EXTRNAL ENVIORNMENT

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  • Created by: _Holly98
  • Created on: 15-12-15 19:04

EXTRNAL ENVIORNMENT

FACTORS AFFECT BUSINESS EYONG DIRECT CONTROL 

PEST MODEL IMPACTS ORGANSIED 

POLITICAL / LEGAL: MINIMUM WAGE / WOMEN CULTURE / EU TRADE

ECONOMIC: OIL PRICE DECREASE / MINIMUM WAGE / RECESSION BOOM / EXCHANGE RATE / MIGRATION

SOCIAL ETHICAL ENVIORMENTAL: CONSUMERS CONCERNED ETHICAL CONDITIONS / EVNIORNMENTAL AWARNESS 5P BAGS / RISE SINGLE HOUESHOLDS

TECHNOLOGY: ROBOTS / HAND HELD SCANNER / INTERNET

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THREAT OR OPPORTUNITY

DEPENDS BUSINESS DOES & RESPONSE CHANGE ENVIORNMENT

EG INCREASE MINIMUM WAGE

CHANGE POLITICAL / ECONOMIC

INCREASE COSTS BUSINESS

EMPLOYEE SPEND MORE MONEY GOODS  & SERVICES OTHER BUSINESS

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POSITIVES

PRODUCT POPULAR - RAISE DEMAND

MAJOR COMPETITOR LEAVES MARKET

CONSUMERS INCREASE

INTEREST RATES FALL - CHEAPER BORROW MONEY BUY PRODUCTS

CONSUMERES ENJOY STEADILY RISING INCOME INCREASING DEMAND PRODUCTS

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NEGATIVES

CONSUMERS DEMAND ENVIORNMENTALLY FRIENDLY INCREASING COSTS

NEW BUSINESS ENTER MARKET - INCREASE COMPETITION

OVER-SUPPLIED PRODUCTS - DECREASE PRICE

MORE PEOPLE UNEMPLOYED REDUCING CONSUMERS INCOME

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MARKET CONDITIONS

REFERS NUMBER FEAATURES SUCH AS LEVEL OF SALES THE RATE THEY ARE CHANGING & NUMBER & STRENGTH OF COMPEITITORS

DEMAND PRODUCTS

TRENDS MARKET

COMPETITIVE ENVRIONMENT

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INDUSTRY PROFITS

HIGH INDUSTRY PROFITS ASSOCIATED WITH 

WEAK SUPPLIERS & CUSTOMERS

HIGH ENTRY BARRIERS - FEW SUBSITUTES & LITTLE RIVARLY

LOW INDUSTRY PROFITS ASSOCIATED WITH

STRONG SUPPLER & CUSTOMERS

LOW ENTRY BARRIERS - LOTS SUBSITUTES & INTENSE RIVARLRY

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FAIR VS UNFAIR COMPETITION

UNFAIR LIKELY AGAINST INTEREST CUSTOMERS

MONOPOLIES CHARGE HIGH PRICES

OLIGOPOLIES AFREEING RESTRICT SUPPLY OR PRICE FIX PRICES HIGH

SUPPLIERS PROMISE NOT STOCK RIVAL

PREDATORY PRICING - UNDERCUTTING

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INTEREST RATES

AFFECT COST BORROWING & RETURNS SAVINGS - FEE PAID - CALCULATED % 

AFFECT CONSUMER SPENDING - HIGH INTEREST LESS MONEY SPEND WITH BORROWING - PAY MORE BACK INTEREST

SAVE MORE - REDUCING DEMAND

LOW INTEREST RATES = MORE DISPOSABLE INCOME = DEMAND GOES UP 

PRODUCTS BORROWING MORE SENSITIVE CHANGES

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DEMOGRAPHIC CHANGES

INCREASE POPULATION = INCREASE GOODS & SERVICES 

MIGRANTS LOW INCOME 

AGEING POPULATION = BUSINESS SUPPLYING GOODS OLDER PEOPLE EXPERIENCE A RIASE

WORKFORCE CHANGES MANY MIGRANTS JOIN FORCE - CONTROL WAGE COSTS SHORTAGES UNLIKELY 

OLDER PEPOLE WORK LOWER WAGE

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ENVIORNMENT

SUSTAINABLE - NEGATIVE IMPACT ENVIORNMENT OVERALL

POLLUTIOM: AIR / NOISE / WATER

WASTING RESOURCES: RECYCLING & COMPOSTING / CONSUMING LESS ENERGY / USE FEWER RESOURCES / REDUCE WASTE / DISPOSE PROPERLY

  • REGULATIONS: STORE TREAT WASTE SECURLEY 
  • PROTECT EMPLOYEES & ENVIORNMENT 
  • DONT PRODUCE EXCESS NOISE
  • COMPLY RULES STORAGE HAZARDOUS 

ENVIORNMENTAL LAWS: ENVIORMENTAL  PROTECTION ACT 1990 / POLLUTION & PREVENTION CONTROL ACT 1999 - REDUCE 

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INCREASE BUSINESS COSTS

MINIMISE IMPACTS - MORE SUSTAINABLE REPLACING RESOURCES 

BUSINESS ADAPT PRODUCTION PROCESS E.G. PACKAGING CARDBOARD INSTEAD METAL TINS

ENVIORMENTALY FRIENDLY INCREASE DEMAND

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ETHICAL BUSINESS

CONSUMER CONCERNED BEHAVIOUR  

IMPLEMENT FAIR TRADE POLICIES - HIGHER PRICES AIM IMPROVING LIVING STANDARD OF SUPPLIERS - USP

TREAT BADLY - DEMAND DROP

GOOD ETHICS = HIGH DEMAND EVEN EXPENSIVE

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TECHNOLOGY

INCREASE DEMAND - IMPROVE MARKETING

GATHER INFO LIFESTYLES - PRODUCTS LIKELY BUY - PROMOTIONS TARGET RIGHT PEOPLE

SOCIAL NETWORKING - TARGET ADVERITISNG DIRECTLY WHAT PEOPLE LIKE - CHEAPER ADVERTISING - INCREASES DEMAND

IMPROVE PRODUCTION EFFICENCY - REDUCE COSTS LONG TERM BUT EXPENSIVE SET UP - TAKES JOBS - ETHICAL ISSUE 

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