PE7003 The Business Environment Assignment

1. Introduction

The business environment refers to the factors that influence the operations and growth of a company, it consist both internal and external factors. In other words, business environment refers to the sum of external and internal factors including employees, customer requirements, supply and demand, suppliers, market trends, economic changes, technological, social, legal factors and so more. The present report will base on Ryan Development Ltd, a company engaged in construction of building. The organization engaged in furnishing the exceptional services within the England for the previous 8 years (Ryan Development Limited, 2025). Organization engages in development of building projects, construction of domestic building and purchasing and selling of own real estate. The report will evaluate operating environment of the company while applying appropriate strategic management theory and its impact on the company. Further, it will outline current strategic position of company and accordingly identifies two strategic options and justify a single one best for the company. Also, it will explain the key principles of successful change programs for effective application of the selected strategic option in an effective and efficient manner.

2. Organisational Operating Environments

2.1 External Operating Environment

Ryan Development Ltd. operates in a complex and dynamic environment as several different factors significantly impacts operation of the company in the vital manner. For the succession of the organization, company has to make changes according to the changes taking place in the operating environment. There are two kinds of external operating environment such as micro and macro. Micro environmental factors directly impacts company`s operation whereas macro factors indirectly influences (Prasetyo and Ellitan, 2023). The influence of these factors are beyond the control of the organizations but it significantly impacts strategic planning decisions.

2.2 Macro External Operating Environment

The factors within the macro external operating environment are complicated and unpredicted for the management team of the company. The key factors in a current operating environment of the Ryan Development Ltd, evaluated with the help of PESTLE analysis. The PESTLE analysis helps in identifies the external factors that exist in operating environment of the company that leads to significantly impacts operation of the company (Eierle et al, 2022). The model allows the organization to studies key factors including political, social, economic, environmental, technical and legal that have great impact on organization. Key factors in current operating environment of Ryan Development Ltd and its impact is as under:

Political factors: The factors include rules, regulation of the government, political stability level and so more. The United Kingdom have a sound political structure, better trade relations with the other countries. This factor leads to impacts the Ryan Development Ltd. to grow and develop the organization in terms of business expansion in smooth and ease manner.

Economic factors: It consists factors such as rate of inflation, interest, employment level, economic growth and so more. During the year of 2025, the estimated UK GDP growth 1.6% that is 1.5% in 2024 (GDP growth UK, 2025). Improving GDP growth leads to increase consumer spending power, this leads to increase demand for developing building result in increasing company`s revenue.

Social factors: It includes factors such as demographics, customer taste and preference, family size structure and so more. The structure and size of family also uncertain the nature and frequency of purchase made. In United Kingdom, the trends of nuclear families increase. These factors leads to increase demand for the building constructing company, result in greater demand, profitability and revenue for the organization (Tagnan et al, 2022).

Technological: In current business environment, with the introduction of technological advancement, adoption of techniques such as artificial intelligence, automation, robotics and so more increase within the construction industry. Adoption of technology by the Ryan Development results in smooth operation and proficiency of company. However, it also negatively impacts the business as it leads to increase cost of operations leads to declines in profit level.

Environmental factors: Presently, government and customer become eco-conscious, hence requirement for eco-friendly practices within construction industry increases. Ryan development also focus of applying recycling, waste management within the construction project, this leads to impact company`s reputation in positive manner, result in more building contracts from eco-conscious customers.

Legal factors: The factors include laws of the government such as health and safety, employment law, anti-discrimination law and so more. During the construction project company emphasize on compliance with the law by ensuring health and safety of workers via providing equipment, providing sufficient wage and so more (Kineber et al, 2023).This leads to impacts company goodwill and grab more employees.

2.3 Micro External Operating Environment

The factors of micro external environment directly impacts organization operations. The main factors that affected business are customers, suppliers, employees, competitors, market intermediaries and so more. For evaluation of the factors of the micro external environment, porter`s five forces applied. The model used to recognize and evaluate the competitive forces within the industry. It is as under:

Buyer`s power: Buyers `s bargaining power is low as there is few construction company as compared to number of buyers. Also, there is high product differentiation makes difficult for buyer to get alternative firm.

