pay and social benefit and social security facilities. A skilled and experienced employee has
all the expertise to run an organization. This is under the control of the organisation it can
change the policy and make the employee happy. But the major issue is of the macro

3AN ESSAY ON BUSINESS AND COMMERCIAL AWARENESS
environment which is not controlled by the individual company. The law is different in various
countries where the airline has its of operations. This is why the procedure to bring the change is
getting delayed. And indirectly affecting the employees by bringing unrest in the work
environment (Yunus, 2017).
The other micro factor is customers. They are the profitable factors, the earner of the office. The
sale of product or services are done to the customer and to keep them happy is the responsibility
of the company. As major customer of Ryanair is European and the unrest is in the European
area, caused a lot of inconvenience to the customers. The company cannot burden the customers
for the problems of the company policy. According to me the top management should intervene
and make some announcement (Reed, 2019). The customers who faced inconvenience should be
offered some free service or vouchers that can minimize the effect. A top management team is
large and diverse unit of extraordinary minds working together which is more likely to succeed.
When the team is fast, highly confident, and motivated they end up making a strong strategic
decision for the company. More effective teams continuously develop the structures of their
organization even at the “edge of chaos”. Thus it can be concluded that a strong top management
team is the centre of all the success. The success can be come due to the strategic organizational
planning or effective Top management team. So it is suggested that they should take the charge
and offer help to employees and cash or service vouchers to the customer.
Strategic planning is a part of micro environment planning. It is an important element to keep
the company on right path. There are landmarks those are fixed by the management to achieve
in a period of time. It is important for the company to know it’s tough path and correct direction
an eventual goal is essential (Tapinos, Dyson and Meadows, 2015). With a slight change the

4AN ESSAY ON BUSINESS AND COMMERCIAL AWARENESS
entire plan is to be modified. People are changing organization in faster pace in recent time, this
has been seen in all levels of the organization (Wolf and Floyd, 2017).
The problem is that Ryanair may face disruption of service if the employees go on prolonged
strike. This will not only affect the customers but many other stake holders who are linked with
this company. Like, the share holders who are major investors and influencers of the company.
The supplier who provides the materials for production and service to keep running can be
affected too. They are the element of the micro environment. Ultimately impact of disrupted
service will give a lot of gain to the compitetors. They will not leave any chance of acquiring
new customers form Ryanair. It is a serious problem for the top management (Khilji, Tarique,
and Schuler, 2015).
The macro factors are uncontrollable and it influences an organization's decision making process
affecting its strategies. The top management has to take interest in the economic factors; legal,
political, social and technological factors. Although to bring changes in the contracts they have
to go through many laws and permissions. The contract is an outcome of policies of the company
as well as the countries that it operates (Das, Kuhnen, and Nagel, 2017). The economic factor
will get affected due to the loss of revenue for the disruption period. Legal matters are very rigid
and to bring change it takes a lot of time. To implement the contract according to the policies of
different countries will need the management to rewrite their policy. This will not only affect
their operation but also their strategies and goals. The confirmation from a lot of department will
be required to be fulfilled (Égert, 2016).
This change also influences the political factors. Like new policy shall require the confirmation
of the state law to follow. To get the assistance of the social security benefits from the particular

5AN ESSAY ON BUSINESS AND COMMERCIAL AWARENESS
country and state the interruption of the state will be liable. This may attract penalty or
compensation in many countries for avoiding to bring change earlier. These are macro factors
even if the company wants to bring change according to itself it cannot do it alone (Jamali and
Karam, 2018).
Suggestion according to me is that it should form a new team to negotiate the contract with the
employees who are on strike. All the changes that they want should be noted and discussed with
them. A new time frame should be allocated to them under which the management will discuss
the possibilities among them and what impact will that have on the company’s revenue.
But everything can work as planned. Thus being a smart organsiation they have to make strategic
plans to over come the loss of revenue it may need a hike in the fair or minimize of expenses.
This is the micro environmental factor and it is in the hand of the organization. As mentioned in
the earlier report the company has to talk to the employees who are exceptional as their country
gives them more facilities of claiming sick and pension bonus. This will also create additional
charges of expense and dissimilarities between the compensation of the employees. This may
again become a factor of dispute in future. So the Top management has to intervene with a plan
that gives everyone a balanced compensation and facilities (Rikalovic et al. 2015).
The other factor that the organization can consider is to lay off employees of countries that have
rigid laws and impacting a major revenue part. The company can hire new employees and train
them extensively to attain that level of accuracy in work. All of this is under the control of the
company and can be considered as the micro factor. This action can only take place when it is
not clashing with the mission, vision of the company. Many employees join a company due to its
goodwill and profit factors. It’s the sole responsibility of the company to attain to the needs of all

6AN ESSAY ON BUSINESS AND COMMERCIAL AWARENESS
the employees or only focus on the customers comfort. In both the case the company has to
spend a hefty amount to satisfy the customer and the employees and the stakeholder also.
The decision is solely of the company whether they want to make changes in their policies or the
employees. A proper analysis of the micro environment helps in undemanding the gap of what
the organization has achieved and what is yet to be achieved. The factors that can be mounded,
stretched and fitted in the requirement of the company is also the trick of the top management.
How they work on it and what factors they can use to achieves the expected outcome. But same
is not with the macro environment. It is not in the hand of the organization it needs to be
followed as per the law and regulation. Here the only thing the top management can do is be
aware and awake while formulating their own companies policies.
The ultimate goal of this course was to get educated about the business process so that we can
apply it in future in the industries we join. I learned a lot about impact of mergers and acquisition
on strategic planning modifications, cultural impact of mergers on the organization issue faced
due to globalization, sustainable business model and effective business planning process. The
knowledge has made me more confident in the area of business process planning and helped me
to figure out solutions for companies facing such problems.

7AN ESSAY ON BUSINESS AND COMMERCIAL AWARENESS
References
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expectations (No. w24045). National Bureau of Economic Research.
Égert, B., 2016. Regulation, institutions, and productivity: new macroeconomic evidence from
OECD countries. American Economic Review, 106(5), pp.109-13.
Hair Jr, J.F., Wolfinbarger, M., Money, A.H., Samouel, P. and Page, M.J., 2015. Essentials of
business research methods. Routledge.
Jamali, D. and Karam, C., 2018. Corporate social responsibility in developing countries as an
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Khilji, S.E., Tarique, I. and Schuler, R.S., 2015. Incorporating the macro view in global talent
management. Human Resource Management Review, 25(3), pp.236-248.
Page, J. and Söderbom, M., 2015. Is small beautiful? Small enterprise, aid and employment in
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8AN ESSAY ON BUSINESS AND COMMERCIAL AWARENESS
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