External Influence On Organisation Business Essay

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In Oct 2012, the Business Management teacher requested a report on Business Management, It is to be submitted by Monday, 17th 2012. I chose Texaco spar . The Texaco spar is located in Merrion Road Dublin 4, where I did my work experience and was supervised by the shop manager

METHOD OF PROCEDURE

In order to obtain relevant information, the following procedures were adopted to acquire the information in the report:

I worked in a Texaco Petrol station from 10th of Oct 2012 to 10th of Dec 2012 as part of my work experience and Business Management course in Ballsbridge College of Further Education.

FINDINGS SECTION

(a) Description of organisation

History of the organisation

This shop is divided into two parts, one called Texaco petrol station, other one called Spar Express.

Their suppliers from Texaco Limited Ireland provided Petrol to them and B W J Company provided Daily necessities to them So they are both chain of retailers from two companies.

And they are all family members run the shops, seven years ago, the shop owner was their parents now, this shop to their son to continue the operate.

The shop owner name is Mr. Shahzad

1.2. Chain retailers

1.3.Type of private economy ,their main purpose is profit foundation. After taxes the money they earned by their own domination, each employee can not get a fixed salary.

1.4 Type of service provided . In the shop, all of their merchandise from the chain's suppliers, such as the Texaco brand has marketed high-quality fuels, motor oils automotive gasoline lubricants and service in all cars oil. and with cheapest cars wash Free use of car tires pneumatic equipment. In the Spar express, their supplier to provide a lot of goods to them, and even newspapers and magazines, etc. They use the products to serve all customers and with good service.

1.5. For the Texaco petrol station, they service to all car user. For the Spar express , they service to all customers no age limit, no gender distinction between. But, the main consumers should be nearby residents and nearby hotel, the company's officer etc.

1.6.Organisation Chart

Manager

Staff

Staff

Staff

Staff

Me-Student

1.7.This Organisation structure is span of control and everybody report to the shop manager include me. In the Spar express I and all staff to do the same job , such as use cash register for cash, cleaning the shelves, write price trademark, check the validity of goods, car wash etc.

1.8. The shop no form of departmentalisation, a total of five people, with a department.

1.9.There is no various departments, is only a chain of small retailers shop. My duties is same work with all staff in the shop, such as cleaning the shelves, tidy up newspapers and magazines and check the validity of goods and use cash machine to service customers.

(b)External influence on organisation ( P E S T analysis)

International elements

At present, the international market, gasoline prices are rising, moreover, the growth rate of gasoline prices up higher than in previous years.

As gasoline prices rise, it does not mean that people's incomes increased at the same time. People's incomes are still stuck in the original level. So, for car households, they reduce the amount of gasoline use, In general, some people prefer to select the bus to go out or choose to ride a bike.

For the shop-petrol station: Due to rising gasoline prices, but also affect the income of the shop.

For the shop-Spar Express: As Ireland's entire market recession, leading to rising prices from suppliers. So the price increases affect people's consumption , affect the income of the shop at the same time.

For the shop, they want to expand the scope of business and to break the limitations, such as chain management.

Political elements

A government can affect business through its policies in relation to industrial and services developments, tax incentives and expansion schemes So, the policy change is a very important factor for the enterprise and the policy change can affect the development of the enterprise. e.g. Tax goes up, The development of the enterprise is restricted or is impeded , Changes in fiscal and monetary policy. World crude oil, currency and labor market. The scale of the government's budget. etc.

The Political Legal Context: This shop is run by all family members, so how much of the salary of each staff, there is no fixed standard. But usually, maybe euro 5 per hour. But sometimes give each staff a little more.

For the safety, so for I did not see any for fire protection equipment.

For the shop, the policy legal does not works

Economic elements

Tax increases, will affect the sales of the enterprise.

National economic recession, will inevitably lead to the enterprise economic recession

National macro policy control enterprise's economic development.

Economic decline will lead to rising unemployment

Economic recession-Banking crisis

For the shop, Sales layout and Resources. The level of economic development and the enterprise economic trends of the future are important.

Social Elements

Social Elements- Technical , Economic, Political, Legal, they affect the enterprise action and decision.

