UnitII_assignment_Charlyse Moore

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Nov 24, 2024

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Unit II Assignment This assignment allows you to demonstrate the following outcomes: 2. Examine the different environments in which businesses operate, to include social, technological, economic, legal, and market environments. 2.1 Describe how different environments impact a business. 2.2 List the characteristics of different environments as they relate to a business. Instructions : The purpose of this assignment is to examine the different environments in which businesses operate. Read each set of instructions before completing the three exercises. Then, save all of your work to this template and submit it in Blackboard for grading. Exercise 1: The table below contains cells where you can insert the elements for each type of environment: (a) the characteristics of the environment as it relates to the business and (b) a description about how the environment impacts the business. For Exercise 1, your answers should focus on the following type of business: a retail business with clothing and other apparel. In your own words, complete the table below by inserting the appropriate elements. Environment List the characteristics of the environment as it relates to the business (at least three each) Briefly describe how the environment impacts the business (at least four sentences each) Social 1. Fashion Trends (Current) 2. Location of stores 3. Culture & Style preferences In a retail setting, the social climate determines what kinds of clothing are sold. Before starting a retail company, determine what type of clothes would sell well in your chosen area. If you're heading to Rodeo Drive in Los Angeles, you'll want to dress accordingly for the high-end clientele in terms of style, quality, and money. A different approach would be to find out what the locals want before opening a company in a small town in rural Alaska. Your gear must be cheap and warm & durable in case the general public is unable to travel. If you want to make a profit, you have to account for the business you may lose as a result of the weather. You should consider the current fashion trends as well as the Page 1 of 12

local culture when choosing what kind of clothing to offer. A traditional, modest community won't allow you to prosper if you offer short skirts and tank tops. If you live in New York's fashion district, on the other hand, you must keep up with the latest trends to seem stylish. Technological 1. Communication 2. Social Media impact on advertisement 3. Online Store There has been a significant shift due to technological advancements where retail shops are flourishing in an online store environment. For instance, on Etsy, anybody may start a company from home by opening an online store. With photos and a comprehensive description, you can make your products seem as if they are in-store, but customers don't feel the strain of a salesperson attempting to meet a quota anymore. In terms of communication, consumers may now contact the merchant from the comfort of their own home with any queries, complaints, or refunds. Because of Amazon's return policy, you may fill out a form explaining why you need to return an item and print a label right away, saving you the time and effort of speaking with a customer service representative. Buying clothing from Amazon, trying them on, and returning them for a full refund can all be done from the convenience of your own home, with UPS handling the delivery and pickup of your goods. The use of social media is critical in attracting customers to your clothing store. Promote deals you're doing using clickable ads on social media like Page 2 of 12

Facebook & blogs. That way, those who are interested will come straight to your shop. Economic 1. Availability & Cost of material 2. Competition of Brands 3. Employment & inventory Issues The current economic conditions dictate nearly everything you do in a clothes shop. If the economy is doing well, the retail shop will be able to recruit more people & pay them well. You will see more layoffs if the economy is in a slump, on the other hand. Your own economy isn't the only thing to be concerned about. If the resources used to manufacture your clothing are sourced from nations that are experiencing economic difficulties, the costs may rise. Because of the recession, some manufacturers may not be able to create as many of your preferred brands, limiting your selection. You'll have income issues if you're unable to provide your shop with the required clothing. Customers will not purchase a thing that they cannot get. If the economy in the United States is in a slump, fewer people will be buying clothing, leaving you with an excess of inventory you can't store. Your company should compare the pricing of its high-quality products with those of generic brands once it reaches that stage. To compete with generic clothing, you should have discounts to entice customers away from your competitors' offerings. Legal 1. Diversity 2. Child labor & Discrimination Laws 3. Basic Pay & Medical benefits When working in a retail apparel shop, you must follow all rules and regulations. If a family runs your company, you must follow all applicable rules on child labor and equal pay. Using a third-party Page 3 of 12

