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Unit 1 Business and the Business Environment Assignment Help - Level 4 BTEC Higher National in Business

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University of Sunderland

Programme: BTEC Higher National Diploma in Business

Unit Number and Name: Unit 1 Business and the Business Environment

Level: Level 4

Assignment Title - Business Environmental Analysis

LEARNING OUTCOMES

On successful completion of this module, students will have demonstrated:

1. Explain the different types, size and scope of organisations. 2. Demonstrate the interrelationship of the various functions within an organisation and how they link to organisational structure. 3. Use contemporary examples to demonstrate both the positive and negative influence/impact the macro environment has on business operations. 4. Determine the internal strengths and weaknesses of specific businesses and explain their interrelationship with external macro factors.

CONTENT SYNOPSIS LO1 Explain the different types, size and scope of organisations LO2 Demonstrate the interrelationship of the various functions within an organisation and how they link to organisational structure LO3 Use contemporary examples to demonstrate both the positive and negative influence/impact the macro environment has on business operations LO4 Determine the internal strengths and weaknesses of specific businesses and explain their interrelationship with external macro factors

Unit Learning Outcomes:

LO3 Use contemporary examples to demonstrate both the positive and negative influence/impact the macro environment has on business operations.

LO4 Determine the internal strengths and weaknesses of specific businesses and explain their interrelationship with external macro factors.

Assignment Brief:

With reference to Assignment one, you and your partner (pairs) have been employed as Business Analysts by a large multinational organisation or a listed company in Hong Kong to analyse the current environmental factors that influence or impact your chosen organisation.

1. Using PESTLE analysis identify and discuss the various macro environmental factors that impact on the business, highlighting the positive and negative impacts.

2. Apply a SWOT or TOWS analysis to your organisation to identify their key strengths and weaknesses. Explain the interrelationships these have with the external factors previously discussed.

3. Present the internal and external analysis of key findings and explain how they influence the decision-making process.

Grading Criteria:

This component is related to Learning Outcomes 3 and 4 and all these outcomes must be achieved in order to pass the module.

Use contemporary examples to demonstrate both

the positive and negative influence/impact the macro

environment has on business operations

 

Identify the positive

and negative impacts the

macro environment has

upon business operations,

supported by specificexamples.

 

Apply appropriately

the PESTLE model tosupport a detailed

analysis of the macroenvironment within an

organisation.

 

Critically evaluate the

impacts that both macro

and micro factors have

upon business objectives

and decision-making.

 

Determine the internal strengths and weaknesses

of specific businesses and explain their

interrelationship with external macro factors

 

Conduct internal and

external analysis ofspecific organisations in

order to identify strengthsand weaknesses.

Explain how strengths

and weaknesses

interrelate with externalmacro factors.

 

Apply appropriately

SWOT/TOWS analysis and

justify how they influence

decision-making.

business environment assignment level 4

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Packet Tracer Remote IoT Smart Office

Sydney Smart Office Design:

The basic file consist of few smart devices like ceiling fan, lamp, tablet PC rest of all smart devices s will be added manually. Those devices are mentioned as under. • Front Door • Windows (3 Numbers ) • Motion Detector • Ceiling Fan • Smoke Detector • Lawn Sprinkler System • Wind Speed Detector • Temperature Monitor

As shown in above screenshot server, windows1,2, 3,temperature monitor, wind speed detector, motion detector, lawn sprinkler, smog detector is added manually.

SS1.2 IOT service has been enabled on registration server as shown in above diagram.

SS1.3 Remote server received IP from DHCP request that is 209.165.220.2, now registration server is configured and enabled.

SS2.1 Now wireless router has been encrypted and SSID is changed to "Sydney office" and pass phrase is set to ‘11666308' that is of student ID.

SS2.2 As shown in screenshot Tablet is set to connect with wireless router.

SS2.3 After that Registration server account is configured and login ID and password are set to student ID as shown above.

SS3.1 After Registration server account window 3 is configured to connect router by wireless connection.

SS3.2 Now window 3 is configured to connect with router and registered on remote server for that server address is 209.165.220.2 and Username and password is set to Student ID that is ‘11666308'.

Same as above procedure all smart devices are connected and registered on Remote server

SS3.3 Here all of the IOT devices are connected to router and registered in IOT registration server as shown in the above screenshot.

This is the scenario before operating smart devices from tablet.

SS3.5 And in the above state devices are being controlled by tablet.

Above screenshot shows the list of protocols which are used during the transmission of a simple PDU data from the tablet to the remote server in progress, in PDU of source IP is 209.165.220.1 and destination IP is 209.165.220.2 these are the IP address of Tablet and Remote server respectively.

In the above screenshot it shows the list of protocols that are used in transmission a simple PDU data received at remote server, in PDU of source IP is 209.165.220.2 which is actually an IP address of tablet and destination IP is 209.165.220.1 which is the IP of registration server.

Section-2: In this section we have to control all of the smart devices from the branch office located in the same city.

SS5.1 Now, as per the requirement, to control all of the smart devices from Bathurst new city in physical mode, new branch office is added in packet tracer.

SS5.3 After that we have added tablet and wireless router to wiring closet in Bathurst city. And that is shown above in logical mode.

SS5.4 Now tablet at Bathurst has access to control the remote devices as shown in screenshot.

