Analyzing Business Environment of a Mobile Phone Company

This report provides a comprehensive analysis of the business environment of Bullitt-group Ltd, a mobile phone company. It begins with an introduction to the business environment, encompassing internal and external factors impacting organizational operations. The main body delves into microeconomic concepts and models, including Porter's Five Forces, to assess the competitive landscape. It examines the necessity for auditing both the external and internal business environments, highlighting the significance of financial, physical, and human resources, along with the company's mission, management structure, work environment, corporate image, and technological capabilities. The report also explores key elements of the business environment, such as political, economic, social, and technological factors. It concludes by emphasizing the importance of understanding these factors for strategic decision-making and organizational success. The report is designed to provide insights into the mobile phone industry's dynamics and offer practical applications of business environment analysis.

A Mobile Phone
Company

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Business Environment and Micro Economic Concepts and Models..........................................3
Examining the ways and reasons Mobile Phone company needs to audit their External and
Internal Business Environments................................................................................................11
Insights about Micro Economic environment within which mobile phone business operate...15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Business Environment refers to various internal and external factors that impacts upon
the working of an organisation. The factors cover customers, suppliers, managers, government
and many more which impacts upon the working of an organisation. So it is important for the
companies to take a look over the internal and external factors so as to have a knowledge about
the impacts drawn by these factors on the working of their organisation (Antonaras and
Dekoulou, 2019). The company chosen for the completion of this assignment is Bullitt-group
Ltd which was founded in the year 2009 and is headquartered in Reading, Berkshire, United
Kingdom. The company provides their customers with template, ublist CAT Mobile Phones for
the satisfaction of needs and wants of their customers. So this assignment will start with making
its focus on Micro Environment and end with Macro Environment. There will be different tools
and models which will be used in the assignment so as to know about the impact of internal and
external factors on the working of an organisation. These tools and models are such as PESTLE
Analysis, SWOT Analysis and many more with the help of which it could be known to them
about the ways to remove these issues, their impact and many more. Lastly, the assignment will
also provide the knowledge of reasons of auditing business environment and the ways with the
help of which they could gain insights into Micro Economic Environment.
MAIN BODY
Business Environment and Micro Economic Concepts and Models
Background of the Company: Bullitt-group Ltd is counted under one of the well renowned
brands of UK having a large number of customer base and serving to the customers with their
products and services across the world. The company is aiming at providing their customers with
their products and services at an affordable prices taking in comparison to their customers so as
to satisfy their needs and demands along with covering most of the market share. The company
also provides their customers with high quality products and services at cheaper prices
(Bitkowska, 2019). Along with this, the company also operates with small workforce and over a
number of 75 nations in the world.
Porter's Five Forces Model: The following model was developed by Michael E. Porter.
According to this model, the main focus of this model is to know about the level of competition
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and level of profitability in the industry. There are different forces which are covered in this
model which have been provided as under:
Competitive Rivalry: It is related to the level of competition which the industry do have and in
this industry, the level of competition is high as there are large number of competitors.
Bargaining Power of Suppliers: The power of suppliers is low because the materials used is not
much scarce so due to this reason this power is also considered as low.
Bargaining Power of Customers: The power of customers is related to the extent to which
customers could influence the prices of the company. As there are many companies so there is no
impact of the prices of the company from the customers.
Threat of New Entrants: In the following industry, there are not much rules and regulations so
due to this reason, there are not much restrictions on the entry of companies.
Threat of Substitutes: Due to many competitors operating at large scale, the company do have
threat from the competitors as it is possible that customers could shift to other companies
products or services.
Internal Audit and Strategy
There are different elements in the internal environment which are been discussed as
under:
Financial Resources: These are the resources with the help of which an organisation's efficient
working is accomplished. So this could impact upon the working of organisation. In case the
company is not having finance in sufficient amount than this will impact negatively on the
growth and development of this organisation and vice versa.
Physical and Human Resources: For the performance of organisational tasks, it is important for
the company to have sufficient amount of physical and human resources so as to accomplish the
different tasks in an efficient manner. In case, these resources are not available with the company
it will impact negatively on its performance.
