ASSIGNMENT 2 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 1: Business and Business Environment

Submission date Date Received 1st submission

Re-submission Date Date Received 2nd submission

Student Name Huynh Gia Bao Student ID GBS190042

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I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that
making a false declaration is a form of malpractice.

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P4 P5 P6 M3 M4 D2

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 Assignment Brief 2 (RQF)
Higher National Certificate/Diploma in Business
Student Name/ID Number:

Unit Number and Title: Unit 1: Business and Business Environment (485)

Academic Year: 2020

Unit Assessor:

Assignment Title: ASSIGNMENT 2- Internal and External analysis

Issue Date:

Submission Date: Sep 12th, 2020

Internal Verifier Name:

Date:

Submission Format:

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Format:
● This assignment is an Individual report and specifically.
● You must use font Calibri size 12, set number of the pages and use multiple line spacing
at 1.5. Margins must be: left: 1.25 cm; right: 1 cm; top: 1 cm and bottom: 1 cm.
● You should use in text references and a list of all cited sources at the end of the essay by
applying Harvard referencing style.
● The recommended word limit is 2000-2500 words (+/-10%), excluding the tables,
graphs, diagrams, appendixes and references. You will not be penalized for exceeding
the total word limit.
● The cover page of the report has to be the Assignment front sheet 2 (to be attached with
this assignment brief).
Submission
● Students are compulsory to submit the assignment in due date and in a way requested by
the Tutor.
● The form of submission will be a soft copy posted on http://cms.greenwich.edu.vn/.
● Remember to convert the word file into PDF file before the submission on CMS.
Note:

● The individual Assignment must be your own work, and not copied by or from another
student.
● If you use ideas, quotes or data (such as diagrams) from books, journals or other
sources, you must reference your sources, using the Harvard style.
● Make sure that you understand and follow the guidelines to avoid plagiarism. Failure to
comply this requirement will result in a failed assignment.

Unit Learning Outcomes:

LO3 Use contemporary examples to demonstrate both the positive and negative
influence/impact the macro environment has on business operations.
LO4 Determine the internal strengths and weaknesses of specific businesses and explain their
interrelationship with external macro factors.

Assignment Brief and Guidance:

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*This assignment guidance can be customized by the tutors meet specific needs.
Assignment scenario
You are working as a business analyst in Wells Fargo, an American multinational financial
services company. It is the world's fourth-largest bank by market capitalization and the fourth
largest bank in the US by total assets.

After your report of the chosen Company, your manager believes this firm has an opportunity
to be a profitable investment. He assigns you to write an analysis of the chosen company’s
internal and external environments.
For the analysis, you need to choose as follows:
1. The same company in Assignment 1 or a different company, regardless the nationality
(so called the chosen company)
2. The country or a specific province in the country, where the chosen company
provides its products or services, to make a research for the effect of the external
environment factors.
This will be performed a report to the Director and should include the following structures.

Structure of the Report

1. Introduction: this section should give a brief explanation of the purposes and structure of
the report from the perspective stated in the scenario.

2. Identify the positive and negative impacts the macro environment has upon the chosen
company. Students need to explain the competitive environment (Porter’s Five Forces
model) and at least 2 factors among 6 factors (PESTLE) of macro environment.

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 Compulsorily, with each factor, you also present the general impact of each factor on
general business or the chosen company’s business.

3. Conduct internal analysis of the chosen company to figure out the strengths and
weaknesses of the chosen company by analysing at least 2 aspects among the followings:
(At least 1 weakness and 1 strength must be concluded).

(i) Core value or Mission or Vision;

(ii) Organizational structure;

(iii) Human resources;

(iv) Brand name or brand equity;

(v) Financial strength/ factors;

(vi) Fix/physical assets;

(vii) Market resources;

(viii) Technology base or Research and Development.

Based on the previous analysis, identify the strengths and weaknesses of the company.

4. Explain how strengths and weaknesses interrelate with external macro factors.

a. First, you have to search for at least 1 real business decision-making of the chosen
company (strategies/ action plans/ investment decisions/ developing decisions).

b. Next, you have to prove how the previous mentioned decision is affected by (i) strengths
or weaknesses of the chosen company and taken into consideration of (ii) macro
environment factors (PESTLE) and (iii) competitive forces of the competitive
environment, which make an effect on the chosen company.

To enhance your statement, SWOT or TOWS should be applied to come up with

meaningful analysis of the internal and external business environment.

Furthermore, you had better find an example to highlight how different companies have
different business decisions when they are affected by similar external factors.

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5. Conclusion: summarize all the key points and analysis from the report.

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Learning Outcomes and Assessment Criteria (Assignment 1):
Learning Outcome Pass Merit Distinction
LO3 Use P4 Identify the M3 Apply LO3 & 4 D2
contemporary positive and negative appropriately the Critically evaluate the
examples to PESTLE model to impacts that both
demonstrate both the impacts the macro
support a detailed macro and micro
positive and negative environment has upon analysis of the macro factors have upon
influence/impact the business operations, environment within an business objectives
macro environment organisation. and decision-making
supported by specific
has on business
operations. examples.

