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Internal And External Business Environment

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Discuss about the Internal and External Business Environment.




Business environment is the concept which comprises of all the internal and the external variables which are reliable and capable of effecting the operational activities and functionalities of a business corporation. These components are also capable in impacting the employees, clients, dealers and suppliers, management of the organization, the norms and the regulations followed within the organizational structure etc. Business environment has been considered as dynamic in nature as it is a well-blended mixture of number of components and changes in some or the other continues to take place (Craig and Campbell, 2012). The concept is concerned with the impacts of the internal and the external factors (i.e. the micro and the macro environmental factors). Business environment is the climate or set of the conditions i.e. the political, economic, social, technological, legal and environmental under which all the business activities and the operations are conducted. It is the aggregate of conditions, impacts and the events which are surrounding the business (notes.tyrocity. 2017). The below presented report has been focused on the internal and the external analysis of the business environment of Blackmores Limited which is a leading brand name in Australia of natural health. The company provides quality range of vitamins, minerals, herbal and nutritional supplements. Further the report will be focusing on internal business environment and its external operating environment.

Internal Analysis

One of the factors which have been considered as very much significant and also play a vital role in influencing any of the operational activities and functionalities are the resources of the business corporation (Bartleby. 2013). The resources for any of the firm have been considered as the life blood as they are the most significant factor in running any of the operational activities within the organization. Resources in a firm can be of many types such as financial, human, physical technological and organizational resources. It is an asset, knowledge or competency which is controlled by the corporation. The available resources can be proven as strength and beneficial for the company if they are giving the corporation an competitive advantage and weakness if they are inferior from that of the competitors have.. As Blackmores deals in the health related products the available resources are the machineries, the human resource, the capital and the other technological systems which are being used by the corporation within the operational activities. Also there are some functional capabilities which the firm is required to possess for carrying smooth and flawless operational activities and business. There are some of the subsections under which the capabilities have been categorized. Having a good knowledge about the about the management and the corporate culture is a very much essential concept for the managers. They should have a good hold over the areas such as multinational management and acquisition management. Moreover marketing, brand management, knowledge about the targeted market, human resource management etc. Also there are some of the capabilities which are related with the internal processing and operations of the company, such as  flexibility and quality manufacturing.


External Analysis

The below presented is the macro analysis of Blockmores Limited.

Global: The business corporation enjoys and holds a strong reputation in the home nation i.e. Australia and also a great role and contributes in the economic development of nations and in the overseas market (xamidea. 2017). Due to the intense competition the company has focused more in the domestic market sales as compared to global markets. Other than Australia the firm operates its business activities in New Zealand and Asia. On the basis of the survey it has been observed that In 2011 the business entity, Korea was the first new overseas market in 5 years in which the company established the market and where the company acquired BioCeuticals which is worth $40 million (Prezi. 2014). This made the company to play a dominant role in Australia in the practitioner-only market, which has a value of about $150 million. It has been very much difficult for the business corporation engage in high levels of activity in the overseas healthcare market, for example natural health companies are sold for multiples like 11 times revenue, bought by Pfizer, Procter & Gamble and Nestle. Global1.

Economic: There was a rise observed in the level of demand for commodities from the mining industry in the economy and this made the reason for the domestic economy for standing strong with a growing solid pace in 2010~2011 (Porter, 2011). And due to the stability in the economic conditions and the economic boom provided employment opportunities and which improved and the employment rates and also this has made an increase in the nominal income greatly up to 10% and this has benefited to a to a vital rise in household consumption (David,  2011). Due to the interest rates in in the economy remained unchanged at 4.75% since November 2010 to October 2011 and which led to the continuation of the expansion of the global economy and talso a growth sustainability for employment in Australia was observed.  

Socio/cultural: A great diversified human resources has been found in the organization and it has been observed that in the year of 2011 the entity was having a staff which was able to speak more than 20 different languages, the company has more than 60% of employees across the globe (Fleischmann et al, 2014). English not being their first language 35% of the employees are in the frontline jobs. For developing the sense of Equal Opportunities for Women within the organization Agency (EOWA) reported that it averaged to 355 employees and around 70% of these employees were women. .

