Content

Page no.
1. Acknowledgement 1
2. Declaration 2
3. Introduction 3
4. Objective of Study 4
5. Theoretical Framework 5-8
6. Case Study 9-13
7. Recommendations 14
8. Conclusion 15
9. Limitations 16
10. Bibliography 17
3
 Introduction of Topic

Business Environment
The term business environment means “the aggregate of all the forces, factors and
institutions which are external to and beyond the control of an individual business
enterprise but which exercise a significant influence on the functioning and growth of
individual enterprises.

Definitions of Business Environment

Environment consists of factors that are largely if not totally, external and beyond the
control of individual industrial enterprise and their managements. These are essentially
the ‘givers’ within which firms and their management must operate in a specific
country and they vary, often greatly, from country to country.
– Barry M. Richman and Melvgn Copen

Business environment is the aggregate of all conditions, events and influences that
surround and affect business.

– Keith Davis

Business environment refers to “the total of all things external to firms and industries
which affect their organisation and operation.

– Bayord O.Wheeler
Initially only external forces were considered as the business environment. But in
modern scenario, business policies and actions are affected by internal forces
also. Thus, the integral elements of business environment include both the internal as
well as the external factors, as both have an impact on business

3
 Objective of Study

• Assess the theoretical framework of business environment.

• Conduct a swot analysis of success.

4
 SWOT Analysis

What Is a SWOT Analysis?

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a SWOT analysis
is a technique for assessing these four aspects of your business.
SWOT Analysis is a tool that can help you to analyze what your company does best now, and
to devise a successful strategy for the future. SWOT can also uncover areas of the business that
are holding you back, or that your competitors could exploit if you don't protect yourself.
A SWOT analysis examines both internal and external factors – that is, what's going on inside
and outside your organization. So some of these factors will be within your control and some
will not. In either case, the wisest action you can take in response will become clearer once
you've discovered, recorded and analyzed as many factors as you can.
In this article, video and infographic, we explore how to carry out a SWOT analysis, and how
to put your findings into action. We also include a worked example and a template to help you
get started on a SWOT analysis in your own workplace.

Why Is SWOT Analysis Important?

SWOT Analysis can help you to challenge risky assumptions and to uncover dangerous
blindspots about your organization's performance. If you use it carefully and collaboratively,
it can deliver new insights on where your business currently is, and help you to develop
exactly the right strategy for any situation.
For example, you may be well aware of some of your organization's strengths, but until you
record them alongside weaknesses and threats you might not realize how unreliable those
strengths actually are.
Equally, you likely have reasonable concerns about some of your business weaknesses but, by
going through the analysis systematically, you could find an opportunity, previously
overlooked, that could more than compensate.

5
SWOT analysis involves making lists – but so much more, too! When you
begin to write one list (say, Strengths), the thought process and research that you'll go
through will prompt ideas for the other lists (Weaknesses, Opportunities or Threats). And if
you compare these lists side by side, you will likely notice connections and contradictions,
which you'll want to highlight and explore.
You'll find yourself moving back and forth between your lists frequently. So, make the task
easier and more effective by arranging your four lists together in one view.
Draw up a SWOT Analysis matrix, or use our free downloadable template.
A SWOT matrix is a 2x2 grid, with one square for each of the four aspects of SWOT.

6
 How To Do SWOT Analysis?

Strengths
Strengths are things that your organization does particularly well, or in a way that distinguishes
you from your competitors. Think about the advantages your organization has over other
organizations. These might be the motivation of your staff, access to certain materials, or a
strong set of manufacturing processes.
Your strengths are an integral part of your organization, so think about what makes it "tick."
What do you do better than anyone else? What values drive your business? What unique or
lowest-cost resources can you draw upon that others can't? Identify and analyze your
organization's Unique Selling Proposition (USP), and add this to the Strengths section.
Then turn your perspective around and ask yourself what your competitors might see as your
strengths. What factors mean that you get the sale ahead of them?
Remember, any aspect of your organization is only a strength if it brings you a clear advantage.
For example, if all of your competitors provide high-quality products, then a high-quality
production process is not a strength in your market: it's a necessity.

