Macob Company: Analysis of E-Business Environment and Strategy

This report provides a comprehensive analysis of Macob Company's e-business operations, focusing on its internal and external environments. It begins with an introduction to e-business and its relevance, particularly for online retailers like Macob Company, which specializes in organic skincare products. A PESTLE analysis is conducted to evaluate the macro-environmental factors (political, economic, social, technological, environmental, and legal) impacting the company. The report then delves into the internal strengths and weaknesses of Macob Company, as well as the opportunities and threats in its micro-environment. The analysis includes an assessment of how macro factors affect the company's internal and external aspects. Finally, the report concludes with a summary of the key findings and recommendations for Macob Company's e-business strategy, supported by references to relevant academic sources.

MANAGING THE
PRINCIPLES OF E-
BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
PESTLE analysis for analysing macro environment.......................................................................1
Impact of Macro making Internal and external analyse and identify strength and weakness.........2
Micro environment strengths and weaknesses.................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5
.........................................................................................................................................................5

INTRODUCTION
E-business is also refers as online business in which all the activities are done through
online via internet. In recent times there are various businesses that are exposed to this section
and gaining benefits from the same (Geisler and Wickramasinghe, 2015). Main reason why
companies are adopting the same is because of it is convenient in nature and requires no
geographical boundaries. Macob Company is a online shopping that provides Organic artisanal
Skin Care products for both men and women. Company deliver these products to door steps.
Present report will focus on providing information related to internal and external environment
which can puts an impact business operations.
PESTLE analysis for analysing macro environment
While operating a business there are various factors that puts an impact on the
performance of a company. Macro environmental factors are one of them although firm doesn't
have any control over this but had to follow in order to gain maximum benefits from the
environment.
Political Factor: With the exclusion of UK from EU (Brexit), it has affected the
political, economic and legal framework for the companies dealing in cosmetics in United
Kingdom. Regulatory bodies who are active in this country have formulated Personal Care
Product Safety Act which make sure that products that are manufactured are safe for use.
Economic Factor: According to the current market scenario, economic growth rate of
United Kingdom is slow because of which there can be a possibility that consumes cut down the
spending for beauty products. As per the statistics provided by Yahoo Finance UK, (2014) by the
year around 2018-2019, cosmetic industry will bring its value to £2.32 billion (UK cosmetics
manufacturing market, 2013.). This will definitely puts an impact on the business of Macob
Company as their sales and productivity can decline.
Social Factor: 'Bespoke' make-up is one of the most popular beauty trend and people are
purchasing goods accordingly. But some section of the society are moving towards natural
beauty products (Ross, 2016). So, most of the customers are purchasing their goods from Macob
Company. Therefore, by considering their needs and requirements company is manufacturing
goods accordingly.
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Technological Factor: United Kingdom comes under the third-largest e-commerce
market in the world and approximately 13 percent of the revenues are generated through online
purchasing and by 2021, this will rise to around 21 percent. Therefore, Macob Company is
making full use of these technologies as they are selling their products online.
Environmental Factor: According to today's scenario, customers have become more
conscious about the goods they are purchasing. Thus, before buying any product they look out
for potential side-effects because there are some products that uses artificial substances like
parabens, petrochemicals and toxins (Sikdar and Payyazhi, 2014). Therefore, in terms of Macob
company most of their products are organic and are using all natural ingredients for making their
product.
Legal Factor: In United Kingdom, rules and regulations for this sector are related to the
safety of cosmetics products in order to keep the standard and protect consumers as well.
Impact of Macro making Internal and external analyse and identify strength
and weakness
Political Factor:
Strengths: In United Kingdom, as the government is stable and it is working as a
strength for the companies who have establish their business in UK. Therefore, firm doesn't
require any kind of changes in policies and strategies. Thus, it will assist company in giving
effective services and facilities to its customers according to the needs and requirements of