Environmental: The Company also have some provisions for safeguarding the environment, there are some programs like Serendah Waterfall Project to help the environment and indigenous people. The entity has developed and designed Winter gardens which are into providing the indoor landscaped environment for meeting areas and break-out spaces. Also there are some provisions of treatment rooms for massage and naturopathy an (Rothaermel, 2015)d also facilities of gym including a lap pool, yoga and pilates area.

Demographic: The Company has designed and developed the most of the products very well suitable for consumers and there use and also they have been made on the basis of male and female from 18-99+. The business corporation’s targeted audience is predominantly women aged 20-49 

Technological and environmental: Due to modernization the company has been making up gradations and updating in the technologies and the systems which has been used by the business corporation for operating the business activities and the functionalities. Also the company has focused on the social responsibility i.e. preserving the environment (yourarticlelibrary. 2017). The company makes the use of the process and procedures which safer and does not affect the environment adversely. This has also aided the business organization in developing and establishing a strong and loyal customer base.

Micro Analysis

It has been observed that for the current situations there is a free little competition in the VDS market from fresh food and drinks in Australia, however, there are number of suppliers which has fragmented the market and which includes Blackmores, Sanofi-Aventis, Harron Pharmaceuticals and also Nature’s Way (Adeoye and Elegunde, 2012). Furthermore, the government imposed a stricter legal control over the items in this sector which made the company to lead limit its potential for development and success in the domestic market. Whereas there are some other factors by which the industry has been driven such as it has been noticed that the level of expenses on the  healthcare has been found increasing  and which has been measured by the Pharmaceutical Benefits Scheme (PBS) in this instance is of fundamental importance to the industry. The second factor is that due to the rise in the risk of disease the demand for pharmaceuticals varies directly with the age of the population (businessmanagementideas. 2017). The business corporation should have a proper identification of their rivals. At the current situation the company is facing an intense competition from BioCeuticals.  As to tackle and sustain in the industry the business corporation needs to carry out performance evaluation, revise the strategies and plans and objectives, strength and weakness. This will enable them to deal with the situation properly.





In the lime light of the above executed analysis it have been inferred that business environment is a well-blended mixture of the internal and the external components. Both these both the factors are very much significant for the business environment and are also liable and capable in influencing the operations and functionalities which are executed within a business organization. Blackmores Limited is a health care products dealer corporation and the above report has been focused on the business environment of the company. Moreover a detailed analysis has been done of the internal and the external factors of the business corporation.



Bartleby, 2013, Blackmores business analysis essay, Assessed on 14th May 2017,

Prezi, 2014, Management Dynamics- Blackmores, Assessed on 14th May 2017,

Craig, T. and Campbell, D., 2012. Organisations and the business environment. Routledge.

Porter, M.E., 2011. The competitive advantage of nations, states and regions. National Council of Professors Kuala Lumpur.

David, F.R., 2011. Strategic management: Concepts and cases. Peaeson/Prentice Hall.

Fleischmann, A., Schmidt, W., Stary, C., Obermeier, S. and Brger, E., 2014. Subject-oriented business process management. Springer Publishing Company, Incorporated.

Rothaermel, F.T., 2015. Strategic management. New York, NY: McGraw-Hill.

yourarticlelibrary, 2017, 5 major business components of business environment, Assessed on 14th May 2017,  –business studies

Adeoye, A.O. and Elegunde, A.F., 2012. Impacts of external business environment on organisational performance in the food and beverage industry in Nigeria. British Journal of Arts and Social Sciences, 6(2), pp.56-65.

businessmanagementideas, 2017 Business Environment: The Elements of Business Environment, Assessed on 14th May 2017,

xamidea, 2017, Components of business environment, Assessed on 14th May 2017,

notes.tyrocity, 2017, Business environment, Assessed on 14th May 2017,


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