Ana Maria Jalba

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University of West London *

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PRINCIPLES

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Management

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Nov 24, 2024

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Ana Maria Jalba INTROD UCTION TO BUSINES S

Ana Maria Jalba EXECUTIVE SUMMARY The purpose of my report is to choose a start-up business and analyze the key factors that can influence its functionality. I will discuss the role of internal and external information in decision making and I will present the micro and macro environment of a business. Every manager needs to get information about competitors and customers. I have used 2 analyzes that will help me understand what the possible threats are and I will try to decide which are ways in which I can remove these threats. Introduction The business idea I chose refers to the opening of a car parts store and a dealership, which deals with the production of cars. We chose this business idea because the industry is constantly growing and the demand for cars is growing and we want to offer our customers much smarter and safer cars. Our structure is that of partnership because we are four people who came up with this idea that we want to make functional in the future. The automotive sector in the United Kingdom as a whole generated a total trade revenue of £74 billion, with more than 80% of British-built cars and more than 60% of light commercial vehicles destined for export (O’carroll and Topham, 2021). Body In the following, I will present some important aspects of any start-up business. In order for the owner to be able to make certain decisions regarding the business to be put on the market, he will need internal and external information that he can obtain through analysis or simply through market research (Britain, 2009). Every owner needs, first of all, external information about the market. In order to know what kind of products you need to make, the prices you need to practice and also what promotion methods to choose, you need to get this information that has an important role in the decision- making process in a company. Other internal information essential to our business includes business financing. With the help of this information, we will be able to find out what the start-up costs are and what accounting operations we need to perform. This information highlights the financial strengths of the start- up business and helps the manager decide what capital is needed to finance the business effectively. The new business also needs information on the human resources needed to run the business efficiently. In a company, each person has an important role and some responsibilities and I and my colleagues have established what actions we need to do each and with the help of the information we have obtained, we have managed to find out who the staff is. which we will need. Pestle

Ana Maria Jalba The political factors affecting the industry we are going to enter are, first and foremost, carbon regulations because the government has realized the growing interest of the population in the environment and introduced new regulations on carbon emissions and advises homeowners that deals with the sale of motor vehicles, to take measures in this regard, to reduce air pollution When vehicles burn and emit carbon into the atmosphere. Security policies are also the ones imposed by the government because if a vehicle of ours breaks down due to parts or technical problems that we had to check, then it would endanger the lives of customers and therefore the Government English has implemented strict safety regulations (Bush, 2019). From the point of view of economic factors, we can discuss the pandemic that has blocked many businesses worldwide or brought it to a close. The biggest impact of the pandemic was the economic recession that increased the unemployment rate and the purchasing power decreased and people no longer had money to invest in things that were not so important, such as a car, which invested their income only for the living. daily. This affects us negatively because sales are low and our profits will stop growing and production could be affected because we would no longer have available capital to invest. Environmental factors that have an impact on the automotive industry are primarily related to pollution, as the automotive industry includes two very major environmental issues, namely air pollution and carbon emissions. They affect us all in terms of air, which will be of poor quality and will also lead to climate change and global warming, so it is advisable to adopt the best methods to ensure a much healthier environment in the future. From a social point of view, we can talk about the desires of consumers, which do change from day to day and because there are many car models produced by market leaders, we could be at a disadvantage because we will not be able to keep up with them and their customers will not want to buy our products. Porter Environmental factors in any industry play an important role, and in order to highlight their importance and how competition and other threats affect a company, I will examine with the help of Porter the five strengths related to my business.(Aguilar,1967). Threatening new entrants There are very big barriers to entering this industry, which makes the threat of new entrants to us low. Very few players are able to complete such a business because it requires a large investment of capital for raw material, location and distribution. As there are so many companies on the market, new entrants will not be able to offer competitive prices. Replacement products The threat of replacements exists and can sometimes be very high. Rising fuel prices have pushed customers to use public transportation to get to work. Most people who own a car are aware of their spending on fuel, but they put a lot of emphasis on their comfort and will

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Ana Maria Jalba continue to choose to invest in a car like ours. There are no exact replacement products for a car, but the main methods of air, rail or public transport are the main threats to us. The power of suppliers is quite small because there are a lot of suppliers in this industry that can supply us with the same raw material. However, switching costs from one supplier to another can be very high, as we need to establish the design and specifications of the parts and we will need investment. On the other hand, there are few threats, because the suppliers will not try to negotiate with us at the price, because they will also need to sell their products. Buyer bargaining power refers to the ability of customers to negotiate the price. The potential customers who buy from us are either individuals or commercial companies. Buyers have a lot of power when it comes to buying a product because they can give up our product and buy the same product elsewhere, but cheaper. Consumers influence our price and we often have to consider their needs to keep them in our company. The rivalry in this industry is very fierce, and there is competition between price and quality. Different companies offer certain offers to attract customers to their company. For our company, it is quite a threat, because we will be just starting out, and it will be difficult for us to find ways to compete with companies that have already formed an image on the market. Conclusion In conclusion, I believe that based on all of the above, I have demonstrated the importance of analyzing Porter's 5 strengths, which help me to establish the position of my business idea in the market and also to identify my strengths and weaknesses. . their. A business idea is not the easiest to start, especially when you want to be successful, I managed to analyze all the factors that could affect my business through external factors. In the future, you will know how to manage things better and make the right decisions for a profitable business. I can say that all the information is necessary for a successful business. The foundation of any business is well thought out decisions, and for a manager to make those decisions, he needs to do some analysis. I also point this out in my report and highlight how competition and customers can affect entrepreneurship. Reference List Aguilar, F., 1967. Scanning the business environment. New York, N.Y.: Macmillan Britain, G. (2009). Business environment. Amsterdam ; Boston: Elsevier/Pergamon Flexible Learning. Bush, T. (2019). PESTLE Analysis of the Automotive Industry. [online] PESTLE Analysis. Available at: https://pestleanalysis.com/pestle-analysis-of-the-automotive-industry/. O’carroll, L. and Topham, G. (2021). UK car industry says Brexit rules are denting competitiveness. [online] the Guardian. Available at: https://www.theguardian.com/business/2021/oct/12/uk-car- industry-brexit-rules-smmt-energy-prices-electric-vehicle.

Ana Maria Jalba www.ft.com. (n.d.). Subscribe to read | Financial Times. [online] Available at: https://www.ft.com/content/568c6a43-7e41-4ebb-8394-75661c3ebd86.

Ana Maria Jalba

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