Supplier`s power: Number of supplier is greater within the industry as compared to buyers. Therefore, less control of supplier over the prices, hence weak supplier`s bargaining power (De Widt, Llewely and Thorogood, 2022). Also, products are less differentiated result in low switching cost, it leads to influence company to get materials at fair prices.

Threats of new entrants: Within the construction industry, threats of new entrants is a weaker force. Rigid government policies, strict licensing make difficult for the new entrants to enter the industry. Also, establishment of business require high capital, hence, threats from new entrants is low. This leads to impact Ryan development to mark its presence effectively.

Threats of Substitutes: The industry has no or less threats of substitute as there is availability of few substitutes within the industry. It means that there is less likely chance for the buyers to switch to the substitute products. It leads to impact the company to earn more profitability by retain greater number of customer.

Rivalry among competitors: There is high competitor`s rivalry among the industry as number of companies working. This leads to negatively impact the company to sustain its profit level in efficient manner.

2.4 Internal Operating Environment

Internal operating environment of the organization consist company`s culture, value, communication structure, management system, leadership style. It also consists resources like financial, human and physical. Internal environment of Ryan Development Ltd. is as under:

Communication Structure: The Company adopt a formal but a free flow of communication network within the organization. This leads to motivates all employees to convey their ideas, opinion and suggestion in effective manner. This leads to impact company positively as it increase employee morale, productivity and performance correspondingly organization profitability and efficiency increase.

Physical resources: In the construction industry, physical resources play a crucial role. For the construction project, Ryan Development Ltd, have a different physical resources such as materials, tools, equipments like machinery, tractors, JCP, binding wires, warehouses and so more (Trubetskaya, McDermott and Ryan, 2023). It leads to influence the business to construction project in an effective and proficient manner.

Human Resources: It is one of the important resource of the organsation without it company`s operations are not possible. Ryan Development Ltd. have a talented, skilled and knowledgeable manpower that is efficient in construction including mangers, contractors, architect, equipment operator, foreman, engineers and so more. Efficient human resources of Ryan development allows the company towards the root of business expansion, better financial growth as well as competitive edge within the industry.

Financial Resources: Ryan Development Ltd, have a good financial resources that enable in free flow of business operations. During the pandemic, financial position of the company shattered as the demand of construction and buildings quite declines. The company with the pace of time enhances its financial position. God financial resources influence the company to sustain its business operations, adopts new technologies and gain competitive advantage in the market.

Intangible resources: It is one of vital driver of innovation and organization value. Intangible assets includes brand value, customer profiling, technology, reputation within stakeholders and customer and it act as a valuable source of competitive advantage (Jancenelle, 2021). Ryan Development Ltd has a good reputation and goodwill between the customer and stakeholders. It leads to impact the organization to grab the attention of more investors and shareholders, result in growth of organization.

3. Current strategic position

Strategic positioning refers to a strategy of business where an company differentiate itself from the competitors via creating a better value for its competitors. The strategic position of the Ryan Development Ltd identifies through application of the SWOT analysis. The SWOT analysis is practical and straightforward model and allows the organization to recognize own strengths, weaknesses, opportunities and threats. SWOT evaluation of the Ryan Development Ltd is as under:

Strengths: It identifies company capability to attain its objectives.

Diversified product and services: One of the main strength of the Ryan Development Ltd. is its different construction products and services such as constructing domestic buildings, engaging in real estate business and development of building projects. Different kinds of construction services results in attracting different type of customers, leads to sustain business operation.

Efficient and talented manpower: Another strength of company is its proficient manpower and human resources. Effective team of architects, general labour, engineers, contractors, managers and so more enable the organization to complete the project on time and according to requirement of clients.

