Marci Copeland
BUSI 1200-602
February 23, 2014
Business Reflection Assignment
The success of a business depends on the decisions made by business leaders in regards to the overall business environment. The general environment factors can affect all businesses globally, an entire market, or a particular industry, and are not business specific. Businesses have less control over these factors meaning there is a longer adjustment period. However, leaders must be prepared to make vital decisions to remain competitive. A few of the general environment forces affecting businesses are technology, economic, and political/legal. While general environmental factors are not business specific, the task environment directly impacts a business. Some of the task environment groups include: customers, government regulations, suppliers, competitors, and the media. Leaders must look at the entire business environment before making decisions that impact the businesses future and ultimately the bottom line and profit/loss of the business.
Technology Forces
Technology forces affect all businesses and is continuously changing. Business leaders must make difficult decisions to change with technology or be left behind. Applebee’s is an example of a business that is embracing technology by introducing tablets for customer use at its restaurants. All tables will be equipped with tablets for customer use that will allow them to place their own order, which allows them to personalize their food and drink selections to their specifications. Also customers can use the tablet to pay for their order as well as access games.
This is an example of how Applebee’s is setting itself apart and using technology to its advantage. Technology is a general environment force, however embracing in technology can make a business a leader in its industry. Applebee’s is trying to maintain a competitive edge over other restaurants in the technology force.
Economic Forces
Economic forces have a significant impact on businesses. Often there is longer adjustment and recovery time for businesses affected by negative economic forces, sometimes resulting in the demise of the business. Economic forces are a part of the general business environment and in recent years, many business leaders have made difficult decisions in regards to employment, pricing, and organization costs. Big box retailers, such as Wal-Mart and other discount retailers are providing price cuts to bring in customers hoping customers will spend more, however it is resulting in a reduction of their profit margin. Since this reduction can’t be offset with a price increase for the customer, costs are cut within the organization so profit goals can be obtained.
These costs cuts may include labor cuts such as inability to provide raises to employees, reduction in hours, or layoffs. Business leaders must make decisions that factor in economic forces so the business can be sustainable in their industry.

Political/Legal Forces
Political and legal decisions can change how a business operates and markets itself. Business leaders must be prepared to make decisions when rules are changed affecting businesses.
Intellectual property, such as patents, trademarks, and copyrights exist to protect the creators of such property. A dispute over the trademarked name, “Derby Pie”, between the company that trademarked the name, Kern’s Kitchen and the Claudia Sanders Dinner House that was using the name for their similar pie resulted in the trademark being upheld for Kern’s. While Claudia
Sanders Dinner House can continue to sell its pie, no longer can it be called or implied that it is
“Derby Pie”. This was not the first time legal action has occurred to protect the name of its famous pie, continually they have taken action to protect their trademark. This is an example of a general business environment and legal forces. Trademarks and other intellectual property laws were put into effect to protect infringement on names and images for Kern’s Kitchen.
Business leaders must make decisions when the potential for infringement of intellectual property rights exists. This may be thought of as a direct business impact, but court decisions regarding intellectual property rights can affect industries and non-industry businesses globally.
Customers
Customers are the driving force behind any business. Without customers, a business would not exist. Customers are a part of the task environment, which directly impacts a business.
Businesses rely on customers to meet their profit goals, therefore business decisions are designed with the customer in mind. Businesses are responsible for bringing the customers in, providing the customer what they want, and increasing their customer base. McDonalds is seeing a decline in its customer base and sales. Health conscious customers have been low-key on the new healthier choices being offered by the fast food restaurant. In an attempt to appeal and bring back customers, McDonalds “ will focus on speedier service, better value offerings” (Choi). This is an example of a direct link between the customer and the business. Business leaders must look at changes such as a decline in sales or a decline in its customer base, as McDonalds has to make decisions and changes in hopes that it will ultimately bring the customer back and increase sales.
Government Regulations
Businesses must adhere to government regulations, including all governmental agencies and requirements placed upon them by governmental entities. Government regulations fall under the task environment due to its direct impact to business. Failure to abide by these regulations can often times result in fines and potentially business closure. “MGM Resorts International was ordered to rehire a condominium sales employee and pay about $325,000 in damages under whistle-blower provisions of the Sarbanes-Oxley Act” (Palmeri). MGM wrongfully terminated an employee for reporting them regarding an SEC violation. This is an example of how a government regulation that protects the employee was enforced and the ramifications imposed on
MGM for wrongful termination of the employee, resulted in significant fines for MGM.
Government regulations exist to protect numerous entities including customers, businesses, employees, investors, etc. Businesses must make decisions that can impact adherence to

