Essay on Factors Affecting Business Operations

Paper Type:  Essay
Pages:  4
Wordcount:  947 Words
Date:  2022-07-15


Various forces affect the way that businesses operate, and some of these elements are the external factors which are the macro-environment issues outside the entity. An organization usually has no control over them and the management must ensure that the business is well-suited to counter them. The macro-environment factors to be analyzed in this case will be the demographic, technological and cultural elements. On the demographic factors, various market segments are affected by different forces which may include the ethnicity background of the clients, age, educational levels, the cultural characteristics, and household lifestyles. It enables the manufacturers to understand the kind of people that they can target that will offer a suitable market for the goods and services they are offering. By focusing on the current demographic trend, the producers can get to forecast the possible changes that may affect the market operations. The expansion and growth of Deliveroo can be affected by changes in the demographic structure of the market through cases like cultural features. Some communities do not consume certain products because of religious and cultural beliefs, and this means that if the company sells its products in such a market, there is a high probability of reduced sales level and limited growth. Therefore, the organization should carry out research and determine if the consumers have some believes that can limit their ability to consume the commodities it is supplying. A household lifestyle is another issue that can affect Deliveroo growth considering that currently, a lot of people are deviating away from the consumption of junk foods due to the increased cases of lifestyle diseases. A significant section of the population is moving towards the issue of consuming whole food or the organic goods, and this is an issue that the management must be aware of when they are producing their commodities.

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The advancement in technology is an issue that influences the operations of any business. In most of the instances, innovations lead to the production of high-quality goods and at a low-cost meaning that a firm manages to sell in large quantities since the consumers will have the capability to buy the goods. Therefore, the officers in charge of the firm must be ready to adopt the latest technology in the market to ensure that the company remains relevant (Feimi, Kume & Pulaj, 2016). Additionally, it can be noted that the firm is mostly dealing with customers online and this is an indication that it has taken a step towards digitizing its operations. Therefore, the technological changes in the market may affect the way that the entity is doing its business. If the entity fails to replace the old system, it may end up incurring huge costs in running its operations meaning that its products will be expensive in the market and unmarketable. At the same time, the organization is relying on online services to market its products. It must ensure that its target customers can manage to access computers and the internet since these are the two main platforms they can use to make purchases. If they are not available, Deliveroo may not manage to make the rights sales.

The socio-culture factors makes identification of the culture that is predominant in a given target market and provides a firm with the knowledge of whether an area has a mixed population or not. If a given region is inhabited by various tribes that have differing cultures, then the business must be ready to find the suitable strategy to communicate and sells its products. One of the cultural trends that may affect the Deliveroo trend is some activities that my erode people's behavior being considered as harmful to the society. The issue may lead to the number of consumers to reduce. The quality of the commodities being considered not to be of the right quality may also lead to the number of clients purchasing the goods to decline and trigger sales reduction.

The five levels of the consumer hierarchy are the core benefit, augmented, basic, potential, and expected products. The core benefit covers the services that consumers are purchasing and the need that it is expected to meet. The basic product covers the measures presented to the consumers and the mandatory requirements. The expected products involve the conditions and attributes that the clients expect to get when they buy a given commodity. The augmented products are the additional services and benefits that a client manages to derive extra satisfaction with a measure to ensure that they are happy and satisfied with the quality of commodities delivered (Schiffman, O'Cass & Paladino, 2013). The manufacturers must remain innovative and manage to produce future commodities that will become a hit in the market and fetch a lot of earnings for the business.


The product differentiation measures work towards ensuring that a given commodity is unique and different from similar commodities that are already selling in the market. The strategies that the firm can adopt may include convenience, price, quality and channels of distribution. By convenience, the company should ensure that its products are easily accessible by the consumers. Its prices should offer value for their money meaning that they should sell the commodities at high prices if they meet the desired quality levels. The quality of products should be high to ensure they get to meet the consumers' needs and satisfaction. The distribution channels should be effective to ensure that the commodities reach the consumers at the right time.


Feimi, D., Kume, V., & Pulaj, E. (2016). Macro environment and innovation in service sector. The evidence from Albanian context. European Journal of Sustainable Development, 5(2), 137-142.

Schiffman, L., O'Cass, A., & Paladino, A. (2013). Consumer Behaviour. Pearson Australia Pty Ltd.

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