LO4 Determine the P5 Conduct internal M4 Apply

internal strengths and and external analysis appropriately
weaknesses of specific of specific SWOT/TOWS
businesses and explain organisations in order
their interrelationship to identify strengths analysis and justify
with external macro and weaknesses. how they influence
factors. decision-making.

P6 Explain how
strengths and
weaknesses interrelate
with external macro
factors.

According to the previous report, we have been provided with the basic information about the
Amazon company, to make an investment decision in this company, we need to have an overview of many
main factors, that affect to the supply chain of Amazon, also the strengths and weaknesses of factors in
their supply chain.

Basically, efficient operation systems always are under pressure of five forces: Competitive
Rivalry, Threat of New Entrants, Threat of Substitution, Supplier Power, Buyer Power.

 Competitive Rivalry: Competition between companies that sell the same types products
about revenue is high, so marketers have to always consider who is main competitors, plan
suitable strategies for the long run, if competitors sell and receive much money by the same
type as the company’s products, marketers have to come to their store to view and find out
the reason why they can sell better than our company.

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  Threat of New Entrants: if your business can bring high profits, of course many new other
companies will appear and surely, the rate of profits will be decreased because there are
more company is providing the same products as you. However, it is not easy for new
entrain to competitive because big companies has monopoly partly in industry.
 Threat of Substitution: may be some day, there are some other products suitable to
customers and those products will change the mind of customers to use it instead of our
products. To solve this problem, operation system of companies have to develop teams to
create new products with new materials and outlines, customers usually use and feel
development in our products.
 Supplier Power: Every company has suppliers to provide something such as materials,
unfortunately, if there is lack of suppliers, they will have more power, and the price we
have to pay is higher.
 Buyer Power: if buyer have more choices to buy products, they will have enough power to
pressure the companies, another situation is buyer trying to connect to boycott the
companies because of some reasons.

Over two last decades, the World has recorded boom of technology development. And it has been
measured by growth of big technological companies around over twenty years run It is not doubt that the
global internet boom has changed every aspect of people's lives, and Amazon has seized that opportunity
to apply technology in their business, then rise to become one of the world's largest companies by
capitalization, As a global company, development of Amazon is largely contributed by major macro
factors such as Politics, economy, society, technology, environment and legislation (PESTEL)

Political factor: A global company wishing to do business in many different countries must have a
thorough understanding of the politics of each country, since each country has different policies in many
aspects for foreign and domestic companies, some main governmental policies that a company must take
into the consideration is tax, employee, insurance policies. Specifically, in Vietnam, a Coca-cola
company, the press often mentions that this company has not paid income tax from 20% to 25% of its
profits to the Vietnamese government since its establishment. Coca-cola margins have been negative,
reporting losses for many years because of the inflated cost of raw materials purchased from another
Coca-cola subsidiary, which is located in a tax-free country. So while pushing up prices means higher
profits, Coca-cola doesn't have to pay any taxes. Meanwhile, Coca-cola in Vietnam poured in raw
materials at high prices, leading to negative profits, so there was no tax to the government. But in fact,
Coca-cola has made huge profits in the Vietnam market.

Economical factor: analyzing the Economy of a country is essential because it helps the company
understand commonly tendency of the market in the short and long run. Therefore, the company will have
the right strategies to increase sales in the market of that country. The economic factors that need to be
considered to evaluate and come up with suitable strategies are economic growth rate, interest rate,
exchange rate, inflation.

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 Social factor: this factor is not easy to recognize this factor in detail if the company does not have a
team that analyzes the habits of the people in that country in all fields, that affect to business of the
company, social factors are very important as it relates directly to consumers one of objects that each
company is especially carry on. Walmart is a chain of leading retail and supermarket chains in the world,
but when placing a company in Korea, it does not compete with Lotte. Not because the product prices at
Walmart are more expensive, or the service attitude is less. It's because Korean people only prioritize
Korean, although Walmart is better in many ways, but they still choose Lotte to shop.

Technological factor: In this age of rapid technology development, it becomes an indispensable

tool in business, if a company that wants to operate or develop, it is required to use familiar technology
equipment devices daily such as mobile phones, computers, and devices adopt the latest technology to not
be left behind. Technology helps people to minimize the working process, save manpower and improve
the company's working efficiency. For instant, Amazon is the most efficient way to apply automated
technology to the company's business processes. people know Amazon for its quickness and convenience
in service. From the moment the customer places the order to the time the product is received by the
carrier is on the automatic line, so it has high accuracy and speed.

Environmental factor: it is all things that affect by area environment, every country has different
environment, therefore some industries affected directly by environment such as tourism, agriculture,
construction…

Legal factor: Countries has specific policies that effect to business environment of companies, it
affect to operation of the company too, more specifically, employment law of Europe countries is different
from Asia.