6 • Turn off the Sprinkler • Lock the door • Turn off the ceiling fan

SS5.5 Screenshot before controlling devices from tablet

SS5.6 Controlling devices from tablet

SS5.7 • Close Window2 and Window1 when the level of carbon monoxide or carbon dioxide higher in outside environment.

SS5.8 Screenshot shows topology before sensor value is low. Old car carbon dioxide, carbon monoxide are added manually to sense carbon dioxide level.

SS5.9 Screenshot shows that the condition set if carbon dioxide and carbon monoxide value is go high then the window1 and 2 get closed.

SS5.10 Screenshot shows that after starting car windows are closed.

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1.2 Understanding the Business Environment

  • What are the sectors of the business environment, and how do changes in them influence business decisions?

Businesses do not operate in a vacuum but rather in a dynamic environment that has a direct influence on how they operate and whether they will achieve their objectives. This external business environment is composed of numerous outside organizations and forces that we can group into seven key subenvironments, as Exhibit 1.4 illustrates: economic, political and legal, demographic, social, competitive, global, and technological. Each of these sectors creates a unique set of challenges and opportunities for businesses.

Business owners and managers have a great deal of control over the internal environment of business, which covers day-to-day decisions. They choose the supplies they purchase, which employees they hire, the products they sell, and where they sell those products. They use their skills and resources to create goods and services that will satisfy existing and prospective customers. However, the external environmental conditions that affect a business are generally beyond the control of management and change constantly. To compete successfully, business owners and managers must continuously study the environment and adapt their businesses accordingly.

Other forces, such as natural disasters, can also have a major impact on businesses. While still in the rebuilding stage after Hurricane Katrina hit in 2005, the U.S. Gulf Coast suffered another disaster in April 2010 as a result of an explosion on the Deepwater Horizon oil-rig, which killed 11 workers and sent more than 3 million barrels of oil into the Gulf of Mexico. This event, which played out for more than 87 days, severely affected the environment, businesses, tourism, and people’s livelihoods. Global oil conglomerate BP, which was responsible for the oil spill, has spent more than $60 billion in response to the disaster and cleanup. Seven years after the explosion, tourism and other businesses are slowly recovering, although scientists are not certain about the long-term environmental consequences of the oil spill. 7

No one business is large or powerful enough to create major changes in the external environment. Thus, managers are primarily adapters to, rather than agents of, change. Global competition is basically an uncontrollable element in the external environment. In some situations, however, a firm can influence external events through its strategies. For example, major U.S. pharmaceutical companies have been successful in getting the Food and Drug Administration (FDA) to speed up the approval process for new drugs. 8 In recent years, the five largest companies in the S&P Index— Google , Facebook , Amazon , Microsoft , and Apple —have spent close to $50 million on lobbying activities in the nation’s capital in an effort to help policy makers understand the tech industry and the importance of innovation and an “open” internet. 9 Let’s now take a brief look at these varied environmental influences.

Economic Influences

This category is one of the most important external influences on businesses. Fluctuations in the level of economic activity create business cycles that affect businesses and individuals in many ways. When the economy is growing, for example, unemployment rates are low, and income levels rise. Inflation and interest rates are other areas that change according to economic activity. Through the policies it sets, such as taxes and interest rate levels, a government attempts to stimulate or curtail the level of economic activity. In addition, the forces of supply and demand determine how prices and quantities of goods and services behave in a free market.

Political and Legal Influences

The political climate of a country is another critical factor for managers to consider in day-to-day business operations. The amount of government activity, the types of laws it passes, and the general political stability of a government are three components of political climate. For example, a multinational company such as General Electric will evaluate the political climate of a country before deciding to locate a plant there. Is the government stable, or might a coup disrupt the country? How restrictive are the regulations for foreign businesses, including foreign ownership of business property and taxation? Import tariffs, quotas, and export restrictions also must be taken into account.

In the United States, laws passed by Congress and the many regulatory agencies cover such areas as competition, minimum wages, environmental protection, worker safety, and copyrights and patents. For example, Congress passed the Telecommunications Act of 1996 to deregulate the telecommunications industry. As a result, competition increased and new opportunities arose as traditional boundaries between service providers blurred. Today the dramatic growth in mobile technology has changed the focus of telecommunications, which now faces challenges related to broadband access and speed, content streaming, and much-needed improvements in network infrastructure to address ever-increasing data transmissions. 10

Federal agencies play a significant role in business operations. When Pfizer wants to bring a new medication for heart disease to market, it must follow the procedures set by the Food and Drug Administration for testing and clinical trials and secure FDA approval. Before issuing stock, Pfizer must register the securities with the Securities and Exchange Commission . The Federal Trade Commission will penalize Pfizer if its advertisements promoting the drug’s benefits are misleading. These are just a few ways the political and legal environment affect business decisions.

States and local governments also exert control over businesses—imposing taxes, issuing corporate charters and business licenses, setting zoning ordinances, and similar regulations. We discuss the legal environment in greater detail in a separate appendix.

Demographic Factors

Demographic factors are an uncontrollable factor in the business environment and extremely important to managers. Demography is the study of people’s vital statistics, such as their age, gender, race and ethnicity, and location. Demographics help companies define the markets for their products and also determine the size and composition of the workforce. You’ll encounter demographics as you continue your study of business.

