Factors In The Business Environment

Question 4

a. Assess the factors within the business environment that influence upon operational management and decision-making by leaders and managers.

The business environment will get affected by a numbers of factors which affect the operational of the business and part of the decision making in the organization. The various factors are suppliers, customers, company, marketing intermediaries, public and competitors.

Suppliers

Suppliers can be in individuals or in commercial organization. They can combine together to provide resources that needed by a company or an organization. The company should go for develop specification of suppliers, looking for potential suppliers, identify and analyze the ability of suppliers. Afterwards, the company

Thus, marketing department work closely with other departments; finance, purchasing, research and development, and manufacturing departments. The aim is to identify ways of each department can contribute to the exception of customer value, which leads to advancement customer satisfaction.

b. Analyze how these different factors affect the business environment and wider community.

PESTEL analysis includes of political, economic, social, technological, environmental and legal. They are uncontrolled by any firms or organization. The success of an organization is depends upon its applicability to the environment.

Political

Political factors are may be related to government. Political are consists of health and safety laws, legislative bills, tax policies and government stability. Most of the businessman can’t reduce the taxes or introduce new legislation because it will affect the entire economy. They have to understand these factors to ensure their business can align to laws, regulations and policies. Giant Hypermarket having over 85 branches spread throughout the country as it is one of the largest players of the retail industry in

Cost advantages

Aeon has the strength of cost advantages which is own a low cost leader. This can benefit Aeon to reduce the rivals in price.

Customers’ loyalty

Aeon has a lot of loyalty customers. The variety of choice can helpful to customers loyalty.

Weaknesses

Less space

Aeon has less of space or capacity to store their goods. This is one of the weaknesses of Aeon. Weak management

Another weakness of Aeon is weak management. The management in Aeon is not strong and poor management practices in the organization.

Opportunities

Online market

One of the opportunities of Aeon is online market. The online market offer Aeon the capability to expand their business.

New markets

Through capture the new market, they can diversify their portfolio of products and services to attract more customers in future.

Threats

Intense competition

The threats will be face for Aeon is intense competition. Aeon have to compete with other hypermarket.

Substitute products Aeon

As hypermarket, the retail industry, competitors offer a similar products range in the