Terminology Related to Business Environment

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Terminology of Business Environment in the context of Fish & chip shop

Business environment define external forces which manage and control the business operations and this will directly impact on functioning of business enterprise. It includes customers, suppliers, competitors, government, and the political, social, legal, economic, environmental and technological factors. These dynamics directly impact on Fish & chip shop business therefore it need to follow all changes which occur in this forces. As per the case study, the fish & chip shop has been operating in the neighborhood for last 30 years. Currently, the primary school has been opened which is around 900 yards from such local business. This enterprise is facing various challenges regarding current market situation so they need to analyze both factors such as external and internal forces in proper way. It is necessary for fish & chip shop to identify their business strength and weakness in aspect of technological development. Along with this, there are various factors which directly impact on Fish & chip shop business environment such as demographic forces which help in measuring appropriate size of this shop, economic forces that can not controlled by business, geographical forces impact on location or regional areas, social or cultural forces which represent the society views and so more (Markusen, 2017). As the Fish and Chip Chop is facing numerous consequences in the business environment, organization need to undertake numerous decision by examining distinct business environment to appropriately function their business in adequate manner.

Business Analytical model and assess the circumstances

For fish and chip shop, PESTLE analysis is best suitable analytical model for identifying external factors which directly impact on their business. This will help in examining political, economical, social and technological factors. PESTLE analysis are described as under:

• Political factors – It is that factor which are related to the opportunities brought by political agencies and government made laws directly impact on business. Fish & chip shop need to follow authority made legal laws and regulation while selling of fast food. As per the case study, London Borough order them for establish their shop near educational institutions for providing different item to the people (Murphy, 2017).
• Economical factor – It is that factor which are determinants of an economy's performance that directly affect on fish & chip shop. For example, if increasing in the inflation rate so company fast food products price is automatically enhanced. With this factor, they satisfy all employees, increasing interest on their bank services and enhancing operating cost (Horner and et. al., 2015).
• Social factor – These factors are related to beliefs, values, culture, attitudes which will affect the demand of shop products and services. Fish & chip shop focus on each people beliefs and values while providing them desired goods and services. With the analysis of this factor, company can easily analyse the customers taste or preferences and according to their demand they make proper changes in their products. This will help in developing healthier eating habit among people.
• Technological factor – It is that factor which is significantly impact on fast food sector. The main focus of the fish & chip shop is on customer services and their convenience. By using latest techniques and methods, the company easily declining the manpower rate in proper manner.
• Legal factor – The legal factor of fish & chip shop has show the necessary changes occurs in the current era. The quality and nutrients value are main areas which directly impacted by law (Bryman and Bell, 2015). Legal factor examine changing employment law which are related to their employees salary, incentives, compensation, etc.
• Environmental factor – For making healthier environment, company need to manage its waste raw material and recycle this for other usage. The sourcing of raw material is important step for company for making protective packaging of products in proper manner.

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Discuss available funding options for money

There are various funding options which are available for getting money to Fish & chip business and relocate in compliance with bye laws that are described as under:

Bank loans – It is very beneficial option of funding through which Fish and chip can easily relocate their business with compliance in bye laws. This finance option is time consuming than credit card (Chakravarty, Kumar and Grewal, 2014).

• Advantages – Bank loan is flexible in nature and company need to pay installment on given time. This can be used for short as well as medium term financing.
• Disadvantages – The drawback of bank loan is that some banks loans are carry additional penalty for specific amount.

Angel investors – This is another funding option which can be used by fish and chip shop for move their business with follow all legal laws in other place where they gain higher profitability. According to the case study, the primary school has open in their local area so this will reduces their profitability.

• Advantages – It is very less risk and this finance does not need to paid back in the event of business dissolution.
• Disadvantages – The angle investor is the loss of complete control as a owner.

Venture capital – It is similar with angel investors, venture capital funds are corresponded the mutual finance where they collect money from different investors to set up business in profitable location (Bocken, 2014).

• Advantages – New project are taking finance from venture capital which mainly offer high profit capability in long term.
• Disadvantages – This is an uncertain form of funding. Such financing can be completed in the long run only.

CONCLUSION

From the above mentioned report, it can be analyzed that business structure is the system which can be used for defining the hierarchy within an organisation. Business environment define external forces which manage and control the business operations and this will directly impact on functioning of business enterprise. For fish and chip shop, PESTLE analysis is best suitable analytical model for identifying external factors which directly impact on their business.

More to read:

• Influence of Micro Environment on the Performance
• How Digital Technology Plays an Important Role in Hospitality Industry - Marriott

REFERENCES

Hollenbeck, J.R., Noe, R.A. and Gerhart, B.A., 2018.Human resource management: Gaining a competitive advantage. McGraw-Hill Education.

Markusen, A., 2017. Sticky places in slippery space: a typology of industrial districts. InEconomy(pp. 177-197). Routledge.

Murphy, R.E., 2017.The central business district: a study in urban geography. Routledge.