Demographics are at the heart of many business decisions. Businesses today must deal with the unique shopping preferences of different generations, which each require marketing approaches and goods and services targeted to their needs. For example, the more than 75 million members of the millennial generation were born between 1981 and 1997. In 2017 they surpassed baby boomers as America’s largest generation. 11 The marketing impact of millennials continues to be immense. These are technologically savvy and prosperous young people, with hundreds of billions of dollars to spend. And spend they do—freely, even though they haven’t yet reached their peak income and spending years. 12 Other age groups, such as Generation X—people born between 1965 and 1980—and the baby boomers—born between 1946 and 1964—have their own spending patterns. Many boomers nearing retirement have money and are willing to spend it on their health, their comforts, leisure pursuits, and cars. As the population ages, businesses are offering more products that appeal to middle-aged and senior markets. 13

In addition, minorities represent more than 38 percent of the total population, with immigration bringing millions of new residents to the country over the past several decades. By 2060 the U.S. Census Bureau projects the minority population to increase to 56 percent of the total U.S. population. 14 Companies recognize the value of hiring a diverse workforce that reflects our society. Minorities’ buying power has increased significantly as well, and companies are developing products and marketing campaigns that target different ethnic groups.

Social Factors

Social factors—our attitudes, values, ethics, and lifestyles—influence what, how, where, and when people purchase products or services. They are difficult to predict, define, and measure because they can be very subjective. They also change as people move through different life stages. People of all ages have a broader range of interests, defying traditional consumer profiles. They also experience a “poverty of time” and seek ways to gain more control over their time. Changing roles have brought more women into the workforce. This development is increasing family incomes, heightening demand for time-saving goods and services, changing family shopping patterns, and impacting individuals’ ability to achieve a work-life balance. In addition, a renewed emphasis on ethical behavior within organizations at all levels of the company has managers and employees alike searching for the right approach when it comes to gender inequality, sexual harassment, and other social behaviors that impact the potential for a business’s continued success.

Managing Change

Balancing comes easy at h&r block.

In an industry driven by deadlines and details, it’s hard to imagine striking a balance between work and everyday life for full-time employees and seasonal staff. Fortunately, the management team at H&R Block not only believes in maintaining a strong culture, it also tries to offer flexibility to its more than 70,000 employees and seasonal workers in 12,000 retail offices worldwide.

Based in Kansas City, Missouri, and built on a culture of providing exceptional customer service, H&R Block was recently named the top U.S. business with the best work-life balance by online job search site Indeed. Analyzing more than 10 million company reviews by employees, Indeed researchers identified the top 20 firms with the best work-life balance. H&R Block headed the 2017 list, followed by mortgage lender Network Capital Funding Corporation , fast food chain In-N-Out Burger , Texas food retailer H-E-B , and health services company Kaiser Permanente , among others.

According to Paul Wolfe, Indeed’s senior vice president of human resources, empathy on the part of organizations is a key factor in helping employees achieve balance. Wolfe says companies that demonstrate empathy and work diligently to provide personal time for all employees tend to take the top spots on the work-life balance list. “Comments we have seen from employee reviews for these companies indicate ‘fair’ and ‘flexible work environments,’” he says. Surprisingly, none of the tech companies known for their generous work perks made the top 20 list in 2017.

In this 24/7 world, when no one is far from a text or tweet, finding time for both family and work can be difficult, especially in the tax services industry, which is so schedule driven for a good part of the year. Making a commitment to help workers achieve a healthy work-life balance not only helps its employees, but it also helps H&R Block retain workers in a tight labor market where individuals continue to have choices when it comes to where and for whom they want to work.

  • How does management’s support of employee work-life balance help the company’s bottom line?
  • What can other organizations learn from H&R Block when it comes to offering employee perks that encourage personal time for workers even during the busy tax season?

Sources: “Career Opportunities,” https://www.hrblock.com, accessed May 25, 2017; “About Us,” http://newsroom.hrblock.com, accessed May 25, 2017; Abigail Hess, “The 20 Best Companies for Work-Life Balance,” CNBC, http://www.cnbc.com, May 4, 2017; Kristen Bahler, “The 20 Best Companies for Work-Life Balance,” Money, http://time.com, April 20, 2017; Rachel Ritlop, “3 Benefits Companies Can Provide to Boost Work-Life Balance,” Forbes, http://www.forbes.com, January 30, 2017.

The application of technology can stimulate growth under capitalism or any other economic system. Technology is the application of science and engineering skills and knowledge to solve production and organizational problems. New equipment and software that improve productivity and reduce costs can be among a company’s most valuable assets. Productivity is the amount of goods and services one worker can produce. Our ability as a nation to maintain and build wealth depends in large part on the speed and effectiveness with which we use technology—to invent and adapt more efficient equipment to improve manufacturing productivity, to develop new products, and to process information and make it instantly available across the organization and to suppliers and customers.

Many U.S. businesses, large and small, use technology to create change, improve efficiencies, and streamline operations. For example, advances in cloud computing provide businesses with the ability to access and store data without running applications or programs housed on a physical computer or server in their offices. Such applications and programs can now be accessed through the internet. Mobile technology allows businesses to communicate with employees, customers, suppliers, and others at the swipe of a tablet or smartphone screen. Robots help businesses automate repetitive tasks that free up workers to focus on more knowledge-based tasks critical to business operations. 15

Concept Check

  • Define the components of the internal and the external business environments.
  • What factors within the economic environment affect businesses?
  • Why do demographic shifts and technological developments create both challenges and new opportunities for business?

