Assignment Sample on BMG625 Impact of Key Factors Within Business Environment
Introduction
The economic globalization has pushed the organization to go global and expand the business environment without geographical limits where many factors have been influencing the business operation to withstand market competition. Organizational goal is to provide sustainable growth and competitiveness to the product depending upon several challenges and make strategic moves within and outside of the organization to propel the brand value and recognition with trust from the consumer and stakeholders. However, it has to abide by certain responsibilities for the environment and society to gain the confidence and contribute towards sustainable climate change. The electrical and electronics industry has a presence around the world and hugely contributed to societal growth through influencing culture and trend with latest technology.
Today’s world without the electrical and electronic devices seemed to be deaf and dumb where it has become essential commodity in everyday life to carry out the consolidate work more easily with the help of technology and electronic devices. The electronic industry is rapidly increasing to support the growing consumer demand with state-of-the art technology to give access to modern technological work features from the ease of home. Further, the market competition is growing with the presence of many electronic business organizations where quality, rate and services will propagate the market operation of the company to attract a huge consumer base with repeated transactions. In this essay, the details of challenges in the business environment of the electronic and technological industry in the United Kingdom (UK) will be discussed briefly.
Pestle analysis
Political
Political factors have an extreme impact upon the business environment of any country to forecast the future of business operations of the particular country with stability, law, regulation, exchange rates and tariffs for the business transactions. It may be argued that the UK is politically stable and has cordial relations with the neighbours and global economic power which will boost the export and import of products and technology more smoothly (Sinkovics et al., 2018). The organization will deal purposefully and long standing for the business opportunity outside the country with the strong political will and business friendly behaviour of the political system. On the contrary, Brexit may put primary imbalances in the electronic industry where the business opportunity in the rest of Europe is hampered and need a fresh start and renewed ties to overhaul the market. Globalization has led the industry to adopt multinationalism for fair and free trade and governments treated economic activity more enthusiastically to enrich the business environment of the country (Refer to Appendix -1). It has been noted that the tariff rate, law of employment, exchange rate, corporate tax rates, international trade agreements and constraints, and trade sanctions are decided by the political government to influence the business activity of the UK.
The newly elected government of the UK has a big responsibility towards the matter of the electronic and technology industry which may lead the globe with technological challenges and move forward with adopting the innovation and infrastructure development of the industry. Furthermore, strong relations with trade unions and industrial relations of the government would have helped the business opportunity to prosper with conflict mitigation and effective negotiation. It has been observed that the relation between manufacturing of electronic products and technical change in manufacturing has Strong with the political factors to upgrade the existing process and operational change (Reischauer, 2018).
Economical
The economic situation of any country depends highly on the political situation of the country. Additionally, if the political situation of the country is stable and the country enjoys good foreign relations then the country may have good economic benefits. Furthermore, in the United Kingdom (UK), the Covid-19 pandemic had a huge impact for which the country had to experience major turnover in a lot of things as well as in industries. Moreover, according to the inflation graph, the rate of inflation in the UK had gradually decreased over the year which signifies a high purchasing rate of the people living in the UK (Refer to appendix 2). Thus, it may be stated that high purchasing rates had helped the electronics industry to increase in the economic growth of the country (Data.worldbank.org. 2021). However, inflation in countries such as the UK, which is also a developed country, also affected the country during the Covid-19 situation and it too put a major impact on the economic growth of the country. Moreover, the increase in the purchase of the people in the country was due to the pandemic when home became the new office due to the lockdown situation. Furthermore, the effect of the lockdown has impacted on the lives of the people which have affected the supply chain in the industry for which the purchase might have increased although the rate of supply became slow which economically affected the electronics industries. Additionally, as the Covid-19 changed from an epidemic to a pandemic situation, the spread of the virus became large which led the countries all over the world to take preventive measures in order to limit the spread of the virus (Grida et al., 2020).
Social
The social development of the country depends both on the political and economic growth of the country which may help the country to progress. However, if the country is going through economic depression then the social environment of the country may not be good in any respect. Therefore, it is necessary to keep both political and economic stability in the country in order to avoid social unrest. Moreover, the Covid-19 pandemic created a wide depression among the people which occurred due to the spread of Covid-19 and also people are looking into homes due to the major fear of death due to the virus. Although, the population in the UK has increased during the pandemic time which widely helped the electronic industry to be able to recruit skilled employees, still unemployment rates have increased due to the high population in the UK (Refer to appendix 3). However, the population increased means more and more people, although limited jobs for the people and in the Covid-19 pandemic the situation became worse with many industries getting turned down. Moreover, over the fear of the spread of the Covid-19 virus people had started to confine themselves to their homes and on top of that the people did not want to buy any kind of items which might risk the people’s lives. Furthermore, for this reason the production in the companies disrupted, with unsatisfied market demands, having setbacks in the logistics and lastly with the fluctuation of demand at a large (Cai and Luo, 2020). Thus, the social impact of the Covid-19 virus was such that the demand for the electronics was high yet the supply for the lockdown situation became highly low which affected the electronics industry at large.
