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Foundation of Business Communications - Individual Report and Reflection

Business Analysis – Love Chin Chin

ABDULWAHHAB M ALMAULY

Table of Contents

1.0 Introduction

2.0 External Business environments

2.1 Competition

2.2 Government Policies

2.3 Natural forces

2.4 Demographic factors

2.5 Technological changes

3.0 Industry data analysis

3.1 SWOT Analysis

3.2 Strengths

3.3 Opportunities

3.4 Weaknesses

3.5 Threats

4.0 Understanding the PEST Factors

4.1 Political

4.2 Economic

4.3 Socio Cultural Factors to Consider

4.4 Technological Factors to Consider

4.5 Take Action

4.6 Key points

5.0 Analysis of the competitive position of Lovechinchin through Porters Five Forces

5.1 Composition of Forces

5.2 Competitive Rivalry

5.3 Threats of new Entrants

5.4 Threats of Substitutes

5.5 Bargaining Power of Buyers

5.6 Bargaining Power of Suppliers

6.0 Conclusion

7.0 A personal Reflection Based on Learning Experience

7.1 VARK

7.2 What I found

7.3 What I Learned

7.4 Working with others

7.5 Learning Experience

1.0 Introduction

This report suggests discussing how a business is impacted by the external operating environment affecting business, in array to bring sustainable buyer value to consumers' in the market. This sustainable buyer value is delivering in an effort to ensure the security of market share, plus increase the effectiveness and revenue of the existing business.

This statement will as well include personal application of models, theory, and analysis of the business- how it is impacted by environment influences in addition to how the current business performance and marketing policies will best go well with the introduction of latest Products, whilst still sustaining the existing produce range (Owen, 2011).

Love Chin Chin is an eminent West African festival snack eaten at birthdays, parties, and weddings or when you fancy with these new handy packs (Mauk).  It's a delicious snack that munch like a biscuit but taste like cake, moreover it's available at love chin chin in vanilla and cinnamon flavors for just a few bucks a pack (Lovechinchin).

2.0 External Business environments

These uncontrollable forces in the external environment are:

2.1Competition:

Competition refers to numbers of similar competitive produce brands' marketers in the industry, their size plus market capitalizations (Owen). The company as a marketer may not have direct influence on them, but it is important that they monitor their activities, in addition to then design effective strategies using your controllable variables. In this regard Love Chin Chin will look out to other foodstuffs and snacks brought to the market, through market research (Hall et al, 2008).

2.2 Governmental policies

Government policies refers to laws and authenticity that gourds the land, they go long way to affecting the business procedures as a marketer. For example, government limitation on the importation of the particular produce might hold back the marketers playing in that exacting field (Owen, 2011).  And the taxation, free market laws might hinder the fast growth of the company.

2.3 Natural forces

Natural resources refers to the corporeal environment, it comprises of the accessible or lack of ordinary resources that can obstruct or vacillated the organizations production output (Owen,2011),  that means if the law materials in the production are not found locally it will affect the company negatively in terms of incurring high importation costs example on cinnamons.

2.4 Demographic factors

Demography refers to learning of populace, for example their age, marital status, occupation, sex, family size among others (Owen, 2011).  Though, demography is uncontainable because an organization cannot control the factors in your external environment, but correct forecast of demographic goes a long way to enabling the marketer forecast future tendency plus consumptions of the product. In this case most individuals regardless of their sex or gender loves chin chin's food products.

2.5 Technological changes

Technology poses much challenges to marketers, it influences the kind of product that the marketer can offer. One cannot stop the advancement of technology, but they can learn to adapt to it changes (Kotler, P. et al, 2013).

Nevertheless, it should be noted that while an external environmental force affect a business, it may generate an opportunity to another one. So the marketer is required be on a look out to predicting possible changes in external environment so he can design effective tactics on how to adapt his business to it (Owen, 2011). Like for example love chin Chin Company have created a platforms where customers purchase their products online or use the networks social media to interact with the company. It is a good strategy for brand awareness and engagement of consumers (Kotler, P. et al, 2013).