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Access for free at https://openstax.org/books/introduction-business/pages/1-introduction
  • Authors: Lawrence J. Gitman, Carl McDaniel, Amit Shah, Monique Reece, Linda Koffel, Bethann Talsma, James C. Hyatt
  • Publisher/website: OpenStax
  • Book title: Introduction to Business
  • Publication date: Sep 19, 2018
  • Location: Houston, Texas
  • Book URL: https://openstax.org/books/introduction-business/pages/1-introduction
  • Section URL: https://openstax.org/books/introduction-business/pages/1-2-understanding-the-business-environment

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Table of Content

Introduction

Business environment may be included with two factors such as external and internal that impacts on the organisational activities or operations ( Business environment, 2018). In this different factors are needed by the enterprises in order to run their business successfully such as employees, supply chain, rules and regulation. On the other hand, business environment is mainly identified as the external factor or those enterprises which are beyond the monitor and impacts on organisation's functions. In this foremost factors like competitors, political, social, government, suppliers, technological, legal, economic and environmental (Cassell and Blake, 2012). All these factors are highly influence on enterprises performance and profitability at marketplace. In this study, given organisation is public, voluntary and private i.e. Tesco, British Heart foundation and Nestle. In whole assignment chosen enterprises is Nestle which is deals in food and drink products across the world. This assignment will explain different purpose, types, legal structure, scope and size of this companies. It will depict the relationship between function of an  organisation that relate with its structure as well as objectives and also define the favourable and unfavourable effects of macro environment on business functions. This will organise PESTLE analysis to identify its weakness or strengths with are connected with macro forces.

P1 Explain the relationship between different organisational functions that how they link to organisational objectives and structure

Chances of success mainly arise when every individual gives their maximum level of contribution and cooperate with one another. Behind every successful business company, an entire unit will mainly help out in assessing the work with one another in order to have better and effective attribution which can be extracted (Cavalcante and et. al., 2011). There are multiple kind of objectives which in turn can mainly be crafted so that managers can mainly accomplish it by the managers and thus numerous factors can be acknowledged. These kind of objectives mainly works as blueprint in which employees will perform in definite course of time. Therefore, this can be stated as necessary for interpreting the factors in better and effectual manner of reference. There are number of sectors which mainly works upon the company like human resource, marketing, finance, operational and many more. These kind of sectors have high potential and thus they are interlinked with one another and thus they are described below:

Human resource department: There are mostly various capacities which are fundamentally performed by number of areas which resemble workforce arranging, compensation assurance and some more. Support is basically being given by elements of workforce to enlistment of abnormal state of workforce in different sort of divisions. Aside from this, when there is ascend in level of execution , it will assist in building up the preparation programs which thus can give out inspiration for workers in accomplishing goals.

Marketing department: There is the immediate linkage with this sort of segment to the generation area of Nestle. It is the obligation of promoting segment which thus has the duties regarding leading the exploration alongside assurance of the new innovations and request of clients (Cronan and et. al., 2011). This sort of information will fundamentally assist the generation area for satisfying the different needs of clients.

Finance department: This kind of sector mainly holds the responsibilities of formulating and preparing out the Finance and its budget for every kind of sector. Support is mainly being given in allocating the funds in better and effectual manner. There is direct link between finance and marketing sector which in turn can ,mainly be utilised for modern tools of promoting along with production which can use the advanced equipments.

Production department: This is one of the effective and essential factor within the company which in turn can mainly produce and formulate multiple kind of food items as per the taste of clients. Data is mainly being utilised for conducting the research and analysation which can bring improvisation within the sales figure (Elliot, 2011). This kind of sector is mainly linked with the various functions for giving out products to clients.

Organisational Structure:

There is the given kind of structure which is mainly being divided on the grounds of various factors and thus they are described below:

Function based: In this kind of sector, help is being given out in deciding the structure of the company as the functions which are being performed in effectual manner. For instance: human resources, marketing, finance and operations.

Geography based: In this, classification is being done according to the various kind of regions as per the area of countries which in turn can give out products and services.

Product based: Structure can mainly be fixed on the basis of diversified products which are being given out by company.

Consumer based: Determination of the behaviour of consumers for structuring out the company.

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 KNOWLEDGE & CREATIVITY INTRODUCTION Creativity and knowledge are the two cornerstones that support a person's job development and help them achieve in life. This report's primary goal is to identify the approach that will enable the reader to identify and comprehend the ideal job. This

INTRODUCTION Virtual reality is one of the computer technology which creates a stimulated environment. It provides an experience to the user by showing the things in a 3D mode. Furthermore, it comprises of stimulation of senses such as vision, hearing, touch and sometimes the smell as well

"BUSINESS ETHICS"LEVERAGING THE CONSERVATIVE BIAS: A STUDY OF IMPACT OF UNETHICAL PRACTICES ON BUSINESS ENVIRONMENT INTRODUCTION Unethical practices in business world are considered as those practices which are not correct or true as individuals morale or profession or industry. Incorporation of

INTRODUCTION Contemporary Business environment is a dynamic, competitive and challenging in global marketplace. It is because of its ever-changing business policies and procedures. The business world always dominated with different problem that hinder the program of enterprise. In most of cases,

INTRODUCTION Business Environment is the sum or collection of all internal and external factors such as employees, customers’ needs and expectations, supply and demand, management, clients, suppliers, owners, activities by government, innovation in technology, social trends, market trends,

INTRODUCTION International business is related with all business movement which are performed beyond national borders. Moreover, International business encompasses all commercial activities which take place for promoting the transfer of goods, services, resources, idea, technology, people and many

