BTM4BUE Business Environment Assignment Sample

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Section 1 - Introduction

Private Sector (with definition & examples

This includes all the organization which are controlled and managed by individuals with aim of earning higher profits. This organization emphasis over providing optimum services which aids in increasing overall personal gains and profits (urnock et al, 2023). Virgin Atlantic is the British Airline organization which offers travelling services within UK and rest of world. B&M retail is private firm which offers diverse grocery product& services to customers. IKEA is another leading multinational organization which sells and design household goods, furniture and other services.

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Public Sector (with definition & examples-

This consists of diverse businesses that are owned and managed by authority and government of the country (Gritt, Forsgren and Pandza, 2024). There is either partial or full control or ownership of government within such organization. However, government contain more than 51% of stake and undertake all the crucial decision related to operations and working of business entity. This organization operates with aim of offering high quality product & services at lower cost and emphasis over overall welfare and development of society. For Example:

• National health services ( NHS) offers healthcare services to larger target market.
• The British Broadcasting Corporation (BBC) educates, inform and entertain diverse people around world.
• Bank of England (BOE) operates with aim of managing prices stability across UK.

Third Sector (with definition & examples-

It implies to all the non- profit organization which does not focuses over generating profit or exercising power. It is combination of diverse organization which does not include in public and private sector. This indicates charity, social enterprises and community organization (McMullin, 2021). For example;

BTM4BUE Business Environment Assignment Sample

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Ø Oxfam is leading charitable organization which works towards reducing inequality and injustice within UK.

Ø Street soccer Scotland is social enterprise that offers football services to underprivileged young and adult people.

Ø Social bites is another third sector firm that offers employment to diverse homeless people within UK.

Local & National Businesses (with definition & examples-

Local businesses are SMEs that generally operate within particular town, villages and cities. This organization mainly offers services to limited geographical areas and attracts smaller target market. Owner of such businesses usually live within same area which help in exploring all needs and preferences (Tien et al, 2021). For example: local retail shop, salons and cafes. National business implies to various organizations which operates with large number of branches and outlets across country. This organization operates with large number of resources and has strong brand recognition than local business. This type of firm faces large number of competitors, huge operational cost and required complex managerial team. For example: Nisa retailers is UK based firm that offers groceries product throughout country. Vodafone is another telecommunication organization of UK which operates with 18.3 million customers. A.G. Barr is soft drink Company which provide energy drink within Scotland.

International & Multinational Businesses (with definition & examples-

Multinational company (MNC) operates in larger number of countries across globe. This organization integrate global supply chain, modify product according to countries needs and preferences. MNC are established aim of reducing competition and broadening overall customer and market base (Shajera, Kamoche and Feng, 2023). These organizations are able to attain economies of scales which ultimately reduce cost and increases customer’s affordability.

For example:

Tesco is leading retail organization of UK which offer diverse consumer goods.

British Airways is Flag Carrier that offers travelling services within large number of countries.

Marriott is multinational hotel organization that offers resident, timeshare and hotel facility across country.

Types of E-commerce (with definition & examples-

There are six kinds of e-commerce market , it is as under:

• Business-to-business: The e-commerce market type is concern with trading within two or more businesses. In this, one business sales product and services to another business. Amazon is example of B2B where the organization sales its products to other business as well.
• Business-to-customers: It includes selling of goods and services by the business to the ultimate customers via a digital platform. For instance Walmart sales products online to its ultimate customers.
• Consumer-to-business: It is an kind of e-commerce where the customer provides services to business. One of the example of C2B is offering freelancing services to the business.
• Consumer-to-consumer: C2C type is a business model where the customer sells used products and services to another customer by optimizing digital medium (Types of E-commerce Business Models,2025). Selling products and services on OLX and ebay is an example of C2C. On this digital platform, the consumer exchange goods as well as services online.
• Business to administration: The model includes online dealings within companies as well as public administration.
• Consumer-to-administration: The platform is optimizes by the consumer, it is used for requesting information as well as posting feedbacks related to the government administration.

