Business Changing Environment

Qualification : QUALIFI Level 5 Diploma in Business Management (601/6048/2)
UNIT Name (GLH)	Bus2.1: Responding to the Changing Business Environment	Assessment Criteria Covered:	1.1, 1.2, 2.1, 2.2,2.3, 3.1, 3.2 and 3.3
UNIT Code	R/507/1612	Assign. Brief Created By:	Mr. Lewis Fernandes
Assignment No	Ver 1.0,19- July-2016	Assign. Brief Modified By
Student ID:	BB 260	Brief Last Modified Date	19- July-2016
Student Name:	Delon Travolta	Assignment Brief I.V.	Mr. Ramesh Gopal
Submitted On		Assign. Brief Lead I.V.
Date of Issue		Assessor’s Name
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Criteria reference	As listed below, 1. Achieve the criteria, via the 2. Task Assigned with the 3. list of Required Evidence:			Assessor’s Feedback
				Constructive Feedback		Achieved?
AC 1.1, 1.2,13	1.1 Identify and make use of different approaches to understanding the macro and micro environments for business. 1.2 Review business resources and external factors and trends to identify where business performance could be positively or negatively affected. 1.3 Recommend responses to external factors and trends. -Task No 1 -Evidence: By Report
AC 2.1 ,2.2, 2.3	2.1 Identify and prioritise organisational changes to individual businesses that would counteract negative or support positive business environmental factors and trends.  2.2 Use case examples to illustrate the impact of responding to business environmental factors and trends.  2.3 Evaluate the role of management in responding to a changing business environment. -Task No 2 - Evidence: By Report
AC 3.1, 3.2, 3.3	-Task No 3 3.1 Explain changes in the relationship between business, government and the public sector. 3.2. Use scenarios and models to illustrate changes in relationships. 3.3 Identify opportunities that may arise due to changes in relationships. -Evidence: By Report
Learner’s Feedback (On Completion of the Assignment):				Additional: Observation or Evidence
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				Date:
Assignment title		Responding to the Changing Business Environment of your organisation.
General Guidance. Use of Harvard’s Referencing is mandatory for Assignments. Assignment submitted will be subjected to plagiarism check. Assignment with more than 20% plagiarism will be rejected. Please refer to “FAQ” on Student Portal for policies. Below each Task in an Assignment, Assessment guidance is provided. Purpose of this Assignment The Assignment assesses the understanding of the how and organisation operates under changing factors and the change in management that is required. By understanding how relationships between public and private sector organisations are affected by socio-economic factors the learner will be better placed to manage that relationship. Assessment is also made of the understanding the relationships between public and private sector and the associated socio-economic factors.
Scenario: Consider your own organisation in United Arab Emirates
TASK 1: 1.1 Identify and make use of different approaches to understanding the macro and micro environments for your organisation. 1.2 Review business resources and external factors and trends to identify where business performance could be positively or negatively affected. To know how business could be affected (positively or negatively), Review the following in context to your organisation: a)Business Resources b)External factors c)Trends 1.3 Refer to 1.2 and Recommend responses to external factors and trends. ( Assessment Criteria 1.1, 1.2 and 1.3)
TASK 2: 2.1 Identify (Refer to 1.3, as required) and prioritise organisational changes to individual businesses that would address environmental factors and trends, both negative and positive. 2.2 Use case examples within your organisation or otherwise, to illustrate the impact of responding to business environmental factors and trends.  2.3 Evaluate the role of management in responding to a changing business environment.  ( Assessment Criteria 2.1, 2.2 and 2.3)
TASK 3:  3.1 Explain changes with examples in the relationship between business, government and the public sector. 3.2. Use scenarios and models to illustrate changes in relationships. 3.3 Identify opportunities for your organisation, in particular, that may arise due to changes in relationships. ( Assessment Criteria 3.1, 3.2,3.3)
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SOLUTION

Responding to Business Changing Environment

[Name of the student]

Contents

1.1 Macro and Micro-Environments for Organization 3

1.2 Business resources and external factors and trends to identify where business performance could be positively or negatively affected. 4

1.3 Refer to 1.2 and recommend responses to external factors and trends 6

2.1 Organisational changes to individual businesses (Refer to 1.3) 6

2.2 Case examples illustrate the impact of responding to business environmental factors and trends 7

2.3 Role of management in responding to a changing business environment 7

3.1 Changes with examples in the relationship between business, government and the public sector 8

3.2. Scenarios and models to illustrate changes in relationships 9

3.3 Opportunities for your organization, in particular, that may arise due to changes in relationships 11

References 12

TASK 1

Introduction

The scenario for the assessment is the environment protection by launching an innovate and eco-friendly packaging material by the organization. The objective of change is to introduce an innovative approach for organization business and sustain the negative impacts om environment. The main attention was the use of eco-friendly products for business.

