Ethical Philosophies and Impact on Business Assignment Report

This report, submitted by a student, examines the impact of ethical philosophies and ethical issues on business operations. It begins with an introduction to the business environment, followed by an analysis of the internal and external environments, including value systems, mission and objectives, structure, human resources, and corporate image. The report then delves into the macro environment using the PESTLE framework, illustrating both positive and negative impacts with examples. It also includes an internal and external analysis of Morrison using SWOT analysis, and discusses different market types such as perfect competition, monopoly, monopolistic competition, and oligopoly, along with opportunity cost. The report concludes with a summary of findings and a list of references. This report provides a comprehensive overview of the ethical and environmental factors influencing business decisions and performance.

ASPECT OF ETHICAL PHILOSOPHIES AND
THE IMPACT OF ETHICAL ISSUES ON
BUSINESS
An Assignment Report
DECEMBER 23, 2018
FPT GREENWICH
Student: Huynh Hoang Kim

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ASSIGNMENT FRONT SHEET <No.2>
Qualification BTEC Level 4 HND Diploma in Business
Unit number and title 485_Business and the Business Environment
Assignment due 23/12/2018 Assignment submitted 23/12/2018
Learner’s name Huynh Hoang Kim Learner’s code GBD18509
Class GBD0821 Assessor name Phan Tran Phuong Trang
Learner declaration:
I certify that the work submitted for this assignment is my own and research sources are fully acknowledged.
Learner signature Date
Grading grid
P4 P5 P6 M3 M4 D2

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Assignment title Aspect of ethical philosophies and the impact of ethical issues on business
In this assignment, you will have opportunities to provide evidence against the following criteria.
Indicate the page numbers where the evidence can be found.
Assessment criteria Expected evidence Task
no.
Achieved (Stick to
mark as achieve)
LO3 Use contemporary examples to demonstrate both the positive and negative influence/impact the macro environment
has on business operations
Identify the positive and negative impacts the macro
environment has upon business operations, supported by
specific examples.
- The application of the PESTLE
framework
- How the macro environment
influences/impacts upon business
activities
- How organizations go through the
transformation process
P4

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LO4 Demonstrate the concepts of both internal and external analysis of organisations and explain the market type and
opportunity cost terms
Conduct internal and external analysis of specific
organizations in order to identify strengths and weaknesses.
- Introduction to SWOT and/or TOWS
analysis
- Internal and External Environments
P5
Explain how market types & opportunity cost work
Perfect competition, monopoly,
monopolistic competition and
oligopoly. Besides, analyse a
typical example with opportunity
cost.
P6

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Assessment
criteria
Expected Evidence Achieved (Stick to mark
as achieve)
M3 Apply appropriately the PESTLE model to support a detailed analysis of the
macro environment within an organization.
M4 Apply appropriately SWOT/TOWS analysis and justify how they influence decision-
making.
D2 Critically evaluate the impacts of market types on typical industries, such
as Water, Electricity and other industries.
Summative feedback:
Assessor’s Signature Date

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Table of Contents
Grading grid ................................................................................................................................................................................................................. 1
Introduction ................................................................................................................................................................................................................... 6
The positive and negative impacts the macro environment has upon business operations, supported by specific examples.................................... 7
Internal Environment ................................................................................................................................................................................................. 7
Value System .......................................................................................................................................................................................................... 7
Mission & Objectives ............................................................................................................................................................................................. 7
Structure & Nature................................................................................................................................................................................................. 7
Human Resource .................................................................................................................................................................................................... 8
Corporate Imagine & Brand Equity ........................................................................................................................................................................ 8
External of Macro Environment ................................................................................................................................................................................. 8
External of Micro Environment ................................................................................................................................................................................ 10
Suppliers:.............................................................................................................................................................................................................. 10
Customers: ........................................................................................................................................................................................................... 10
Marketing Intermediaries: ................................................................................................................................................................................... 10
Competitors: ........................................................................................................................................................................................................ 11
Publics: ................................................................................................................................................................................................................. 11
The positive and negative impacts the macro environment has upon business operations .................................................................................. 12
Pestle of Morrison ................................................................................................................................................................................................ 12
Positive impact ..................................................................................................................................................................................................... 13
Negative impact ................................................................................................................................................................................................... 14