Because of the influence of the above factors, Amazon must study very carefully with each market
of each country on the macro factors. Firstly, Amazon is known as an e-commerce company, a leader in
automation technology, using many robots to operate the system. Moreover, the customer business
strategy is competitive in price and stands out as the fast shipping, customer understanding by collecting
the data, that customers have showed in every click on Amazon website to give the best suggestions for
customers. Amazon has set office in some countries such as The USA, England, Germany, India,
Australia, they are developed countries and they are center of a large area also. Amazon realize similarity
between American, Europe, Indian and Australian in online shopping, using Credit cards, online wallets
for almost online payments… it is different from Viet Nam, that customers confuse paying online before
receiving their products, most orders are Cash On Delivery (COD) shipping. Most of products on Amazon
have standard price, if sellers sell them lower about 15%-20% than standard price, customers will consider
that it is fake or low-quality, therefore, every country is different society, and it leads to diversity of
cultural consumptions. Secondly, apply technology to the operation system is strength of Amazon, they
apply lasted technics to decrease time of delivering as fast as possible. Amazon has huge Cloud severs to
sell and save their data. Therefore, if Amazon come to Viet Nam, they will be a potential competitor.

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 By contrast, the number of items that sold by Amazon are high daily, it easily lead to some riskíe
in delivery processing. Therefore, some disputes between customers and sellers have happened but they
had not made any mistakes.

All companies have internal and external stakeholders, they are workers, managers, owners,
suppliers, customers, shareholders, credit, government, society. They impact to companies during doing
business of companies. Every stakeholder has different interests from the companies. For instant:
Employees want to work condition, labor securety, personal development opportunities, Managers want
companies reach high profits, growth of organization. Shareholders interested in market value of the
invesment, dividends, securety of invesment, liquidity of invesments. Creditors interested in securety of
loand, loand and liquity of invesments

It is essential to identify the power and attention of stakeholders so as to understand to take

priority.

Sources of power
Within Organisations For external Stakeholders
 Hierarchy (formal power), e.g. autocratic  Control of strategic resources, e.g. materials,
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 decision making labor, money
 Influence (informal power), e.g charismatic  Involvement in strategy implementation,
leadership e.g. subcontractors, partners.
 Control of strategic resources, e.g. strategic  Through internal links, e.g. informal
products influence
 Possession of knowledge and skills, e.g.
Computer
 Control of the human environment, e.g. by
exercising discretion

Level of attention

Low High

Minimal effort Keep Informed

Power

Keep Satisfied Key Players

High

Basically, there are two fields that an invester need to know and evaluate commonly to decide to
be a shareholder of a company, those are Internal factors and external factors. The purpose of
understanding these aboved information is for evaluating whether that company have been growing in a
period of specific time. External and internal factors are connected to each other by these things.

External
Opportunities Threats
Internal Strengths SO ST
Weakness WO WT

SWOT tool shows that there are 4 results respectively SO, ST, WO, WT

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 For each result, there will be different ways of doing and solving problems, for example: SO
results show that the company's business strategy is very positive because external opportunities are
coming and also being the company's strengths should be the chance for success. Another result is that ST,
with the strength of the company, we can overcome the challenge by exploiting as much as possible the
strengths we have, followed by WO, when analyzing this result means. is a company that uses advantages
as an opportunity to compensate for its weaknesses, gradually weak points will be gradually overcome and
developed. Finally, there is the WT, which is a bad outcome, the company must find ways to minimize
risk as much as possible and the company could strengthen our strengths if possible. More specifically,
Amazon realizes that small amounts of items are broken in delivery process by USPS in recent time, and
they want to control this risky. Finally, Amazon decide to sell small cameras that sticked in front of head
to record all preparing processes until giving items for delivery companies. In term of items are located at
warehouse, all transfer processes will be recorded by cameras and auto saved on the cloud systems.
Amazon has advanced technological system, so it is easy for them. But maybe it is unfamiliar to sellers.
At the beginning time, Amazon support team have to remind sellers to complete this process perfectly.

Reference:

Porter, M., 2021. Marketing Theories - Porter's Five Forces. [online] Professionalacademy.com. Available
at: <https://www.professionalacademy.com/blogs-and-advice/marketing-theories---explaining-porters-five-forces>
[Accessed 8 March 2021].

Ieeexplore.ieee.org. 2021. SWOT Analysis Support Tool for Verification of Business Strategy. [online]
Available at: <https://ieeexplore.ieee.org/abstract/document/4097661> [Accessed 8 March 2021].

Emerald.com. 2021. Business incubators models of the USA and UK: A SWOT analysis | Emerald Insight.
[online] Available at: <https://www.emerald.com/insight/content/doi/10.1108/20425961201000025/full/html>
[Accessed 8 March 2021].

Smith, J. and Smith, J., 2021. Impact of Technology on Amazon’ s Business Strategy - Topnotch Essays.
[online] Topnotch Essays. Available at: <https://topnotchessay.com/impact-of-technology-on-amazon%C2%92s-
business-strategy/> [Accessed 8 March 2021].

Corporate Finance Institute. 2021. PEST Analysis - Overview, Examples, How to Anlayze External
Environment. [online] Available at: <https://corporatefinanceinstitute.com/resources/knowledge/strategy/pest-
analysis/> [Accessed 15 March 2021].

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