INTRODUCTION It is an effect of all internal and external factors which influence the business. It should keep in mind that both the internal and external factors of business affect each other. There are different types of organizations in which some of them are: Public, Private and Voluntary

INTRODUCTION Business environment is very important to be considered as it greatly influences the working, operations and decision making of an organisation. Various factors and dimensions of business environment which brings changes in business activities and operations. Influencing factors are

INTRODUCTION While performing a certain job skill that a worker is seeking for, most organisation's employer will seek for the wants to have some generic skills which is referred as the employability skills. Soft skill or employability skills can widely defined as the combination of competencies

DATA ANALYSIS Questionnaire Name: Gender: Contact Number: Is the firm well aware about various sort of digital tools and techniques? Yes No Not sure Have Tesco plc implemented the digital tools and techniques in an effective manner at organizational

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Understanding Economic Systems and Business

Understanding the business environment.

  • What are the sectors of the business environment, and how do changes in them influence business decisions?

Businesses do not operate in a vacuum but rather in a dynamic environment that has a direct influence on how they operate and whether they will achieve their objectives. This external business environment is composed of numerous outside organizations and forces that we can group into seven key subenvironments, as (Figure) illustrates: economic, political and legal, demographic, social, competitive, global, and technological. Each of these sectors creates a unique set of challenges and opportunities for businesses.

Business owners and managers have a great deal of control over the internal environment of business, which covers day-to-day decisions. They choose the supplies they purchase, which employees they hire, the products they sell, and where they sell those products. They use their skills and resources to create goods and services that will satisfy existing and prospective customers. However, the external environmental conditions that affect a business are generally beyond the control of management and change constantly. To compete successfully, business owners and managers must continuously study the environment and adapt their businesses accordingly.

Other forces, such as natural disasters, can also have a major impact on businesses. While still in the rebuilding stage after Hurricane Katrina hit in 2005, the U.S. Gulf Coast suffered another disaster in April 2010 as a result of an explosion on the Deepwater Horizon oil-rig, which killed 11 workers and sent more than 3 million barrels of oil into the Gulf of Mexico. This event, which played out for more than 87 days, severely affected the environment, businesses, tourism, and people’s livelihoods. Global oil conglomerate BP, which was responsible for the oil spill, has spent more than $60 billion in response to the disaster and cleanup. Seven years after the explosion, tourism and other businesses are slowly recovering, although scientists are not certain about the long-term environmental consequences of the oil spill. [1]

The diagram is a circle, with a core that is labeled, and sections surrounding the core that are labeled. Outside of the circle is the external environment, which affects the contents of the circle. The core is labeled as, Internal Environment; entrepreneurs, managers, workers, and customers. The sections surrounding the core are as follows; technological, and economic, and political slash legal, and demographic, and social, and competitive, and global. All these sections have arrows pointing inward to the core internal environment.

Exhibit 1.4  The Dynamic Business Environment (Attribution: Copyright Rice University, OpenStax, under CC-BY 4.0 license)

No one business is large or powerful enough to create major changes in the external environment. Thus, managers are primarily adapters to, rather than agents of, change. Global competition is basically an uncontrollable element in the external environment. In some situations, however, a firm can influence external events through its strategies. For example, major U.S. pharmaceutical companies have been successful in getting the Food and Drug Administration (FDA) to speed up the approval process for new drugs. [2]  In recent years, the five largest companies in the S&P Index— Google , Facebook , Amazon , Microsoft , and Apple —have spent close to $50 million on lobbying activities in the nation’s capital in an effort to help policy makers understand the tech industry and the importance of innovation and an “open” internet. [3] Let’s now take a brief look at these varied environmental influences.

Economic Influences

This category is one of the most important external influences on businesses. Fluctuations in the level of economic activity create business cycles that affect businesses and individuals in many ways. When the economy is growing, for example, unemployment rates are low, and income levels rise. Inflation and interest rates are other areas that change according to economic activity. Through the policies it sets, such as taxes and interest rate levels, a government attempts to stimulate or curtail the level of economic activity. In addition, the forces of supply and demand determine how prices and quantities of goods and services behave in a free market.

Political and Legal Influences

The political climate of a country is another critical factor for managers to consider in day-to-day business operations. The amount of government activity, the types of laws it passes, and the general political stability of a government are three components of political climate. For example, a multinational company such as General Electric will evaluate the political climate of a country before deciding to locate a plant there. Is the government stable, or might a coup disrupt the country? How restrictive are the regulations for foreign businesses, including foreign ownership of business property and taxation? Import tariffs, quotas, and export restrictions also must be taken into account.

In the United States, laws passed by Congress and the many regulatory agencies cover such areas as competition, minimum wages, environmental protection, worker safety, and copyrights and patents. For example, Congress passed the Telecommunications Act of 1996 to deregulate the telecommunications industry. As a result, competition increased and new opportunities arose as traditional boundaries between service providers blurred. Today the dramatic growth in mobile technology has changed the focus of telecommunications, which now faces challenges related to broadband access and speed, content streaming, and much-needed improvements in network infrastructure to address ever-increasing data transmissions. [4]

Federal agencies play a significant role in business operations. When Pfizer wants to bring a new medication for heart disease to market, it must follow the procedures set by the Food and Drug Administration for testing and clinical trials and secure FDA approval. Before issuing stock, Pfizer must register the securities with the Securities and Exchange Commission . The Federal Trade Commission will penalize Pfizer if its advertisements promoting the drug’s benefits are misleading. These are just a few ways the political and legal environment affect business decisions.