3.0 Industry data analysis

Industry study, an assessment tool intended to offer any business with a plan of the density of a particular industry. It entails reviewing the marketing, political and economical aspects that influence the way the industry expands. Main factors may include, the power wielded by buyers and suppliers, the situation of competitors, plus the likelihood of new market entrants (Jain and Jain, 2014).

3.1 SWOT Analysis

Users of the SWOT analysis may therefore use the first two sections (Strengths and Weaknesses) in aiding them identify all of the internal factors. The last two sections (Opportunities with Threats) are be used to identify the external factors (Wolinski et al, 2009).

3.2 Strengths (Internal factor - Positive influence)

Love Chin Chin are fully best at providing excellent produce and marketing them technologically. They come up with a great team of marketing. Similarly they have a smart production team wich comes up with new brands of products of quality, raising their customers number. The Chin Chin Limited has not had any kind of bankruptness and hence have a good reputation. When it comes to connections they have quit a variety especially to those who aid in marketing and selling their commodities. They are the huge company making the food snacks hence have a potent bargaining power with their suppliers (Lovechinchin).

3.3 Opportunities (External factor - Positive influence)

The change with technology they have is used fully. Looking at opportunities the firm have to know:

• the weaknesses in them that competators can use to their advantage.

• Development of an area with infrastructures' and institutions of higher learning and the areas with dense population is also an immense area where Love chin chin have to exploit fully.

• They need to prepare on the new kind of markets that might be opening to them (Wolinski et al, 2009).

3.4 Weaknesses (Internal factor - Negative influence)

They have to learn the things that they do that discourage customers. Whether the organizations intellectual property is outdated. What training does the workforce lack or need to learn. What is the company's financial position? The connections and alliances they should have, but are lacking (Wolinski et al, 2009).

3.5 Threats (External factors / Negative influence)

The agenda's that competitors should be able to do to harm their organisation. New government legislation and policies that might damage the company's interest. Learn the social changes might threaten the company. How the economic cycle will affect the company.

4.0 Understanding the PEST Factors

Before using this analysis, one should understand what each of these factors in this analysis signifies.

4.1 Political

Here government regulations plus legal factors are assessed in terms of their likelyhood to affect the business environment with trade markets. The major issues addressed in this section are; safety regulations, political stability, trade regulations, tax guidelines, plus employment laws (Appa Rao, et al, 2008)

The views of the contendors of power on business policy, in addition to other policies that could affect the organisation. Depending on the state, how developed are assets and property rights and the rule of law, and the widespread of corruption . How are the situations likely to change, and how likely they are to affecting the orgasnisation. Could any pending legislation and taxation changes affect the business, either negatively or positively (Appa Rao, et al, 2008).

4.2 Economic

 Through this factor, businesses studies the economic factors  that are bound to having an impact on the business. This would include factors as; interest rates, economic growth, policies, the unemployment rate and inflation, with the business cycle previously in the country (Appa Rao, et al, 2008). How strong is the current economy, whether growing, , declining or stagnating. Are main exchange rates stable, or do they vary significantly. Customers levels of disposable earnings falling or rising, how likely it is to change in the next years. The unemployment rate, will it be easy to creat a skilled workforce, or will it be costly to hire skilled labor?

4.3 Socio-Cultural Factors to Consider

With the social factor, Lovchinchin may analyse the sociol economic environment of its market through elements such as:

 Customer demographics

 Lifestyle attitude

 Cultural limitations, adding education ( Boddy, 2008).

With this, a business can fathom how consumer needs are shaped plus what brings them to the organisation for a purchase. The population\'s age profile and growth rate, and how it is likely to change. Are generational change in attitude likely to affect what the business produces? What arethe societys' levels of education, social mobility, and health? How are they changing, and the impact they impose? What job market trends, employment patterns, and attitudes toward work can the marketer observe? What social taboos and social attitudes could affect the business? Have there been any recent socio cultural change that might affect the business? All these questions should guide one on following the write kind of business.

4.4 Technological Factors to Consider

How technology can positively and, or negatively impact the introduction of a brand or service into a market place is assessed there (Kotler, P. et al,2013).