Mission and Objective of Business: The main mission of Bullitt-group Ltd is to make
improvement in the level of their services towards exploring new markets and working ethically
considering the environment.
Management Structure: The company is following collaborative culture and structure in their
organisation which follows Hierarchical Structure in which the company has defined as the
employees to which they are supposed to take their work.
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Work Environment: It refers to the environment which is provided to the employees in the
organisation such as their office environment, flexibility in working, personal computers, office
temperature and many more . The company is also good at this place as well providing good
working environment to their employees.
Corporate Image: The image which the company is having in front of their customers and the
society as well. As the company is providing their customers with good working conditions,
good services to customers so the company is having good image in the society which is also
because of its social contributions as well.
Labour Management Relationship: In order to maintain good relationship with their labours
the company is also providing them with greater opportunities so as to make development in
their career along with incentives and rewards as well.
Technological Capabilities: With the passing of time, the capabilities of the company are also
increasing at fast rate. In order to beat the competition the company is doing a lot to make
improvement in the level of their technologies such as by developing their audio products.
Business Environment
It is said to gradual addition of outside expansion to inside powers like providers,
government exercises, client desires, workers, mechanical advancement, financial changes,
organic market, social patterns, the executives and market drifts that have enormous impacts on
organization with its capacities. At the end of the day, business condition includes occasions,
circumstances and impacts that are encompassed with an association. There are different powers
which are additionally ordered into inside condition and outer condition which includes
unmistakable components having effects on authoritative enacts together with basic leadership.
The natural powers furnishes wide open doors with dangers to the business.
It is important for the companies to make their focus on the business environment and the
ongoing activities with the help of which it is possible to know about the impact which will be
created on an organisation because of the factors or elements of business environment. In the
market, there are different forces and elements which impacts upon the working of an
organisation in both the positive as well negative ways. As there are two main types of elements
of business environment which are Internal and External Business Environment, with the help of
considering these two factors, it will be possible to make improvement in the level of working as
well. The companies in order to identify the available opportunities and threats in the
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organisation is required to make proper analysis of the market with the help of which it will be
possible for the company to know about that what is going on in the market. By knowing about
the market conditions, an organisation could make formulation of suitable policies and strategies
with the help of which it will be possible to make improvement in the level of their condition.
The market conditions could provide an organisation with whether the opportunities or with
threats. So by considering this, it will be possible to make improvement in the condition to judge
the situation and make strategies accordingly. The key elements of business environment are
discussed as under:
Internal Environment is named to conditions, powers just as circumstances inside
business limits. It principally includes every one of the things that are under the influence of
supervisory crew. It comprises of the components which include presence inside association
limits as it were. In setting to Bullitt-bunch Ltd, the interior condition components are
hierarchical culture, representatives, investors or proprietors, business generosity and assets
(Child, 2015). The person who begins the substance and acquires hierarchical offers share
advertise are said to proprietors. The proprietors of Bullitt-bunch Ltd are Colin Batt, Richard
Wharton just as David Floyd. These individuals have rights to change approaches of business
whenever. The proprietors has fundamental impact with in interior condition of business. The
following key inward component are workers who performs exercises as set by managerial
specialists. At present, chose business have rough 130 representatives who has vital influence in
structuring, producing, advancing just as selling cell phones of the organization with association
with universal brands. Furthermore, hierarchical culture is likewise key interior condition
component which incorporates vision, aggregate conduct of authoritative individuals, qualities,
propensities and convictions joins with activities of individuals. At chose business, authoritative
culture is viewed as establishment of inner condition as it shapes conduct of numerous
individuals alongside moulding accomplishment of firm. Picked element has solid culture which
help it in accomplishing destinations adequately than rivals having feeble culture. Authoritative
assets are additionally considered as a component of interior condition. Assets like physical
assets, budgetary assets, mechanical assets, HR and educational assets are a piece of business
assets. In setting to assets, Bullitt-bunch Ltd has places of business, machines to make portable
bodies and stockrooms to store stock (De Castro, Hogenboom and Baud, 2016). Furthermore,
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data assets that organization has are usable information that is required for basic leadership,
monetary assets as far as assets and capital, etc.