Types of Market Structures (with definition & examples-

There are four crucial type of marketing structure which is as follows;

Perfectly competitive: it is market structure in which large number of entity offers similar product& services. In this structure, companies provide product at similar prices due to presences of large number of competitors. If organization increases prices than it could results in losing significant customers that impact on overall sales and profitability( Barwick, Cao and Li, 2021). There is no restriction on entry and exit within such industry. Such as local retail shops.

Monopolistic structure:

This includes diverse producer utilize product differentiation techniques to create competitiveness. It is most realistic scenarios as firm generally differentiate its product on the basis of its features and quality. There are lower barrier to entry and exits and large number of seller exits in this structure. They do not set homogenous product and consumer are provided with choices to select product such as Barclays.

Monopoly:

This market structure sustain when a single rogation dominates overall industry, there are no close competitors within this industry which impact on overall purchasing power of customers. Firm generally earns super normal profits and there are higher restriction to enter in such market (Moskovics et al, 2024). For example; British telecom.

Oligopoly:

This situation occurs when some of producers dominate overall market and there are diverse barriers to enter industry. There are limited numbers of firm in this market whereas it includes numerous customers. In this consumers are price takers as organization collaborate to decide particular price of product & services (Hidayat et al, 2023). This includes diverse supermarkets such as Tesco and Sainsbury.

Section 2 - Introduction

The business environment consists of both internal and external factors that impact a company’s operations and functions. It includes employees, management, and operations, which are internal to the company. Along with this external factors includes factors like market demand, customer needs, government policies, technological advancement, economic fluctuations, and social trends play important roles. The constantly changing environment creates a direct influences on company’s strategic decisions, operational efficiencies and overall growth. Booking.com is evaluating and capitalising on a business opportunity within this environment can lead to significant growth. Booking.com is one of the most growing online travel agency which is a platform for travellers to book accommodations, transportation, and experiences worldwide (Booking.com. 2025). The company was first started in 1996 in Amsterdam by Geert-Jan Bruinsma as a small Dutch company and is a well-known travel booking business. Booking.com offers its services in 43 languages and over 28 million people have listed their accommodation. People also have booked over 6.6 million home stays, apartments, and other pleasant places to enhance their experiences.

SWOT Analysis-

Strengths

Booking .com is one of the most recognisable American travel booking companies. Some of the big brand has been taken up the booking holdings of this platforms such as Priceline, Agoda, Cheapflights are its strengths. It undertakes customer centric approach for improving the satisfaction and thereby builds brand loyalty. Further, high level of emphasis is placed on improving the process and design by taking into account the customer’s feedback and criticism.

The biggest strength of this company is to customer feel valued, which comprises their bindings with the brand. Booking.com frequently organizes the training sessions for the employee so that they serve the customer in the best and thereby improves overall satisfaction as well as experiences. The company serves various options of hotels with medium to the upscale the business. It’s always a bit difficult to find good toiletries, clean rooms, and affordable basic breakfast service, but with booking.com everything becomes so convenient (Wazin, Patimah, and Ansori, 2025). The company’s extended international footprint provides it with a competitive edge by reaching to the broader customer base. The investment in technology heavily leverages the customers experience and operational efficiency which in turn also recognized as the biggest strength.

Weaknesses

Some consumers are reluctant for using internet in relation to booking tickets online which in turn considered as the major weakness of the company. This business does not have direct customer- seller communication between both of the parties which in turn creates issue related to the data protection and fraud. In this fast moving world with technology it becomes difficult to protect customer’ data through online booking platforms could be a weakness of the company. Ongoing operation is not easy in this business to facilitate continuous experience for customers. Booking.com’s search results could affect the visibility of the business.

The online travel agency market is relatively competitive due to the presence of several key players. Dependency on Europe markets could make the company vulnerable to regional economic fluctuations. High rates of foreign exchange fluctuations could impact financial results of booking.com. The dependencies on online booking for travel could lead the business to economic ups and down as well as technological instabilities. Such advancement and changes in the consumer behaviors or advancement of features could also impact it’s all over income system. Continuous adaptation of technology and innovation is might be challenging for maintaining its brand presence is a big concern.

