Q1. Impact of the external world on business decision making (mini scenario)
Describe two reasons why high street business are closing in the UK.
The external world plays a critical role in decision making by businesses through factors such as competition, legal, social and changes in technology. High street businesses such as Prezzo and Jamie’s Italian have announced plans to close while others such as House of Fraser and New Look are looking to shore up their finances (Thomas). There several reasons that have contributed to impending closures and experts have projected the trend to continue. One reason for the closures is the squeezed incomes. The reason for the squeezed incomes includes discretional spending that has resulted from the rising prices of goods and the weakening of the wage growth. Since the Brexit vote, a lot has happened to the UK economy like the weakening of the pound by up to 15 percent which has pushed inflation by three percent which falls out of the two percent anticipated by the Bank of England. The occurrence has caused the costs of imports to rise and this has been passed to buyers.
Similarly, the consumer’s wages have been raising at a slower rate compared to inflation hence they are left with less disposable incomes that they can use in the shops. The Brexit vote has made it difficult for customers to purchase thus the sales have been dwindling among the stores. Another factor for the closers is the increase and shift to online shopping. E-commerce has been growing at an unprecedented rate, and this has affected the survival of physical stores in many parts of the world. Giant online sites like Amazon are taking the shopping world by storm. Consumers have opted for online stores since they are cheaper and convenient than shops. Although some stores are struggling to venture online they competition is immense unless they show value to customers. Only a few stores have succeeded in setting up online sites while the rest are being threatened with closure in the UK.
Q2. Business and Society
Discuss three reasons why women should be appointed or not to boardrooms for gender equality reasons.
Incorporating women is not just fair but can turn out to be a smart business decision based on qualifications and substance they bring in the picture. Therefore, in most cases, companies base their selection on competence rather than gender equality. In some cases, they only a point few women in the board to meet the criterion of representation. Women should be appointed on boards for various reasons but most of which involves their skill sets and the value they bring on the table. One reason for the appointment of women should be because diversity yields better results than a men-only board. Research conducted using data provided by PWC and AICD on the 30 percent club has revealed that women bring skills that a board consisting exclusively of men lacks (“30 Percent by 2018”). The study also points out that the largest companies in Australia have more female board members with experience in sales, marketing and consulting than their male counterparts.
The second reason for appointing women is that they lose less money compared to only having men. Men who seat on boards lose money in overpriced takeovers and in most instances aggressive ones who want to outperform their opponents are prepared for higher risks. Women are required to provide a balance that facilitates better decisions in corporate finance, mergers, and takeovers. Many decisions made by men are driven by ego whereas women are more objective and strategic. Despite the two benefits for the inclusion of women, there is a danger in forcing equality in boards. Roger Montgomery who is a billion-dollar fund manager has asserted that equality should be organic and not pressed. Circumstances may make it difficult and inappropriate to find enough women to seat in the board even though a business seeks such appointments.
Q3. Technological environment and business
Describe how social media can make a retail/financial business of your choice more productive and competitive in the global marketplace
Social media increases brand awareness. Businesses are embracing social media as a market tool due to its effectiveness in increasing visibility and syndicate content. Bulb is a company based in the UK and provides 100% renewable electricity to more than 300,000 households (Smith). The company can increase its client base and establish international presence if it adopts social media with many countries seeking to go green. A social media strategy will ensure the brand is known globally as it will be able to engage with a broad clientele. Social media also provides more inbound traffic, and the business will be able to reach clients outside its customer circle. The business conquers and enhances visibility and chances of people reaching the business organically is enhanced. Through the use of social media, the company opens its doors to a diverse group of versatile clients from across the globe. Another benefit of social media is that it improves customer satisfaction. As a communication platform, it humanizes interaction with clients through posts and comments.
Moreover, customers feel appreciated when they receive personalized feedback rather than automated messages which are offered by social media. Eventually, the interaction almost guarantees brand loyalty for the company which is one of the main goals of any business. For instance, the millennials which compose of substantial market segments are loyal to brands that are easy to interact within social platforms. The company can tap to this opportunity and expand its reach on a global scale. Social media is cost effective as companies can market their products in most platforms free of charge or use fewer funds compared to other marketing strategies. The cost-effective nature of social media benefits the company as it yields a greater return on investment and the savings can be used for other business expenses.
Q4. Planning your career
Briefly describe your ideal career in a given industry (LAWYER CAREER) and explain the internal and external factors that could affect your chosen career path
My ideal career choice is being a lawyer. This choice is influenced by several internal and external factors. Internal factors are inbuilt and have played a crucial part in influencing my desire to pursue a law career. Other internal factors I have researched driven by my passion and I have been convinced they are achievable. Internal factors such as personality and interests are very instrumental in choosing a career in law as a lawyer one is required to have good communication skills both oral and written. The career involves writing numerous legal documents and respond to frequent arguments in a clear and concise way.
A lawyer is supposed to have interpersonal skills as they interact with diverse individuals in their line of duty of whom some may be undergoing emotional turmoil. To understand the needs of the client's lawyers are required to have the ability to interact with confidentiality and naturally. A lawyer must have the ability to process information in the sense that they can determine the crucial points in a case. After identifying the key points, they should accurately relate it with the legal knowledge accordingly. They should have a deep understanding of the practical implications and legal theory of their cases. Lawyers should also be well organized. They must be time conscious and good timekeepers to operate effectively. The career demands long working hours and enormous workloads hence one is required to plan efficiently. External factors include the cultural and society understanding of the career as respectable and able to sustain my family and contribute to society. My role model is also a lawyer, and he has impacted positively in the community, and this has influenced my decision to be a lawyer in a big way.
Works Cited
“30 Percent by 2018.” Australian Institute of Company Directors (AICD), 08 Nov. 2018, www.aicd.companydirectors.com.au/advocacy/board-diversity/30-percent-by-2018.
Thomas, Daniel. “Six Reasons behind the High Street Crisis.” BBC News, 1 March 2018, www.bbc.com/news/business-43240996. Accessed 18 Dec. 2018.
Smith, Oliver. “Bulb: The Bright Startup That's Shaking Up Britain's £54bn Energy Market.” Forbes, 5 Mar. 2018, www.forbes.com/sites/oliversmith/2018/03/05/bulb-the-bright-startup-thats-shaking-up-britains-54bn-energy-market/#58f21e04c04f. Accessed 18 Dec. 2018.
