Business Environment

Topics: Inflation, Economics, Consumer price index Pages: 10 (3014 words) Published: December 3, 2014
Business Environment
Business environment consists of all the internal and external forces that influence the operating situation of a company. Business environment has a dynamic and complex nature and it impacts greatly the survival and growth of a company. External factor consists of political factors Political factors (Taxation Policy, Unemployment Policy etc.), Economical factors (Inflation rate, Recession or Boom etc.), Socio-cultural (language, values, religion, beliefs etc. ), Technological factors (E-commerce, Rate of technological change etc. ), Environmental factors ( Pollution monitoring, Energy consumption etc. ), Legal factors (employment law, labour laws etc. )

Internal forces consist of organizational culture customs, values, rules and norms shared by the member of an organization) and organizational direction (processes and operations, communication among employees, leadership practises or level of friendliness).

Task 1: The immediate/contextual environment
1(a) Input-process-output (IPO) analyses for Premier Foods and for Vodafone IPO model is a very efficient tool for analyzing and documenting the critical aspects of the transformation process. IPO model is one type of functional that determines the inputs, outputs and the processing tasks that are needed to transform the inputs into outputs. The flow of data and materials from outside are represented by inputs which usually go into the process, process includes all the tasks required to transform the input into output and output are the data and materials flowing out from the process that turned into the finished goods or services.

IPO analysis of Premier Foods
Premier Foods is one of the largest branded food producers of Britain. So the inputs are a bit different than the other manufacturing companies. The inputs that go into process are usually raw materials consist of unprocessed foods and supplies, labour, research findings etc. The process includes the management skill and expertise, procurement and the food preparation and delivery services. The output is the finished packaged food products, customer feedback etc. IPO analysis of Vodafone

Vodafone group is a British telecommunication company which is also a truly multinational company operating over 21 countries. The input of Vodafone includes information infrastructure, research and development, efforts of IT department, efforts of other departments, facilities, staffs, process includes service design, professional competence, network of activities and buffer, and the output includes services, customer satisfaction etc. 1(b) Relative advantages and disadvantages of central planning vs. market economies for Premier Foods and Vodafone Central planning economy is a national financial system where production facility is operated, owned and managed by the government of the country. Centrally planned economy usually seeks to control how the goods and services are produced and how resources are used and distributed. It is associated with a communist economy and based on the theory that the government will be responsible for the market failure. In contrast, in the market economy the interaction of business and consumers usually direct the pricing of the goods and services and other economic decisions and government doesn’t intervene much in this process.

I think central planning economy will be good for premier foods. Because this company already has acquired a lot and expanded the business fairly. Now it is time to move its focus on other strategies like price cuts, consolidation and efficiency and boosting market support. Market economy usually keeps the prices under control and distributes wealth properly. So this economy will support the strategies of Premier Foods. Another advantage is if a product fail in this economy government will take the responsibility. So it will do well in market economy. But it has some disadvantages too. This economy doesn’t allow growth....
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