Costachi Ioan

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University of West London *

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PRINCIPLES

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Business

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Nov 24, 2024

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docx

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COSTACHI IOAN MODULE: INTRODUCTION TO BUSINESS ASSIGNMENT 2

COSTACHI IOAN EXECUTIVE SUMMARY The report analyzes the internal and external dynamics of an organization that is just starting up. In my presentation, I will explain why this information is significant and how it affects decision making in an organization as well as how the owner can take charge of his actions. Additionally, I will examine how the key factors affecting the organization we want to set up in the market affect owners when making decisions. With Pestel, I analysed three sociopolitical and economic factors, while Porter's five forces helped me to analyze the microenvironment. Introduction We have chosen to open a car production store in the near future. This business idea is close to our hearts and will be completed soon. Our goal is to provide the safest and most innovative products possible for our customers, and we will use every effort to outperform the competition. As a means of ensuring that our business complies with all regulations and that we adapt to market requirements, we will need a combination of information, both internally and externally, both of which will be crucial for planning and controlling our operations in an effective manner. Several internal and external data points have been chosen for this analysis. 68,790 vehicles rolled off assembly lines in January 2022, a 20.1 per cent decline from January last year. It was the worst January in car manufacturing since 2009. (Auto Express, n.d.) Due to friction in the then-new post-Brexit trade arrangements, extended factories shut down, and Covid-19 disruption, January 2021 had the strongest start to a year ever recorded (Donnelly, 2019). Information Management . In order to understand where our business is located, this information can be very useful to a start-up business (Laudon and Carol Guercio Traver, 2022). We should carry out a SWOT analysis at this point in order to list all of our strengths and weaknesses and some of our objectives. Based on this information, we can conduct market research and make informed decisions about how to achieve our objectives. Marketing When conducting market research, information is obtained about the competition and customer needs. The business owner needs to be aware of the marketing methods and activities he has to perform. The information is used to decide what marketing strategies will succeed in attracting customers and also what products the company will sell in the marketplace. We have to know what customers prefer when it comes to cars since we are a business that produces and sells them.

COSTACHI IOAN Business financing. Business information pertaining to the methods of financing the business is perhaps the most important for the business. A company that manufactures and sells cars needs a large amount of startup capital because the costs include raw materials, a location, parts, and marketing techniques. Our partnership is a business and the money we can save is not enough to finance our business. With the information we gathered, we were able to figure out how to finance our business best and we decided how to invest the money we have. Macro and Micro Environmental Pestle The importance of a pestle analysis for a business is undeniable, as it enables owners of the business to find out information about various factors that can affect its performance (Britain, 2009). External factors can affect the profitability of our car shop, such as politics, economics, social issues, and technology. In addition to helping me solve the main problems I face, this analysis can also help me develop strategies . Technological factors Innovation and methods that ensure the efficiency and the speed of certain company functions as well as methods that ensure the comfort of customers is what we think of when we think of technology. The idea of automatic cars, which have been around for a long time, has my opinion been the biggest technological advancement, with a positive impact on the industry, and we will see the same impact if we implement it in our store. We want to develop such a car in the future so we can have a new customer segment that could afford such a car. Legal factors Legally speaking, the most challenging issues in England and around the world relate to copyright issues, in which certain aspects of cars are protected. It is therefore important to acknowledge the parts or elements of a car that are exclusively the owner's and not steal current models like those in China. A copyright infringement can result in a fine and a loss of rights to future models, so we must be careful. Environmental factors Everybody knows how detrimental the effects of cars and any other vehicle on the environment are because of their carbon emissions since carbon dioxide is one of the biggest pollution sources. Climate change can occur as a result of these factors, such as the greenhouse effect. We will work to reduce pollution in an environmentally friendly manner, and we will advise our customers on what steps they can take to reduce pollution.

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COSTACHI IOAN Porter My company's competitive position in the automotive market will be assessed through Porter's five forces analysis. We face competition from new competitors who offer lower prices, reduced costs, and more attractive customer offers as a result of their innovation and new ways of doing things. This threat is limited, due to the fact that every company requires sufficient capital to invest in all aspects of the organization. In order to protect our competitive advantage, we must build effective barriers to combat these challenges. Raw materials are usually supplied by different suppliers to companies in this industry. In a monopolistic market, suppliers will be able to increase their prices, but fortunately, there are many suppliers today who sell the same parts, so we can choose the option that gives us the greatest benefit in terms of price. We will establish contacts with a number of suppliers to make this more efficient since if prices of raw materials rise, we can switch suppliers without any problems. The word of a business belongs to the customer. It is important to them to purchase the best possible deals at the cheapest price. We are put under pressure to increase profitability. We are starting out, and customers have a high degree of bargaining power, so they will seek out the dealership that offers the most discounts and incentives. We suffer a loss of profitability when a new product meets the needs of most customers across all companies. Substitute products and services pose a high threat if they offer more benefits to customers. Our goal is to understand the basic needs of our clients and create offers that will capture their attention, without resorting to alternative backup options. Rivalry refers to the clash between companies or organizations that exist in the same industry or on the same market. There are three more representatives for different brands in the area where we want to open our store, which means that our prices will decrease and our profitability will decrease. By offering incentives, we will be able to differentiate ourselves from our competitors and attract customers. Conclusion Pestle's analysis, Porter's five strengths, and market research were all significant factors in business success according to my study. A business must be prepared to make the best decisions when it is starting from scratch, and in order to do that, employers must be aware of the market and the competition, in addition to knowing what the customers want. Numerous factors should be considered, as they are directly related to the business's success. We can determine the influence of customers, competitors, suppliers and external factors such as the economy or environment when we start a business through Porter's five strengths. Considering the results of the analysis I presented above, I believe that if this idea were implemented in the market, it would benefit not only my economy but also the economy of the nation as a whole.

COSTACHI IOAN Reference  Auto Express. (n.d.). UK car production: January figures hit 13 year low. [online] Available at: https://www.autoexpress.co.uk/news/105846/uk- car-production-january-figures-hit-13-year-low [Accessed 4 Mar. 2022].  Britain, G. (2009). Business environment. Amsterdam ; Boston: Elsevier/Pergamon Flexible Learning.  Donnelly, D. (2019). Motor Car Industry In Coventry Since The 1890’S. S.L.: Routledge.  Laudon, K.C. and Carol Guercio Traver (2022). E-commerce : business, technology, society. Harlow, Essex: Pearson.  Porter, M.E. (1991). How competitive forces shape strategy. Boston: Harvard Business School Press.

Costachi Ioan

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