External Environment refers to the environment which impacts upon the working of an
organisation from outside. It isn't restricted with specific organization or division is named as
external environment. The components that lives outside business limits and have low
controlling intensity of authoritative individuals are the components of outer condition. For
example, Bullitt-bunch Ltd works inside hardware industry and henceforth, every one of the
components that dwells inside entire country are outside variables for the organization. Outer
condition components are general variables like political, natural, lawful, practical, social and
mechanical. Political factor is said to by and large political conditions inside nation. In setting to
UK, there is solidness in ideological groups which causes Bullitt-bunch Ltd to work its exercises
effectively by making great relations with government organizations. Thinking about monetary
factor, it incorporates whole financial framework inside which association works the working
(Dogra, 2019). The financial components which impacts choices of chose firm are monetary
cycle, charge rates, populace level and some more. For example, during swelling, associations
need to pay more for procuring assets and for taking care of costs, ware costs are expanded.
Same is with Bullitt-bunch Ltd, to take care of colossal expenses for assembling cell phones,
costs are expanded somewhat. Next component is social measurement which spreads factors like
traditions, qualities and ethics of society. The chose substance produces cell phone relating to
qualities and frames of mind of society individuals where they works key exercises. Innovative
factor includes worldwide mechanical exchange and updation in data innovation. As Bullitt-
bunch Ltd is steady organization which has embraced refreshed procedures for assembling wide
arrangement of cell phones. The organization non-stop screen innovative improvements an as
needs be outline systems for further interests in mechanical angles. Thinking about legitimate
components, different laws like Contract Act, organization law, Industrial relations Ordinance
and a lot more are actualized by UK government. As every one of these laws are actualized by
chiefs of picked business which shield them from uncalled for rivalry alongside performing
reasonable practices to convey best versatile items. Ecological factor is likewise key component
for the outside condition. Business need to appropriately break down common habitat slants in
which exercises are worked. Changes in common habitat like a dangerous atmospheric deviation,
etc. impacts elements of chose firm with wide results.
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Market Structure refers to the characteristics of the market either the organisational or
competitive, with the help of which it is possible to described about the competition and the
pricing policy followed in the market. There are different types of market structure such as
Perfect Competition, Monopoly Market, Monopolistic Competition Market and Oligopoly
Market. Looking at the current market situations in UK related to the mobile sector, it can be
said that there is an oligopoly market in the country where there are few sellers in the market of
their related products and services. But these sellers covers more market share as they are
operating at a very large scale. Bullitt-bunch Ltd company is not operating at a very large scale
so there is a very tough competition which will be faced by Bullitt-bunch Ltd in the market as the
competitors are not operating at small scale and they have much more capacity than their
organisation to take risk so as to make the company out to the market.
Laws of Supply and Demand: According to this law, it depicts about relationship in between
the sellers of a resource and the buyers for that resources. In other words, it can be said that it
focuses on the effect which the relationship in between the availability of a particular product
and the demand for that particular product on the price of that product. In general causes, when
the demand is high and supply is low, it will lead to increment in the prices of products and
services and vice versa. The law of demand says that at higher prices, the customers will prefer
to avoid the product as a result the demands will fall and prices will also go down and will reach
to the equilibrium point.
The law of supply says that at higher prices, sellers will supply more of an economic
good and due to its high supply, the demand will become less in comparison to the supply and
due to more availability and less demands, the prices will fall again and reaches to the
equilibrium point. As applying this law in the working of Bullitt-bunch Ltd, the company is
required to provide some improved or innovative services to their customers as in the oligopoly
market, it is important for companies to have something different to offer to their customers so
that it could become possible for the companies to provide to their customers in order to stand in
the market. The diagram has been depicted as under:
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As with the help of above diagram, it has been depicted that the firm is earning maximum
profits to the point where MR=MC. So in case of change in MC, it may no impact upon the
market price.
