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.
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Environment
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List the characteristics of the environment as it relates to the business (at least three each)
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Briefly describe how the environment impacts the business (at least four sentences each)
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Social
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1. Location
2. Population
3. People
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With the 3 characteristics in mind the location will determine cost of the merchandise you're selling. Population and the people will determine what trends you need to provide. The location must be highly visible and in high traffic areas. You must cater to what this area wants to wear.
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Technological
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1. New advancements
2.Operation
3.Competitive advantage
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Technology changes have an enormous impact on how retail businesses operate. It can boost a store's performance tremendously. Those who will not conform to these new advances may risk being shut down. The competitive advantage will not be there if you do not utilize this environment.
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Economic
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1. Cost
2.Behaviors
3.Demand
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This environment will play a significant role in the success or failure of a business. Factors to consider would be the unemployment rate, market size, and inflation. Tax rates can take a chunk of the income but if the unemployment rate is high you can get labor at cheaper costs.
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Legal
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1. Regulations
2.Permits/licenses
3.Taxes
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There are many laws that govern a business.Consumer protection that aim at ensuring the consumer is protected. Employee protection which protect against discrimination based on race, religion, sex, age or color.Health and safety laws protect employees safety in their working conditions.
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Market
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1. Target customers
2.Buying influences
3. Competitors
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Marketing strategies are the backbone of any business. Marketing plans need to be carefully constructed to compete with others. The marketing campaign must also take into account the current economic climate. Advertising is also key and must take into consideration the demographic of its consumer.
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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.
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Environment
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List the characteristics of the environment as it relates to the business (at least three each)
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Briefly describe how the environment impacts the business (at least four sentences each)
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Social
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1.
2.
3.
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Technological
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1.
2.
3.
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Economic
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1.
2.
3.
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Legal
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1.
2.
3.
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Market
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1.
2.
3.
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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, as a business manager or entrepreneur, take away and apply to a job? Your response must be at least 200 words in length.