Technology adoption and Sustainable operation: Adoption of emerging technology is important strength of company, enables in conduct operation in rapid, smooth and cost-effective manner (Wang, Zhou and Cao, 2025). In addition, adoption of sustainable practices such as using sustainable materials for construction, using waste management, recycling system allows in get competitive edge within industry.

Research & Development: Ryan Development Ltd focuses on research and development that act as an effective strength for the organization. This aids the company to innovate its construction methods, procedure result in enhance functional proficiency (Fei et al, 2021). In addition, this strength also allows the organization to recognize the business strategies of the competitors, to get competitive edge within the industry.

Weaknesses: It defines company’s limitation that act as a barrier in growth.

Excessive dependence on UK market: One of the weaknesses of the Ryan development is its greater dependence in UK market and lack of presence at the global level. Due to this weakness company`s operations majorly impacted at the time of economic uncertainty and political instability.

Financial constraint: Another weakness of the company is financial constraint as in the period of less demand or at the time of longer construction project, organization is unable to maintain sufficient financial resources.

Opportunity: It refers to the favorable chances available to the company.

Global Expansion: Ryan Development Ltd. has an opportunity to expand its business globally to overcome the weakness of greater dependence on the UK market (Badi et al, 2021). This leads to help the company to increase its market share, customer base as well as profitability.

Diversification: The company has opportunity to diversify its services beyond developing domestic buildings and projects to gain additional revenue streams.

Partnership: Company has opportunity to partnering with other construction company as well as estate developers for more housing projects. In addition, company has opportunity to collaborate with sustainable raw material company for sustainable projects.

Threats: Threats refers to risk associated with the company.

Economic Downturn: The significant threat is economic downturn to the Ryan development as at the time of recession, demand of construction of housing decline as decrease in customer spending power, result in major risk to financial soundness of the organization (Dyson, 2004).

Intense competition: Another threat is high competition within the construction industry as there is presence of various firms. Ryan development has to compete with the local and larger companies such as Morgan Sindall, Mez Construction ltd, LDB and so more.

Regulatory Pressure: Increasing government regulation for construction industry in terms of health and safety, environmental law act as a threat for the organization. It leads to pose a threat towards the depressing future prospects.

4. Strategic Options

Strategic option refers to a strategy for the betterment and growth of the organization in the future. Strategic option allows the company to move towards desired direction while overcoming current weakness and threats within the organization. The two strategic options for the Ryan Development Ltd is as under:

Market Development: One of the strategic option for the organization is market development. According to Ansoff matrix, it refers to a strategy of selling existing products to the new market. Referring to the strategic option (Aditiya and Kirana, 2025), Ryan development Ltd focuses on entering international market of Germany to provide its construction services to the new market and decline the high dependence in UK market. The strategy has:

Advantages:

• The strategy help the company in increase market share and overcome weakness of reliance on one country.
• Get partnership opportunity at global level, better brand recognition and increase in revenue.

Disadvantages:

• Company will face difficulty in operational complexities and compliance with rules, regulation.

Product Development: Another strategic option for the organization is product development. In the context of Ansoff matrix, it refers to an option of introducing new product or service to the existing market (Edwards, 2021). According to the option, Ryan Development Ltd, emphasize on diversified its services by act as an equipment lessor. The company provide rental services or will engage in supplying the tools and heavy equipment that are important for getting the construction job.

Advantages:

• It allows to utilizes potentially underutilized resources
• This option allows the company to add in revenue stream.

Disadvantages:

• It can negatively impact the main construction activities of the company.
• Increase cost of operation as demands manpower and proper management.

