The Effects of the Environment on a Business
Vocational Scenario or
Context
You are continuing with your work placement in the Economic Development Unit (EDU) at your local council working with the officers who are responsible for publications, brochures and guides. You have been asked to select and investigate a large business that trades in the European Union (EU) and use this research to write a report that evaluates the effects of the environment on that business.
Task 1
The effects of the environment on a business You have been asked to write a report on a large business that trades in the EU. You should research a number of businesses before selecting one to report on.
You will need to look at the environment in which the business operates, and to gather enough information to be able to consider how your chosen business has responded to past changes and evaluate how it may react to future changes. Your research should include: • The external environment that effects the business to include political, economic, fiscal, monetary and other government policies, social attitudes to saving, spending and debt; social responsibility requirements, technological change, environmental factors and ethical trends and the legal environment • The internal environment to include corporate culture and corporate Social Responsibility (CSR) • The competitive environment to include competition, competitive advantage and the factors that influence competitive advantage • The influences on the chosen business’ demand, supply and price, including elasticity of demand. • The different market structures that the business operates in, their impact on pricing and output decisions and the business’ response to these
Using this research, prepare a report that discusses and assesses the effects of the environment on the business, and how the business has reacted to change. The report should include a situational analysis of the business environment using a variety of techniques such as PESTLE, SWOT, 5Cs analysis, and Porter’s Five Forces. The report will evaluate the extent to which the business has responded to past changes in the market and business environment and suggest how this business may react to future changes. The report will be logically structured and have a clear conclusion that is fully justified by well-balanced, developed arguments, and is supported by good use of research evidence.
