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 mic
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 internal factors.
Basically, there are number of elements like political, environmental, legal, economical, technological and social that majorly impacts upon internal factors of a company like Bullitt-group Ltd.
Bullitt-group Ltd is dedicated to offering the high-quality mobile phone manufacturing. Bullitt-group has experienced and the productive employees who analyse market requirements and perform manufacturing activities to increase mobile phone sales volume. Strong brand image is one of greatest strength of a company which is used to maximize their sales. Apart from that the strategies which are used by Bullitt-group Ltd such as adopting of latest technologies in their overall production process this leads to getting cost efficiency and also latest technology so that profit margin does not gets affected.
Company has limited distribution network and it follows exclusive policies. Bullitt-group is unable to penetrate at different underdeveloped countries which result in the limited markets share at international market as comparison to other competitors. There is also a problem of supply chain network of the company which leads to occurrence of barriers in smooth functioning of different function which are taking place in the company, especially for Bullitt-group Ltd. As this company is a part of manufacturing industry it becomes important for them to have effective relationships with their suppliers which will be helpful for them in surviving in the market as, for those Companies who are functioning in such industry they have to maintain cordial and long term relations with their suppliers.
It has an opportunity for expanding the distribution network to different nations. Firm can increase its sales by using the online medium to offer mobile phones. A standard competitive approach can also be used by Bullitt-group Ltd. So that they are bale to survive in the highly competitive market. Especially in the industry to which Bullitt-group Ltd. Belongs competition is very high and a strategic approach is necessary to deal and survive in market.
Since, the organisation is a high-quality mobile phone manufacturing, where company is having effective staff members, this directly would help company in selling mobile phones in all over the world considering the online platforms.
As the company is dealing within the the mobile phone industry, it contains weak points like weak distribution network because it follows exclusive policies, which may impact negatively upon overall performance level of Bullitt-group Ltd.
Bullitt-group can face the lawsuit within the diverse market due to some changes in legislations related to product standards. It faces the market penetration from some other brands in smart phone market. There are many Companies which are emerging and also many which have been already established and have a good and established brand name, such companies have able to survive in market because of their customer loyalty which they have built over time, hence, there is a threat for Bullitt-group Ltd. Which they have to survive by development of various new approaches & strategies of targeting their customers .
Knowledgable employees would directly aid business organisation i.e. Bullitt-group Ltd. to hit their targets through looking into legislations that are developed by government of United Kingdom.
Lawsuit within the diverse market due to some changes in legislations related to product standards, may directly impact negatively upon all the weak points that the organisation is already having.
Needs for auditing business environment
In present time, if it is talked about need for auditing business environment, then it can be said that it is particularly an effective approach, which needs proper attention where a company like Bullitt-group Ltd performs the audit. Including this, it is said that business environment consists of both external along with the internal factors. Away with this, Bullitt-group Ltd is audited properly, then managers can properly address challenges and develop policies for smoothly performing operations for achieving profits (Tabachnikova and Vinokurova, 2019).
Internal Audit: Considering this type of audit, Bullitt-group Ltd. would become able to perform number of decisions in determination of internal environment of the company. This is related to employee performance and employee engagement. Managers are helping in audit work determination of internal environment of company. Managers are responsible for audit which is takes place in company. Some of major components are mentioned below:
Productivity: In many companies there are operation managers who are responsible for controlling of productivity by consideration of various elements. This includes large size of company, diverse operations taking place in company. This is related to various elements which are diverse operations, size of production and related to measurement of productivity of different departments in company. There is also benchmarking management which is done in various Companies this is a very effective tool which can be used in measurement of productivity by consideration of different companies who are working in the similar industry, this will help in making comparisons of various deviations which can happen and help in understanding the internal structure of company. The importance of productive measurement segment in company are:
- Revenue for Bullitt-group Ltd.
- Production of goods per unit. ( related to the supply chain management in company).
- Milestones (productivity of all employees when product is being developed).
Business strategy diagrams: In every company it is necessary that there is a effective business strategy which has to be followed. This is necessary for increasing the profit of overall business and making a strategy which will lead to increase in profit of business. In Bullitt-group Ltd manager is following business strategy such as which is related to online trading, marketing mix and e-commerce platforms. E-commerce is used in handling of prices of products and helping companies in accessing web pages. In case when SEO software manager will be able to keep their information on top in comparison with other companies which will lead to attracting increase number of customers in Bullitt-group Ltd. Manger in this company always makes attempts that they are able to keep various information on top on various sites this leads to a situation where customers see the product on top list whenever they are visiting the website. This also leads to have a differentiation advantage for Bullitt-group Ltd. As compared to other companies of similar industry.