For the shop-Texaco petrol station, The car cleaning must use environmentally friendly cleaning products and recycling

The shop's network media publicity

Shop's product brochure,

Safety and security

Technological elements

Innovating new technology can promote enterprise development

Education, skills-It represents the energy of the enterprise

For the shop, they use the network technology to do the product promotion and sales. They also have a special professionals kill

Capital environment factors, can control the innovation of the enterprise.

Environmental factors, social pressure factors can affect the technology development

Inventions. New technologies. New processes and its application prospects etc.

1.6.Forces analysis

Threat of New Entrants

For the shop-Texaco Petrol station , their supplies from Texaco limited Ireland. Texaco is a famous brand in the world, However Texaco is seen not only as a petrol but also as a brand. It has a very significant market share for a long time and loyal customers are not very likely to try a new brand petrol.

For the shop: Their competitors are adding new retailers, which will transfer the customer's attention, at least to give customers a new choice.

Threat of Substitute Products or Services

Maybe producers, consumers, companies and developing nations to coordinate their efforts in synchronising the introduction of new energy sources to replace oil. They are new competitors to Texaco.

A good service will receive a good feedback from customers. Although the products that you sell is a well-known brand, but your service is the worst, this will cause your customers to run away from you.

Bargaining Power of Buyers

For the shop-Texaco station: The main competitor, other company 's new brand of gasoline and good quality with low price.

For the shop-Spar Express: As a small shop, so merchandise is also less. They can not be compared with the large retailers.

The Bargaining Power of Suppliers

Their suppliers can control their chain of retail stores. In the shop, their suppliers does not allow the shop to sell other brand of goods.

Rivalry Among Existing Firms

Between manufacturers, each introduced new branded products to attract customers and reduce the price, to expand their operations forces.

Competition between small retailers, they need good service, they need to develop a good sales plan to sell their products.

(c) Internal influence on organisation

Resource Based View

For the shop-Spar Express:

There are two ATMs of the Bank of Ireland, it is convenient for the people's withdrawal, people do not need to run a long way to go to the designated banks. The cash machine is set in the shop, the resources should be considered a mutual benefit with the Bank of Ireland. Also give the shop brought a competitive advantage.

For the shop-Texaco petrol station:

All gasoline form Texaco Company, famous brand with good quality. Texaco company was founded in 1902, their production of gasoline has always been accepted and default by the people. So this brand of gasoline is not easily to replaced. This should be considered a resource, because it brings a competitive advantage.

For the shop: In addition, a valuable resource, their parents transferred over to the son of the shop has been operating well.

Value chain analysis

The shop is located on a busy road, in addition to a few large companies, the rest belongs to a wealthy residential area. So, the shops occupy favourable conditions.

A small number of shop staff, so staff costs and overhead not much .But their business is busy, especially the petrol station, a day a lot of people go there, even queuing for vehicle refuelling.

These are due to the favourable conditions of the location to bring value to them.

In business, they control cost of sales and every year a new sales program launched. etc.

(d) Internal & External influence on organisation (SWOT analysis)

1.1 Strengths:

The shop on the busy road and with good location.

They belong to a well-known enterprises petrol of chain retailers.

They sell famous brand Texaco petrol.

For Spar Express also famous as well in Ireland

1.2.Weaknesses:

The Spar Express is not big enough, they need to expand the business.

They lack a sense of innovation. They need to add new equipment at the petrol station if so they can attract more customers to visit.

Opportunities:

On the surface, there is no opportunity to recruit people outside the family to work there. (except volunteers)

Threats:

In the same industry , if more people join the chain of retailers, they will have more competition and challenges faced.

And product quality, quantity, product sales price, these all need competition These are also the threats and challenges to the enterprise.

What are the implications of the SWOT analysis

SWOT analysis is the analysis the Advantage( Strength) and disadvantages ( Weakness), Opportunities and Threats.

SWOT analysis is a summary of the internal and external conditions for enterprises.

The analysis of the advantages and disadvantages of their own strength versus comparison with competitors.

Opportunities and threats to the analysis, if the external environment changes, whether it affect the enterprise. And enterprises must recognize its own resources and the ability to maintain a competitive advantage in the process.

CONCLUSION

To operate a good business, it not just for price with sales, it needs to conduct a market analysis and PEST analysis and SWOT analysis.

RECOMMENDATIONS

To develop new programs and to expand the scope of business of the shop.

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