Selected Organization: Sanadeeg

1. Macro and Micro-Environments for Organization

Sanadeeg is the selected organization for identifying the micro as well as the macro environment. One of the correct approaches to identify the macro environment of Sanadeeg is to identify the economy of UAE and demand for the company business approach.

1)PESTEL approach: This approach covers the external aspects of Sanadeeg. This is related to social, environmental, political, economic and legal factors for online grocery store business. The environmental factors cover the assessment scenario.

Political factors:

• Reduction in taxes for online grocery, offering big range in discount on all overall product reducing the selling price and tax.

Economic factors:

- Ecommerce has grown fast in the last decade

- E-commerce rests on high fixed and low variable costs and remains relatively fragile

- Price transparency, competition and cost reduction

Social factors

• Lifestyles – Offering organic products 

• Buying Habits - avoid waste and over purchasing 

•  Attitude towards saving – discounted products line 

Technological factors

• Digitalization was promoting eco-friendly products- Diapers garbage bags etc…

Legal factors

• Sanadeeg has been encouraging to digitalized online grocery sales. 

Environmental factors

• Sourcing eco-friendly packaging aids in growth.

2)Porter Five forces are used by Sanadeeg in identifying the source of competition for buyers as well as suppliers. Major competitors are Fruitful Day, Farmbox, Instashop, Quality food and Kibbsons. In order to gain a competitive advantage in UAE, Sanadeeq has reduced the non-eco-friendly packaging materials in accordance with the transformative and environmental standards.

3) In regard to microenvironment:

SWOT and Value chain analysis would be used for the internal and external environment of Sanadeeg.

Strengths Top rated company for grocery A wide variety of products	Weakness Eco-friendly issues Rising cost
Opportunities Online service industry getting more popular	Threats Competitors and discounted price.

2. Business resources and external factors and trends to identify where business performance could be positively or negatively affected.

The business resources of Sanadeeg are

• The business resources for this online grocery store is the financial amount required for the grocery business.

• One of the key resources is the inventory which helps the organization to perform its business operation in UAE.  (Bhuiyan, et al., 2015). 

• Customer services people are the key resource for the organization which helps to achieve the required revenue for the company.

• Another business resource is the suppliers in Dubai market. This helps to maintain a balance of demand and supply.

The external factors of Sanadeeg are

• Economic factors

• Social factors

• Political factors

• Legal Factors

• Technological factors

Sanadeeg business performance is positively affected by the inventory as well as financial resources. Another important factor which affects the business performance is customer support staff employed to need the requirement of customers as well as suppliers. 

External factors also come in analyzing the business performance of the online supermarket. The first factor is the competition. Economic environment will affect positively on the business performance because in this way more sales will be added to the existing business operation of Sanadeeg. 

3. Refer to 1.2 and recommend responses to external factors and trends 

Sanadeeq has a positive response from the month of Ramadan and Islamic timings of the country. This factor has an effect on the labour departments as well supply of grocery materials and price. In the month of Ramadan, business of the company increases and it provides convenience to the labour department in form of delivery charges as well prices of grocery material.

Sanadeeg was able to get a positive response regarding all the external factors related to PESTLE analysis. Porter five forces as well Swot analysis also provide growth for the online grocery store. Some of the additional factors are the social and political environment of UAE. The trends of Sanadeeg online grocery store is increasing in the Dubai Market. It has become a digital way to search for the grocery items. Higher demand is present for grocery as well as beverages and cleaning products from Sanadeeg store. It is also a need of the present trend as the most shift of local and business customers has moved towards the online portal for grocery. Sanadeeg has provided an answer to all of the problems and issues present in the manual business of grocery sales (Varela & Georgopoulos, 2017).The innovative approach and increasing trend of eco-friendly packaging have helped Sanadeeg to change the business environment

TASK 2:

2.1 Organizational changes to individual businesses (Refer to 1.3)

Sanadeeq business is increased in responding to Islamic timings in the month of Ramadan. This is because the demand of grocery products increases for the customers and it help to improve the customer service of the company.

In the first area, the need for customers will be analyzed for the individual business (Wang, et al., 2016). In order to support the individual business one of the key changes in the organization will be the human resource as well as financial management. The key stakeholders in the organization will look to minimize the take and employer the individual business to grow.

If the negative area is considered for the environmental factors as well as the trends in the supermarket, the main organizational changes will be to control the amount of inventory and increase the price of grocery items which are required by every individual person. 

In the case of positive area, the key change in the organization will take the lead role of the manager in controlling the business operation and maintain a record on the supply chain department. This department will provide information related to the supply of goods to customers and their feedback for the after-sales service of the organization as well as the business (Bahng, et al., 2016).

2.2 Case examples illustrate the impact of responding to business environmental factors and trends 

Referring to the case of 2.1, the benefit of the Islamic timings is productivity and enhanced service of Sanadeeq. In the view of management if a Sanadeeq management analyses the Islamic timings and rising demands for grocery product, the supply and customer service would be changed and innovated for the environment. More items would be displayed to people during the month of Ramadan in order to meet the increased supply.