customers.
Weaknesses: Political Factor has some limitations as well as sudden implementation of
taxes and policies can create problem for companies. Moreover again they have to develop new
strategies and action plan considering rules and regulations (Kajanus and et. al., 2014).
Economic Factor:
Strengths: This can be basically linked with economy of the nation, if economic level
of the nation will be growing and effective than customers can have a free hand of purchasing
beauty products even after the prices are higher. In relation with the products sold by this
company its rates are reasonable and consumers can purchase them.
Weaknesses: Recession period or any other factors can have an impact on the business
operations as this can decrease the sale and productivity of a company. Reason behind this is that
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consumers during this period becomes more price conscious before purchasing any commodity
from the market (Kurucz and et. al., 2017).
Social Factor:
Strengths: Trends in beauty products are changing in a rapid speed people are becoming
more trendy and following latest fashionable things to look more attractive. Therefore, if
company manufactures goods accordingly than they can gain benefits and can sustain in the
market for a longer period of time.
Weaknesses: Changing trends on a continuous basis although provides benefits to the
company because it gives opportunities to organisation in grabbing new opportunities but it can
work as a limitation as well. There can be a possibility that firm manufactured goods in bulk and
as trend is changing thus, than for them it can be of no use.
Technological Factor:
Strengths: Technology has played a crucial role in enhancing the sales and profitability
of the company (Geisler and Wickramasinghe, 2015). As in terms of Macob Company provides
online services which is assisting them in getting in touch with large number of customer base
across united Kingdom.
Weaknesses: Technology as provides benefits to the organisation but it can work as a
weakness if company doesn't apply technology in an effective manner. For instance: in a
manufacturing plant employees can face difficulty in understanding the complex tools and
technologies which might decrease the productivity of the company for a certain period of time.
Micro environment strengths and weaknesses
Strengths Weaknesses
 Macob company that deals in beauty
products has leap a strong growth in a
shorter period of time.
 While manufacturing their product they
are using natural based ingredients such
as Mango Butter, Aloes Vera Avocado,
coconut oils etc., which doesn't harm
skin of customers.
 Some of the products manufactured by
them are expensive because of which
sale of these products are low as
compared to other goods.
 Channing trends and market research
data are sometimes out of date because
of which desired products are not
delivered on time (Ross, 2016).
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 Along with this company's excellent
sales staff is aiding firm in having
growth in their business operations.
Opportunities Threats
 Currently, company is dealing in
United Kingdom thus, they can think
for expanding its business in some
other parts of the world as well. This
will not only increase the sales but also
enhance customer base.
 They must also grab the opportunity of
collaborating with other firms so as to
fulfil objectives.
 For Macob Company there is a fear of
rival companies launching a new
product as this can increase the
competition in both mainstreams and
niche market.
 Changes in legislations regarding
natural products can have an impact on
Macob Company as they have to
change their policies.
CONCLUSION
From the above report it has been concluded that, macro and micro environment plays a
crucial role and provides assistance to company for operating its business in an effective manner.
For instance: political factor aid firm in performing their business activities under control and
boundaries. Other than this, micro and macro environment provides information about strengths
and weaknesses.
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REFERENCES
Books and Journals
Geisler, E. and Wickramasinghe, N., 2015. Principles of Knowledge Management: Theory,
Practice, and Cases: Theory, Practice, and Cases. Routledge.
Ross, D. F., 2016. Introduction to e-supply chain management: engaging technology to build
market-winning business partnerships. CRC Press.
Sikdar, A. and Payyazhi, J., 2014. A process model of managing organizational change during
business process redesign. Business Process Management Journal, 20(6), pp.971-998.
Kajanus, M. and et. al., 2014. Business model design: new tools for business systems innovation.
Scandinavian Journal of Forest Research. 29(6). pp.603-614.
Kurucz, E. C. and et. al., 2017. Relational leadership for strategic sustainability: practices and
capabilities to advance the design and assessment of sustainable business models.
Journal of cleaner production. 140. pp.189-204.
Online
UK cosmetics manufacturing market. 2013. [Online]. Available Through:
<https://uk.finance.yahoo.com/news/uk-cosmetics-manufacturing-market-worth-
000000133.html?guccounter=1>.
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