5. Suitability, Feasibility, Acceptability

The SFA model allows in identify the suitability, feasibility and acceptability of the strategic option of company before it’s commence. It is as under:

Particulars	Market Development	Product Development
Suitability	It increase company`s market share and growth. It increase company revenue and reputation, hence suitable	Build a positive impact on the company`s financial resource
Feasibility	Company has ability and resources to expand business, hence it is feasible	Company have suitable manpower, resources for the strategic option
Acceptability	Ryan have capability to compliance with international regulation	Opportunity to increase profit out of under-utilized resources

6. Preferred strategic options

The evaluation of both strategic option i.e. market development and product development for the Ryan Development Ltd by identifying advantages and disadvantages and applying suitability, feasibility and acceptability model, it is analyzed that market development is one of the preferred option for the organization . From the current strategic position of a company, it is recognized that it has greater reliance in the UK market which limits its growth, financial resources as well as development prospect (Lynch, 2018). Thus, the strategic option of market development allows the company to increase its market share, and brand value at the global level as well. In addition, the option also protects the company from the negative impacts of economic recession as at such a time company can maintain its revenue stream via the operation in the another country. In addition, accessing to the new market enable the organization to access new resources, techniques, methods and technologies result in increasing efficiency and lowering cost aspect. Thus, the strategic option from the view point of market share, better profitability, decline reliance on one country and accessing to better resource and technology is quite act as one of the preferred strategic option.

7. Change Management

Change refers to the process of transforming and modifying something in a different way than it is in the present. Errida and Lotfi (2021) stated that the change is essential for the business growth and development and leads to the long-term survival of the venture. This can be the situation for the employees which is difficult to accept by the workers in the company. The business can handle this by using the change management, principles and models which helps in adopting to the transformation in a better way (Bagga et al, 2023). Ryan Development Ltd. has strategized to enter into the new market that can bring greater business opportunities. It will lead the firm to meet its expansion objective and earn higher revenue in the market. Kotter’s change management model can help the company to establish this change by following the stepwise process which is as follows:

1. Creating the sense of urgency- On the basis of this model, Ryan Development Ltd. will focus on creating the sense urgency among the employees. This is effective in informing about the need to change of entering into the new market.
2. Form coalition- This will help Ryan Development Ltd. in building the team that can work on this new project. The venture will identify the key people and involve them in this process. It is beneficial in making the people feel valued and ensure their participation (Ackerman, 2023).
3. Strategic vision- Communicating the vision is essential as it leads to the understanding in the team. The leader must be prepared to share with the staffs in order to get their support and engagement in the project. This gives staffs the idea on the importance of the change which is entering into the new market. It gets the acceptance of the workers and lead them to match it with the organisational goal. The strategic vision of the Ryan Development Ltd. includes gaining the attention of the consumers by 30% by the end of the quarter. It also involves the increase in the sale of the goods by 15% within the next 6 months and profit generation of 38% during the first year.
4. Communicate vision- Communicating the vision to the large number of the people can be challenging in knowing individual acceptance. It can be communicated on the individual basis rather than as a whole (Islam et al, 2021). Through this, Ryan Development Ltd. will work on better people involvement and also in identification of the people’s concern and addressing them. It will help the team in following the directions to the goal achievement and meeting the vision.
5. Eliminating the barriers- This is crucial for the smooth establishment of the change in the organisation. Ryan Development Ltd. managers with the team will focus on identifying the issues that may occur during the process of entering into the new market and lead actions on the basis of that for example, availability of the funds, etc.
6. Creating the short-term wins- The short-term objectives are helpful in gaining the information about the progress achieved during the process of the change. This also benefits in giving the motivation to the employees and team by setting the milestones for the attainment of the higher goal in Ryan Development Ltd.
7. Sustain the change- This involves keeping the focus on the first achievement and channelizing the activities in the direction of the achievement of the set goal (Rachmad, 2022). Changes are needed to be measured and calculated and the small achievements adds to the final goals of the Ryan Development Ltd.
8. Implement the change- This is the final stage where the change is established and require action to continue it. Ryan Development Ltd. will evaluate and keep measuring the results and check if the actions are carried as per the desires or not.

