External Influences Affect All Firms

1055 Words3 Pages
bulb-icon

Recommended: Internal and external factors that affect business operations

External Influences Affect All Firms Many businesses are quite capable of organising themselves internally, however this does not guarantee complete business success. Businesses have many outside pressures to face, which can become quite complicated to manage. These are called external influences. There are many factors that can affect a business, of which the market is just one. Businesses are tremendously influenced by the markets in which they trade. The size of a business does this: whether it is local, national or even international will affect the nature of the product that they supply and also the quantity. Competition is also a factor that can influence the rise or fall of a business. Communications and methods of transportation such as the delivery of products by air have made the competition in the market place more intense. Many businesses in the United Kingdom now face competition from other continents from around the world. A good example of this is the UK grocery market where the competition had become fiercer following the coming of foreign supermarket chains such as Aldi. Also new products, price changes and take-overs of other businesses can be a big influence. Economical influences are a factor too. Interest rates are the priced paid for borrowed money, this can affect businesses because every month the Bank of England's Monetary Policy Committee (MPC) assembles each month and decides on whether to alter the base rate of interest. So if the MPC decide to alter the base rate of interest this could have sufficient implications for businesses. A rise will result in greater overheads for most businesses,... ... middle of paper ... ...he long run as they buy the product. In conclusion to the title of this essay, 'External Influences Affect All Firms, To What Extent Do You Agree With This Statement?' I believe that this statement is very honest. From the evidence I have given in this essay it is clear that there are a lot of factors that influence and affect businesses. Take the climate, may seem small compared to the other factors, but it has a significant affect if it takes the wrong path. Also the obvious factor - the market itself, its size can cause many problems. Basically every business if it's a large company set in the heart of London, or a small corner shop down the road has to take each factor into consideration to maintain their business stays afoot. Although its hard and definitely impossible to grasp to a full one hundred percent.

Show More
Related

  • Why and How Do Policy-Makers and Practitioners Intervene to Encourage New Firm Formation and Development?

    773 Words  | 2 Pages

    Why and how do policy-makers and practitioners intervene to encourage new firm formation and development?

    Read More

  • Bouncers Contextualising the Play

    1125 Words  | 3 Pages

    as ‘On the Piste’ and ‘Up n’ Under’ and TV shows like Grange Hill and

    Read More

  • Avram Hornik Analysis

    563 Words  | 2 Pages

    William Street Common, a “beer gardenesque restaurant” and home of “Live! At William Street Common,” a venue that’s hosted everything from DJ Astro 8000's popular Pink Party to monthly art shows to workshops and weekly open-mics

    Read More

  • External influences Economy Interest rates Most businesses will need

    663 Words  | 2 Pages

    the business needs to make up the costs and the only way to do this is

    Read More

  • Making Social Lives: West Main Street

    585 Words  | 2 Pages

    The street I will be focusing my essay on is West Main Street in Armadale, West Lothian. This street is a lot like City Road in Cardiff in terms of the businesses of which it is made up. Family run businesses dominate West Main Street, like Coia sweet shop, Peking House Chinese take away, Talking Heads hairdressers and Allure beauty salon, as well as bigger, more established businesses like the Co-operative, Lloyds Pharmacy and Ladbrokes. Other similarities to City Road are the variety of people from which the community is made up. During the day the street seems to be overrun by the elderly and mums with young children who may be there to run errands, while at night the only businesses open are the take aways and public houses and so the majority of people using West Main Street change.

    Read More

  • Examples Of External Influences In Healthcare Administration

    731 Words  | 2 Pages

    Module two deals with external influences in healthcare administration and the conflicts that may cause lack of growth in the organization. External influences can range from society, stakeholders, staff, and patients. Health administrators should be in agreement with staff and physicians to maintain proper ethics and safety for everyone. Society has a big influence of healthcare organizations with spending their money towards health insurance, medication, treatment services and exams. As long the healthcare organization has a well reputation built on trust, then consumers will spend on that healthcare organization. The stakeholders that take part in external influences on ethics are the vendors, technology specialists, maintenance, insurance

    Read More

  • Internal And External Influences In Psychology

    737 Words  | 2 Pages

    Psychology is the study of the human brain and its functions which includes some internal and external influences. Throughout the PSYC 101 course, many concepts were discussed and had some sort of interest. Some of the most interesting concepts were the ones who left the most effect of the average human. Such as social norms, sleep disorders, and substance abuse. All three of these concepts affect the average humans’ behavior, personality or way of thinking.