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Transformation Process ............................................................................................................................................................................................... 14
Conduct internal and external analysis of specific organizations in order to identify strengths and weaknesses ..................................................... 15
Internal analysis ................................................................................................................................................................................................... 15
External analysis ................................................................................................................................................................................................... 15
SWOT analysis: ............................................................................................................................................................................................................. 15
SWOT Analysis of Morrison ..................................................................................................................................................................................... 16
Market types and Opportunity Cost ............................................................................................................................................................................ 17
Perfect competition ................................................................................................................................................................................................. 17
Monopoly competition ............................................................................................................................................................................................ 17
Monopolistic competition ........................................................................................................................................................................................ 17
Oligopoly competition ............................................................................................................................................................................................. 18
Opportunity cost ...................................................................................................................................................................................................... 18
Conclusion .................................................................................................................................................................................................................... 19
References ................................................................................................................................................................................................................... 19
Introduction
The world today’s business environment is impacted by various factors and also influences the overall effectiveness of any
organizational and businesses performance. This assignment report will explain the positive and negative impacts the macro
environment has upon business operations, supported by specific examples. Furthermore, this assignment report will also explain

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the definition, and corresponding uses of various aspects of business environment such as Pestle and SWOT analysis to help develop
understanding about the ways that companies can be influenced by the business environment.
The positive and negative impacts the macro environment has upon business operations, supported by specific examples.
Internal Environment
Value System
The interconnection of processes and activities within and among organizations involve in the production and delivering of an
offering that create benefits for intermediaries and end consumers, which strongly relating to the selection of business, the mission,
and objectives of the organization, business policies, and practices.
Mission & Objectives
The business domain of the corporate, priorities, the direction of development, business philosophy, business policy, are guided by
the mission and objectives of the corporate.
Structure & Nature
The authoritative structure, Board of Directors, and executive which govern over the company. Governing body is the most basic
requirement and utmost important, which is essential the brain of the company. The shareholding example can likewise have
imperative administrative ramifications.

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Human Resource
The attributes of Human Resource like attitude, quality, skills, etc., can add to the efficiency and shortcoming of the organization.
The contribution, activity and so forth of the employees at various categories may differ from organization to organization.
Corporate Imagine & Brand Equity
The image of the organization matters as it ultimately represent the credibility of the company while raising money, framing joint
endeavors or different unions, requesting market intermediaries, entering buy or deal contracts, propelling new products etc.
External of Macro Environment
• Political Factors: The political factors play an important role to determine how the McDonald corporation will organize its
activities. The major aspect of this factor is the government which is ruling the nation, i.e. USA, policies as formulated by
them is to be made sure that they are being applied and followed accordingly (Grimsley, 2013). This factor is very important
as the company might face consequences, which will lead to a harmful defect in the company if they were not aware of their
law-breaking actions. Hence, it is advisable for all the companies to follow the policies as generated by the ruling government
in that country. McDonald, consequently, has laid down its objectives as per the policies of the government.
• Socio-Cultural Factors: Apart from the political factors, the socio-cultural factors also play an important role for the
organization to set its objectives in the long run. Every country has its own cultural setting and belief, which should be
followed at the time when the company is actually operating in any nation, or else, the company may face the wrath of the
people of that culture and society. Hence, these socio-cultural factors do play an important role in the total activities of the
company (Grimsley, 2013).

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• Educational factors: Apart from the above-mentioned factors, education is also considered as one of the major factors which
determines the existence of the organization. Many firms provide their own training for their employees, then hire the
people who have taken training from them. These educational aspects are the major factors, which should be considered as
without their existence, the company will not be performing in the best possible manner (Grimsley, 2013).
• Technological Factors: These are external factors as well which affects the daily activities of the company. The technology is
essentially the main problems in which several firms are concerned in competition. The technology is that the most
significant issue to work out the performance of the corporate. These factors square measure essentially on the far side the
management of the businesses and thus all the businesses, including shell will have to be sure of the facts that these
technologies are being utilized appropriately (Grimsley, 2013).
• Legal Factors: Not only does the technology, legal factors are also considered to be the external factors. Legal factors
embody the law associated with the businesses act, and regulate up to what extent a corporation will take its activities.
Anything beyond the legal factors performed by the company will be reported against and strict action can be taken against
the companies, by the authorities (Grimsley, 2013).
• Environmental Factors: The environmental factors also are considered an important external force, which affect the
operation of the company. It is important for the company to make sure that they do not perform any activities, which are
against the environment or affect the environment adversely (Grimsley, 2013). Hence, it can be said that the environment
plays an important role in determining the activities of the company, and where the company will go.

