Key issues in Business environment

Discuss about the Business Environment for Employees, Customers and Management.

The business environment consists of all internal and external factors that have direct impact on the functionality of the company, including employees, customers, management and also the supply and demand of the business. In this report, the key issues are discussed in the business environment that play a significant role in the retail sector. This report discusses the key issues and challenges the organization faces in the business environment. The business environment is considered as an important aspect to survive in the market. The company should focus on enhancing the satisfaction level of the consumers.

Issues that are related to the business environment are industrial waste, increased competition, marketing and customer loyalty, risk management and finding the right staff. Below mentioned are the issues in the business environment that play an important role in the retail sector.

• Industrial waste: Manufacturing industry generates waste. There are various environmental laws that focuses on the waste management. The industry’s responsibility is to manage the waste that it generates in an effective manner. It is considered as one of the key issues that the company faces. The retail sector has to face the problem of industrial waste in the organization (McMurrian and Matulich, 2016).
• Increased competition: The competition level is increasing day by day that has a direct impact on the working pattern of the organization. The customers have variety of choices in selecting the products and services. It is seen that with increase in the business, it is difficult for the organization to retain the customers. So to survive in the market, it is evaluated that the business should offer best quality products in the market (Wetherly and Otter, 2014).
• Marketing and customer loyalty: Marketing and customer loyalty is considered as a key issue in the business environment. The social media, smartphones, email, twitter and other communication channel are making the process easy for the business to promote the products in the market (Tallman, Luo, and Buckley, 2017). To figure out the marketing challenges,is one of the key issues for the business. The companies are focusing to figure out, how to retain the customers and how to reach a new customer in a cost-effective manner (Kew and Stredwick, 2017).
• Risk Management: The major issue in the business environment is related to risk management. The company faces the challenge of identifying and assessing the risk related to human and financial capital. It is very important that the company should focus on minimizing the risk, and then only it will be possible for the organization to achieve success (Solomon, 2014).
• Finding right staff: To find the right staff, is also a key issue in the business environment. The biggest challenge is to find the right candidate and also to analyze that they conduct their activities by considering the vision of the organization. If the organization finds the right candidate then it can help to achieve success and also enhances the productivity level of the organization. In the retail sector, it is essential that the employees should have proper knowledge about the products and services that are offered (Orel and Kara, 2014).

The issues faced in the retail sector have direct impact on the profitability of the organization. The impact is seen on the consumers and on the productivity level of the organization.

• Increased competition: Due to the increase in the competition level, the direct impact is on the profitability and productivity level of the organization. In the retail sector when the competition level is increased then it creates a problem for the organization to retain its customers. Competition is considered as an important aspect of the retail sector. The competition plays a great role in the consumer service industry. If there is a high level of competition then it is very difficult for the organization to attain success in the market (Prajogo, 2016).
• Finding right staff: It is essential to find the right staff for the organization. Right candidates play a great role in order to conduct the day to day operations. If the organizations do not have efficient employees to conduct the operations, then it becomes difficult to achieve the goals and objectives. Efficient employees are an asset to the organization (Hamilton and Webster, 2015).

The buying behavior of the consumers is also dependent on the way the employees interact. If the employees interact in an effective manner, then it is analyzed that the consumers feel satisfied and happy to avail the services of the organization. Inefficient staff hampers the quality of the work. The quality of work is compromised when the employees are not appointed to the correct position. So, it is essential that the right candidate should be appointed on the right place.

 Marketing and customer loyalty: Marketing and the loyalty of the consumers plays a great role to attain success in the market. Marketing helps the organization to promote the products and services in the market. If effective marketing is not taken into consideration by the company, then it will have direct impact on the sale of the product and also reduces the profitability of the organization.

 If the consumer purchases the product from one shop rather than the other shop then the loyalty of the consumer is inclined towards the product. If the customer has loyalty towards an organization, then it will give a positive impact on the sales and on attaining the goals and objectives of the organization. If the customer is satisfied with the product that is offered, then it can be very easy to enhance the market share (Antoncic, Auer Antoncic and Aaltonen, 2016).

Impact of the key issues

 There are various challenges that are faced by the organization. To survive in the organization, it is seen that every organization has to face challenges.

• High level of competition in the market: For the organization, the main challenge is related to the increase in the competition level in the market. The consumer has a wide range of options to select from the products available in the market. The consumer emphasizes on saving the money and also to purchase the bare necessities. But now the consumer has gone through a remarkable transformation.

 They are now focusing on enhancing the standard of living and also on spending the money to avail the products and services. So the company should give focus on enhancing the market share and should also offer products at reasonable cost. The organization should offer products at low cost and of good quality, then only they can maintain their value in the market.

• Finding right staff: Organization also faces various challenges in finding the right staff that will enhance the productivity level. To analyze the right candidate it is very difficult for the organization. The company only recruits those candidates who are eligible for conducting the day to day activity of the organization. There are very few job applicants for an open position in the organization. It is known that the challenge is for the manager to recruit the right employees for the job. Also, the problem is in finding the efficient candidate for the organization. Employees can be easily appointed, but to search efficient employees is a difficult task for the organization (Armstrong et.al, 2015).
• Marketing and customer loyalty: The organization also faces challenges related to marketing. Marketing is a technique that helps the organization to promote the products and services. Due to high competition level, an effective marketing strategy is also important so that the customer gets induced to buy the product. If the company adopts effective marketing strategies, then it can be possible to attain the goals and targets of the organization (Ivanauskiene and Volungenaite, 2014).

Promoting the products and services enhances the knowledge of the customers to buy the product in an effective manner. Customer loyalty is also the important aspect that helps the organization to survive in the market. In the business environment, the main challenge for the organization is to achieve the customer loyalty. If the organization can maintain the loyalty of its customers towards their product, certainly the market value of the organization is maintained in top charts. Customers give more preference to the quality of product and it also gives direct impact on enhancing the sales of the product (Cai and Yang, 2014).

Conclusion

By evaluating the report, it is analyzed that challenges affect the operations of the business. So to be a valuable brand in the market it is very important to minimize the issues that

References

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Ivanauskiene, N. and Volungenaite, J., 2014. Relations between service quality and customer loyalty: An empirical investigation of retail chain stores in emerging markets. American International Journal of Social Science, 3(2), pp.113-120.

Kew, J. and Stredwick, J., 2017. Business environment: managing in a strategic context. Kogan Page Publishers.

McMurrian, R.C. and Matulich, E., 2016. Building customer value and profitability with business ethics. Journal of Business & Economics Research (Online), 14(3), p.83.

Orel, F.D. and Kara, A., 2014. Supermarket self-checkout service quality, customer satisfaction, and loyalty: Empirical evidence from an emerging market. Journal of Retailing and Consumer Services, 21(2), pp.118-129.

Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in delivering business performance. International Journal of Production Economics, 171, pp.241-249.

Solomon, M.R., 2014. Consumer behavior: Buying, having, and being (Vol. 10). Upper Saddle River, NJ: Prentice Hall.

Tallman, S., Luo, Y. and Buckley, P.J., 2017. Business Models in Global Competition. Global Strategy Journal.

Wetherly, P. and Otter, D. eds., 2014. The business environment: themes and issues in a globalizing world. Oxford University Press.