Micro Economic concepts and models
Micro economic refers to financial aspects branch which thinks about individual practices
alongside firms basic leadership for designating rare assets just as connections among the two
factors (Eleonora, 2016). The idea of small scale financial aspects manages creation just as costs
inside single market alongside communication among different markets. Miniaturized scale
financial aspects idea clarifies the manners in which an individual distributes the cash pay among
wide needs and expands fulfilment level in the wake of expending accessible assets.
Few models or theories of microeconomics are as follows:
Production Theory: Production is named to techniques for deciphering contributions for
yields. The hypothesis clarifies about standards for settling on choices about the amount of items
are sold and produced. It delineates connection between ware cost with beneficial components
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and amounts of items with profitable elements (Fenwick and Wrbka, 2016). It shows connection
among input changes with change sin yield. Likewise, the model depicts greatest yield add up to
be acquired through business by utilizing fixed volume of assets.
The production function shows relationship among physical contributions just as physical
yields with expressed innovation.
Q= f (a,b,c,....z)
In this, a,b,c,..z are inputs like labour, capital and land.
Q is level of output.
In relation to Bullitt-bunch Ltd, the managers utilizes generation theory to recognize the
degree of output they have accomplished with utilization of level of sources of info. Moreover,
with this theory, managers will be able to decide rewards related with inputs. The maker while
creating Mobile telephones looks to choose those mix of contributions just as joining techniques
which will limit costs revenue driven augmentation.
Utility Theory: Utility is said to fulfilment that an individual gets in the wake of
expending wares. What's more, it estimates value that is acquired by customer from explicit item.
According to the utility theory, purchaser will consume those items which will improve their
utility just as satisfaction, considering the pay they have for spending. It gives a structure to
assessing elective decisions that people or associations make. Utility hypothesis expect that the
choice by individual are made according to utility augmentation rule, that says best decision is
what gives most extreme fulfilment to leader. As decisions are compelled by costs just as buyer
pay, objective customer don't make spendings on extra unit of items except if its peripheral
utility is identical or more than that of unmistakable product (Grant, 2016). Subsequently, item
costs are related with minimal utility just as positioning by customers for decisions are done in
like manner. In setting to Bullitt-bunch Ltd, the organization producers cell phones subsequent to
dissecting the consumer loyalty level and inclinations so clients increases most extreme utility
from the cell phones. By following the hypothesis, advertisers investigations singular conduct for
cell phones and on such premise they positions the decisions ward to inclinations. It further help
the element to make those telephones on mass amount that are generally liked and have capacity
to upgrade
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Examining the ways and reasons Mobile Phone company needs to audit their External and
Internal Business Environments
The tools techniques used for auditing of business environment
The auditing of business environment is linked with analysing the impact which are faced
by firm from those factors which are operating at external and internal level. In relation with the
factors which are operating at internal scale tools such as SWOT is used by Bullitt-group Ltd.
This tool is used for documentation of strong points, weak factor, threat and opportunity in order
to make effective decision at work place (Grubor and Marić, 2015). The SWOT Analysis of firm
is executed in detailed as:
Strength Weakness
 The firm named as Bullitt-group Ltd is
mainly used for manufacturing qualitative
cell phones.
 The firm focuses on delivering high
quality differentiated mobile phones in
partnership with other business who are
operating at global scale.
 The firm are having skilled and productive
members of the staff that are valuable in
analysing the trends that are arising at the
market place and according to that
marketing activities are carried out to
enhance sales of firm.
 The firm have opted for both generic and
intense growth strategies in order to do
innovation in products according to the
new technologies.
 The chief weakness of firm is that
they are having very less channel of
distribution as they are only
focusing on adopting exclusive
policies. Thus managers are
selecting best marketing sellers for
retailing their products at market
place.
 The firm have fixed higher price for
their goods and this puts a limit on
the number of customer who will
purchase their goods (Hamilton and
Webster, 2018).
 In the underdeveloped countries
company is not able to enter
themselves successfully and this is
the main reason behind achieving
limited shares at international scale
in relation with their competitors.
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