The External Environment and Its Effect on Business Essay

1465 Words Sep 7th, 2014 6 Pages
The external environment in which businesses operate can have a significant effect on their success. To what extent do you think that the external environment in the UK is favourable for businesses at the moment? Justify your answer with reference to external factors and/or businesses that you know. (40 marks) You must include a plan. 3 ½ pages handwritten.

Not petrol?
Can argue against in evaluation – favourable for some industries but not others Make a point, explain and evaluate (3-4 main points)

The external environment for a business is equally as important to its success (or otherwise) as it’s internal environment. This is because external factors will directly impact on the business. These factors are complex and wide
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Innovative new machines such as robots are able to do the job of the human more cost effectively and to a higher, more consistent standard. Social media is one of the hottest topics and Cadbury has grasped the opportunity of integrating its marketing campaigns across both traditional and new media. Consumer generated content is an ongoing challenge and has to be managed as this can generate negative as well as positive PR. Cadbury is also taking advantage of technology to link its supply chain communications right through to the retailer, where till transactions can order stock directly through to the supplier. This speeds up the time it takes to get product to store, leading to less ‘put of stock’ situations.

Legal aspects are incredibly important, both in terms of being able to leverage any opportunities but equally important, businesses need to ensure that they keep up to speed in order to remain within the law. This area includes anti-trust law, discrimination law, copyright, patents / IP law, consumer protection and e-commerce, employment law, health and safety law and data protection An area of particular interest here is Trademarks where companies ‘own’ aspects of their branding, for example. Very recently the High Court rejected an opposition brought by Nestlé against Cadbury's application to register a particular

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