    Read More

  • Know how political, legal and social factors impact a business

    1166 Words  | 3 Pages

    Political factors can have huge implications on a business. This can depend on how stable or instable the degree of policy and government is within the country. For example, a change in government can lead to instability as this would cause uncertainties within the government. The current coalition government would be considered stable in its current position. However some of the policies that the current government are trying to push through, e.g. leaving the EU, would cause big instabilities and could have negative effects on businesses including cross street news and glow warm. This is because if we left the EU it would become more difficult for us to trade as many countries wouldn’t want to do business with us. If this was the case both glow warm and cross street news may find it difficult to find a low costing supplier outside the UK. This would cause both businesses to raise prices in order to cover the new costs. An advantage of having a stable government is the support that they can give to a business. This support can come in the form of many different grants and initiatives to suit any stage of business development. One example of a grant that is back by the government would be green grant.

    Read More

  • Influence Of Internal And External Influences On Business

    889 Words  | 2 Pages

    A business can either take a step forward or a step back depending on the external and internal influences and how they handle them, they can either flourish or enter stages of degradation and cessation. External and internal influences on a businesses plays a part in the opportunities that arise in the industry the business operates in, otherwise the business may choose to venture out of it’s defined industry depending on the opportunities at hand. Businesses are affected by internal and external influences to a degree where they are either benefiting or suffering from the way they handle opportunities that arise. The five articles depict the problems encountered by businesses no matter their size or industry.

    Read More

  • Negative Externalities In Economics

    850 Words  | 2 Pages

    Externalities in economics is something that happens in everyday life that people don’t usually pay too much attention to, but can affect the economy. An externality can be described as a third party that is affected by the transaction of someone else. Externalities can be either negative or positive, but most of the time is seen as negative. An example of a negative externality from the homework would be someone buys a pack of cigarettes and smoke it. A bystander, who in this situation is a third party, inhales the cigarette smoke and therefore their health is affected by secondhand smoke. A positive externality from the homework would be that my neighbor plants flowers in between our houses and now I find our driveway more appealing. If some

    Read More

  • The Role Of Gentrification In Small Business

    206 Words  | 1 Pages

    Gentrification is also eroding small business in many neighbourhoods. In low-income areas, there tends to be more independent economic activity as local residents start small businesses close to where they live. At the moment, these businesses face multiple threats. Rapid demographic changes are narrowing the customer bases of neighbourhood businesses, and increased property values are making these businesses less sustainable. Stephen Fowler, the owner of the ‘Monkey’s Paw’ bookstore that recently moved from Little Portugal to Bloordale, says that his store’s rent tripled after the building was sold to a new owner. He notes that “little diner[s], or little junk store[s], those things are all getting priced out, because all of a sudden there

    Read More

  • Macroeconomic Impact on Business Operations

    1602 Words  | 4 Pages

    Money supply is the availability of money in the hands of the public (economy) that can be used to purchase goods, services and securities. In macroeconomics, the price of money is equivalent to the rate of interest. There's an inverse relationship between money supply and interest rates. As money supply increases, interest will decrease. On the other hand, interest will increases as money supply decreases. It is very important to understand that the economy works at market equilibrium. There are several factors affecting money supply; and these contributing factors will be the main focus of this paper. Understanding the basic principle on money supply is imperative to have a good grasp on the macroeconomic impact of money supply on business operations.

    Read More

  • Globalization and Organizational Structure

    1227 Words  | 3 Pages

    The paper focuses on the increased complexity of globalized organizations and methods of altering the process within the structure. Business and environment change constantly to sustain development in emerging markets and increase efficiency. Integration of relationships and processes of the world systems, help to manage local, regional and planetary balance to manage duplication of success become conceivable. The retail giant Wal-Mart exhibits its ability to transform the organization asynchronously with the increase integration of globalization.’ Wal-Mart unveils the type of integration possible between globalization, and business services as it adapts, eliminating redundancies and repetitive movement. It observes the effect and influence, propagated on business through it use of supply chains, and influence.

    Read More

  • How Does The External Environment Affect Employment Relations?

    1292 Words  | 3 Pages

    Employment relations refer to the relationship between the employer and the employee. Employment relations are governed by the provisions of the employment contract and/or collective agreement where applicable, common law principles and legislative provisions governing specific situations. Many factors in the external environment have an effect on the employment relations within an organization, which they need to monitor and possibly adapt to the necessary changes. The external environmental factors that would influence employment relations are political, economic, social, technological, legal and environmental.

    Read More

  • External Environments Whih Impact the Hotel Industry

    2409 Words  | 5 Pages

    The hotel industry is by far one of the biggest business industries known to man in this era. The businesses of this industry are affected by many factors. The businesses environmental factors in external factors are demographic, economic, global, political, sociocultural and technological.

    Read More

More about External Influences Affect All Firms

Open Document