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Demonstrate an understanding on the key elements of the internal environment of organizations and the interaction with the external environment

Assignment Brief

Level:

4

Module Title:

Contemporary Business Environment

Assignment titles:

1. Organization and Business Environment-  Report

Employability skills assessed:

  • Reading, selecting, analyzing and synthesizing information from a range of sources
  • Producing different types of document
  • Participating in discussions
  • Making small group/individual presentations
  • Develop a strategy for using a range of skills to improve own learning and performance
  • Preparing information
  • Processing and presenting information
  • Plan personal work schedules
  • Working towards identified targets

 

Learning outcomes assessed:

LO1: Demonstrate an understanding on the key elements of the internal environment of organizations and the interaction with the external environment; 

LO2: Identify how a market economy functions and the role of government within it;

LO3: Examine the economic environment within which businesses operate in the United Kingdom;

LO4: Explain why countries benefit from trade with each other

LO5: Make students aware of the growing impact of the European Union on British business.

TASK DESCRIPTION – ASSIGNMENT 1 (Individual Report 100%)

TASK 1

Explain how the business, cultural, and natural environments shape the behaviour of a selected organisation (organisation located in the United Kingdom).  A business culture and environment has a great impact on organisational behaviour. There are two kinds of business environments: economic environment and non-economic environment. The economic environment includes economic system, economic policies and economic condition. On the other hand, non-economic environment consists of natural, demographic, technological, legal, political, and social environment.  In addition, the natural environment includes geographical and ecological factors that influence the organisational behaviour. These factors include the availability of natural resources, weather and climatic condition, location aspect, topographical factors, etc. All these factors have a direct bearing on the business environment of your chosen organization and need to be addressed in your 3000-word response (word count explained in format below).  In depth analysis using key resources/graphs/supporting details will be expected.     

LENGTH REQUIRED

A maximum of 3000 words. 

Format

Number of Words

Introduction:

400

Body of Report:  How do the Business, Cultural, Natural Environments shape the behaviour of your chosen organization?

1500

PESTEL and SWOT example and analysis:

600

Conclusion: 

500

FORMATTING AND LAYOUT

Please note the following when completing your written assignment:

  1. Writing: Written in English in an appropriate business/academic style
  2. Focus: Focus only on the tasks set in the assignment.
  3. Document format: Report
  4. Ensure a clear title, course, and name or ID number is on a cover sheet and a bibliography using Harvard referencing throughout is also provided.
  5. Research: Research should use reliable and relevant sources of information e.g. academic books and journals that have been peer reviewed. The research should be extensive.

The use of a range of information sources is expected – academic books, peer reviewed journal articles, professional articles, press releases and newspaper articles, reliable statistics, company annual reports and other company information.  All referencing should be in Harvard style.

Learning Outcomes tested

(from module descriptor)

Assessment Criteria to achieve each outcome a student must demonstrate the ability to:

Demonstrate an understanding on the key elements of the internal environment of organisations and the interaction with the external environment.
  • The report task enables the student to demonstrate an understanding of how organisations make decisions based on the external environment. In this case, the impact that demand has had on prices of goods.

Identify how a market economy functions and the role of government within it
  • The report enables the student to demonstrate an understanding of how the market economy works and the principles of government that create the framework for it.

Examine the economic environment within which businesses operate in the United Kingdom
  • In the report the student is required to look at the market situation within the United Kingdom, with reference to a specific business environment.

Examine the global business environment and explain why countries benefit from trade with each other.

 
  • The report provides the student with the opportunity to look at the macro environment and at how specified countries are impacted by international economic scenarios.

Understand the growing impact of the European Union on the businesses operating in the EU environment
  • In the report the student is expected to look at not just the UK environment, but also beyond, at the EU level, as to how the business environment operates in the 21st century.

Sample Answer

An Academic Essay on Samsung’s Internal, External and Microeconomic Business Environments

Introduction

Understanding both the internal and external environments is crucial for a business to survive and grow in today’s dynamic market. This essay explores the internal and external factors influencing the operations of Samsung, one of the world’s largest mobile phone companies. Using tools like SWOT and PESTLE analysis, and microeconomic concepts such as demand, supply, and price elasticity, this essay evaluates how Samsung audits its environment and adapts to changes in the economic landscape. Special attention is given to the UK market and the influence of the European Union on British businesses.

Overview of Samsung

Samsung Electronics is a South Korean multinational conglomerate best known for its mobile phones and electronic devices. Founded in 1938, Samsung operates globally and is one of the top competitors in the mobile phone market, competing with Apple, Huawei, and Xiaomi. In the UK, Samsung holds a significant market share and is popular for offering a wide range of smartphones from budget models to high-end flagship devices.

Internal Environment Analysis (LO1)

The internal environment of a company refers to the elements within the business that influence its operations and performance. These include organisational culture, resources, leadership, and internal processes.

a. Organisational Structure and Culture

Samsung’s corporate structure is hierarchical and divisional, which allows it to focus on product development and global markets efficiently. The company encourages innovation through heavy investment in research and development (R&D). The organisational culture promotes discipline, continuous improvement, and performance-based rewards.

b. Resources and Capabilities

Samsung’s internal strength lies in its strong brand image, cutting-edge technology, skilled workforce, and vast financial resources. The company invests heavily in R&D (over $15 billion annually), enabling it to launch innovative products regularly. These capabilities help Samsung to stay ahead in the competitive mobile phone market.

c. SWOT Analysis (Internal Focus)

StrengthsWeaknesses
Strong brand recognition High dependence on Android OS
Extensive product range Intense internal competition among divisions
Advanced R&D capability Complex supply chain
Global market presence Vulnerability to patent lawsuits

By analysing these elements, Samsung can identify what it needs to maintain, improve, or change internally.

External Environment Analysis (LO1 & LO3)

The external environment consists of factors beyond the company`s control that affect its performance. These include political, economic, social, technological, legal, and environmental (PESTLE) factors.

a. PESTLE Analysis

FactorImpact on Samsung (UK Market)
Political Brexit has affected trade rules, tariffs, and regulatory standards in the UK. Samsung must adapt its import/export processes and pricing strategies accordingly.
Economic Inflation, interest rates, and currency fluctuations affect Samsung’s pricing and profit margins. The cost-of-living crisis may shift consumer demand towards mid-range phones.
Social UK consumers demand ethical sourcing and sustainability. Samsung’s use of recycled materials and fair-labour supply chains supports its brand image.
Technological 5G innovation and foldable screen technology create opportunities. Samsung invests in AI and Internet of Things (IoT) to enhance customer experience.
Legal Samsung must comply with UK laws on consumer rights, data protection (GDPR), and product safety.
Environmental Carbon neutrality and reducing e-waste are priorities. Samsung’s environmental policies help meet legal and social expectations.

b. Stakeholder Influence

Samsung must consider multiple stakeholders: customers, employees, suppliers, regulators, and investors. In the UK, consumer protection laws are strict, so Samsung focuses on after-sales service, warranties, and transparent communication.

Continued...

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