BUSINESS ENVIRONMENT

Business Environment

Business Environment

Activity 4.1 - Business Environment

Business environment is a set of political, economic, social and technological (PEST) forces that are largely outside the control and influence of a business and that can potentially have both a positive and a negative impact on the business.

Today's world is a rapidly changing place. Developments across a range of factors will have an impact on your business or industry. The classic PEST framework (political, economic, social and technological) identifies four major categories of external factors that affect the ability of your organization to survive and prosper.

Activity 4.2 - Internal Analysis of UK Firms

Ryanair and easyJet are in fierce competition with each other as they are the two largest low-cost airlines operating within the UK. Since easyJet's takeover of the low-cost airline Go in 2002 it has become Europe's largest airline in this sector but still faces fierce competition.

RyanAir's Strengths

RyanAir aims to offer low fares that generate increased passenger traffic while maintaining a continuous focus on cost-containment and operating efficiencies. Ryanair business strengths are well known and respected brand name, low costs due to low airport charges, high internet booking ratio, high aircraft utilization, use single type of aircraft, fast turn around times and high seat density

RyanAir's Weaknesses

Recent reports of poor customer service

Negative press

Airports are often long distance from travellers end destination

Easyjet's Strengths

EasyJet have built a strong brand which has positioned them in an excellent spot within the low cost sector of the airline industry. With this sector of the industry predicted to grow, competition is likely to intensify even more but as easyJet has already built a strong brand and customer base it is unlikely they will be forced out of the market.

EasyJet's Weaknesses

EasyJet need to continue its advertising strategies, reinforcing its image and brand name to continue as one of the industries leading airlines. As the UK market is saturated and offers small or no growth opportunity, it would be logical for easyJet to focus on the expansion of their route networks within Eastern Europe. EasyJet should accomplish this through providing the routes themselves or merging with a competitor that already does.

Activity 4.3 - UK economy

The UK has a limited regulated free market economy, somewhere between the US and continental Europe. The UK's growing importance as the center of capitalism in this period benefited from the great degree to which the business world of Britain was open to talented foreigners, like Johann Baring, who had come from Bremen in 1717 and turned himself into a successful cloth merchant in Exeter.

Activity 4.4 - Tesco - a supermarket

Tesco is one of the top three international retailers in the world, with around 2,000 stores and 326,000 people in 13 countries across Europe and Asia. A core component of Tesco's international strategy is consistent processes and policies, replicating UK-developed retailing excellence across the world while incorporating local cultural differences and tastes.

Main Primary Products: barley, bauxite, cattle, coal, copper, diamonds, fish, fruit, gold, iron ore, lead, maize, manganese, natural gas, nickel, oats, opals, oil, pigs, rice, ...