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producer has the same drawbacks as doing it yourself. Buying clothing from a foreign sweatshop may have legal repercussions. Having a diverse workforce is essential when recruiting new workers to keep your company running smoothly. Some retail apparel shops only employ slim and beautiful people; therefore, if you are in a wheelchair, you may be disqualified from the job. The issue is that you may be sued for discrimination if someone feels you've been prejudiced against them. Equal compensation is a trait that goes hand in hand with diversity. The company must pay at least the minimum salary, but it must also remember that all employees, male or female, should be treated equally. The company must research medical benefits to establish an acceptable cost- benefit ratio for both the company & the employee. If your company fails to examine these, it may be subject to litigation or union picketing, both of which may result in a reduction in income. Market 1. Prices of Apparel Products 2. USP of products offered 3. Demographic & Competition Your target audience makes up the market environment. If you're establishing a company, you'll want to research the local demographics & target customers. If you own a retail clothing shop, consider what your customers want and how much they're willing to spend for it. Customers' willingness to pay determines the rates you charge for your clothes. They'll move to other rivals with cheaper pricing if yours are too expensive for your audience. Speaking about rivals, Page 4 of 12

marketing is critical in today's industry. Suppose your rival advertises that they have the lowest pricing, and you notice your customers leaving to shop at that competitor's business. In that case, you should match your own advertising to that of your competitor. Your target audience will be more likely to return if you advertise that your apparel is of higher quality and costs less than theirs or if you price match. Another thing to consider is what distinguishes you from others. What can you give your intended audience that your rivals cannot? It may be the difference between winning the consumer's business and losing it to your competitor. Page 5 of 12

Exercise 2: This exercise is similar to Exercise 1; however, your answers will now focus on a different type of business: an electronics manufacturing business . In your own words, complete the table below by inserting the appropriate elements. Environment List the characteristics of the environment as it relates to the business (at least three each) Briefly describe how the environment impacts the business (at least four sentences each) Social 1. Size & Knowledge about the product 2. Energy Consumption 3. Type Of Electronic products. In the electronics industry, everything is governed by the rules of society. Energy conservation and global climate change are now hot topics in society. When it comes to electronics, companies must consider the environmental impact of their goods. This is wasteful if your battery is low and you have to plug it in all the time. Electronics are becoming smaller, but they're also getting more productive as society moves in that direction. You should keep in mind that customers want small and compact goods while developing them for production. And that's before even getting into what kind of technology they like. Apple and Microsoft are the two biggest rivals in the electronics industry. It's up to the company to figure out which kind of electronics is most advantageous to them. On a per-part basis, which business is more profitable? Education needs in today's culture should also be taken into account. Now that computers are being utilized more in classrooms, we no longer need books or notepads to go to school. It's critical for a company's long- term success to understand societal requirements. Technological 1. Maintenance of the Manufacturers have benefited Page 6 of 12

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products 2. Digital orders & Production Cost or time of the manufacturing 3. Brands of electronic products greatly from recent technological developments. By substituting workers with machines that can manufacture electrical components in half the time, businesses have reduced the time and expenses associated with product production. Allowing robots to produce the goods makes meeting deadlines and increasing the number of orders considerably simpler. Even though the number of employees will be reduced, the requirement for machine maintenance will remain. They must be continuously checked for mistakes and corrected as soon as they are found in these machines are to continue creating high-quality goods with little human error. Thanks to advancements in technology, ordering online have made it possible to keep order forms, product labels, and invoices in less space. When a computer fails or a natural catastrophe strikes, the business has a backup plan in place to ensure that all of its data is safe. This enables them to resume operations with the least amount of paperwork possible loss. Economic 1. Supply & Demand of the products in the market 2. Availability of hardware 3. Material cost Your company's growth will be boosted if the economy matches your requirements. The amount of profit you make will be determined by the supply and demand for gadgets. Consumers' willingness to spend money on gadgets will be affected by the state of the economy. The company must also think about the price of materials and hardware and the availability of such resources. The item's Page 7 of 12

availability determines the overall cost. Consider the differences between landlines and mobile phones. Cell phones, not home phones, are the most popular handheld communication devices today. Due to the difficulty in locating the hardware required to build a house phone, production costs will rise, raising the finished product's price beyond what customers may be willing to pay. To earn money, your company must provide mobile phones. Otherwise, it will fail. Legal 1. Political stability & Trade restrictions 2. Fulfil the safety requirements 3. Current Tax rates Since a part of your company earnings are due to the federal and state governments, tax rates determine the majority of your profits. Looking at tax rates is essential when choosing where to manufacture electronics. You need to figure out how much to charge while still making enough money to cover your expenses, taxes, and future development. This may also imply outsourcing production to nations with lower tax rates. The nation will suffer as a consequence of a firm leaving because doing business in that state is too costly. Politics has a greater impact on the economy than the average person realises. It's a major motivator in tax policy. You should be on the lookout for potential increases or decreases in tax rates whenever a vote is called. The safety standards for production are another consideration. Employees who work with heavy machinery or assemble products should be in an environment where they are Page 8 of 12

