FDY3002 Exploring the
Business Environment
Case Study
2002
1|Page
,Contents
Introduction...................................................................................................................3
Impacts of Internal and External Environments............................................................4
Internal Environment.................................................................................................4
Internal Factors Impacts............................................................................................4
External Environment................................................................................................4
External Factors Impacts..........................................................................................4
Recommendations to Reduce Internal Impacts........................................................5
Benefits of the Recommendations............................................................................5
Recommendations to Reduce External Impacts.......................................................5
Benefits of the Recommendations............................................................................6
Key Functions of the Organisation...............................................................................7
Organisational Functions..........................................................................................7
Financial Issues and Actions Required.....................................................................8
Operational Issues and Actions Required................................................................8
Marketing Issues Actions Required..........................................................................8
People Management and Actions Required.............................................................9
Ethical Issues..............................................................................................................10
Bistro Café’s Ethical Issue......................................................................................10
Why the Action is Unethical....................................................................................10
Recommendation....................................................................................................10
Conclusion..................................................................................................................11
References..................................................................................................................12
2|Page
, Introduction
To:
Subject: Strategic and Professional Instructions Development for Bistro Café so that
Business Sustainability can be Ensured.
Hello Miriam,
How are you? My name is X and I am a business consultant. I ensured my expertise
to develop strategic and professional instructions for the business organisations so
that growth of the organisation can be ensured in the business market and the
organisation can get the chance of having sustainability in the business market. This
mail is referred to as a professional mail and I am sending this mail so that your café
Bistro Café can be able to get sustainability in the business market. A critical
evaluation is conducted on the business case of Bistro Café which explored that the
café is facing business threat as for not addressing current trends in the services. In
addition, old product dependency is another key reason for the business threat. On
the other hand, high competition is triggered for the café for the influence of
economic factor which is ensuring business threat. In addition, technological factor is
influencing business threat for the café. Digital marketing, addressing current trends,
and differentiation are the potential solutions which will support the firm to address
business threats and ensure sustainability for the organisational business.
3|Page
, Impacts of Internal and External Environments
Internal Environment
In the organisational context, within factors of the business firm which can be
controlled by the business firm and which can impact business operations and
decisions are defined as the internal environment factors (Indris, 2015). For
example, product, service, employee, operations, and so on. The way current
internal factors are impacting the business sustainability of Bistro Café is explored
below.
Internal Factors Impacts
Not Addressing Current Trends: In the organisational context, technology-based
services are the current trends which are not addressed by the Bistro Café. For the
entertainment of the customers the café is not considering any technology which is
ensuring negative impacts on the organisational sustainability.
Dependency on Old Products: In 2002, the business of Bistro Café was
established and till then the café did not introduce any new product. The business is
relying on the existed and old products which is ensuring negative business impacts.
In addition, the café is facing negative impacts on the sustainability in the business
market.
External Environment
In general terms, the factors which are outside the business firm and cannot be
controlled by the business firm and the factors have impacts on the operations and
decision-making of the firm are defined as the external environment factors (Wong,
2014). For example, environmental, technological, social, economic, and so on. It is
significant to apply the tool of PEST to access the impacts of the external factors.
External factors impact on the business of Bistro Café are explored in the below.
External Factors Impacts
Economic: 10.1% was the rate of inflation in the UK which was optimised by the
influence of the Covid-19 pandemic. Therefore, optimisation is ensured in the cost of
raw materials. This is the reason that the service cost of Bistro Café is enhanced
which is triggering high competition for the café in the business market.
4|Page
Business Environment
Case Study
2002
1|Page
,Contents
Introduction...................................................................................................................3
Impacts of Internal and External Environments............................................................4
Internal Environment.................................................................................................4
Internal Factors Impacts............................................................................................4
External Environment................................................................................................4
External Factors Impacts..........................................................................................4
Recommendations to Reduce Internal Impacts........................................................5
Benefits of the Recommendations............................................................................5
Recommendations to Reduce External Impacts.......................................................5
Benefits of the Recommendations............................................................................6
Key Functions of the Organisation...............................................................................7
Organisational Functions..........................................................................................7
Financial Issues and Actions Required.....................................................................8
Operational Issues and Actions Required................................................................8
Marketing Issues Actions Required..........................................................................8
People Management and Actions Required.............................................................9
Ethical Issues..............................................................................................................10
Bistro Café’s Ethical Issue......................................................................................10
Why the Action is Unethical....................................................................................10
Recommendation....................................................................................................10
Conclusion..................................................................................................................11
References..................................................................................................................12
2|Page
, Introduction
To:
Subject: Strategic and Professional Instructions Development for Bistro Café so that
Business Sustainability can be Ensured.
Hello Miriam,
How are you? My name is X and I am a business consultant. I ensured my expertise
to develop strategic and professional instructions for the business organisations so
that growth of the organisation can be ensured in the business market and the
organisation can get the chance of having sustainability in the business market. This
mail is referred to as a professional mail and I am sending this mail so that your café
Bistro Café can be able to get sustainability in the business market. A critical
evaluation is conducted on the business case of Bistro Café which explored that the
café is facing business threat as for not addressing current trends in the services. In
addition, old product dependency is another key reason for the business threat. On
the other hand, high competition is triggered for the café for the influence of
economic factor which is ensuring business threat. In addition, technological factor is
influencing business threat for the café. Digital marketing, addressing current trends,
and differentiation are the potential solutions which will support the firm to address
business threats and ensure sustainability for the organisational business.
3|Page
, Impacts of Internal and External Environments
Internal Environment
In the organisational context, within factors of the business firm which can be
controlled by the business firm and which can impact business operations and
decisions are defined as the internal environment factors (Indris, 2015). For
example, product, service, employee, operations, and so on. The way current
internal factors are impacting the business sustainability of Bistro Café is explored
below.
Internal Factors Impacts
Not Addressing Current Trends: In the organisational context, technology-based
services are the current trends which are not addressed by the Bistro Café. For the
entertainment of the customers the café is not considering any technology which is
ensuring negative impacts on the organisational sustainability.
Dependency on Old Products: In 2002, the business of Bistro Café was
established and till then the café did not introduce any new product. The business is
relying on the existed and old products which is ensuring negative business impacts.
In addition, the café is facing negative impacts on the sustainability in the business
market.
External Environment
In general terms, the factors which are outside the business firm and cannot be
controlled by the business firm and the factors have impacts on the operations and
decision-making of the firm are defined as the external environment factors (Wong,
2014). For example, environmental, technological, social, economic, and so on. It is
significant to apply the tool of PEST to access the impacts of the external factors.
External factors impact on the business of Bistro Café are explored in the below.
External Factors Impacts
Economic: 10.1% was the rate of inflation in the UK which was optimised by the
influence of the Covid-19 pandemic. Therefore, optimisation is ensured in the cost of
raw materials. This is the reason that the service cost of Bistro Café is enhanced
which is triggering high competition for the café in the business market.
4|Page
