Title: Explain how external and internal influences may impact on business opportunities in Australia.
Explaining how external and internal influences may impact on opportunities businesses have in Australia.
External influences such as Financial, geographic, social, economic and competitive situation are all influences that impact business opportunities in Australia. Internal influences such as products, locations, resources and management are also factors that contribute to business opportunities in Australia. These influences can affect a business dramatically, the external influences are harder for a business to change as they are influences that a business itself cannot change, internal influences are easier for a business to change.
Financial influences can impact on businesses as they are always changing and are very unsustainable. With interest rates and access of loans constantly changing it is hard to stay financially stable. Geographical Influences have large impacts on business activity as the geographical location can change factors and lead to changes in the nature of product and service. Social influences can affect the business if it doesn't respond to changes in taste, fashion and culture and can lead to a decline in sales. If the business responds to changes in fashion and culture the sales will increase. If a decline in sales occurs is may cause threat to the businesses stability & visibility. Economical influences can affect the business with the economic cycles changing from boom to recession. Competitive situation can affect the business depending on the number of competitors and the size of competitors. External influences are influences, which highly impact on the business opportunities in Australia, as businesses themselves cannot change external influences. An example of an external influence is Myer excepting a lower net profit, as they are losing up to 5% of their profits to...
Please join StudyMode to read the full document