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BTEC Business Unit 1 Assignment 2 - Effects of Environment on Business

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This is the full BTEC Business Unit 1 Assignment 2 - Effects of Environment on Business Coursework document. This candidate received a Distinction mark for this assignment.

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Name:
Unit 1: Exploring Business
Class:
Assignment 2

,Contents
Introduction:..........................................................................................................................................0
Consideration of 3 businesses...............................................................................................................0
PESTLE analysis of (Amazon)..................................................................................................................1
SWOT analysis of (Amazon)...................................................................................................................4
(CSR) Corporate social responsibility of (Amazon).................................................................................6
The Competitive environment analysis of (Amazon).............................................................................8
How Amazon is affected by its environment.........................................................................................9
Market Structures................................................................................................................................11
Perfect Competition.........................................................................................................................11
Imperfect Competition....................................................................................................................12
Amazon and Imperfect Competition................................................................................................12
Amazon’s Pricing..................................................................................................................................14
Influences on Amazon’s Supply.......................................................................................................14
Influences on Amazon’s Demand.....................................................................................................14
How changes in the market impact Amazon.......................................................................................15
References...........................................................................................................................................16

, Introduction:
In this report I will be discussing and researching the effects the surrounding environment
can have on a business. This report will cover factors such as political, economic, social,
technological, legal and environmental factors and how these effects a business.


Consideration of 3 businesses
The British and American government are holding discussions about potential trade deals
between the two countries, potentially reducing import taxes and resulting in less
regulations. The UK have traditionally been revered for their capitalist structures, but
increasing research indicates that the traditional model capitalism no longer fits the purpose
of the present business context. It can be argued that by extending Amazon’s delivery
services to the extent that customers can even have their groceries delivered to their
doorstep, Amazon are encouraging the non-active lifestyles that are resulting in the obesity
pandemic. Increasing levels of technology are now a necessary requirement to efficiently
and effectively deal with the demands of highly globalised. Amazon continue to develop
high levels of technology to aid their logistics services. Amazon is currently under federal
investigation for selling goods to individuals on terrorist watchlists and violating EU
sanctions. At present, increasing pressure is placed on multinational corporations to risk
assess their clients, and any politically sensitive clients or clients on terrorist watch lists
should be sanctioned. Amazon had never published a sustainability report, leading to
questions about the environmental impact that the organisation's extensive global
operations place on the wider environment.

In the estimation of some observers, Nike has benefited considerably from the growth-
orientated policies of the US and UK government, which has maintained low interest rates,
currency exchange stability, and internationally competitive tax arrangements. Nike has
used its established brand equity to take advantage of growing consumer demand in
emerging economies. The corollary to this has been an expansion of Nike’s value chain in
which it has also taken advantage of the lower wage rates paid in those economies. Nike
adopted the standard industry practice of outsourcing much of its skilled, semi-skilled and
unskilled manufacturing to emerging economies, including those in the Asia Pacific region
Sweated labour was allegedly being used in a manner that contravened both local and
international standards, as well as Nike’s stated CSR position Nike has been able to use
enhanced levels of digital metrics to analyse customer demand and revise its segmentation
accordingly. In the optimum model, transaction and supply chain event management are
linked via SOAP (Simple Object Access Protocol) and MPPS (Massively Parallel Processor
System) systems. Meanwhile consumers will be able to make contact-less payments via
mobile phone platforms. Nike’s growth strategies have relied on internationalisation and,
correspondingly, the corporation has to adapt rapidly to the legal and policy frameworks in
of its trading areas. Nike has still faced legal difficulties during its international expansion;
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