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External of Micro Environment
Suppliers:
Suppliers are an important part of the organization’s overall customer value delivery system (Kotler, et al., 2005). They provide the
organization the needed resources to produce goods and services. Rising supply costs may force cause prices of goods to rise, which
can harm the company’s sales volume (Kotler, et al., 2005). The supplier can holds the power when they are the only or the largest
supplier of their goods, ultimately, today’s marketers treat their suppliers as partners in creating and delivering customer value.
Customers:
The company must study its customer markets closely. Since sales of a product or service is critical for a firm’s survival and growth, it
is necessary to keep the customers satisfied. To take care of customer’s sensitivity is essential for the success of a business firm.
Customers can be ordinary consumers (Individuals and households), businesses, resellers, institution (School, hospitals, nursing
home, etc.), government agencies, and international customers (All of the above) (Kotler, et al., 2005).
Marketing Intermediaries:
Marketing intermediaries are firms that help the company to promote, sell and distribute its goods to final buyers, they include
agents and merchants such as distribution firms, wholesalers, retailers (Kotler, et al., 2005). Marketing intermediaries are
responsible for stocking and transporting goods from the production site to their destination, advertise and direct goods to the right
customers, finance transactions or insurance against the risks associated with the buying and selling of goods (Kotler, et al., 2005).
Thus, marketing intermediaries is an indispensable link between a business firm and its final buyers. A dislocation of this link will
adversely affect the fortune of a company.

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Competitors:
Business firms compete with each other not only for sale of their merchandise but also in other areas. According to Kotler, et al
(2005), a company must provide greater customer value and satisfaction than its competitors to be successful. However, not only is
there a competition among the producers producing different varieties or brands of a product but also among firms producing quite
diverse products as all products ultimately compete for attracting spending by the consumers of their disposable incomes. Hence, a
firm always have to look out for their potential and already-exist competitor, at the same time, not only the quality of the products
but also the productivity of a firm needs to be on a continuous enhancement as not to fall short to its competitors.
Publics:
Kotler, P. (2005) claims that public is any group that has an actual or potential interest in or impact on a company’s ability to achieve
its objective. Organizations have a duty to satisfy the public as the public have the power to help the organization to achieve its goal,
and vice-versa, prevent the organization from achieving it. Publics can be:
• Financial publics: Influence the company’s ability to obtain funds. Banks, investment houses and stockholders are the principal
financial publics (Kotler, et al., 2005).
• Media publics: Include newspapers, magazines and radio and television stations that carry news, features and editorial opinion
(Kotler, et al., 2005).
• Government publics: Marketers must often consult the company’s lawyers on issues of product safety, truth in advertising and
other matters to the government (Kotler, et al., 2005).
• Citizen action publics: A company’s marketing decisions may be questioned by consumer organizations, environmental groups,
minority groups and other pressure (Kotler, et al., 2005).

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• Local publics: Include neighborhood residents and community organizations. Large companies usually appoint a community-
relations officer to deal with the community, attend meetings, answer questions and contribute to worthwhile causes (Kotler, et
al., 2005).
• General public: A company needs to be concerned about the general public’s attitude that direct toward its products and
activities. The public’s image of the company affects its buying. Thus, many large corporations invest huge sums of money to
promote and build a healthy corporate image (Kotler, et al., 2005).
• Internal publics: Include workers, managers, volunteers and the board of directors of a company. Large companies use
newsletters and other means to inform and motivate their internal publics. When employees feel good about their company,
this positive attitude spills over to their external publics (Kotler, et al., 2005).
The positive and negative impacts the macro environment has upon business operations
It has been ascertained that the Macro environment have a strong positive, and negative impacts on the business operations of
Morrison. The PESTLE analysis is the perfect tool to identify the impacts in an efficient manner.
Pestle of Morrison
• The impact of the political factor: As Morrison is operating their business in the UK, therefore, the political rules and
regulation of UK have a strong impact. The laws concerned with the food disposal is strong in the UK, hence, Morrison is
associated with the step of the less food wastage (Morrison, 2016).
• The impact of the economic factor: The prediction of the economic condition of UK is difficult, and based on the prediction,
the sales forecast is difficult to be assumed. This is another important negative impact for the business planning to be done
by the management of Morrison’s (Morrison, 2016).