government regulations. These regulations must be followed for a business to be successful and to keep from reducing profits for non-compliance fines like were assessed to MGM by OSHA.
Suppliers
Suppliers are important to business success. If suppliers fail to provide products, this equates to lost revenue and customers. Businesses are dependent on suppliers providing them with the necessary products that will ultimately end up with the customer. A part of the task environment, suppliers directly impact business and business decisions. Due to supply shortages of automobile parts from its supplier, the production lines ceased for Fiat. The supply shortage of this automobile part not only impacts Fiat, but also Fiat’s customers that will be receiving the finished product. This can impact Fiat’s profit margin, therefore decisions need to be made regarding suppliers. This is a direct impact to Fiat, and company leaders need to review their suppliers and make appropriate changes to their supply chain to reduce the damaging impact to the business. If Fiat has continual problems with a supplier without rectifying the problem, it will negatively impact other parts of the task environment.
Competitors
Competitors are necessary for the customer to receive the best price at the best service. Without competition, customers and businesses would be paying more for less. Competition is an important part of the task environment. T-Mobile is the perfect example of their competition with big name companies in the wireless industry. Customer cost for wireless minutes and data are significantly less by the “un-carrier”, as well as free limited data for tablets, zero down phone cost, and no international roaming cost (Greeley and Mortiz). T-Mobile is reducing the cost to the customer in an attempt to entice them from their current wireless carrier. With these changes
T-Mobile has increased their customer base almost 4.5 times as AT&T and 1.5 times as Verizon after making these changes to its business plan, when predictions indicated a loss of customer base prior to the inception of this business plan. Competition is important to the survival of a business as shown in the example with T-Mobile. If T-Mobile did not make changes to its business plan and become competitive with the larger wireless carriers, it would continue to lose subscribers as in past years and without changes ultimately the demise of the business.
Media
Media and public relations can have a negative impact or positive impact on a business. Media is also a task environment. The media can have a direct impact on a specific business.
Businesses want to maintain a positive image to their customers and potential customers through media outlets. When people think of Chic-fil-A, they also think of the Cathy family that founded the company. Often times when a figurehead within a company comments in the public or on social media, they are commenting on behalf of the company. Dan Cathy tweeted a comment regarding a court case involving same-sex marriage, which was intended as his comment and not as a spokesman for Chic-fil-A. “Executives serve as spokesmen for their companies, and the line between personal and business matters is fine. Chick-fil-A will find it difficult to separate itself from Cathy’s personal views, especially because he’s kept them so close together” (Wong). This comment was considered Cathy’s and not Chic-fil-A’s but because they seem interchangeable,

Chic-fil-A takes a media hit for Cathy’s beliefs. Cathy’s comments on numerous occasions alienated different groups and individuals that do not have the same beliefs as Cathy’s and this has placed Chic-fil-A in a delicate spot. Although the comments are not on behalf of Chic-fil-A, because the spokesman for this company is making the comments, it is thought that this is the company’s beliefs and comments. Leaders like Cathy must be careful in any comments made even when comments are meant as a personal opinion, since all comments coming from a spokesperson appear to be company affiliated and may negatively impact that company. Bad press could result in loss of customers, loss of suppliers, and ultimately impact the company’s profit margin.
Multiple factors make up the business environment. Each of these are important in the continued success of a business and allow the progression in its industry. The general environment and task environment make up the external factors affecting all businesses. Business leaders must be aware of all aspects of the business environment to make informed decisions, including external and internal factors. The examples provided help to inform business leaders of the right and wrong things to do in situations. It would be to our benefit as future leaders to increase our awareness of the business environment and what individual businesses are doing that could assist in potential decisions that we would be responsible for making in the future.

Works Cited
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Ebhardt, Tommaso. "Fiat European Production Faces Delays on Dispute With Supplier."
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Greeley, Brendan, and Scott Moritz. "T-Mobile's Wacky Plan to Trash the Wireless Business
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Palmeri, Christopher. "MGM Resorts Told to Rehire Las Vegas Condo Sales Whistle-Blower."
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Rugaber, Christopher S. "Downside of Low Inflation: A Weaker Global Economy." Businessweek.
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Wong, Venessa. "The Blurry Line Between Chick-fil-A and Chatty Cathy." Businessweek.
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