UNL1002 Business Environment: Analyzing Technology, Ethics, and CSR

This report examines the impact of technological changes, business ethics, and corporate social responsibility (CSR) on modern businesses, using Pets at Home as a case study. It details how technology influences operating costs, information security, communication, marketing strategies, and operational efficiency. The report also discusses how business ethics and CSR enhance employee engagement, brand image, and competitive advantage. A PESTEL analysis is conducted to assess the external factors influencing business decision-making, including political, economic, social, technological, environmental, and legal aspects. The analysis concludes that understanding and adapting to these factors are crucial for organizational success and sustainability in a dynamic business environment. Desklib provides access to a variety of resources, including similar reports and solved assignments, to aid students in their studies.

BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION....................................................................................................................3
TASK.........................................................................................................................................3
Impact of technological change on business..........................................................................3
Impact of business ethics and CSR on modern business.......................................................5
Assessing what influences business while decision making and its impact on business.......6
CONCLUSION.........................................................................................................................7
REFERENCES.........................................................................................................................9

INTRODUCTION
Business environment is the mix of internal and external business environment which
can create an impact on business functions. The internal and external factors influence the
operations of an organization in direct and indirect manner. Business environment helps an
organization in evaluating opportunities, making appropriate use of resources, helps in
effective planning, helps in evaluating threats and risk and supports organization in
enhancing their organizational performance and productivity through which they can
maintain their competitive position within the industry (Bah and Fang, 2015). Pets at home is
a British company which is a pet supplier. The company was started by Anthony Preston in
1991which offers pet supplies, which are- food, toys, bedding, accessories, pets and
medication services. Pets at home is one of the leading pet care companies which is offering
various services which can be availed by pet owners. This project will define how innovation
and technology can create an impact on an organization. The report will also evaluate
opportunities and threats by using PESTEL for analysing external business environment.
Lastly, some of the suggestions will be outlined which will be helpful for enhancing the
decision-making process of the organization.
TASK
Impact of technological change on business
Technology has been a source which has changed the operations of an organization
and enhanced their performance through which business can maximize their profitability.
Technological change is the source of competitive advantage for an organization and
supported business in meeting the change in fast developing industry (Belas and et.al, 2015).
In context of Pets at home, the use of modern technology has also influenced the operations
of the organization and supported business in enhancing their performance and gaining
competitive advantage with their effective use of technology. Some of the factors which will
define technological change and how such factors can be a source of competitive advantage
for the selected organization is addressed below:
 Influence on operating cost- By using advancement in technology, it can be helpful
in minimizing business cost. The technological transformation has introduced various
software’s to perform different operations of business more effectively. In context of
Pets at Home, the use of modern technology has supported the company in
maintaining records, managing payroll, automate back-office functions, record daily

expenses and align all business operations effectively through which the cost can be
minimized and such transformation will be helpful for business in maintaining their
competitive position within the industry.
 Protecting sensitive information- by using modern technology this can be helpful to
create a secure environment for maintaining sensitive business or consumer related
information. The advancement and technology have introduced various software
programs which are more user friendly and allows organization to minimize the risk
of data breaches and unauthorized access (Impact of technological change in business
activity, 2019). In context of Pets at Home, the company can safeguard their
confidential information from unauthorized users through which they can maintain
differentiation in their practices create, create differentiated business strategies which
will help the organization in maintaining their competitive position in highly
competitive business environment.
 Enhanced communication processes- the advancement in technology is helpful in
improving communication process. In context of Pets at home, the transformation in
technology has facilitated various change in communication process through which
business can use email, texting, website and other applications which will improve
their communication with their consumers which will help in building strong relations
and strong presence of company in the industry.
 Helps in developing marketing strategy- the change in technology has transformed
the approaches of organization to gather, record, store and utilize data which can be
helpful in forming effective business strategies. With the help of development top
information technology and organization can understand consumer behavior and
develop marketing strategies accordingly which will be helpful in meeting consumer
demand and will be a source of competitive advantage for business (Technological
factors affecting business environment, 2021). In context of Pets at Home, technology
is not just used as the source of gathering data whereas it also helps the organization
in making valuable conclusions and more informed decisions. Such technological
transformations help business in focusing on their business strategies and consumers
which will be an effective approach for success of business.
 Transforms operations- Technological advancement is the source of change in
transforming operations performed by business. The technological advancement has
been followed in huge Department of Business which helps an organization to
perform the functions effectively. With the help of technological development,

different functions of organizations such as research and development, digital
marketing call mom performance analysis and appraisal and many other functions but
performed more effectively through which an organization can maintain their position
in the industry and gain competitive advantage from there productive and constructive
technological transformation in their daily operations. In context of Pets at Home, this
technological change has supported the pet supplier company in understanding the
demands of customers with the help of effective transformation in their research and
development and supply chain management through which they can meet customer
demands in timely manner.
Impact of business ethics and CSR on modern business
Corporate social responsibility CSR is a self-regulating business model which helps
an organization to be socially accountable for their stakeholders and for the community
(What is Corporate Social Responsibility, 2021). Business ethics is the study of business
policies and practices which involves corporate governance, bribery, corporate social
responsibility, insider trading, discrimination and fiduciary responsibilities. Business ethics
essential for an organization as they create long lasting impacts on several levels (What is
business ethics, 2021). The set of business ethics offers a basic guideline to an organization
through which a business can gain public approval and meet competitive advantage. The
impact of business ethics and CSR on modern business and in relation to Pets at home is
discussed below:
 Incline in employee engagement- The business ethics and corporate social
responsibility followed by an organization increases employee engagement where
these employees can willingly participate in business activities which will increase
employee engagement in the organization. Through performing daily operations in
ethical manner, it will be helpful for Pets at home to positively influence the
employee which will increase employee engagement and retention with the
organization.
 Creates positive brand awareness and brand image- Corporate social
responsibility and ethical business practices followed by an organization creates a
positive impact on the brand image of the organization. Such practices followed by
business increases the brand awareness of business within the industry and attract
more customer attention through which an organization can sustain for longer time
span within the industry. In context of Pets at home, the company implements ethical

