Business Report

Topics: Social influence, Consumer, Management Pages: 8 (2363 words) Published: June 6, 2013
-------------------------------------------------
BUSINESS REPORT

EXPLAIN HOW INTERNAL AND EXTERNAL INFLUENCES MAY IMPACT ON BUSINESS OPORTUNITIES IN NSW. -------------------------------------------------
BUSINESS REPORT

EXPLAIN HOW INTERNAL AND EXTERNAL INFLUENCES MAY IMPACT ON BUSINESS OPORTUNITIES IN NSW. INFLUENCES IN THE BUSINESS ENVIRONMENT
INFLUENCES IN THE BUSINESS ENVIRONMENT

EXECUTIVE SUMMARY
Business opportunities in NSW are impacted by internal and external factors. Internal and external factors influence the business opportunities as they determine the success and failure of opportunities in the business environment. External influences are factors which mainly influence the environment outside the business and therefore they determine what the management staff inside the business must do to adjust with the changes in the external environment. External influences include factors such as; economic, financial, geographic, social, legal, political, institutional, technological, competitive situation and markets. Internal influences are factors affecting the business from within i.e. internally. Internal influences include factors such as; product, location, management, resource management and business culture. The following business report is commissioned to examine the influence of external and internal factors of business opportunities in NSW. EXTERNAL INFLUENCES

ECONOMIC INFLUENCES
The economic influence includes factors which relate to changes in the wider economy i.e. booms and recessions in the economy. The benefit of a growing economy allows opportunities for a business to increase profit, so businesses are able to experience rising living standards. ‘Booms’ and ‘upswings’ benefit business opportunities as they are periods where the economy is going through a positive phase where businesses have the opportunity to increase their positive total revenue. Consequently, this will lead to a rise in employment, consumer spending and wages. On the other hand, “Busts’ and ‘downswings’ are periods where businesses are impacted negatively. An example of a business which suffered from the negative factors of the economic cycle was Harvey Norman. Sydney Morning Herald (SMH) reported Harvey Norman experienced a ‘downswing’ period as profits decreased from $128.95 million to $81.9 million and total sales had a decline of 7.3% due to lack of consumer spending. FINANCIAL INFLUENCES

Financial influences involve ‘deregulation’ which is the removal of government regulations from the industry in hope of improving competition. The improvement of competition allows businesses the opportunity to improve efficiency and productivity of their employers and aim to achieve their required goal. Woolworths and Coles have recently removed regulations relating to supplier payments in order to lower costs and open up opportunities to expand their business and increase profit. GEOGRAPHICAL INFLUENCES

Geographical influences such as location will determine the growth and development of a specific business. Geographical influences impact business opportunities as it provides challenges to increase profits, sales and expansion of business. An example of expansion of business is IKEA who have expanded their business to Melbourne, Australia because of economic growth in the Australian economy. Due to dramatic increase in consumer spending, IKEA’s profit increased rapidly and therefore they were able to purchase an 80, 000 metre square warehouse. Geographical influence impacts on business opportunities as it increases employment, sales and expansion of business as seen by the actions of IKEA. SOCIAL INFLUENCES

Social influences provide opportunities for businesses to change or develop to meet consumer demands. Social influences such as changes in consumer tastes and preferences significantly impacts on business productivity and opportunities. Failure for a business to satisfy consumer’s wants can be detrimental to a...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay about Business 100
  • Business Report Essay
  • Key Business Studies Terms Essay
  • short report Essay
  • Recommendation Report Essay
  • Report Writing Essay
  • How do I write a report Essay
  • Essay about Business Strategy

Become a StudyMode Member

Sign Up - It's Free