Technological
The technological innovation of any country depends on the way the country is advanced in that particular dimension, the way it impacts the companies making profits from the country. Although, technological innovation highly depends on the way the country is moving towards a particular way as the chances of innovation for the country depends highly on the political stability and awareness about the technological well being. However, in the UK it may be stated that technological innovation has not been affected even with such a Covid-19 pandemic situation in the country (Refer to appendix 4). Thus, it may be stated that as the curve of technological innovation for the country has neither gone up nor down, it may be stated that in terms of technological advancement, the country is rather stable. However, even though technological innovation was there for many countries, the effect of the lockdown situation for the country was quite large as many employees were sacked from the business which affected the business at large both skilfully and economically (Meahjohn and Persad, 2020). Moreover, the technology has been a major help to the electronics industry as the industry may be able to keep track of the supply chains all over the country which helped the industry to understand the profit making each day. Additionally, with the lockdown situation all around the world and also due to the effect of the Covid-19 virus, people had to work from home, the Artificial Intelligence (AI) on that given situation was a major help to the industry as the industry may able to operate the work as well as the supply chains by sitting in any part of the country.
Legal
The legal framework of any country helps the country as well as all the other institutions working inside the country to work in a smooth and efficient way. Moreover, in the pandemic situation, the lockdown mandate of the countries demarcated the arrival and departure for others entering the countries of the world (Costa et al., 2020). Furthermore, this particular kind of legal framework was highly beneficial for the countries yet too harsh for the electronics industry as the trade and business went down. However, the spread of the Covid-19 virus has impacted the electronic industries by putting down the shares of the company in the global market (Abdelrhim and Elsayed, 2020). However, the legality of the framework may be understood by the implementation of the laws on the country and the effect it has on the people. Thus, the legal framework of a country such as the UK may be helpful only when the electronic industries and those kinds of industries gain from it.
It may be opined that legal factors are necessary to boost the industrial growth where the government laws and regulation with labour unions, permission for special economic zones, and labour law are significantly contributed to business operation. The work place environment and employee health policies need to be protected and the electronics industry has taken effective steps to organize the work culture with legal policies. The Equality Act 2010 and diversity in the workforce has helped to make accretive and effective decisions for innovation which helped the industry to grow as a leader of the electronic and technological industry (GOV.UK. 2021). The anti-discrimination law also made the industry inclusive and transparent for the workers here diverse culture influenced the organisational culture open and dynamic.
Environmental
The impact of industrial output has immensely affected the environment and poses a threat to the society where the electronic waste is growing worldwide and industry needs to take effective measures to control the widespread hazards (Refer to Appenix-5). It has been mentioned that the UK is taking a climate oath to make a world with zero carbon emission which also has the same implication in the electronic industry to tackle the hazards more conveniently. Electronic waste (e-waste) tends to be exposed to heat and as result toxic chemicals may be released into the air, seep into the groundwater affecting the ground water, sea animals and overall atmosphere. Other than that, the acceptance of green technology and green innovation with reduce, reuse, and recycle policy will lessen the e-waste into the environment and help in sustainable climate change (Sellitto and Hermann, 2019). It has been an area of concern of the society to control the risk of e-waste with potential to go green and achieve circularity where organizations are taking innovative solutions for the climate pledge. On a specific note, the industry also takes the manufacturing power consumption from renewable energy aiming to achieve zero carbon emission which will sustain the future of business operation vibrantly.
The electronic industry is prominently leading and promising in the UK and has actively supported the social cause with corporate social responsibility act according to sustainable development goal to help and alleviate the poor and needy. The industrial responsibility helps hugely to provide food, drinking water and electricity, affordable housing, and education for the economically poor section of people. Specifically, the industrial development of UK helped the country to sustain economically and environmentally for a universal climate pledge with a pollution free environment.
Conclusion
From above all discussions, it may be concluded that the electronics and technological industry has faced several challenges externally which need due attention to overcome and grow with the market competition. The infantry is flourishing where effective measures may have helped the UK to become a global leader of this industry gradually.
References
Abdelrhim, M. and Elsayed, A., 2020. The Effect of COVID-19 Spread on the e-commerce market: The case of the 5 largest e-commerce companies in the world. Available at SSRN 3621166.
Cai, M. and Luo, J., 2020. Influence of COVID-19 on manufacturing industry and corresponding countermeasures from supply chain perspective. Journal of Shanghai Jiaotong University (Science), 25(4), pp.409-416.
Costa-Cabral, F., Hancher, L., Monti, G. and Ruiz Feases, A., 2020. EU competition law and COVID-19.
Data.worldbank.org. 2021. Inflation, consumer prices (annual %) – United Kingdom | Data. [online] Available at: <https://data.worldbank.org/indicator/FP.CPI.TOTL.ZG?locations=GB> [Accessed 11 November 2021].
GOV.UK. 2021. Equality Act 2010: guidance. [online] Available at: <https://www.gov.uk/guidance/equality-act-2010-guidance> [Accessed 11 November 2021
Grida, M., Mohamed, R. and Zaied, A.N.H., 2020. Evaluate the impact of COVID-19 prevention policies on supply chain aspects under uncertainty. Transportation Research Interdisciplinary Perspectives, p.100240.
Meahjohn, I. and Persad, P., 2020. The impact of COVID-19 on entrepreneurship globally. Journal of Economics and Business, 3(3).
Reischauer, G., 2018. Industry 4.0 as policy-driven discourse to institutionalize innovation systems in manufacturing. Technological Forecasting and Social Change, 132, pp.26-33.
Sellitto, M.A. and Hermann, F.F., 2019. Influence of green practices on organizational competitiveness: a study of the electrical and electronics industry. Engineering Management Journal, 31(2), pp.98-112.
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