Sanadeeg provides a varied list of grocery products to customers. The main important area for the case was the packaging material.

Sanadeeg is offering an eco-friendly packaging material made up of bridgeable materials. This reduces the cost of packaging and allows the organization to foster the change in business environment. The eco-friendly technology helps Sanadeeg to fulfil the external environment and attract more customers. Furthermore, it has helped more of the domestic customers to engage with the environmental sustainability. The idea of adding eco-friendly cardboard has also reduced the additional cost of packaging material (Jensen, 2018).

2.3 Role of management in responding to a changing business environment

It is understood that the business environment is subjected to change (Jovanovi, 2015). Consider the example of Sanadeeg which focus on the online supermarket. One of the most indicative signs for changing environment is the customer demographic as well the addition of new product and services in the supermarket. Whenever a change is observed in the business environment managers, do not perform the role according to desired expectation. For example, if the prices of groceries and basic foodstuff increases due to the process of inflation then most of the supermarkets fail to balance the level of prices and all of the burden is transferred to the customers (Edu Note, 2017). The interpretation of changes in the business environment is also important in analyzing the role of management for business operation. Managers are also determined on the base of decision-making skills. Management role is to think out of the book for planning for the long term’s advantages of the business. For example, in planning the operation of Sanadeeg in UAE, the major focus will remain towards the changing business environment of Dubai and other cities. The idea of the supermarket is new therefore managers look to target remote areas where business possibilities are higher for the organization.

TASK 3:

3.1 Changes with examples in the relationship between business, government and the public sector

The base of islamic timings and Ramada allows Sanadeeq to  intrdocue innovation in the packgaing material. A major change in the operations of a company has allowed adopting the eco-friendly way of packaging materials.The business of Sanadeeq has a relation between UAE government policy as well as demand for the retail and online sale of grocery items.For example, Sanadeeq business would increase if the Dubai government reduces the tax on online sales and deliveries.This becomes an additional advantage for small grocery stores operating in UAE.

The government is the major controllers for balancing the business cycle. For example, consider the example of UAE in relation to the superstore business. The government has support towards the needs of people (Huchzermeier, 2016). If the economic balance is disturbed and GDP levels decrease for the UAE government, then it will directly affect the grocery business. The needs of people in Ramadan is to have fresh products delivered at the door steps with small amount of waiting time.

The relation between business, government, and public sector are interdependent on each other. Changes are observed in the relationship between business and public sector Businessmen and government combine to regulate driving forces of the economy. 

3.2. Scenarios and models to illustrate changes in relationships

The model which will be used to illustrate the changes in the relationship between the UAE government and Sanadeeg business and the private sector is back to back model. This is because the environment of Ramadan and Islamic timings are related with each other. The scenario for changes in a relationship is the application of a change in macro and microenvironment for business. The relationship between business and government changes when business objectives do not apply to government plans (Edu Note, 2017). 

Figure 1 Model 1 (Edu Note, 2017)

Public, government and business relationship changes to meet the demand of the country. If this scenario is applied to UAE in terms of the business of grocery, then the supply of good and services will account for the individual business. In the initial platform, the purchase and import of goods are carried out by the government. If the relation is changed, then it will affect the country economy in a negative way (Jovanovi, 2015). The increase in demand during Ramadan respond to the changing business environment for Sanadeeq and this model connects the areas of business as well as productivity.

Public sector and government correspond towards a cyclic flow. If the relationship changes for the public sector, neither government will remain table neither the public sector will have resources to the operation and performance. One of the major changes will be the control of the government with the operation of the business (Rathi, et al., 2017). For example, if a business tries to supply and receive the goods and services, then the government will have to bear the charges for supplying. The public sector will base on the shares and financial resources which are provided by the government. Labour department of Sanadeeq would be in strong focus requiring the Islamic timings as well as business opportunity.

3.3 Opportunities for your organization, in particular, that may arise due to changes in relationships

• Sanadeeg is the selected organization for business change. If relationship changes between the government and business then opportunities related to profit and revenue will be an added point. The grocery business will get an opportunity to increase the popularity and regulate the demands for all of the people present in U.A.E.

• Another opportunity is expanding the branches of the store. This will not only provide new spaces for a warehouse but will also reduce the cost of excessive transportation. Customer will enjoy the facility of good quality of products at cheap rates. This will increase the financial resources of the company and provide a full series for support staff.

• One of the most important opportunity was related to the expansion of business in various cities of UAE. The government will provide incentive programs which will reduce the number of takes for people. This would act to the opportunity of business as more people will find employment in the growing chain of Sanadeeg (Jensen, 2018). More customer service people will be required to attend online orders and queries. This changes in the relationship between government will act towards the business objective of the online supermarket.