States and local governments also exert control over businesses—imposing taxes, issuing corporate charters and business licenses, setting zoning ordinances, and similar regulations. We discuss the legal environment in greater detail in a separate appendix.

Demographic Factors

Demographic factors are an uncontrollable factor in the business environment and extremely important to managers. Demography is the study of people’s vital statistics, such as their age, gender, race and ethnicity, and location. Demographics help companies define the markets for their products and also determine the size and composition of the workforce. You’ll encounter demographics as you continue your study of business.

Demographics are at the heart of many business decisions. Businesses today must deal with the unique shopping preferences of different generations, which each require marketing approaches and goods and services targeted to their needs. For example, the more than 75 million members of the millennial generation were born between 1981 and 1997. In 2017 they surpassed baby boomers as America’s largest generation. [5] The marketing impact of millennials continues to be immense. These are technologically savvy and prosperous young people, with hundreds of billions of dollars to spend. And spend they do—freely, even though they haven’t yet reached their peak income and spending years. [6] Other age groups, such as Generation X—people born between 1965 and 1980—and the baby boomers—born between 1946 and 1964—have their own spending patterns. Many boomers nearing retirement have money and are willing to spend it on their health, their comforts, leisure pursuits, and cars. As the population ages, businesses are offering more products that appeal to middle-aged and senior markets. [7]

In addition, minorities represent more than 38 percent of the total population, with immigration bringing millions of new residents to the country over the past several decades. By 2060 the U.S. Census Bureau projects the minority population to increase to 56 percent of the total U.S. population. [8] Companies recognize the value of hiring a diverse workforce that reflects our society. Minorities’ buying power has increased significantly as well, and companies are developing products and marketing campaigns that target different ethnic groups.

Social Factors

Social factors—our attitudes, values, ethics, and lifestyles—influence what, how, where, and when people purchase products or services. They are difficult to predict, define, and measure because they can be very subjective. They also change as people move through different life stages. People of all ages have a broader range of interests, defying traditional consumer profiles. They also experience a “poverty of time” and seek ways to gain more control over their time. Changing roles have brought more women into the workforce. This development is increasing family incomes, heightening demand for time-saving goods and services, changing family shopping patterns, and impacting individuals’ ability to achieve a work-life balance. In addition, a renewed emphasis on ethical behavior within organizations at all levels of the company has managers and employees alike searching for the right approach when it comes to gender inequality, sexual harassment, and other social behaviors that impact the potential for a business’s continued success.

Managing Change

In an industry driven by deadlines and details, it’s hard to imagine striking a balance between work and everyday life for full-time employees and seasonal staff. Fortunately, the management team at H&R Block not only believes in maintaining a strong culture, it also tries to offer flexibility to its more than 70,000 employees and seasonal workers in 12,000 retail offices worldwide.

Based in Kansas City, Missouri, and built on a culture of providing exceptional customer service, H&R Block was recently named the top U.S. business with the best work-life balance by online job search site Indeed. Analyzing more than 10 million company reviews by employees, Indeed researchers identified the top 20 firms with the best work-life balance. H&R Block headed the 2017 list, followed by mortgage lender Network Capital Funding Corporation , fast food chain In-N-Out Burger , Texas food retailer H-E-B , and health services company Kaiser Permanente , among others.

According to Paul Wolfe, Indeed’s senior vice president of human resources, empathy on the part of organizations is a key factor in helping employees achieve balance. Wolfe says companies that demonstrate empathy and work diligently to provide personal time for all employees tend to take the top spots on the work-life balance list. “Comments we have seen from employee reviews for these companies indicate ‘fair’ and ‘flexible work environments,’” he says. Surprisingly, none of the tech companies known for their generous work perks made the top 20 list in 2017.

In this 24/7 world, when no one is far from a text or tweet, finding time for both family and work can be difficult, especially in the tax services industry, which is so schedule driven for a good part of the year. Making a commitment to help workers achieve a healthy work-life balance not only helps its employees, but it also helps H&R Block retain workers in a tight labor market where individuals continue to have choices when it comes to where and for whom they want to work.

  • How does management’s support of employee work-life balance help the company’s bottom line?
  • What can other organizations learn from H&R Block when it comes to offering employee perks that encourage personal time for workers even during the busy tax season?

Sources: “Career Opportunities,” https://www.hrblock.com, accessed May 25, 2017; “About Us,” http://newsroom.hrblock.com, accessed May 25, 2017; Abigail Hess, “The 20 Best Companies for Work-Life Balance,” CNBC, http://www.cnbc.com, May 4, 2017; Kristen Bahler, “The 20 Best Companies for Work-Life Balance,” Money, http://time.com, April 20, 2017; Rachel Ritlop, “3 Benefits Companies Can Provide to Boost Work-Life Balance,” Forbes, http://www.forbes.com, January 30, 2017.

The application of technology can stimulate growth under capitalism or any other economic system. Technology is the application of science and engineering skills and knowledge to solve production and organizational problems. New equipment and software that improve productivity and reduce costs can be among a company’s most valuable assets. Productivity is the amount of goods and services one worker can produce. Our ability as a nation to maintain and build wealth depends in large part on the speed and effectiveness with which we use technology—to invent and adapt more efficient equipment to improve manufacturing productivity, to develop new products, and to process information and make it instantly available across the organization and to suppliers and customers.