Love chinchin  have to assess following factors :

a. the role of the Internet

b. lifecycle of technologies

c. technological advancements, and

d. the spending on technology research by the state.

In addition to the above, they could also look at any new technologies that the business could be using? Are there new technologies on the grobe that might radically affect the work or the industry? Do any of lovechinchin competitors have access to new technologies that might redefine their products? In what areas do governments and learning institutions focus their research? Could there be anything you can do to take advantage of that? How have infrastructure changes, positively or negatively affected work patterns. Are there existing technological hubs that the firm could work with or learn from? And are there any other technological factors that ought to be consider?

4.5 Take Action

Where significant opportunities have been identified, build the actions the firm will take to exploit them into the Business Plan. Where significant risks have been identified, Lovechinchin must take appropriate action to eliminate or manage them.

4.6 Key Points

PEST Analysis aids someone understands the Economic, Social, Technological changes and Political, that will shape your business environment (Boddy, 2008). One can use these headings to brainstorm the characteristics of a business environment. This provides a context for more comprehensive planning, within which one will be able to minimize risk and take full advantage of the opportunities that present them (Boddy, 2008).

5.0 Analysis of the competitive position of the organization through Porters Five Forces Model

Through his model, Porter classifies five main competitive forces that affect any market and all industries (Boddy, 2008). It is these forces that determine how much competition will exist in a market plus consequently the profitability and attractiveness of this market for a company. Through sound corporate strategies, a company will aim at shaping the forces to its advantage to strengthen the businesses position in the industry (Boddy, 2008).

5.1 Composition of Forces

Within every industry, the effect of different forces have be different. This is why it becomes imperative in develop this model separately on every firm even if a samilar company is competing across different industries and markets. The porters forces are divided into two; horizontal (Threat of substitutes, threat of new entrants, competitive rivalry) and vertical (Bargaining power of buyers and bargaining power of customers) forces (Boddy, 2008).

5.2  Competitive Rivalry

Among important force that Porter describes is on the degree of rivalry among existing industries in the market. If there are many companies competing with each other, the resulting competitive pressure will lead to prices lowering, profits and strategy will be driven by it.

5.3 Threat of new Entrants

The competitive hazard to a companies' business might not only be from existing players in the market but as well as from probable new entrants into the market place (Mauk).  If an industry is commercial, or rather attractive in a long period strategic manner, then it becomes attractive to new companies. Unless there are hurdles to entry in consign, new businesses may easily enter the market and alter the dynamics of the industry.

5.4 Threat of Substitutes

Within the framework defined by Porter, substitute products are those that exist in another industry but may be used to fulfill the same need (Mauk).  The more substitutes that exist for a brand, the bigger the company's competitive environment and the minimal the potential for profit. An example of this is that a boxed juice producer, water,  fresh juice and soft drinks are all substitutes though they exist in separate categories.

5.5 Bargaining Power of Buyers

When buyers have the power to affect prices in a business, it becomes a major factor to consider for a company.

5.6 Bargaining Power of Suppliers

Suppliers provide  raw materials needed to provide a serviceor a good. This means that there is need to keeping strong steady relationships with suppliers (Mauk).  Depending on the business  dynamics, suppliers may be in the position to dictate terms, set prices plus determine availability timelines. Powerful suppliers may increase costs devoid of affecting their own sales volume or lowering quantities that they sell.

6.0 Conclusion

Taking advantage on the Marketing environment the industries job as a marketer is creating effective flow of services and goods from the time of production to their consumers, despite numerous controllable and uncontrollable forces that do militate towards or against them while making profit for the industry.

By sorting swot issues into the six planning categories the marketer can obtain a system which provides a practical way of assimilating the external and internal information about the business unit, delineating long and short term priorities, hence allowing an easy way to build the management group which can achieve the objectives of profit growth. This approach captures the collective agreement plus commitment of those who ultimately will have to do the work of meeting or exceeding the objectives finally set. It permits the group leader to define and develop co-ordinate, goal directed actions, which under pin the overall agreed objectives between levels of the business hierarchy.