Weaknesses
Weaknesses, like strengths, are inherent features of your organization, so focus on your people,
resources, systems, and procedures. Think about what you could improve, and the sorts of
practices you should avoid.
Once again, imagine (or find out) how other people in your market see you. Do they notice
weaknesses that you tend to be blind to? Take time to examine how and why your competitors
are doing better than you. What are you lacking?
Be honest! A SWOT analysis will only be valuable if you gather all the information you need.
So, it's best to be realistic now, and face any unpleasant truths as soon as possible.

7
Opportunities

Opportunities are openings or chances for something positive to happen, but you'll need to
claim them for yourself!

They usually arise from situations outside your organization, and require an eye to what
might happen in the future. They might arise as developments in the market you serve, or in
the technology you use. Being able to spot and exploit opportunities can make a huge
difference to your organization's ability to compete and take the lead in your market.
Think about good opportunities that you can exploit immediately. These don't need to be
game-changers: even small advantages can increase your organization's competitiveness.
What interesting market trends are you aware of, large or small, which could have an impact?
You should also watch out for changes in government policy related to your field. And
changes in social patterns, population profiles, and lifestyles can all throw up interesting
opportunities.

Threats

Threats include anything that can negatively affect your business from the outside, such as
supply-chain problems, shifts in market requirements, or a shortage of recruits. It's vital to
anticipate threats and to take action against them before you become a victim of them and
your growth
Think about the obstacles you face in getting your product to market and selling. You may
notice that quality standards or specifications for your products are changing, and that you'll
need to change those products if you're to stay in the lead. Evolving technology is an ever-
present threat, as well as an opportunity!
Always consider what your competitors are doing, and whether you should be changing your
organization's emphasis to meet the challenge

8
 Case Study
1. Amazon Detailed SWOT Analysis

Strength

• Brand Identity: Amazon Is Synonymous With Online Sales Services, And Amazon
Focuses On Improving Customer Satisfaction During The Business Process.
• Pioneer Advantage: Amazon Is Undoubtedly The Leader In The Online Retail Industry.
• Cost Structure: Amazon Effectively Uses Its Cost Advantage, Operates On Thin
Profits, And Is Still Profitable In Trading.
• Business Development: Amazon Continuously Improves Its Service Level And
Provides Diversified Services.

Weakness

• Low-profit margins: Amazon has a very thin profit margin to maintain its cost-leading
strategy. But low-profit margins make companies vulnerable to external shocks and
crises, as well as other market changes.

9
 • Seasonality: There is a seasonal difference between Amazon’s revenue and business
scope, with sales and revenue peaking in the fourth quarter of each year.

Opportunity

• Today’s Diversification Of E-Commerce Business.

• To Increase Awareness Of Its Own Branded Products And Services.
• Amazon Develops More Local Websites To Participate In The International Market.
With The International Expansion Of Amazon, Some Local Businesses Have The
Opportunity To Enter The International Market.
• Promoting Continues The Strategic Cooperation Between Amazon E-Commerce And
Its Related Affiliated Industries Will Drive Positive Development Of The Industry

Threat

• Loss Of Profits Due To Low-Profit Margins

• Patent Infringement And Other Aspects Of Amazon’s Litigation
• E-Commerce Industry Barriers To Entry Barriers
• Cybersecurity Issues

Amazon – Recent Development

What do you need to do next after you understand strengths and weaknesses and identify
opportunities and threats? Let us take a look at how Amazon has seized the opportunity to
successfully transform itself from an e-commerce company into a global leading technology
company! When Amazon realized the limitations of the retail industry, it expanded its business
boundaries promptly. In addition to cloud computing and smart voice, Amazon has also
contacted third-party platforms such as logistics and suppliers, and even invested in the film
and television industry, making its business model more diversify. In 2008, Amazon realized
that content can attract and extend users’ time on the platform, and began to provide original
content on Prime Instant Video, Amazon’s mainstream media video platform, and as part of
the Prime membership service. Amazon’s ecology can be described as a rotating flywheel. This
flywheel is centered on Prime’s membership system, and new interests have been added to it,
gradually creating an all-encompassing ecology. While continuing to attract new users, it has
promoted the development of Amazon’s e-commerce and other new businesses, and it will
continue to do so.