This Company is also involved in using various other methods such as offering services with better quality and also providing after sales services. They are having various channels such as B2B, B2C which are used to offer phones to their target customers and have a differentiation advantage. Also this is a tool which can lead to high sales and customer feedback is also obtained from their customers which will help them in identifying the level of satisfaction achieved by their customers and if there are any further changess or modification which they are demanding in their products.
For the external business, Bullitt-group Ltd's managers may review their external environment through using the PESTLE Analysis tool. This is an essential framework that aids in scan the external environment as well as frame the decisions externally according to changing circumstances.
Political factor consists with number of elements such as corruption, bureaucracy, business lobbying and political stability are main part of the political factor. The constitutional monarch of the United Kingdom is governed by the parliamentary system. Consequently, the political system of UK is fair and providing Bullitt-group Ltd with effective opportunities to perform the operations. Furthermore, all laws governed through political parties are in favour of chosen businesses, which have positive effects on their work.
Economical factor, where United Kingdom has a strong economic position relative to other countries. Changes in variables such as inflation rates, exchange rates and currency rate result in impacting other nations' income. Bullitt-group Ltd's manufacturing the practices which hampered by changes in the economic cycle as a result of which raw material prices enhances and then acquire them. There is a need to business to make more investments from profits which have a negative impact on their profitability (Popescu, 2018).
Legal factor, is carrying number of specific rules such as digital payment regulations, intellectual property and some other laws are governed through the political systems within the UK. All organisations in the electronics industry are required to follow them legally if they want to operate in that country. All regulations are effectively enforced in the sense of Bullitt-group Ltd, which helps to build positive relationships with the political system and properly plan the future. Likewise, if there are any amendments in one of the rules, the organization will have to adjust its activities according to newly established laws that may hamper its operations and have a negative impact.
Environmental, United Kingdom's administration is progressively worried for its condition and they are performing number of experiments over the general public for monitoring its assets and have created different natural principles. For example, assets in regards to reducing the cadmium discharges, which pollutes air along with the water are specifically prohibited in regards to considering the mobile phones manufacturers. Including this, Bullitt-bunch Ltd which is a manufacturer of mobiles, it will be required by them to consider or restricting the utilization of such assets that are prohibited and impacts negatively on the environment (Eke, 2018).
Marketing Mix of Bullitt-bunch Ltd. Specifically analyses the brand/company which covers 4Ps (Product, Price, Place, Promotion) and explains the marketing strategy.
The product strategy and mix in Bullitt-bunch Ltd. marketing strategy can be explained as follows: Bullitt-bunch Ltd. invests a lot in research and development to deliver the best products to its customers. Bullitt-bunch Ltd. offers a wide range of products in different product categories.
Bullitt-bunch Ltd. is said to be a market leader within the smart phones other gizmos within United Kingdom, where it uses skimming price policy. For instance, when Bullitt-bunch Ltd. launches new products with different variants of storage capacity, it prices the product higher. But when other competitors launch a smartphone with identical features, Bullitt-bunch Ltd. lowers the price and easily prevents the reduction of its market share due to the launch of the competitor.
Bullitt-bunch Ltd., mainly offers or sells directly to the retailers and service dealers. And due to this strategy, only service dealers are responsible for the corporate sales. Retailers dealing in technology generally have to include Bullitt-bunch Ltd. in their offerings, because of the brand being famous not only in United Kingdom and in other nations as well.
In context with Bullitt-bunch Ltd., where promotion is a strong pillar in the marketing mix of the company. Bullitt-bunch Ltd., believes that advertising the best form of promotion to engage potential consumers and position the brand.
Insights about Micro Economic environment within which mobile phone business operate.