protected from harm. Ensuring that the shop floor is constantly monitored and cared for will reduce the number of malfunctions that result in injuries or fatalities, which will reduce the number of legal cases. You should be aware of import and export trade laws when dealing with other businesses to sell your gadgets or to purchase components to manufacture. Not to mention the precautions you must take to ensure your goods are handled safely throughout shipment to avoid them becoming a danger. Certain batteries and components have a higher risk of exploding while in transport, and customs clearance may take longer as a result. For instance, the overboard craze swept the nation last Christmas, and every child wanted one. Many people bought their hoverboards for Christmas from Amazon without realizing they were made in another country. Because the hoverboards broke down, the shipment took twice as long to go through customs, displeasing customers who expected their gifts for Christmas to arrive. Market 1. Innovation 2. Products USP (Unique selling proposition) 3. Affordability of technology The market environment will assist you in determining the kind of goods and services you want to provide. Once you've identified your target audience, you'll need to determine how to stand out from the competition. You may set your pricing to offer cheap technology after you know how much your rivals are charging and how much your Page 9 of 12

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customers are prepared to pay. The benefits and services offered in your product should be considered when presenting it to customers over a competitor's. Is it possible for you to offer a fair warranty package for faulty products? Consider the case of Best Buy. As part of a warranty plan, they work with Geek Squad to repair or replace damaged or defective hardware. Your target market's demand for new technologies is yet another aspect to consider. Your sales will continue to grow if you continue to innovate and provide new items that keep your customer's purchasing. Exercise 3: The purpose of this exercise is for you to reflect upon your observations after completing the first two exercises. What did you notice about the different environments and how they impact a particular type of business? After completing this assignment, what could you take away and apply to a job as a business manager or entrepreneur? Your response must be at least 200 words in length. Answer As I completed this exercise, the parallels and contrasts between a retail company and an electronics manufacturing firm were apparent. Market and social settings are linked in many ways, as are the economic and legal contexts. To be successful, a company has to be situated in a prosperous economic climate. Whereas the electronics manufacturer was more worried about selling to retail shops on a worldwide scale, the retail company was more concerned with selling the goods directly to the customer on a local scale. The retail business prioritizes the economy of the town or city where it is located, while manufacturers are more concerned with the economy of the state or nation. The target market shared by both companies was a point of similarity. A retailer's primary priority is getting customers to spend money in their shop, while a manufacturer's primary focus is getting customers into their store. To pay the Page 10 of 12

manufacturer's expenses, the retail shop must charge a fair price for the goods. The two companies are shaped differently by technological advances. Whereas a brick-and-mortar retailer can become virtual and save money on real estate, an electronic producer will have to invest more money on equipment to make their goods faster. My long-term goal is to be a company manager, & in order to accomplish it well, I've realized I need to pay close attention to the various business settings. Considering that I now work as a banker for Navy Federal Credit Union as a business manager, I should consider the social climate while deciding where to locate my branch. We presently have a branch outside of a marine installation in Quantico, Va. Because we have people from all branches of the military, it's an ideal place for us. Members don't have to go far to conduct their banking when they get off the post and see us. To encourage additional branch development, I'd have to examine the various branches and see if I could position my branches near them to better serve my target market. If I want to keep members satisfied, I have to look into the legalities of the credit union's affiliation. I may be fined if I break their rules on how I collect a member's debt. The objective is to devise a legal strategy for instructing workers on how to adhere to the rules. As a manager, it would be part of my responsibilities to evaluate the financial implications of making technical improvements, such as buying new equipment/ software. Members who have to deal with antiquated, sluggish systems will be dissatisfied. We will be able to stop theft and fraud better if we keep our money storage systems up to date. Reference Page 11 of 12

Bamansoor, S., El-Ebiary, Y. A. B., Yusoff, F. H., Pathmanathan, P. R., Saany, S. I. A., FASc, Z. B. A. B., ... & Al Moaiad, Y. (2021, June). Evaluation of Chinese Electronic Enterprise from Business and Customers Perspectives. In 2021 2nd International Conference on Smart Computing and Electronic Enterprise (ICSCEE) (pp. 169-174). IEEE. Phan, S. (2021). The effect of PESTLE factors on development of e-commerce. International Journal of Data and Network Science , 5 (1), 37-42. Page 12 of 12

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