Opportunities

The consumers of this brand in the marketplace are moving forward being at hotels for a while with sustainable accommodation could be an opportunity for the company. Booking.com is also has been recommending based on sustainability at hotels on their application and website.

There are many infrastructures which provide sustainable accommodation with full internet, food and lodge. Thus, Booking.com also has opportunity to collaborate with these kinds of companies. In addition to this, business unit can also maximize profitability and customers by entering into the emerging countries. Booking.com has an opportunity to collaborate with bus travel businesses such as redBus. Thus, at the time of redBus promotion regarding travel Booking.com can also become an accommodation partner. Through the means of collaboration firm can enhance both revenue and profit to the significant level.

Threats

Since the online travel booking market is highly competitive due to the presence of other major brands which in turn poses threat for the company. Booking.com faces robust challenges from worldwide tech firms that have facilities to increasingly expand their travel services. Thus, in order to retain leading position in the market firm needs to lay more focus on offering innovative services. Due to the global operations Booking.com has to follow very large number of rules and regulations) that could impact its business and profits as well (Booking Holding INC, 2025).

Further, changing competition policies, data protection laws and travel sector rules also impose threat in front of the organization. Moreover, according to the changing regulations company needs to make changes in the current practices and framework. Booking.com must remain cautious and being extra active in observing continuous changes to moderate possible opposing effects on its business. This makes stable revenue system for the Booking com. Any misbehaving staff could hamper the brand image of the business.

PESTEL Analysis-

Political factors

Political factors essentially have effect on Booking.com’s operations, in respective countries wherever it gives the services. Governmental rules and regulations with respect to the online business, restricted travel and taxation could hamper the business operations and functions. The company must stick to several other laws in the different countries. It involves data protection, anti-competitive rules and labor laws. Since the company works across the globe, any kind of business restriction or geopolitical problems between countries could hamper its services. It especially works in those regions which have major travelling places (Muzwardi and Simbolon, 2024). Any kind of hostage situation can impose restrictions on the travel business which mostly happens in case of political instability. The very common example of this situation was COVID-19 where people were not allowed to travel anywhere. These are the factors for cancelling the travel bookings.

Environmental factors

Currently, UK government is putting significant pressure on the firm to perform business activities in a sustainable manner. Accordingly, Booking.com has to make significant changes in the current practices which meet the regulatory requirements. Further, currently large number of customers demands for eco-friendly staying options with an aim to sustain the environment. Accordingly, focus needs to be placed on offering eco-friendly accommodation options to the customers. Climate changing events could affect the tourism pattern especially in vulnerable areas. For example: natural calamities or rising sea levels could impact the specific travel destinations in terms of availability so it can lead to drop in bookings.

Social factors

Customers are now increasingly demanding for the eco-friendly housings facilities and servicing. The company has also evolved with the customer preferences. This factor might affect booking.com’s investments in new featuring services yet company has also responded with its offerings filters for sustainable travel options for the respected destinations. The upcoming generation which have the age group between 18 to 40 (Gen Z and millennial) are highly tech enthusiasts are prefer their bookings via mobile applications, websites and online platform. Thus, to cater this generation’s demand company has to invest heavily in Information technology for accessible booking for these types of customers.

Technological factors

Since the overall growth of the technology has evolved the earth so it is also a core driver of Booking.com’s business plan. The company needs to adapt new technologies for ahead of other companies. Rapid growing of smartphone users has drastically changed the world for online travel booking companies. The growing demand of online booking facilities through mobile and web applications make booking.com more rigorously invest in tech fields and new technologies. Artificial intelligence technology has evolved the algorithm of the company to fascinate the offerings and services. This in turn facilitates the best user experience through mobile and web applications and thereby improves customer satisfaction. The data analytics technology helps the business to determine the consumer behaviors and thereby helps in offering integrated products or services to the customers.