practices and meet their corporate social practice through offering environment
friendly products and initiative which can enhance their brand awareness and
customer engagement with the brand. Such practices help the organization in creating
their space and brand image in the industry.
 Helps in facing competition- The plans and policies of business related to corporate
social responsibility and business ethics can be helpful in making a unique position
through which they can face competition and maximize business profitability in the
industry (Ištvanić, Crnjac Milić and Krpić, 2017). In context of Pets at home, with the
help of ethical business practices and by following their corporate social
responsibility, the company focuses on enhancing business productivity and improve
employee performance.
Assessing what influences business while decision making and its impact on business
The dynamic business environment is responsible for influencing business decision
making and operations of an organization. In order to analyze the influence of factors on
business decision making, PESTEL analysis is used.
PESTEL analysis
PESTEL analysis is the framework of analyzing the external business environment
which can create an impact on the business operations. This external analysis model is the
approach of evaluating factors which can bring opportunities and threats to business. In
context of Pets at home, a detailed PESTEL analysis for evaluating factors which can
influence decision making of business has been discussed below:
Political factors- Political factors creates a huge impact on Pets at home which
influenced tehri long term profitability in a certain market. The company is operating in
various countries and therefore, the incline in political system risk can hamper business
operations (Jovanović, 2015). The tax rates and incentives, product labeling and other factors
create an impact on the influence on decision making process of an organization.
Economic factors- The economic development of an organization creates direct
impact on business performance as this will influence the decision making of business. due to
market saturation, this can influence the and facilitate business environment and increase the
growth potential of business. the increase in interest rate can increase business growth
opportunities. The economic structure is also responsible for creating an impact on the
business practices.

Social factors- Some of the social factors, such as- leisure interest, class structure,
education level, culture and attitude create an impact on the business decision making and
operations of business. The power distance within shows acceptance of hierarchy and income
inequality. The incline in inequality is responsible to create an impact on the power structure
and such factors creates significant impact on the decision making of business.
Technological factors- The technological advancements implemented by business in
the industry has increased the value of technological factors in decision making process of
business. the company started using social media practices and brought technological
innovations which can be helpful in forming effective decisions to perform managerial
functions effectively (Khajeheian, Friedrichsen and Mödinger, 2018). With the help of
technology, research and development can be effectively performed through which customer
preferences can be understood and this will also help Pets at home in forming decisions
which can be helpful in maximizing profits and support business in investing in technologies
which can bring competitive advantage to organization.
Environmental factors- The incline in investment in renewable technology helps
business in ensuring long term sustainability. Some of the environmental factors, such as
recycling and waste management, attitudes towards eco-friendly products, environmental
regulations are the factors which help in forming decisions which can bring benefit to the
society and will be helpful in minimizing resource depletion.
Legal factors- The legal factors such as discrimination, health and safety, consumer
protection and intellectual property rights are factors which restrict the functions and creates
a guideline for forming business decisions through which organization can maximize their
profitability (Georgescu and Popescul, 2015). However, legal factors are also responsible to
create an impact on the decision of Pets at home as these legal and ethical decision and
practices of business will be helpful in creating and strengthening the brand image of
business within the retail industry.
CONCLUSION
From the above project, it can be concluded that technological trends create an impact
on business at different levels which can bring opportunities and threats to the organization.
Business ethics ensures certain basic level of trust which exist between consumers and
different market participants with business. The concept of business ethics became more
important after the incline in awareness related to consumer-based society which shows more

concern to the environment corporate responsibility and social cause.it can be understood that
the internal and external business environment factors are responsible to create an impact on
the operations and decision making of business. The change and uncertainty in such factors
can hamper the growth of business and can also bring positive change by attracting various
opportunities for the organization.

REFERENCES
Books and journals
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.
Belas, J and et.al., 2015. The business environment of small and medium-sized enterprises in
selected regions of the Czech Republic and Slovakia. E+ M Ekonomie a Management.
Georgescu, M. and Popescul, D., 2015. Social Media–the new paradigm of collaboration and
communication for business environment. Procedia Economics and Finance. 20.
pp.277-282.
Ištvanić, M., Crnjac Milić, D. and Krpić, Z., 2017. Digital marketing in the business
environment. International journal of electrical and computer engineering
systems. 8(2.). pp.67-75.
Jovanović, Z., 2015. Management and changes in business environment. Ekonomika. 61(2).
pp.143-151.
Khajeheian, D., Friedrichsen, M. and Mödinger, W., 2018. An introduction to
competitiveness in fast changing business environment. In Competitiveness in
emerging markets (pp. 3-11). Springer, Cham.
Online
What is Corporate Social Responsibility, 2021 [Online]. Available through
<https://www.investopedia.com/terms/c/corp-social-responsibility.asp>
What is business ethics, 2021 [Online]. Available through
<https://www.investopedia.com/terms/b/business-ethics.asp>
Impact of technological change in business activity, 2019 [Online]. Available through
<https://smallbusiness.chron.com/impact-technological-change-business-activity-
2191.html>
Technological factors affecting business environment, 2021 [Online]. Available through
<https://www.marketingtutor.net/technological-factors-affect-business/>