Business Environment Analysis Report: Smartphone Industry in UK

This report presents an analysis of the business environment for the smartphone industry, focusing on the UK market. It utilizes the PESTEL framework to assess the political, economic, social, technological, environmental, and legal factors impacting the industry. The report examines the influence of these factors on companies like Apple, considering aspects such as consumer buying power, technological advancements, environmental concerns, and regulatory frameworks. Task 1 provides a general PESTEL analysis of smartphone manufacturers, while Task 2 specifically analyzes the UK market. Task 3 highlights the most important factors affecting the industry. The analysis considers how these factors affect the company's performance, sales, and overall market position, including the importance of adapting to consumer preferences and technological changes. The report emphasizes the need for businesses to understand the external environment to make strategic decisions and achieve growth.

Business environment

TABLE OF CONTENTS
Overview of analysis........................................................................................................................3
Smartphone manufacturers .............................................................................................................3
TASK 1............................................................................................................................................3
TASK 2............................................................................................................................................5
TASK 3............................................................................................................................................7
REFERENCES................................................................................................................................8

Overview of analysis
There are different factors which affect the organisation and the PESTEL Analysis is the
analytical tool that has used to monitor or analyse the factors which affect the organisation.
These factors which help in measuring the potential of the entity and have to operate the
functions of the entity.
Smartphone manufacturers
Smart manufacturer includes the different companies like Apple. Apple's have a Irish
operations that have expanded which include the sales and the support of the technology. Apple
focus on the sustainability.
TASK 1
A PESTEL analysis is the tool which is used in analysing or monitoring those factors
which affect the Apple. The PESTEL analysis will focuses on the six factors which includes
political, economical, social, technological, environmental and legal factors. These factors helps
in measuring the potential of the entity and how they have to operate the functions of enterprise
so that they can attain high growth in the market (Welford, 2013). PESTEL Analysis of
Smartphone Manufacturers :-
 Political factors – There are many problems or conflicts which occur in the mobile
phones industry such as health issues, authority of work provided to employees by these
factors.
Factor 1 :- Company affect the sale of the products and services in the national and international
market (Xue, Shen and Ren, 2010).
Factor 2 :- By reducing the cost of the products mobile phone company in the different countries
and can increase the sale so that enterprise can attain maximum profit.
Factor 3 :- If the smartphone manufacturer face many issues and problems which cause the
reduction in the production or manufacturing of the product which will spoil the company's

reputation and the brand image by reducing the production and dissatisfaction from the
consumers (Welford, 2013).
 Economic factors – Conditions of the economic depends on the buying power of the
consumers. Increase in the price of the product which affects the sale of the products.
Factor 1 :- Buying power of the customers reduced by the sale of the products or it
depends on the quality of the mobile phones if the quality is good then it improves the
products sale and it increases the purchasing power of consumers (Kubasek, Brennan and
Browne, 2016).
Factor 2 :- For improving the brand image of the entity or the smartphone industry then the
corporates have to purchase the foreign currency. Economic conditions has to be improved or
enhanced by the mobile phone industry so that they can attain the brand image and maintain the
stability in the market.
Factor 3 :- If there is inflation in the price of the goods and services then the consumers will not
be able to purchase the goods and by that Apple decrease the sales (Shigang, 2010).
 Social factors - These cultural factors is very useful for the society by that the consumers
will affect the buying power of consumer.
Factor 1 :- To maintain the leading position of the mobile phone industry company has to
produce the good quality products. According to the demand of the customer, Apple has to do
the productions and operation of their products and it is very helpful for the society (Kubasek,
Brennan and Browne, 2016).
Factor 2 :- According to consumer preferences, smartphone industry have to change their
products in the marketplace (Muhammad and et. al., 2010). Customers purchase luxury products
or high quality goods because buying power is also increase in the different markets across the
world.
Factor 3 :- Mobile phone industry increase their profits or revenue from the social factors
because it defines the simple lifestyle of the consumers in the society.
 Technological factors – Mobile phone company always having a advantage by using the
new technologies and innovations to increase the consumer demand and selling of the
products (Hazlina Ahmad and et. al., 2010).

