Assessment 1 BUS302 Assessment Type: Case Study 1 – 2300 – 2500 word report -individual assessment. Due Date : Week 6 – 5.00pm, Friday of Week 6 Research based– see Research Requirements below;...

April 9, 2019

Current Macro External Environmental Factors Affecting Achievement Of Business Plan Objectives
Table of Contents
Executive Summary    3
Identifying the current macro external environmental factors affecting the successful achievement of the business plan    3
a. understanding the term macro environment    3
b. Understanding the six forces in macro environment of a business    3
c. analyzing how the macro environment forces will affect the plan of Blueprints Business Planning Pty Ltd    3
d. analyzing how the macro environment forces will affect the plan of Liquid Culture    3
e. comparison of the business plans of blueprints business planning Pty Ltd and Liquid Culture    4
Conclusions And Recommendations    4
Reference List    4
Executive Summary
The report deals with the current Macro external environment factors which affect the oprerations and business plan of the enterprises. Macro external environment factors may be broadly classified as demographic, economic, socio-cultural, technological, ecological and political. All businesses face challenges on account of these factors over its course of existence, which puts a stress on company’s profitability or operations. In this report the external environmental factors affecting the business plan of Blue prints Planning Pty like the limited resources available, unorganized sector, market segmentation and Liquid culture like reverse logistics, supply chain constraints, changes in fashion trends leading to product obsolescence and others have been discussed in detail. This report provides the difference in the business plan of these companies like scale of operations, conservatism, the nature of services performed, target customers, presence of existing market, scope of success and threats posed. Few recommendations to be adopted by both the businesses that will help the businesses to achieve the desired profitability have been proposed in the report
Identifying the current macro external Environmental factors affecting the successful achievement of the business plan
a. understanding the term macro environment
Macro environment can be understood as the major external factors which are beyond control of an organization and these factors affect the performance, business strategies and decision making of a business. (businessdictionary.com, n.d.)
b. Understanding the six forces in macro environment of a business
Macro Environment comprises of all the factors which provide opportunities as well as pose threats to the business. (Claessens, 2015)
1. Demographic forces- Demographic relates to the size, age, gender, density, income levels of the people. The demographic factors like changing world population, age and family structure, changing location preference and tastes of the people put pressure on the business.
2. Economic forces- These factors relate to consumer purchasing power and consumer spending. This relates to GDP, GNI, import duties, sales-tax, inflation, disposable income of people in a country.
3. Socio-cultural forces- Socio-cultural factors relate to factors affecting social preferences, values and behavior. This relates to the fact that since people reside in societies, so societal preferences play an important role in their demand of products and choices.
4. Technological forces- Technological factors imply that with the advancement of new technology, old products and processes become obsolete. Thus, with the advancement of new technology, business must introduce new products and processes which in turn pose threats and presents opportunities in business.
5. Ecological forces- Ecological forces relate to natural resources available. In today’s world ecological forces play an important role in making business decisions that they address issues like effective usage of scarce raw materials and natural resources while addressing the issues and concerns of increased pollution.
6. Political forces- Political environment limit the business activities. The applicable rules and regulations, government agencies and their policies and the pressure exerted play an important factor in business.
c. analyzing how the macro environment forces will affect the plan of Blueprints Business Planning Pty Ltd
· Blueprints Business Planning will operate with one staff Jessie Jones initially operating from her home. So, the business will be predominantly rely on services of Jessie and unavailability of Jessie to serve the business due to any reason may adversely affect the business plan
· Entry of new competitors or other service providers may seriously affect the business potential of the company
· The...