Macroeconomic And Microeconomic Factors Of Business Operations
First are suppliers, there needs to be a balance in the number of suppliers that are used. That is when you have a large amount of suppliers, this reduces the cost of products needed and allows for products of higher quality. However, if fewer suppliers are used, the cost will increase for the products needed, because of the limited number of suppliers available (Schwab & Porter, 2009). It is also possible products will be of less quality, this could affect our customers, some may not want the lesser quality and will go elsewhere, this will affect the level of business …show more content…
The following legal concerns should be considered.
Review of contacts and payments, review of the payment methods used, and the pertinent contract laws that would reduce legal issues in the business. Next if we are to operate in another country, the legal requirements that will be necessary regarding contracts and payments in that particular country should also be reviewed, to make sure that the correct legal methods are followed.
Next the management should also define its responsibilities legally in case of injury or harm to a person. That is both at the plant, and from harm by the products that ABC manufactures. Another type of consideration is that of product and service liability law. This is if a warranty and/or guarantee is offered for products that they are reasonable, and can be handled promptly and efficiently.
As far as wage and hours, this is a concern as a violation here could provide higher costs for the business. Management should have specific employment conditions, reasonable wages, etc. This will include considering minimum wage law of any country that the business operates. Another issue that management should consider is occupational health and safety act, etc. Considering these legal considerations can help with keeping legal costs