Analysis of Modern Business Environment: A Case Study of John Lewis

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ASSIGNMENT 1: ESSAY ON MODERN BUINESS
ENVIRONMENT
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Table of contents
Introduction......................................................................................................................................3
Body.................................................................................................................................................3
Conclusion.......................................................................................................................................5
Reference list...................................................................................................................................6
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Introduction
At present, business organisations face huge competition in market as all ventures try to give
their best performance to hold their position in society. In business, macro environmental factors
incorporate few concepts such as economy, ecology, socio-culture and political forces. On the
other hand, micro factors include labours, suppliers, customers and competitors. In addition to
this, following business ethics like proper justice and fairness in work, organisations can run
their activities in a disciplined manner. Throughout the essay, environmental factors will be
analysed along with example of John Lewis for understanding modern business environment
properly.
Body
Discussion and identification of Environmental factors
Macro environment
In order to run business in the modern era, Saleem (2015) commented that, business
organisations need to follow the economic status of people. In UK, unemployment rate of
people is 4.0% and it denotes that people are able to afford branded products
(tradingeconomics.com, 2018). Therefore, business ventures need to maintain quality of products
for increasing their sale. On the other hand, products or services need to be appropriate based on
the place. Hence, in time of launching products, business organisations should follow the
ecology of the place. Organisations follow the culture such as religion, eating habit and choice
before launching their products. Moreover, organisations maintain the political aspects such as
policy and legislation for running business in a specific place.
For example, in case of John Lewis, they join with Peter Jones for maintaining product quality.
As it is Western country, in fashion department, they sell woollen dresses for increasing profit in
market. Moreover, company prefers to focus on the choice of UK and Australian customers, as
they are the target customers of them. Taxation law is followed so that John Lewis can run their
business legally (johnlewis.com, 2019).
Microenvironment
Micro environmental factors denote various concepts such as labours, customers, suppliers and
competitors. According to Bloisi (2007), suppliers give the raw material or input to the venture,
which they sell to the customers. On the other hand, as per the preference of customers, the
products of a business are designed. It ensures that company is able to earn huge profit in
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contemporary market. In addition to this, in the modern business, organisations analyse the
strategy of the competitors so that they can introduce unique strategies for their business.
Moreover, company needs to motivate their employees or labours so that they try to give best
performance in time of working. Thus, micro environmental factors influence the business in
global aspects.
For example, in case of John Lewis, as a business professional, it has been found out that John
Lewis has considered Peter Jones and Buy.com as their suppliers. It ensures that company
provides quality product to the customers. The venture analyses strategy of Aldi, Boots and Mark
& Spencer so that they can design it in a unique manner. They follow growth strategy for
increasing their sale in all over the world. Democratic and strategic leadership styles are
followed in order to give priority to the words of labours. It gives them motivation in time of
working (johnlewis.com, 2019).
Influence or impact of factors on business and changes along with examples
In the previous decades, organisation did not focus on the demand of customers. They just
prepared items and sold it in market. According to Bratton (2007), organisation did not focus on
the quality of products. They just tried to give product in cheaper rate. However, in the modern
business, ventures are able to understand that customers want to get quality products. In addition
to this, consumers prefer innovation in products. For example, as a business professional of John
Lewis, they provide expensive product to customers maintaining its quality. Moreover, they
constantly try to take innovative products from their suppliers so that they can easily attract to
the customers. It helps John Lewis to create competition in global market. John Lewis follows
the trade law and taxation law properly so that they can run business legally. This activity
influences the CSR (Corporate Social Responsibility) concept of venture.
Ethical issues in business
In order to run business, as mentioned by Buchanan and Huczynski (2007), organisations do not
maintain diversity in their workplace. Organisations include employees of their native countries.
It is considered as ethical issue, which is under cultural and social aspect. On the other hand,
Clegg et al. (2008) argued that many companies such as John Lewis are there, who give
expensive products only. Therefore, not everyone is able to afford the products or services. It
shows that the sustainability of product is limited within the specific range of customers.
Organisations need to develop eco-friendly products; otherwise, it can be taken as the
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environment related ethical issue. For example, in the modern era, manufacturing companies
such as car companies need to use technology in their car, which can reduce carbon emission in
the environment. Otherwise, it would be the ethical issue in business.
Individuals’ responsibility
In the business environment, if the individual or organisation is able to maintain diversity in their
workplace, it gives positive impact to the venture. On the other hand, company needs to provide
eco-friendly products so that they can maintain CSR activity. In addition to this, management of
organisations try to give equal importance to the employees so that workers feel motivated in
venture. For example, in case of John Lewis, diversity among workers is noticed. It ensures the
sustainability of business. Authority of John Lewis behaves politely to workers and as a result,
employees give their best in time of working. It helps to hold their position in contemporary
market.
Conclusion
Throughout the essay, the importance of maintaining macro and micro factors in business is
discussed. It is seen that business organisations now focus on the demand of customers in time of
preparing their products or services. In addition to this, argument is noticed related to ethical
issue. It is found that many a time company does not prepare eco-friendly products and it creates
environmental pollution. Hence, in case of John Lewis, organisation provides products such as
home appliances and electronic gadgets, which is not harmful for environment. Therefore, using
the concept of business ethics and CSR, in modern era, organisations can earn huge profit in
contemporary competitive market.
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Reference list
Bloisi W. 2007. Management & Organisational Behaviour, (2nd Ed) London: McGrawHill
Bratton J. 2007. Work & Organizational Behaviour, Basingstoke: Palgrave Macmillan
Buchanan, D. and Huczynski, A. 2007. Organizational Behaviour, (6th Ed) Harlow: Financial
Clegg, S. Kornberger, M. and Pitsis, T. 2008. Managing and Organizations: An Introduction to
Theory and Practice. London: Sage
johnlewis.com 2019, John Lewis & Partnership, Available at: https://www.johnlewis.com/
[Accessed on: 12th January 2019]
Saleem, S., 2015. BUSINESS ENVIRONMENT, 3/e. Boston: Pearson Education. Times Prentice
Hall.
tradingeconomics.com 2018, Unemployment rate, Available at:
https://tradingeconomics.com/united-kingdom/unemployment-rate [Accessed on: 12th January
2019]
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