Year 11 Business report Juliano Doumit
Assess the strategies in which businesses can use to respond to external influences
Executive summary:
There are many reasons as to why a business is successful or unsuccessful. External influences have a vital role when it comes to deciding if a business will stay or go down. Strategies are used by businesses to respond to the external influences. External influences such as Economical, financial, social, geographical, legal, political, institutional, technological, competitive situations and markets are all very important when it comes to determine what to change in a business to keep the business successful. Businesses rely on these external influences because it helps them keep up with the current …show more content…
Even though this sounds like a positive aspect to owning a business it can also come with negatives as well. Financial influence affected dick smith in early 2015 when it was declared that dick smith were holding onto too much stock that was deemed unsellable or overpriced. Dick smith was declared bankrupt late of 2015 when they announced that dick smith was down $116.7 million. After that dick smith was from then on out plummeting in sales and were soon to be closed down. In an attempt to keep the business alive they tried to change their prices and their methods when they were approaching things in a new way, ultimately their plans failed and their business was finally dead which then resulted in a loss of a lot of jobs. There are plenty of advantages and disadvantages when it comes to financial influences. The advantages of financial influences are if interest rates increase in a business then that means that no loans will be taken out of the bank which would then result in less debt being paid back to the bank which …show more content…
Competitors shouldn’t be seen as threats to a business but a pathway to a better company. Woolworths and Coles are a prime example of perfect competitors. On June 26 2015 a survey was given out to find out what people rated both stores. Overall the survey showed that that Woolworths came out to be a 5.7/10 while Coles was a 7.1/10, the highest it has ever been. The survey asked them who had the best on-shelf availability, quality of fresh food, in-store compliance, store presentation, staff, pricing and value for money. In all those categories Coles beat Woolworths every time. Their are both advantages and disadvantages to having competitors influence. The advantages of having competitors influence is that it motivates you and your company to be on the same level or higher as the competitor, with this motivation it allows the business to stay healthy and still gain profit while at the same time improving yourself. Another advantage to having competitor influence is that is helps build teamwork with the owner of the business and the employees around them. Teamwork is a vital key for keeping a business successful as it helps rise the mood that is set in the company thus resulting in more customers coming. There are also disadvantages to having competitors influence as it affects the business. Businesses get affected by
Assess the strategies in which businesses can use to respond to external influences
Executive summary:
There are many reasons as to why a business is successful or unsuccessful. External influences have a vital role when it comes to deciding if a business will stay or go down. Strategies are used by businesses to respond to the external influences. External influences such as Economical, financial, social, geographical, legal, political, institutional, technological, competitive situations and markets are all very important when it comes to determine what to change in a business to keep the business successful. Businesses rely on these external influences because it helps them keep up with the current …show more content…
Even though this sounds like a positive aspect to owning a business it can also come with negatives as well. Financial influence affected dick smith in early 2015 when it was declared that dick smith were holding onto too much stock that was deemed unsellable or overpriced. Dick smith was declared bankrupt late of 2015 when they announced that dick smith was down $116.7 million. After that dick smith was from then on out plummeting in sales and were soon to be closed down. In an attempt to keep the business alive they tried to change their prices and their methods when they were approaching things in a new way, ultimately their plans failed and their business was finally dead which then resulted in a loss of a lot of jobs. There are plenty of advantages and disadvantages when it comes to financial influences. The advantages of financial influences are if interest rates increase in a business then that means that no loans will be taken out of the bank which would then result in less debt being paid back to the bank which …show more content…
Competitors shouldn’t be seen as threats to a business but a pathway to a better company. Woolworths and Coles are a prime example of perfect competitors. On June 26 2015 a survey was given out to find out what people rated both stores. Overall the survey showed that that Woolworths came out to be a 5.7/10 while Coles was a 7.1/10, the highest it has ever been. The survey asked them who had the best on-shelf availability, quality of fresh food, in-store compliance, store presentation, staff, pricing and value for money. In all those categories Coles beat Woolworths every time. Their are both advantages and disadvantages to having competitors influence. The advantages of having competitors influence is that it motivates you and your company to be on the same level or higher as the competitor, with this motivation it allows the business to stay healthy and still gain profit while at the same time improving yourself. Another advantage to having competitor influence is that is helps build teamwork with the owner of the business and the employees around them. Teamwork is a vital key for keeping a business successful as it helps rise the mood that is set in the company thus resulting in more customers coming. There are also disadvantages to having competitors influence as it affects the business. Businesses get affected by