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• The impact of the social factor: The change in the market trend has the strong positive impact regarding the better
opportunity for the business to grow in an effective manner. Furthermore, the slow eradication system in the UK additionally
uses to influence for the versatile segmentation, and also the positioning of the products offered by the company which is
the positive impact on the company (Morrison, 2016).
• The impact of the legal factor: Morrison strongly maintains the neutral side as for the local authority to open the shop and
the supermarket without much obstacle and hardship from Morrison itself. This is another problem that had been dealt by
the company in an effective manner.
• The impact of the environmental factor: The environment forecast and news is an important aspect that is being focused by
Morrison. Thus, the positive impacts used to be maintained as the customers are becoming attracted towards the business
doing the ethical business. Further, strong CSR maintained by the company also use to attract the huge customer base
towards the company (Morrison, 2016).
• The impact of the Technological factor: The advancement of the technology with the introduction of the online shopping
method has the strong positive impact on the business operations as customers are becoming attracted for the online and
hassle-free shopping through the online mode (Morrison, 2016).
Positive impact
The company Morrison operates by effective and strategic marketing planning and management, which required a considerable
amount of work-force and brain-power, which considering all the aspects that can make impact on the overall performance of the
company, and direct it toward effective results of the company. Macro environment and its factors are also being considered

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strongly while taking decisions in the company, which make the operation of the company more effective and safe from any external
threat.
Negative impact
There are various negative impacts of the macro environment which affect the overall performance and operation of the company,
which lead to the losses of the company. There can be situation in which the organization requires to go beyond its set objectives
and policies which can take advantage of the opportunities of the company but these macro environments restrict the company.
This is also defined as time consuming and high cost involved process which can make impact on the overall effectiveness of the
organization. There is also required effective internal control in the organization to implement the macro environment which
requires effective training and time consumption.
Transformation Process
A transformation process is any activity or group of activities that takes in inputs, then process and adds value to them, and create
outputs for customers or clients. It is a change management strategy that aims to direct the company's human resource, product
processing, and technological initiatives closely to the company's business strategy and vision. Input can be: Material, capital, labor,
facilities, etc. Output can be: Goods, services, etc.
Input Transformation Process OutPut

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Conduct internal and external analysis of specific organizations in order to identify strengths and weaknesses
Internal analysis
Internal analysis of the company defines the strengths and weaknesses of the company as the company is involved in modern and
effective manufacturing of furniture that can make impact on the overall effectiveness of the organization. This new approach on
technological development in organization is helping in developing the competitive advantage for the company in the market among
its competitors. The company is lacking in effective management of legal and observance activities that is ensuing as weaknesses for
the corporation.
External analysis
In every organization there are various factors which related to the external environment, and can be treated as strengths and
weaknesses for the company. Morrison is making profits and investing them effectively in various alternatives in the market which is
making a positive strength for the company. The company is additionally efficient in managing its funds from completely different
sources from the market and create effective selections by considering the govt policies, laws and legislations.
SWOT analysis:
A commonly used method of analysis, Strength - competitive advantage, Weakness - disadvantage, Opportunity, and Threat in the
marketing planning process of a business. Strength and Weakness are internal factors and factors that directly affect the company,
such as product quality, materials, facilities, employees, networks, and services; similarly, Opportunities and Threats are external
factors of the company.

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SWOT Analysis of Morrison
Strength factors:
• Effective supply chain with manufacturing firm
• Large product portfolio
• Have a range of influences of over 400 stores in the UK market
• Competitive pricing with the excellent discount for the online shoppers
Weakness factors:
• Limited geographical reach outside the UK Market
Opportunity factor:
• International expansion of online shopping
• The growth in organic products trend
Threat factor:
• Increasing number of the competitors in the market
• Increase of taxes due to immigrant and exit of brexxit
• Rise in the labor cost as per the legislations (Morrison, 2016)
Thus, the management of Morrison’s need to analyze these factors in an effective manner so that they will be able to take the
perfect decisions for the growth and the betterment of the organization with the presence of the competitors in the market.