7.1 Resource Allocation and Budgeting

When implementing the change, the resource allocation and budgeting is essential for ensuring the goal achievement in the desired manner. Bartocci et al, (2023) mentioned that it involves the organising the funds and other requirements for the process of establishing the transformation in the venture. It is a vital concern when forming any transformation in the business. Ryan Development Ltd. will work for the budget planning by using the leadership in the firm. The leadership plays the most important role in making the decisions in the company (Valle-Cruz et al, 2022). The managers can understand the need of the materials in entering into the new market. There is need of the additional funds for investment, acquiring the materials, new employees, market research, etc. This will be decided by analysing the requirement based on the targets. The people are the most important resources of any company which plays crucial role in executing the plans, organising the actions and bringing new ideas into the venture.

Ryan Development Ltd. can impact the behaviour of the team and involve them in the resource planning. As per the views of Wampler et al, (2021) this has significance in identifying the need and allocating them in an effective manner. There is need to make budgeting in the company for the process of establishing the change into the business. Budgeting means the allocation of capital into the various activities in the firm. This is a guided plan that formulates the policies in the allocation of the financial resources into the various activities in the company (Okeke et al, 2024). Ryan Development Ltd. will need the funds for the purchasing the supplies, hiring of the labourers, marketing, and HR training and development process. It will also need money to invest in the market research and promotion of the brand in the new country. It will be analysed through the investigation of the previous financial reports and accounts and the future requirement of the capital. The major part of the capital will invested in the market research and planning to gain the in-depth knowledge about the market trends going in the marketplace. In this way, the organisation will effectively make use of the resources and finance need for the development in the place.

7.2 Monitoring and Control Process

Monitoring and controlling process refers to the activity of tracking, reviewing and regulating the progress as well as performance of the strategic plan. The company monitor and control the process according to the goals of the strategic plan.

Goal: To increase the company profitability by 10% in the next month through the strategic plan of the market development i.e. expansion in the Germany market during the timeframe of one year.

Ryan Development Ltd. to monitor and control the process focuses on using the Key Performance Indicators. It act as a quantifiable measure of a performance over a time of particular objective. The company monitors it by considering KPI such as:

Sales qualified lead: The organization monitor the progress of the strategic plan via sales qualified leads. It refers to how much construction project undertaken by the company, it leads to help in measure the level of revenue and profits earn by the company in the particular period of time (Suárez and Reyes-Menendez, 2023).

Profit by product: This KPI measures the sum of total profit that company able to generate from each construction project in the global market during a particular period of time. The metric allows in measure level of profitability from the global level and accordingly allows in taking appropriate actions.

Thus, the strategic control hrelp in attain the goals of strategic option of market development in the effective and efficient manner. This allows in making the strategy a successful one.

Conclusion

As expressed, business environment includes internal as well as external factors that significantly impact the operations of the organization. The present study based on the construction company of the UK named Ryan Development Ltd. The report outlined the key macro factors that impacts the company such as economic growth increase demand for company, technical factor ensure smooth operation and so more. However, the micro factors that impact company are high competition level, bargaining power of supplier and so more. Further, to identify current strategic position of company SWOT analysis use, it define company strength of diversified product and services, efficient manpower and weakness of great reliance on UK market and limited financial resource. According to this, the report highlighted two strategic plan such as market development i.e. expansion in Germany market and product development i.e. engage in equipment lessor activity. In context of this, through SFA model, recognize that market development is one of the preferred option.

Furthermore, the report explained that company implement change of the market development with the help of Kotler change management model. Company emphasizes on communicating reason for change and reward early adopters. In addition, via effective leadership allocate resources such as finance, human and physical one.

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Refreneces

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Online

Ryan Development Limited. 2025. Online. Available through: <https://find-and-update.company-information.service.gov.uk/company/11240508 >

GDP growth UK. 2025. Online. Available through: <https://commonslibrary.parliament.uk/research-briefings/sn02784/#:~:text=The%20IMF%20lifted%20its%20forecast,2026%20forecast%20unchanged%20at%201.5%25.