Business Environment: Influencing The External Environment Of Business

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The key point of the external environment of each businesses is not breaking any law. Besides, they have to be enough flexible against new rules to be able to continue their businesses. To address these concerns, they have to be prepared before the Implementation the legislation. Generally, 5 main parameters influence the external environment of each businesses, especially retail market which is highly depended to . Political, Economic, Technological, Social and Legal are these main parameters (Sullivan and Adcock, 2002). Political environment Political environment would be a representative of the political situation of the country and may affect business, in positive or negative ways. Changes in political stability will affect retail industry …show more content…

A strong economy situation eventuates higher sales and higher incomes and therefore more sells in retail markets. On the contrary, a critical economic situation decreases customers’ purchasing power; leads to less selling in the market; and forces retail industry to reduce the prices. In the other words, Businesses feel the effects of changes in the economy. Another principal factor that influence businesses is the competition level in the market. Totally, clothing retail market is not very strong. Many retailers express that the market is weak or horrible. For instance, Buckle and gad reported a decrease of -7.9% and Gap -4% in their sales, Respectively. The problem may be related to their promotional strategies or the economical situation. Retail industry is different in each country because of its economical policies. For example, in Singapore, retailers are facing some challenges like high rental prices and a lack of employees. These challenging are forcing them to even completely sustain their businesses. On the contrary, grocery retailers are benefiting more than non-grocery markets. Stuffs in big supermarkets and hypermarkets are more various and affordable than other competitors in the market. That is why grocery retailers are growing and non grocery market are slowing down. Nowadays, retail sales in the US are smoothly …show more content…

That is one of the reasons that technology has changed the retail market and it will develop the retail market’s performance and force traditional stores to undergo or close. Actually, technology has provided new ways for retailers to sell their products and do their businesses. Obviously technology is not a new product for sale, it is a tool given to the world. Technology has appeared as web sites, shopping network and other systems that provides different types of payments such as credit cards in the retail industry. Technological advancements made the market more

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