Many U.S. businesses, large and small, use technology to create change, improve efficiencies, and streamline operations. For example, advances in cloud computing provide businesses with the ability to access and store data without running applications or programs housed on a physical computer or server in their offices. Such applications and programs can now be accessed through the internet. Mobile technology allows businesses to communicate with employees, customers, suppliers, and others at the swipe of a tablet or smartphone screen. Robots help businesses automate repetitive tasks that free up workers to focus on more knowledge-based tasks critical to business operations. [9]

Key Takeaways

  • Define the components of the internal and the external business environments.
  • What factors within the economic environment affect businesses?
  • Why do demographic shifts and technological developments create both challenges and new opportunities for business?

Summary of Learning Outcomes

The external business environment consists of economic, political and legal, demographic, social, competitive, global, and technological sectors. Managers must understand how the environment is changing and the impact of those changes on the business. When economic activity is strong, unemployment rates are low, and income levels rise. The political environment is shaped by the amount of government intervention in business affairs, the types of laws it passes to regulate both domestic and foreign businesses, and the general political stability of a government. Demographics, or the study of people’s vital statistics, are at the heart of many business decisions. Businesses today must deal with the unique preferences of different generations, each of which requires different marketing approaches and different goods and services. The population is becoming increasingly diverse: currently minorities represent more than 38 percent of the total U.S. population, and that number will continue to increase over the next several decades. Minorities’ buying power has increased significantly as well, and companies are developing products and marketing campaigns that target different ethnic groups. Social factors—our attitudes, values, and lifestyles—influence what, how, where, and when people purchase products. They are difficult to predict, define, and measure because they can be very subjective. They also change as people move through different life stages.

  • Environmental Defense Fund, “Seven Years Later: What’s Ahead for the Gulf,” http://www.edf.org , accessed May 15, 2017; “Oil Spills Fast Facts,” CNN, http://www.cnn.com , February 9, 2017; Steven Mufson, “BP’s Big Bill for the World’s Largest Oil Spill Reaches $61.6 Billion,” Washington Post, https://www.washingtonpost.com , July 14, 2016; Debbie Elliott, “5 Years after BP Oil Spill, Effects Linger and Recovery Is Slow,” NPR, http://www.npr.org , April 20, 2015. ↵
  • Melissa Healy, “Speed Up Drug Approvals at FDA? It’s Already Faster Than Europe’s Drug Agency,” Los Angeles Times, http://www.latimes.com , April 6, 2017. ↵
  • Hamza Shaban, “Google for the First Time Outspent Every Other Company to Influence Washington in 2017,” Washington Post, https://www.washingtonpost.com , January 23, 2018; Saleha Mohsin, “Silicon Valley Cozies Up to Washington, Outspending Wall Street 2–1,” Bloomberg, http://www.bloomberg.com , October 18, 2016. ↵
  • “CIO Journal: 2017 Telecommunications Outlook,” The Wall Street Journal, http://deloitte.wsj.com , March 1, 2017. ↵
  • Richard Fry, “Millennials Overtake Baby Boomers as America’s Largest Generation,” Pew Research Center, http://www.pewresearch.org , April 25, 2016. ↵
  • Ashley Lutz, “Everything You Know about Millennial Spending Is about to Change,” Business Insider, http://www.businessinsider.com , October 1, 2016. ↵
  • Geoff Gross, “5 Ways to Effectively Market to Baby Boomers,” Entrepreneur, http://www.entrepreneur.com , June 1, 2016. ↵
  • U.S. Census Bureau, “Projections of the Size and Composition of the U.S. Population: 2014 to 2060,” http://www.census.gov , accessed May 15, 2017. ↵
  • “Why Move to the Cloud? 10 Benefits of Cloud Computing,” http://www.salesforce.com , accessed May 15, 2017; Jim Rock, “How Robots Will Reshape the U.S. Economy,” Tech Crunch, http://techcrunch.com , March 21, 2016. ↵
  • Intro to Business. Authored by : Gitman, et. al. Provided by : OpenStax. Located at : http://cnx.org/contents/[email protected] . License : CC BY: Attribution . License Terms : Download for free at http://cnx.org/contents/[email protected]

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business environment assignment level 4

Business Level 4 – Business and the Business Environment

Pearson/edexcel btec level 4 – business and the business environment.

L4B-B01
L/618/5032
On-line
Level 4 Unit
Pearson
60 + 90 Hours

Introduction

Business activity is fundamental and universal to our everyday lives. Business organisations may differ in many ways, depending on the industry in which they operate globally, but they do share one common feature: the transformation of inputs into outputs. This transformation process takes place against a background of external influences that impact on business activity. The external environment in which business organisations operate is dynamic, complex, volatile and interactive.

The aim of this unit is to give students background knowledge and understanding of business, of the functions of an organisation and of the wider business environments in which organisations operate. Students will examine the different types of organisations (including for profit and not for profit), their size and scope (for instance micro, SME, transnational and global) and how they operate. Students will explore the relationships that organisations have with their various stakeholders and how the wider external environments influence and shape business decision making.

The knowledge, understanding and skill sets that students gain in this unit will help them to have an insight into different business functions, which will support them with further study, support the development of analytical thinking and the application of key analytical tools used throughout business planning, and enable them to choose their preferred areas of specialism in future studies and in their professional career.

