MGT501 Initial Statement of Intent Part A: Business Environment Assessment Answer
Part A: Initial Statement of Intent
The business environment of any firm or sector can be explained with the help of two factors. These two factors are the External Environment and the Internal Environment (Głodowska, 2017). As the name suggests, the External environment consists of all the external factors such as GDP, the economic conditions of a certain country, the legal considerations, and demand and supply equation, and so on. The Internal environment on the other consists of factors such as business decisions, operational algorithm, and so on (Panayotou, 2016). I have developed this report with respect to the above information and by using Kolb’s Reflective Cycle to portray my understanding of the subject.
Statement of Intent
In this section, the entire description will be done on the basis of my learning, interpretation and thought about the course, and for that, I selected the Kolb's learning cycle. Kolb's learning cycle consists of 4 components that are concrete experience, reflective observation, abstract conceptualisation and active experimentation (Husebø et al. 2015).
Figure 1: Kolb’s Reflective Cycle
(Source: Husebø et al. 2015)
The whole study experience has taught me the various principles of the business environment that I can apply in a practical business scenario. This can help in the active reduction of economic losses in a business. In layman's terms, what I have understood about a business environment is that the complete algorithm works on equivalent exchange. In order to receive a service or a good one has to provide something of equal value. These concepts of economic value have evolved over time, along with the economic, environmental conditions, but the core principles have remained the same all along. As per my view, there are various other factors that are also related to it, and in this course, I learned different aspects of the economic principle which will help me to understand the business environment. In this course, my entire focus was on learning different business context through which I can learn the various dimensions of the business.
It is very much important for me to get a higher study in the business environment to understand the different perspectives of the business and economic principles. My aim is to set up a small venture where I can input my learning in a proper way. It is necessary for me to understand the market demand before commencing the business operation in a full-fledged manner. I observed that sometimes, demand is high in the market, but production is not much viable to meet the demand. In such situation, effective steps are needed to be taken, and in this undergraduate course, I learned various business situations which will help me in future to gain the viable position in the market with my own venture. It is not an easy job to run the business without prior knowledge, and I think the proper observation of the different situations is needed and in this course, the various topics on the business environments and economic principles have been taught which helped me to learn the various aspects of the business. It is true that the nature of business is not stable all the time, and customer demand has been changing time to time which makes the business tough. Proper understanding of the economic principles and business nature will be helpful for me to gain the desired result.
In this undergraduate course, multiple exams have been taken to make us more efficient about the subject and also the various assignments we have done helped us to gain the prior knowledge on the business environment and economic principles. I attended all the classes regularly to gain the exact knowledge and also attained various seminars and workshops to enhance my learning. My main conceptualisation of the thought is that I need to be flexible in my decision making because it is true that for setting the new venture effective decision-making skills is required and prior understanding of the business economic principles is also needed. I analysed the feedback given by the assessor and tried to improve my performance gap so that I can gain the entire knowledge. I always maintain a viable communication with my assessor so that I can convey my idea and can get the feedback for further improvement. I think that in order to run a business successfully, providing customer satisfaction is the main factor and here I can apply my knowledge of the economic principle of decision making to bring the sustainability for my own venture.
For understanding the real-life scenario, I joined a shop for temporary basis so that I can gather enough knowledge about the business environment. I think that it is much important to transform the learning to the real-life and for that, I think joining a temporary job will help me to gain a proper idea about the economic principles of business, and I can implement it in future success. Learning which I got from this course will help me to undertake the higher study and also influence me to gain more knowledge about the subject so that I can set up my venture in a more convincing manner. I always try to help my boss by providing new ideas so that I can develop my decision making power and also can learn in a real-life scenario. Also, I communicate with the customers to understand the buying behaviour of the consumers and demand of the consumers. This will help me to evaluate the market more easily in future. I planned that before commencing any decision, I should have to consider other related factors so that decision can be viable to others and for the business. Taking risk is another factor that I learned in the course and for that, evaluating the potential risk for the business in the early stage would help me to minimise the negative impact.
The various aspects of the business environment that I have learnt about the business environment, which will help me to develop my own business venture. I have learnt about the various macro and micro business environmental factors that affect a business and how to use them in one’s advantage. I have also learnt the ways to differentiate between external and internal business environmental factors and classify them on various functions. The various economic principles that I have learnt will help me in maintaining a balance between profit and loss in the initial days of my business.