Level 3 Business: External Factors Impact on Business Environment

This presentation, created for a Level 3 Diploma in Business and Management, examines the external factors that influence a business environment, using ASE Deals as a case study. It begins by outlining various external factors like political, economic, social, technological, legal, and environmental aspects. The presentation explains the significance of PESTEL analysis in strategic planning, emphasizing cost-effectiveness and alternative development plans. It then details a three-step crisis management procedure, including team assembly, strategic plan creation, and monitoring systems. Furthermore, the presentation identifies factors contributing to environmental damage, such as pollution, and suggests steps to minimize this damage. Finally, it explores the impact of environmental considerations on a company's profitability and reputation, highlighting the importance of adhering to environmental regulations and managing carbon emissions. The conclusion underscores the importance of understanding the business environment for identifying strengths, weaknesses, and opportunities for improvement, supported by references to academic sources.

The Business EnvironmentThe Business Environment
(TASK 1)(TASK 1)

TABLE OF CONTENTTABLE OF CONTENT
 INTRODUCTION
 External factor that may affect business
 Reason for PESTEL analysis
 Steps of Crisis Management Procedure
 Factors which contribute towards environmental damage
 Environmental damage can be minimized by various steps
 Environmental impact on business profitability and reputation
 CONCLUSION
 REFRENCES

INTRODUCTIONINTRODUCTION
 The Business Environment indicates to analysing internal and external factors
that effect on the functions of the company.
 Presentation will highlight external factors that affect the business.
 It will also explain three step crisis management process.

External factor that may affect businessExternal factor that may affect business
 POLITICAL: Political factors can directly affect ASE Deals's profitability. Governments
are pushing the lower release motors and ozone friendly motor as well. These rules
regulations and taxes are pushing hard ASE Deals to innovate new ideas.
 Such as if any country increases its import export rate that would also increase ASE Deals
products rate because company has to pay more tax that hike its product rate in related
country which would not convenient for all the consumers
 ECONOMICAL: Economic element is also an important factor for ASE Deals. There are
many economic crisis in part decades that affects separately in developed countries and
developing countries.

CONTCONT....
 SOCIAL: Highly priced auto mobiles are in full
of swing in developed countries. ASE Deals has
become a part of society where people demands
their class. In various population there is age
distribution that is a crucial factor for ASE
Deals while making products to its consumers.
 TECHNOLOGICAL: In market technology and
invention has become crucial element for ASE
Deals. With the help of internet customer are
well aware of technological inventions and they
demand hi tech luxury.

CONT..CONT..
 LEGAL: Law is other element which affect utility and productivity of ASE Deals. There are
some trends who are striking separate orders, rules, quality grades for ASE Deals industry.
For example pollution law has enlarged almost in all countries.
 ENVIRONMENTAL: Carbon emission is the biggest problem of using auto mobiles. ASE
Deals has to deal it with hi tech innovation that will bring profit. Like developed and
developing both countries are making stick rules that can affect company's productivity.

Reason for PESTEL analysisReason for PESTEL analysis
 The ASE company is impacting by doing efforts to compete with their competitors to
control and safety due to expert techniques of production in automotive equipments. And
trying to cope up with massive losses due to the recession and the battle for market share
they are choosing PASTEL for analysing strategic plans and methods to reduce business
threats by various steps which are as under-
 Cost Effectiveness: The PESTEL is very useful technique for increasing sales volume to
reach success with the comparative study of business environment. The business needs to
add more money than its spends. business operations at the lowest possible cost. This is
only done by maximising income and by minimising output with the method of cost
effectiveness by analysing its economical strength which helps to manage to meet the needs
of their


CONT..CONT..
 Setting Alternative Development Plans: PESTEL is important for studying and examine its
performance with business environment which is having broad sense due to implementing
strategic marketing plans.
 PESTEL analysis can raising awareness of potential threats by the competitive firms and it
helps to dynamically choosing alternative development plans from exciting competitor and
upcoming competitors. It sets the ability to exploring changes and develop a plan to
minimize losses and maximise profit by appearing to be an unexpected threat.

Steps of Crisis Management ProcedureSteps of Crisis Management Procedure
 Assemble Crises Management Team and Anticipation: This steps involves identifying
needs of crises management team members and formulating structure to determine purpose,
scope and goals of the company. The first step is to prepare, arrange and proactive an
insensitive brainstorming session to go through ll the potential crises that could occur at the
company.
 Creation of strategic plans: This step simply modifying processes and assessment which
should lead to the creation of crises response plan. These strategic plans tailored for their
organization, it includes operations and communications components

CONT..CONT..
 Monitoring System: The monitoring system is determining
various activities, through the performance by the crisis
management team and developing traditional and social
media to reaching at their customers and other stakeholders
and getting feedback during a crisis situation and
monitoring to reach the internal and external stakeholders as
soon as possible or getting follow up actions

Factors which contribute towardsFactors which contribute towards
environmental damageenvironmental damage
 Environmental Pollution: Pollution is most important factor which is contributed towards
environmental damage.
 It is increasing day by day with causing grave and irreparable damage to the atmosphere, it
is also affects on mechanization of society, the introduction of motorized vehicles and
explosion and exponential growth in the increase of waste by product by various
technology and productions.

Environmental damage can be minimized byEnvironmental damage can be minimized by
various stepsvarious steps
 By utilising the resources effectively.
 By reducing the pollution.
 By maintaining environmental balance

Environmental impact on businessEnvironmental impact on business
profitability and reputationprofitability and reputation
 ASE company should follow the rules and regulations which form countries to secure and
protect environment.
 If company would not follow the terms and conditions towards regarding country then ASE
Deals can get recall or forbidden to exports its product to related country. It will directly
take ASE Deals towards lose and productivity automatically get down and reputation as
well.
 Carbon emission is one of the biggest threats for environment. A study says auto mobiles
are responsible for global warming and ozone depletion.

CONCLUSIONCONCLUSION
 The purpose of studied business environment is to determined importance for an
organisation to identifying the strength and weakness of the company with certain aspects
and have taken corrective action to overcome from such weakness and convert into an
opportunity.

REFERENCESREFERENCES
 Crane and et.al., 2016.Business ethics: Managing corporate citizenship and sustainability in
the age of globalization. Oxford University Press.
 Moroni and et.al., 2015. The design and technological innovation: how to understand the
growth of startups companies in competitive business environment. Procedia
Manufacturing,3, pp.2199-2204.
 Begg and et.al., 2018.The business of climate change: Corporate responses to Kyoto.
Routledge.

27/12/18
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