Environmental Scan Report: Australian Business Analysis

This report provides an environmental scan, analyzing various factors impacting businesses. It categorizes these factors into economic, social, political, and technological aspects, and explores their influence on businesses, particularly within the Australian context. The report examines the political and economic environments, along with social-cultural and technological factors. Furthermore, it uses 7-Eleven as a case study to illustrate how these environmental pressures manifest. The external business environment, encompassing competition, customers, and the labor environment, is also discussed. The report highlights how these factors shape business operations and strategies. Finally, the report cites several sources to support its analysis.

Running Head: Environmental scan 1
Environmental scan Report

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Contents
Types of factors affecting environment...........................................................................................3
Environmental factors affecting Australian business......................................................................3
Environment exerting pressure........................................................................................................4
Components of external business environment...............................................................................5
References........................................................................................................................................6

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Types of factors affecting environment
There are various factors that impact the environment in which the businesses operate.
Those factors are as follows:
Economic factors-
These factors include economic policies and economic conditions that make economic
environment of a country. These factors basically comprise of inflation, growth rate and
restrictive trade practices etc. that have significant impact on the business (Qureshi, 2014).
Social factors-
These factors basically include the society including priorities and preferences of people.
The choices and preferences comprise of buying and consumption pattern, purchasing power,
educational background and beliefs of people etc.
Political factors-
Next factor is political factor which is related to the management of public affairs. These
factors have significant impact on the business process in a country. There should be political
stability in the country in order maintain sustainability in the trading process (PayPerVids, 2016).
Technological factors-
New trends in the technology are helpful in enhancing the marketability of the products.
Along with this, it is also helpful in making the products and services more customers friendly.
So, it is crucial for every business to keep in touch with the emerging technologies for sustaining
the business in the long run.
Environmental factors affecting Australian business
In case of Australia, there are various external environmental factors that impact the
business process in the country. It is crucial to analyze the environmental factors while doing the
business in Australia. Those factors are discussed below:

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Political environment- In case of Australia, the country is liberal-capitalistic democracy. The
parliament decides to set up crucial taxes for protecting national economy.
Economic environment - In the country, it is one of the largest capitalist economies across the
world. It is dominated by the service sector. The growth of economy depends on mining and
agriculture sector.
Social-cultural environment- Australia is the collection of diverse people living in a relatively
young society. They are highly educated than ever before (ProBonoNews, 2013).
Technological factors- The greatest technological achievements of the country are in energy
sources, internet and transportation that impact on the business positively.
Environment exerting pressure
Company 7-eleven is selected as the business for the discussion which is the largest
gasoline retailer. Company is operating in Australian market and the factors those exerting
pressures on the business are described below:
Political-
 Foreign import taxes,
 Global pressure,
 Regulatory bodies and government
policies,
 Degree of corruption and violence
Economic-
 Seasonal fluctuations,
 Inflation,
 Competition
 Suppliers, customers and development
of products
Social-
 Change in preferences of consumers,
 Brand image of company,
 Product demographics,
 Religious belief
Technological-
 Development in technology,
 Security due to technology,
 User-friendly systems,
 Changes in use of technology (The
State of Queensland, 2018)

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Components of external business environment
External environment of the business includes uncontrollable factors outside of the
company. The significant uncontrollable factors of the external environment are competition,
customers, labor environment and suppliers.
Competition- Competition increases in the industry due to similar product brands, their size and
market capitalizations. As a marketer, 7-eleven does not have direct impact on them. Rival
companies may attract the customers by innovative services, quality, convenience, prices and
selection.
Customers-The preferences of the customers can be changed due to availability of substitute
products. The competitive edge of the company can be enhanced by extra services, new products
and expanded hours of operations.
Labor environment- This component can be affected by the government regulations,
competencies and expertise. It can also be affected by educational level of society, technical
factors and diversity.
Public opinion- Any kind of negative activity of the company can damage its brand image. The
negative perception of public can impact on the sales of the company in positive or negative
manner.

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References
PayPerVids, (2016). 5 Factors that Influence Business Environment. Retrieved on 18th March
2018 from https://www.paypervids.com/factors-influence-business-environment/
ProBonoNews, (2013). Social and Environmental Factors on the Corporate Radar. Retrieved on
18th March 2018 from https://probonoaustralia.com.au/news/2013/09/social-and-
environmental-factors-on-the-corporate-radar/
Qureshi, R. (2014). What Are The Environmental Factors That Affect Business. Retrieved on 18th
March 2018 from https://www.bayt.com/en/specialties/q/63135/what-are-the-
environmental-factors-that-affect-business/
The State of Queensland, (2018). Consider your environment. Retrieved on 18th March 2018
from https://www.business.qld.gov.au/starting-business/planning/business-success/
environment