7.0 A Personal Reflection Based On Learning Experience.

One of the exercise we did was VARK. Vark was to express my experience as student.

7.1 VARK

VARK ( Visual - Aural - Read / Write - Kinesthetic )

Reflection on my results and action plan.

 Visual = 2. Sometimes I find it hard when only text and speech based tools are in use. My previous learning experience from childhood was more through oral education.

 Aural = 5. Aural learning is one of my strongest learning methods as I enjoy discussions and tutorials. I will carry on improving on this skill by getting involved with study groups in which we can talk things out. My current experience is with my job where I address any issues with customers by discussing and speaking out on any problems or delays caused.

 Read / Write = 6. I have a preference when information is displayed by words. Being able to read and write well are attributes I grew up with. From my past work life experience as shipping clerk I had to read a lot of information and correspond with a written report on performance. I plan to put more hard work into reading and writing as being able to read widely and write well are attributes sought employers.

 Kinesthetic = 3. My reflection on this result is that I disagree for I believe I enjoy exploring and learning through trying things out. Throughout my early days of education I learned a lot by exploring and trying out things. To date with my job as a taxi driver, I find myself getting to know more new routes by learning new routes through traveling. However improvement is needed. Therefore I plan to seek guidance from my tutors

7.2 What I found hard?

Paraphrasing

Paraphrasing is what I found hard. It involves using dissimilar words to reveal on what the speaker has said but of similar meaning.  Paraphrasing indicates that someone is listening, and he or she is trying to follow what the speaker is saying.

When paraphrasing, it is of utmost importance that one does not introduce their own thoughts or question the speaker's thoughts, feelings, or actions.  The reaction should be non directive and non judgmental.

7.3 What I Learned

• Increased efficiency

When working in a team, you are working towards a common goal or set of objectives. The whole process of your work becomes more efficient, for example if there is a problem faced along the way there are to help solve the issue. Similarly, having multiple team members on board allows you to get the work done faster with shared responsibilities

7.4 Woking with others

• Idea generation  

One of the greatest benefits of working in a team is the inspiration and ideas that can result from team discussions. When running ideas by one and other, there is a lot more scope for creativity in comparison to working on a project alone. When working autonomously and having a direct responsibility for ideas, people tend to present the safer option to their managers. Teams also bring people together from different backgrounds and levels of experience which can help in creating optimal solutions.

7.5 A learning experience  

As mentioned above, teamwork is important in the workplace as it brings people together from different backgrounds and levels of experience. Consequently, projects which involve teamwork serve also as an opportunity for professional development and learning. This may be conscious learning during a meeting, or learning which occurs without you even realizing whilst listing to others. It is quite possible that you can learn from someone else's knowledge which allows your own skills and capabilities to grow. This can help improve their attitude as well as increase their job satisfaction which is a win-win situation for employers.

Refrence List

Appa Rao, C., Parvathiswara Rao, B and Sivaramakrsna, K. (2008) strategic management and BUSINESS POLICY text and cases. New Delhi: Anurag Jain

Boddy, D (2008) Management: An Introduction, 4th edition. Harlow: Pearson Education

Hall, D., Jones R., Raffo, C. And Anderton, A. (2008) Chambers, I and Gray, D.(ed) Business Studies, 4th edition. Great Britain: Pearson Education

Jain, A., and Jain, P. (2014) Principles of Marketing: for B.Com-II Semester III and IV, New Delhi: VK Global Publication PVT Ltd.

Kotler, P., Armstrong G., Harris, L. And Piercy, N. (2013) Principles of Marketing, 6th edition, Harlow: Pearson Education Ltd.

Lovechinchin.[Online]. Available from: http://lovechinchin.com [Accesssed 09 November 2016].

Mauk, John. Culture. Print. 2001   

Owen, Andrew. Jamaica 2011 Special Report. London: Caribbean Investment Profiles Limited, 2011. Print.

Wolinski, J and Coates, G (2009). Business Studies, 2nd edition. Deddington: Hodder Education.

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