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Market types and Opportunity Cost
Perfect competition
Perfect competition is a theoretical market structure, in which there are large numbers of small sellers and buyers, all product are
similar and standardized, there are no company that have influences over the market, and companies can join or exit the market at
no cost (Kenton, 2018).
Monopoly competition
Exclusivity refers to a field or industry that is dominated solely by a single company, or organization that is the industry in itself.
"Monopoly" can also be used to mean that an entity has full control or almost full control of the market, in which only one
manufacturer and one seller sell goods and services with no competitor and potential rival. In other words, the only business is the
entire manufacturer in the industry. Participation in such a market can be very limited and competitive by high costs or other
obstacles, may it be economic, social or political, to prevent potential competitors (Hayes, n.d.).
Monopolistic competition
Monopolistic competition is a form of market organization where many people sell different products, and the entry and exit of the
industry is relatively easy in long-term. Monopolistic competition is a market structures, in which combines the elements of
monopoly and competitive market. Basically, it is an exclusive competitive market that companies can differentiate between their
goods, therefore, there are an inflexible demand curve and pricing. However, because of free participation, monopolistic
competition encourage many companies to enter the market that lead to standadized profit in the long term (Pettinger, 2017).

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Oligopoly competition
Oligopoly is a market structure with a small number of companies, in which the rate of concentration in the market is measured by
the market share of the largest companies. In an oligopoly group, only a small number of companies make up an industry, this group
of selected companies has power over price control and, like a monopoly, an oligopoly groups have great obstructions to entry to
avoid potential competitors. The goods that oligopoly companies produce are almost undistinguishable and therefore, companies
are competing for market share, inter-reliant as an effect of market forces (Hayes, n.d.).
Opportunity cost
Opportunity cost represents amount of value of an individual, investor or business have to spend when choosing one product over
another. Although financial statements generally do not show opportunity costs, business owners may use it to make strategic
decisions when they have many options ahead of them, and because they are not seen by definition, opportunity costs can be
ignored if they are not careful. By understanding the potential of missed opportunities, firms can skip a product’s investment by
choosing a better altenative investment, hence, better decisions can be made (Kenton, 2018).
Example: Opportunity cost of McDonald’s Burger and Chicken
Originally, McDonald can makes 10000 Burgers a day, but then they have to also sell Chicken related product, which mean they have
to decrease the amount of Burgers made per day to increase the amounts of Chicken related product. Every 1 Burger of over the
first 1000 Burgers equal to 2 chicken nuggets, but the next every 2 burgers of 1000 burgers also equal to 2 chickens nuggets. This
means that the opportunity cost of every 2 chicken nuggets that McDonald have to spend 1 Burger for the first 1000 burgers, and 2
for the next 1000.

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Conclusion
This assignment report has successfully explained how the internal and external environment of the company can have positive and
negative impacts on their businesses, furthermore, included the study of SWOT with the PESTLE analysis in order to identify the
impact of these analysis on the decision-making process of the company.
References
Grimsley, S., 2013. How The Social Environment Affects Business: Examples & Impact. [Online]
Available at: https://study.com/academy/lesson/how-the-social-environment-affects-business.html
[Accessed 12 December 2018].
Kotler, P., Wong, V., Saunders, J. & Armstrong, G., 2005. Principles of Marketing. 4rth ed. London: Pearson Education.
Morrison, 2016. Annual report and financial statements 2015/16, London: Morrison.
Hayes, A., n.d. Economic Basics: Competition, Monopoly and Oligopoly. [Online] Available at:
https://www.investopedia.com/university/economics/competition.asp.
Kenton, W., 2018. Monopoly. [Online] Available at: https://www.investopedia.com/terms/m/monopoly.asp.
Kenton, W., 2018. Opportunity Cost. [Online] Available at: https://www.investopedia.com/terms/o/opportunitycost.asp.
Kenton, W., 2018. Perfect Competition. [Online] Available at: https://www.investopedia.com/terms/p/perfectcompetition.asp.
Morrison, M., 2012. What is Business Transformation? [Online] Available at: https://rapidbi.com/what-isbusiness-transformation-3/ [Accessed
15 December 2018].
Pettinger, T., 2017. Monopolistic Competition – definition, diagram and examples. [Online] Available at:
https://www.economicshelp.org/blog/311/markets/monopolistic-competition/.

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Saleem, S., 2010. Business Environment. 2nd ed. Pearson India.

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