Learning Outcomes

By the end of this unit a student will be able to:

LO1 Explain the different types, size and scope of organisations

LO2 Demonstrate the interrelationship of the various functions within an organisation and how they link to organisational structure

LO3 Use contemporary examples to demonstrate both the positive and negative

influence/impact the macro environment has on business operations

LO4 Determine the internal strengths and weaknesses of specific businesses and their interrelationship with external macro factors.

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Free Assignment & Essay Sample for NZ Students

FLM401 Business Environment Level 4 Assignment sample 

This is the sample assignment of FLM401 Business Environment Level 4. FLM401 Business Environment Level 4 introduces students to various aspects that impact businesses from government legislation and regulatory issues, international trade agreements, or regional economic policies; each with unique challenges for executives at all levels within a company.

FLM401 Business Environment Level 4 Assignment sample

By exploring these topics thoroughly and learning how they affect both current global markets as well as their own companies’ potential future strategies, organizations can mitigate risk while achieving success on an unprecedented level.

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Assignment solutions of  FLM401 Business Environment Level 4 Certificate Course

Assignment activity1. explain the impact of external factors on the entity..

External factors have a demonstrable effect on the entity’s profitability and market share. Their direct influences include:

– Market competition in a particular region, which may be more or less competitive depending on whether the entity is considered to be more or less innovative than its peers in that industry;

– General economic conditions, such as localized hardship of recession;

– Business interest rates, which do not directly influence consumers’ purchase decisions but do affect what businesses charge for credit.

In addition to these external factors, other aspects of how governments and the public perceive and respond to the business are highly relevant for their success

Assignment Activity 2. Identify compliance requirements related to the entity.

A compliance requirement refers to a rule, regulation, or standard that sets guidelines for the behavior of an individual or organization. Compliance requirements may also include notification requirements and deferral provisions related to environmental compliance. It’s important to identify these before you start and the risks related to falling out of compliance.

There are two primary categories with different considerations when it comes to complying with the stipulations in a requirement: baseline external compliance and situational internal compliance (supersedes the general external baseline).

The difference between submitting on time vs late is whether there are sanctions for not meeting a deadline, usually a financial penalty assessed by some type of regulatory body. There will also be ramifications such as fines, inconceivable loss of reputation;

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Assignment Activity 3. Describe the impact of internal factors on the entity.

A company’s internal culture has a significant effect on its external brand. Recent studies indicate that employees who are passionate about their job and take pride in the company they work for are more engaged and have higher morale.

This may be due to the fact that proactive, highly engaged employees see opportunities for themselves within their roles, which translates into leadership skills. This means they’re more inclined to go above and beyond in terms of supporting the values of their organization while delivering high levels of customer service–facts that both buyers and customers prize when making purchases.

From a business perspective, implementing an organic corporate culture is key. This helps foster motivating factors like meritocracy where employees feel empowered by promoting team spirit—a sense of community

Assignment Activity 4. Different leadership styles.

Different leadership styles can be classified into 3 distinct categories,

1.Autocratic – Autocratic leadership is a style of authoritarianism that has been used in different times and locations around the world to create an order for cultures. Leaders with this type of power typically believe it’s their duty as an individual, not just anyone else’s right, to make decisions for the group without any input from followers at all. They are usually people who consider themselves more knowledgeable or wise than those they lead since they often do not accept advice from others because sometimes there may be things about which even these great leaders don’t know anything about!

2.Democratic – A democratic leadership is a style of shared decision-making. Democratic leaders include members in the process and take their input into account when making decisions for the group.

A democratic leader will make sure they involve all participants, including themselves, before coming to any conclusions or taking actions that may affect them. This type of management does not rely on one person dictating everything but rather allows everyone’s voice to be heard from start to finish,

3. Laissez-faire – Laissez-faire leadership is an approach to management that insists on the freedom of employees. It takes a hands-off approach and believes in trusting its workers with important decisions, which are made without interference from supervisors or other managers.

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Assignment Activity 5. Identify appropriate leadership approaches in specific contexts.

The leadership approaches required for different tasks can be different. Leaders that are excellent at long-term strategy might struggle with daily operations, while leaders who are good at short-term firefighting could fail on long term strategy (Think about how it feels when the person you work for gets awarded a promotion and then proceeds to completely ignore everything they were good at).

Some of the different contexts for business include developing products, running a meeting, planning out strategies, leading an interview process. For each context, there is an approach or set of approaches that will be more successful in achieving success.

Assignment Activity 6. Work in a team towards an entity’s objective

In today’s business environment, working in a team is often the best way for an organization to stay competitive. Teams have their own special abilities and usually consist of one leader, specialists in various skills areas, and the other employees required to complete projects as needed or assigned. Each individual has their own talents which combine into a group effort that can be more powerful than any one person working alone.

A team is responsible for getting everything done on time and on a budget without slacking off or counting free hours. All members make important contributions and everyone works hard towards achieving their objective while still maintaining an easygoing spirit through daily laugh sessions!

Assignment Activity 7. Achieve positive workplace relationships.

In order to achieve positive workplace relationships, it is important to have a good understanding of yourself and your colleagues. Employees should do their best not to take issues at work personally, learn from successes and mistakes, communicate effectively with others, develop effective team working skills and engage in meaningful activities while at work. When employers start hiring employees who are well-suited for the specific job requirements they want them to do then they will soon begin having positive workplace relationships.

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business environment assignment level 4

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