Economic factors

In travel business, economic situation shows an important role in molding the demand for travelling and housing services. Economic growth and downturn has straight impact on consumer’s pocket. On the other hand, during high income and economic boom situation, people become frequent travellers, these factors affect the revenue of booking.com (George, 2025). As the economic downturn situation people are strictly tied up their budget on traveling. This company its feet in many other regions and countries so their money exchange policies and rates could affect its prices and profit margin as well. When people have higher income so their taxes will be also on higher scale means they cut on their pockets for travel. If there is economic well-being then consumers would have higher disposable income for spending money regarding travel and luxury experiences.

Legal factors

Varied laws and legislation has significant impact on the firm’s operations as it is working at the global level. Booking.com must consider the laws such as The General Data protection regulation (GDPR) in EU (European Union) while carry out the business activities. These laws strictly obliged with the rules for data protection and privacy of customers as well. Any false situation and data breach may affect the company with significant fines as well as adversely affects the reputation. Being a leading company, it has to protect their intellectual property such as software and proprietary algorithms (George, 2025). For the legality the company protects its intellectual property through trademark and patents. Several countries have laws against consumer protection and hence booking.com also needs to follow the same for ensuring the smooth functioning of operations.

Conclusion & Recommendations

Also, it was assessed that analysing the environment is very significant for the company to become successful and ensure effective competitive position into the market. The study highlighted that the SWOT analysis was assistive in analysing the key strength which included the fact that the company is performing well and the major strength is that it keeps the consumer happy and satisfied. Also, the effective opportunities were highlighted like complying with sustainable accommodation, providing internet access and others. lastly, it was concluded from the PESTLE analysis that company need to assess and evaluate the political factor and economic aspect.

Recommendations

The company could improve its communication through clarity and efficiency with cancellation and refund process for customer satisfaction practices. for this effective internal communication system can be implemented so that enhanced communication is undertaken.

The company must navigate several regulations concerning tourism including related to license, permits and taxes according to destinations.

References list:

Books and Journals

• Barwick, P.J., Cao, S. and Li, S., 2021. Local protectionism, market structure, and social welfare: China’s automobile market. American Economic Journal: Economic Policy, 13(4), pp.112-151.
• Gritt, E., Forsgren, E. and Pandza, K., 2024. Liminal digital transformation in public sector: The case of UK policing. The Journal of Strategic Information Systems, 33(3), p.101851.
• Hidayat, A., Robiani, B., Marwa, T. and Suhel, S., 2023. Competitiveness, market structure, and energy policies: a case study of the world’s largest crude palm oil exporter. International Journal of Energy Economics and Policy, 13(3), pp.111-121.
• McMullin, C., 2021. Challenging the necessity of New Public Governance: Co‐production by third sector organizations under different models of public management. Public Administration, 99(1), pp.5-22.
• Moskovics, P., Wanke, P., Tan, Y. and Gerged, A.M., 2024. Market structure, ESG performance, and corporate efficiency: Insights from Brazilian publicly traded companies. Business Strategy and the Environment, 33(2), pp.241-262.
• Shajera, A., Kamoche, K. and Feng, Y., 2023. CORPORATIONS IN THE UK. Routledge Handbook of Chinese Business and Management, p.293.
• Tien, N.H., Anh, D.T., Van Luong, M., Ngoc, N.M., Duc, L.D.M. and Dat, N., 2021. Sustainable development of higher education: A case of business universities in Vietnam. Journal of hunan university natural sciences, 47(12).
• Turnock, L., Gibbs, N., Cox, L. and Piatkowski, T., 2023. Big business: The private sector market for image and performance enhancing drug harm reduction in the UK. International Journal of Drug Policy, 122, p.104254.
• Muzwardi, A. and Simbolon, G., 2024. SWOT and PEST analysis in tourism management in Bintan Regency. Indonesian Tourism Journal, 1(1), pp.82-92.
• George, R., 2025. Tourism and hospitality marketing planning. In Marketing Tourism and Hospitality: Concepts and Cases (pp. 141-168). Cham: Springer Nature Switzerland.
• George, R., 2025. Marketing tourism and hospitality: Concepts and cases. Springer Nature.