Report on Business Environment Factors, Decision Making and Impact

This report examines the factors within the business environment that influence decision-making, focusing on both internal and external elements. The report highlights the significance of employees and innovative technology, showcasing their impact on organizational performance and profita...Read More

Leaders and
functions of a
manager

Table of Contents
P6 Factors within the business environment.......................................................2
M4 Analyze different factors affect business environment and wider
community.................................................................................................................... 3
P6 Factors within the business environment
Business environment is a combination of internal and
external factor which directly impact the organisational
decision making and its proficiency. Moreover, it enable
firm to examine all potential business opportunities and
helps them to take corrective course of action in order to
bring high level of satisfaction among customer. However, it
influence positively and negatively over company's
operation. Thus, an organisation develop productive decision
for tackling the negative impact of business environment and
can enlarge its profit margin. Some of the factors of business
environment that effect leader or manager decision making
are as follows:
Employees: They are consider as one of the essential
element or internal factor for an organisation who
contributes their best effort towards the accomplishment of
company goal which improves the overall performance of
firm. Moreover, they impose a huge impact on operation
management and it effect positively and negatively.
However, if manpower contains adequate knowledge or
information about given task then it reduces conflicts and
turnover rate and it directly reflect over Amazon
productivity and vice versa. 5

One of the main element which employees are concern i.e.
better working condition and equal platforms which leads them
to grow and develop their skill. Thus, leader and manger are
effected from employee because they are also a part of decision
making role and there is a possibility of generating disputes
within Amazon's premises due to diverse ideas or opinion.
Innovative technology: It is regarded as one of the powerful
driving force which allow company to gain competitive
advantage in an innovative and creative style. Along with this,
this component requires Amazon to examine current and
emerging trend of marketplace and according to that implement
best or productive strategy in order to explore business
proficiency. In regard of Amazon, they adapt an innovative
technology in order to maintain their product quality as well as
to eliminate wastage in order to enhance their profitability ratio.
Although it act as an external factor but introducing a new
technology within business function create positive impact over
company (Parisio, Rikos and Glielmo, 2016). Therefore,
Amazon's leader and manger is equally responsible for
alteration or modification and they have to provide proper
training or development program so that each personnel can
perform better and it brings high level of satisfaction among
them.
If they get fails, then it generate drastic conflicts of interest or
confusions among employees and lowers the productivity or
volume of sales of Amazon.
M4 Analyze different factors affect business
environment and wider community
In order to sustain or survive in the competitive industry for a
longer period of time, then company should have impressive
operational management function which leads them to increase
their productivity or profitability. Although there are two main
factors which influence business decision making i.e. internal
and external yet it effect positivity or negativity towards
organisational goal. Moreover, advancement of technology
enable Amazon to enrich their performance which add value to
customer as well as improves company's brand image. If an
innovation takes place within the business function then it
enlarge Amazon employees proficiency and makes them more
competitive and flexible to acquire novel or innovative ideas
which results in gaining competitive advantage.
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