Contemporary business environment is based on the external business environment which is dynamic and completely changes with time. Business environment is a accumulation of various factors which influence various functions and operations in a organisation. It consists of various factors which have a influence on operations in the organisation (Beehner, 2018). Different element included on this are demand, supply, employees, customers, regulations etc. In this report Bullitt-group Ltd. is chosen as a base company. This report includes information related to mobile manufacturing company. Various micro economic models, reasons for auditing business environment and getting various insights of micro environmental factors.
Business Environment and Micro Economic concepts and models
Organisational overview, where Bullitt-group Ltd is a brand which is delivering various alternatives which is ranging from high prices to value mobile sets. This was established in 2009, in UK. Major aim is to deliver phones at affordable prices as compared to their competitors. They are functioning in the electronics electricity. It has a small workforce and they are having low price within the mobile phones (Bullitt Group Ltd, 2019). They are present in approx. 75 countries and continuously offering customers with number of products and services.
Business environment, it can be said accumulation of internal forces which includes government, customer expectation, technological innovation, economic developments, social trends, market trends, demand & supply forces etc. there are some forces which can be classified as external environment and internal environment which has various elements which have a influence on organisational activities which also involves decision making. There are various threats and opportunities present in this external environment:
Internal environment can be regarded as forces, conditions, situations present within the business boundaries. It involves various factors which are under the control. Of company's management team. This includes elements which are within boundaries of organisation. In context with Bullitt-group Ltd. internal environment factors include organisational culture, owners & shareholders, goodwill of business and financial resources, physical and human resources, mission and objectives of company, management structure, working environment, corporate image and so on. An individual who is starting the entity and has ownership in share market is regarded as owners. In case of Bullitt-group Ltd Richard Wharton, Colin Batt and David Floyd. These people can alter organisational policies whenever they feel it is required (Hassanien and Dale, 2019). Owners are integral part of the organisation's internal environment. The another key factor is activities which are being performed by administrative authorities of company. There are employees approximately which is a crucial part of manufacturing, designing and promoting of mobile phones in company. Organisational culture is also a very important part of in achievement of objectives of organisation. Various resources such as financial, physical resources are a very important part of every business. In context of Bullitt-group Ltd, they have office building, machines which are used to manufacture bodies of mobile, warehouse to store inventory. Information is also a resource which is used by group Ltd to make various decisions in the company, financial resources to implement various projects and execution of various startles.
In present context, where external environment carries number of elements and these are general factors like political, environmental, legal, economical, social and technological (Child, 2015). Political factor is said to overall political circumstances within country. In context to UK, there is stability in political parties which helps Bullitt-group Ltd to operate its activities successfully by making good relations with government agencies. Considering economic factor, it includes entire economic system within which organisation operates the working. The economic factors which influences decisions of selected firm are economic cycle, tax rates, population level and many more. This could be understood with a good example where, at the time of inflation, business organisations like Bullitt-group Ltd., have to pay more for acquiring resources and for covering costs, commodity prices are increased. This is specifically same with the chosen organisation as well, where Bullitt-group Ltd, has specifically covered huge costs in regards to or at the time of manufacturing mobile phones, and this is where prices are increased to some extent. Next element is cultural dimension which covers factors like customs, values and morals of society. The selected entity manufactures mobile phone corresponding to values and attitudes of society members where they operates key activities (Sroka and Szántó, 2018).
On the other hand, another element that carries is existence within the external environment i.e. technological factor where global technology basically gets changes on a regular basis. In regards to Bullitt-group Ltd, where the company is specifically stable and consists with, adopted updated techniques for manufacturing wide portfolio of mobile phones. Away with this, it is also said that this organisation mainly looks forward to make alterations within it's IT department through bringing updates among existing technology and strategies as well. Including this, if it is talked about legal factor, then it contains different rules and regulations like Industrial relations Ordinance, Company Law, Contract Act and so on that United Kingdom's parliament. These are said to be some of the sections where managers of this business company i.e. Bullitt-group Ltd, would require to implement within the business organisation so that to perform operations in an ethical manner. Environmental factor is also key element for the external environment. Business have to properly analyse natural environment trends in which activities are operated.
Micro Economic concepts and models
In present time, it is said that micro economics can effectively be defined as economic branch that helps in delivering the number of studies, which stays directly connected to behaviours of the individual as this helps business organisations in developing or making effective decisions in regards to the number of variables that are available for them. The concept of micro economics deals with production as well as prices within single market along with interaction among various markets. Micro economics concept explains the ways an individual allocates the money income among wide needs and maximises satisfaction level after consuming available resources (Atiku, 2018).
Production theory, where production is named to methodology for interpreting contributions for number of outputs. The hypothesis clarifies about standards for settling on choices about the amount of products are sold and developed. This specifically, helps in outlining the various connections between ware cost with beneficial variables and amounts of wares with gainful components. Including this, model is also showing and depicts most extreme yield add up to be gotten through business by utilizing fixed volume of assets (Kalitanyi, 2019).
Including this, it has been analysed that generation work particularly delivers the information in regards to developing much effective and efficient relationships among physical contributions just as physical products and services that are connected with expressed innovations.
Q= f (a,b,c,....z)
Herein, a,b,c,..z are inputs like labour, capital and land.
Q is level of output.
In setting to Bullitt-Group Ltd, the supervisors considers this theory creation hypothesis to distinguish the degree of number of goals and objectives in regards to the production accomplished with utilization of level of sources of info. Furthermore, with this hypothesis, number of managers of Bullitt-Group Ltd. specifically makes decisions in regards to all the rewards related with inputs, which helps in pulling out favourable outcomes in specified time frame. In present context, manufacturer i.e. Bullitt-Group Ltd. is majorly delivering and continuously focusing upon offering customers with Mobile phones looks to choose an optimised products and services in regards to number of contributions that would help in joining techniques which will limit costs revenue driven boost towards goals and objectives.
Utility hypothesis, where utility is said to a particular theory that aid an individual to get number of the stages that are linked with expanding production level of a company. In other term, this could be understood with a good example, where an individual consumes number of products and services based on his or her own needs and requirements. Moreover, it estimates convenience that is acquired by buyer from number of products and services offered by a business organisation. According to the utility hypothesis, buyer will consider or purchase those items which will help them in enhancing their utility in regards to the satisfaction level. Away with this, considering the appropriate costs they have for spending. Including this, it is also said that it gives a structure to assessing elective decisions that people or associations manufacturer. Subsequently, item costs are related with circumferential utility just as positioning by number of products and services offered by the manufacturer (Kabalina, Zelenova and Reshetnikova, 2019). Including this, it helps them in sustaining within the market for a longer period of time considering the effective decisions making process. In setting to Bullitt-bunch Ltd, which is a manufacturer offering customers with cell phones subsequent to investigating the consumer loyalty level and inclinations with the goal that clients increases greatest utility from the cell phones.
Examining the ways and reasons Mobile Phone company needs to audit their External and Internal Business Environments
Tools for business environment auditing
business environment auditing are the reviews of operations of company to identify the compliance with regulations related to environment. It is mainly used to examine impacts that an organization has from internal and external influences. Within the internal business context, Bullitt-group Ltd will review the internal environment using the TWOS Matrix analysis tool. TWOS Matrix Analysis is an effective tool that is mainly used to identify strengths, weaknesses, opportunities and threats of the company in order to make future decisions. It is helpful in develop the awareness of interna