10
2: Starbucks SWOT Analysis
Starbucks Detailed SWOT Analysis

Strengths

• Starbucks Corporation Is A Very Profitable Organization, Earning More Than $600

Million In 2004. The Company Generated Revenue Of More Than $5000 Million In
The Same Year.
• It Is A Global Coffee Brand Built A Reputation For Fine Products And Services. It
Has Almost 9000 Cafe Shop In Almost 40 Countries.
• Starbucks Was One Of The Fortune Top 100 Companies To Work For In 2005. The
Company Is A Respected Employer That Values Its Workforce.

Weaknesses

• Starbucks Has A Reputation For New Product Development And Creativity. However,
They Can Vulnerable To The Possibility That Their Innovation May Falter Over Time.
• The Organization Has A Strong Presence In The United States Of America With More
Than Three-Quarters Of Its Cafe Shop Located In The Home Market. Some People
Think They Need To Invest In Different Countries (National Portfolios) To Spread
Business Risks.
• The Organization Is Dependent On A Main Competitive Advantage, The Retail Of
Coffee. This Could Make Them Slow To Diversify Into Other Sectors Should The Need
Arise.

11
Opportunities

• Starbucks Is Very Good At Taking Advantage Of Opportunities. E.G. In 2004 The

Company Created A CD-Burning Service In Their Santa Monica (California USA)
Cafe With Hewlett Packard, Where Customers Created Their Music CD.
• New Products And Services That Can Be Retailed In Their Cafe Shop, Such As Low
Price Products.
• The Company Has The Opportunity To Expand Its Global Operations. New Markets
For Coffee Such As India And The Pacific Rim Nations Are Beginning To Emerge.

Threats

• Who Knows If The Market For Coffee Will Grow And Stay In Favor With
Customers, Or Whether Another Type Of Beverage Or Leisure Activity Will Replace
Coffee In The Future?
• Starbucks Is Exposed To Rises In The Cost Of Coffee And Dairy Products.
• Since Its Conception In Pike Place Market, Seattle In 1971, Starbucks’ Success Has
To Lead To The Market Entry Of Many Competitors And Copycat Brands That Pose
Potential Threats.

3: Coca-Cola SWOT Analysis

Coca-Cola Detailed SWOT Analysis

Strength

1. Most sponsored corporate partners.

2. Spread across the world in 650 languages and regions.
3. The market territory spans nearly 200 countries on five continents.
Weaknesses

12
 1.There is no certain integration and the common goal of strategic management.
2.The failure to develop new tastes.
3. The gradual transfer of customer loyalty.

Opportunity

1. Sponsor the Olympic Games, use this opportunity to replace their brands, products,
and make advertisements, especially The Olympic Games is a worldwide movement
that allows the world’s population to recognize this product, expand its market reach,
and raise awareness of its products.
2. Participate in the World Cup, take this world-wide activity to pave the way for your
products and gain popularity.
3. Enter the Chinese rural market.

Threat

1. Pepsi is Coca-Cola’s biggest competitor

2. The products produced by the company may not be favoured by young people today.
3. Coca-Cola is not considered to be good for health by many people.

13
 Recommendation

As any successful business owner knows, within each challenge awaits a hidden opportunity.
Using a SWOT analysis is one of the best ways to identify underlying problems in a business
and unearth those valuable gems of opportunity.

14
 Conclusion

One of the secrets of a SWOT analysis is that it gives you only opportunities. These
aren't just the opportunities lying between your strengths and weaknesses, but also
the threats it reveals, which are opportunities for proactive change. Show your
analysis to key employees and any consultants you work with. In some cases, a
trusted supplier can give you insights you may not have seen.

15
 Limitations of Study

A SWOT analysis may be limited because it:

• doesn't prioritise issues

• doesn't provide solutions or offer alternative decisions

• can generate too many ideas but not help you choose which one is best

• can produce a lot of information, but not all of it is useful.

16
 Bibliography

• Parul, Justin, Business Environment Tata McGrae HILL.

• Worthington ,Ian and Britton , Chris
• Gulshan. S.S Business Law
• Parthak, Akhileshwar, Legal Aspects of Business
• Gopal, Namita, Business Environment

17