Factor 1 :- Corporates doing so much investments on making the different good and providing
the profits so that they can attain the set objectives and can gain the revenue by producing the
new innovative products.
Factor 2 :- They have to use different products for selling by that they can gain the leading
position. The mobile industry have aim that they have sell the unique products first in the market
from the competitors so that they can get the brand image of the entity (Muhammad and et. al.,
2010).
Factor 3 :- By using the new technologies in mobile or smartphones the consumers has to
perform the task or capturing the images or making a videos so that they can perform good
functions and operations of the business.
 Environmental factors – Mobile industry faced many problems or conflicts that the
consumers of smartphone industry use those types of products which are eco-friendly.
Factor 1 :- When the customers purchase high quality products or high rate goods then
they think that the accessories of mobiles or smartphones does not harm the environment
like batteries etc. if the company increase their product rate in the material than they use
maintain the quality of the products (Hazlina Ahmad and et. al., 2010). So that demand
increases and the company get good revenue by selling the products.
Factor 2 :- It made a positive impact on the consumers they are doing process or making a
product which does not harm the environment and that product should be recycle when the
customer dispose off their product or accessory of the goods. It will have a great impact on the
profit of the mobile industry so that the company maintain its stability.
 Legal factors – These factors based on the laws or rules and regulation which the
smartphone industry have to follow. The regulatory bodies of UK should investigate the
functions and operations of the industry and if there is any issue that the members of the
industry are not following those policies or rules and regulation then the ministry body of
UK has to take a decision (Gecevska and et. al., 2010).
TASK 2
PESTEL analysis is a tool of external environment analysis which affect the smartphone
industry of UK. PESTEL analysis having a six factors which includes political, economical,
social, legal, environment and technological which affect the operation and functions of the

mobile industry. This analysis increases the opportunity in increasing the growth of the mobile
industry. Political factor – This factor affect the performance of the company.
Factor 1 :- By doing the variations in the sales and generating the calls for higher corporate
taxation when income inequality.
Factor 2 :- Reducing the cost of mobile phones of Apple (Cordes, Richerson and Schwesinger,
2010). Apple could become the target of growing nationalism which could reduce its market
share. Economic factor – This factor increased the competition and tells about the resources that
which are available in the economy and going to use for the increase the competition
(Xue, Shen and Ren, 2010).
Factor 1 :- Increased labour cost.
Factor 2 :- It increase exchange rates, making to more expensive for Apple. Social factor – These factors do the changes in the trends that how the people work, think
etc.
Factor 1 :- Maintain the leading position by providing the good quality of product and services.
Factor 2 :- According to the consumer wants Apple has to make the products (Commander and
Svejnar, 2011). Technological factor – In the mobile industry, company have to change the technology
for increase the sales of the product because the consumers purchase new and innovative
product.
Factor 1 :- Growing use of smartphones and tablets will lower demand for Apple's popular
personal computers.
Factor 2 :- New and innovative products should be designed by the entity so that they were
capture the major part of the market (Chavis, Klapper and Love, 2011). Environmental factors – These factors depends on the environment that the products
which are made by the company they are friendly with the nature and these products can
be recycle.
Factor 1 :- Consumer wants eco-friendly product so the entity has to make the products which
does not affect the nature (Botha, Kourie and Snyman, 2014).

Factor 2 :- Pollution and other environmental side effects from the manufacturing facilities in the
country are a growing concern.
 Legal factors – These factors based on the rules and regulations which are made by the
regulatory bodies of UK (Chavis, Klapper and Love, 2011).
Factor 1 :- It increase the level of regulation and government oversight it faces.
Factor 2 :- Apple could face the increased the level of litigation.
Organisation of the smartphone industry have to do analysis on a regular basis. This
analysis is very helpful for the entities for increase their production and the functions of the
entity (Cordes, Richerson and Schwesinger, 2010). Along with this it encourage the workers of
the company that they have to expand their thinking and made a new and innovative product. By
doing the changes in the products which the company made because it is very successful for the
company for increasing the growth of the entity. There are some disadvantages of this analysis
also which includes that this analysis is a time consuming process and so costly. The data which
are to be taken in use for the analysis it is based on the assumptions.
Decision making is very much important for achieving the growth of the entity and haver
to improve the quality of the products so that consumer can increase their purchasing power and
by that company can increase their sales (Aterido, Hallward-Driemeier and Pagés, 2011).
Company under smartphone industry have to use PESTEL analysis because by this analysis
company get the information that what they have to change in their products for attaining the
brand image and for earning the high revenue. This analysis is very much necessary to know
about the consumer that which type of smartphones they want so that company can make that
type of products first from tree competitors by only enterprise can increase their sales according
to the demand of consumer (Aterido, Hallward-Driemeier and Pagés, 2011). The corporates of
smartphone industry have to provide training to their workers so that they can make new and
innovative products. The current external environment of UK will affect the mobile industry
because the consumer want every time new and unique products for doing the work or doing
different task that why this analysis is so much important for every mobile or smartphone
company because they made their products or doing the operation or production according to the
customer preference so that the entity in the industry maintain the stability and improve their
performance among all the companies which are present in the industry.

