External Influences Affect All Firms Essay example -- Papers

External Influences make a motion All Firms Many businesses are quite capable of organising themselves internally, however this does not take on complete business success. Businesses have many outside pressures to face, which stick out 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 multinational 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 capitulation of a business. Communications and methods of transportation such as the delivery of products by air have made the ambition in the market place more intense. Many businesses in the United Kingdom now face competition from other continents from around the w orld. 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 tough 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 Englands Monetary insurance 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 fitted implications for businesses. A rise will result in greater overheads for most businesses,... ...he long run as they buy the product. In conclusion to the title of this rise, 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 t his 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 authoritative affect if it takes the wrong path. Also the obvious factor - the market itself, its size can cause many problems. Basically every business if its a volumed company set in the heart of London, or a small corner shop down the road has to take each factor into rumination to maintain their business stays afoot. Although its hard and definitely impossible to grasp to a full one hundred percent.