Micro economic environment can be defined as the environment, which consists with number of factors like distribution chains, demand, suppliers, market size, competitors and so on in regards to a particular sector. Basically, it has been analysed that United Kingdom's economic environment has scored around 78.9, which ultimately took the economy to reach on to the 7th position in 2019. On the other hand, it has also been found that United Kingdom has made itself as an open market when, Brexit took place so that it do not go through different situations like recession circumstances and so on. On the other hand, nation was also ranked as 6th largest international economy, which is having around 3.3% as the GDP (UK's economic environment. 2019). If it is talked about Bullitt-group Ltd, then the organisation will be dealing number of situations because within the industry that it is working in is electronic industry. This specifically generates around US$12,000 million in 2019 and it carries updates as well, which needs proper attention so that company could sustain within the market for a longer period of time. Government of every country is into making laws which have to be compulsorily followed by the company if in nay case such rules are ignored or not followed by the company then it may lead to a panic situation among employees and this will have a negative effect on their performance level. Also, there are many contracts on which companies are bounded legally to follow them in due course of operations and if any breach takes place then there are high penalties which have to paid or fines which may lead to high amount of financial cost of this company. Hence, these are some factors which have to be compulsorily followed by the company to ensure effective and smooth functioning of various functions in company.
Including this, in order to gain number of insights in regards to micro economic environment, management team of Bullitt-group Ltd., then it can be said that research methods, survey techniques and observation tools will be utilised to enhance the proficiency level in specified time frame (Khalili, Abbadi and Ismail, 2019).
In present time, there are four types of market structures that are available and these are : Perfect Competition, Monopolistic Competition, Oligopoly and Monopoly. If it is talked about these structures then the primal market is perfect competition where there are a large number of buyers and sellers, where All the sellers of market are small sellers in competition with each other. On the other hand, monopolistic is said to be one of the crucial element that where large number of individuals along with the sellers stays available within the numerous situations consists with homogeneous products.
On the other hand, if it is talked about oligopoly it consists with only a few business organisations within the market. While there is no clarity about the number of firms, 3-5 dominant firms are considered the norm within this type of structure. Away with this, there is only one seller, where one a company directly controls the entire market is said to be the Monopoly market structure. In present context, if it talked about Bullitt-group Ltd, then this organisation is performing within the market where Oligopoly is present as there are ample number of business organisations within the mobile industry that are performing effectively, which may impact in both negative and positive sense.
Within the economics, p-rice elasticity can be considered as a term that can be utilised for measuring by Bullitt – Group Ltd., to show the responsiveness in regards to quantity demanded of all the products of Bullitt – Group Ltd., so that they could enhance the prices of targeted products when nothing but the price changes.
Porter's five forces model
This model consists with five different forces and these are:
Competition in the industry, within the mobile industry of United Kingdom where Bullitt – Group Ltd. is performing operations majorly faces high competition from rivals like Apple, Samsung and many more.
Potential of new entrants into the industry, this force stays low within the mobile industry of United Kingdom for a company like Bullitt – Group Ltd., because it is not an easy task for a business organisation to develop itself within a short span and to compete with the organisations like Apple, Samsung, One Plus, Xiaomi, and so on.
Power of suppliers, this power in regards to the suppliers for mobile industry of United Kingdom, stays high in nature because they are high in numbers and it is possible that Bullitt – Group Ltd. would require to make alterations into the decision making process because of the different requirements that individuals carry.
Power of customers, this force also stays high in nature within the mobile industry of United Kingdom due to new technological trends and updates among existing technology. This directly impacts upon decision making of customers where it is may be possible that Bullitt – Group Ltd. would require to make alterations as per the requirements of customers.
Threat of substitute products, another crucial force which may impacts upon performance level of Bullitt – Group Ltd. But not much, because this force basically stays moderate due to uniqueness of mobile phones, which company offers to customers.
In Bullitt-group Ltd attempt is made that there has to be focus of company on timely innovation and aggressive policies. Innovation will also help in reduction of those factors which are necessary for having latest and more advanced features which can help them in attracting more number of customers to satisfy their demands. Company should also approach a new target segment of customers so that they are able to increase their overall sales. Many time there are situations when the present customer segment has used the predict and they have strategy switching to other brands, this call for a need on part of company that they are bale to target a completely different market and customers. This strategy always helps in increase of sales of company.
Based on the above mentioned report, it is being concluded that change is particularly required by a business organisation to sustain within the market for a longer period of time. In present context, it is said that developing effective policy in regards to perform the analysis in much more rightful manner, where identification of threats and grabbing various opportunities majorly takes place. Including this, it has also been summarised that effective business concerns that are linked with the environment in both external and internal carries their own type of impacts over a business organisation.
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