TASK 3
External environment analysis is very important in every industry and in the competitive
market to attain the brand image. There are different factors which impact on the smartphone
manufacturer in UK. By doing the analysis of external environment factors, there are two factors
which are very important for the entity so that entity can increase their sales according to the
demands of the customer and earn more revenue and can achieve the growth. To know about the
company's potential, operations, functions and productions of the enterprise, environmental
analysis have to do to know about the needs of customer (Commander and Svejnar, 2011). The
two factors which are important for the company includes social and technological factors.
Social factors are those factors which depends on the trends to increase the popularity of
the mobile phones.
Factor 1 :- Consumer want that product which are in trend and they can do any any type of task
from that product. When the company change their product according to the needs and the
preferences of the consumer than the enterprise can attain the leading position and by the
demand of the product increases organisation can increase their sales according to the needs and
desires of the customers.
Factor 2 :- In that product company have to maintain the quality and design of the product only
then entity can attain more profit (Gecevska and et. al., 2010). The entity keeps in mind that in
the competitive market what the consumer want they have to so make that product and sale their
product so that it increases the competition. If the corporate does not make their products
according to the consumer demand then then the company will not attain the competitive
advantage. Along with this entity can not earn high revenue and not achieve the position which
they prefer. That's why consumer desires, needs and wants is necessary for the company.
At the present time, technological factor is also important for the entity to know about
that what the new technology is used in the market that's why this external analysis is necessary.
Factor 1 :- For doing the competition with their competitors company has to new technologies so
that the entity can attain the leading position. Consumer always want new and innovative
products for that corporate have to use new and different technology to attain the sustainable
growth. Unique products is necessary to do the competition with their competitors that's why
entity has to do the environmental analysis to know that what is going in the market (Shigang,
2010).

Factor 2 :- Now a days, apps market is growing then the company has a knowledge that app
market is increasing day by day so they have to make a unique and different app for the
consumers. If the company does not use new technologies and not produce innovative products
then the corporates can not achieve the position that they prefer.
REFERENCES
Books and journals
Aterido, R., Hallward-Driemeier, M and Pagés, C., 2011. Big constraints to small firms’ growth?
Business environment and employment growth across firms. Economic Development
and Cultural Change. 59(3). pp.609-647.
Botha, A., Kourie, D and Snyman, R., 2014. Coping with continuous change in the business
environment: knowledge management and knowledge management technology.
Elsevier.
Chavis, L.W., Klapper, L.F and Love, I., 2011. The impact of the business environment on
young firm financing. The world bank economic review. 25(3). pp.486-507.
Commander, S and Svejnar, J., 2011. Business environment, exports, ownership, and firm
performance. The Review of Economics and Statistics. 93(1). pp.309-337.
Cordes, C., Richerson, P.J and Schwesinger, G., 2010. How corporate cultures coevolve with the
business environment: The case of firm growth crises and industry evolution. Journal of
Economic Behavior & Organization. 76(3). pp.465-480.
Gecevska, V and et. al., 2010. Product lifecycle management through innovative and competitive
business environment. Journal of Industrial Engineering and Management. 3(2).
pp.323-336.
Hazlina Ahmad, N and et. al., 2010. Is entrepreneurial competency and business success
relationship contingent upon business environment? A study of Malaysian SMEs.
International Journal of Entrepreneurial Behavior & Research. 16(3). pp.182-203.
Kubasek, N.K., Brennan, B.A and Browne, M.N., 2016. The legal environment of business: A
critical thinking approach. Pearson.
Muhammad, M.Z and et. al., 2010. Small and medium enterprises (SMEs) competing in the
global business environment: A case of Malaysia. International Business Research.
3(1). p.66.
Shigang, Y., 2010. Competitive strategy and business environment: The case of small enterprises
in China. Asian Social Science. 6(11). p.64.
Welford, R., 2013. Hijacking environmentalism: Corporate responses to sustainable
development. Routledge.
Xue, X., Shen, Q and Ren, Z., 2010. Critical review of collaborative working in construction
projects: business environment and human behaviors. Journal of Management in
Engineering. 26(4). pp.196-208.
Online

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