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external influences on a business

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Introduction

External influence on a business (Unit 14) Introduction (Task 1) My name is Yathursan Devabalan. I am a sixth-form student at Woolwich Polytechnic School. I am currently studying Maths, Business and Economics. In business I am currently in the process of doing the coursework on 'External Influences on a Business'. This coursework requires me to investigate the external influence which affects my business. I have chosen to investigate Morrisons because I believe it is easier to get the information I need about them. They are very close to my school. Another reason why I chose to investigating Morrisons is that I know several people who work in Morrisons in various job roles so I can get some insight information regarding what sort of external influences affect them. In this coursework I will be investigating how the business reacts to the external influences including legal, economical, technical and environmental and also analyse and evaluate the changes the business has made to its practices and activities in reaction to the external influences. Description of the business Morrison Supermarkets plc is the fourth largest chain of supermarkets in the United Kingdom. Morrisons employs 123,223 staff, in 373 superstores in the United Kingdom. Most Morrisons stores operate from large superstore formats selling a wide range of products including the core groceries. As of October 2006, Morrisons has 367 superstores in the United Kingdom, including those it has retained following its purchase of Safeway plc . Until 2004, Morrisons superstores were largely concentrated in the English Midlands and the north of England, but had expanded southwards, beginning with a store at Erith, Kent, which opened in 1998. Most Morrisons stores operate from large superstore formats selling a wide range of products including the core groceries. Most Morrisons superstores are typically between 28,500 sq ft and 36,000 sq ft, with an increasing number above 36,000 sq ft, offering food, home wares, some essential clothing (i.e. ...read more.

Middle

measure and 3.7% by the RPI (Retail Price Index) measure. It is the measure adopted by the Government for its UK inflation target. The Bank of England's Monetary Policy Committee is required to achieve a target of 2 per cent, subject to a margin of one percentage point on either side. From the diagram you can see that overall inflation has been rising but during October 2005 to around March/April 2005 inflation has been rising but at a decreasing rate, in other words there is inflation in that period but the rate of inflation is lower than the period before. So during that period Morrisons would still feel the effects of inflation but not as much as during October 2004 to September/October 2005. So because of the inflation the average price of petrol decreased by over 5p per litre between September and October this year, to stand at 85.9p on collection day, compared with a fall of 1.3p a year ago. This in one way is beneficial for Morrisons because the supplies they get from their suppliers would now cost less as the petrol price has reduced. Also this decrease in petrol price might encourage customers to come more often to Morrisons as they can come to Morrisons at a cheaper cost. However, I believe that this decrease in petrol price is less likely to have any significant changes to Morrison as the petrol only went down by 1.3p, which is not a lot. Another reason why Morrisons need to keep an eye on the inflation rates is that they need to assess what to do with their own prices. Their costs are likely to be rising and so their margins will be squeezed. However, they need to watch carefully what their competitors are doing as well as if they put prices up too much they may become uncompetitive. Inflation is also likely to lead to higher wage demands as workers want to ensure they can keep up with the cost of living. ...read more.

Conclusion

This system is very effective way to encourage recycling as found out in the EU countries. Morrisons could also find a second use for unwanted or discarded products, so for example Morrisons could reuse it themselves or to collect the unwanted items such as mobile phones, spectacles and clothing and offer it to charity who will give it to developing countries where the products will be productively used. Event though these changes to practices Morrisons makes will cost money, the changes it makes will have benefits to Morrisons and to the environment. Even though waste reduction is pressurised by political and social influences, it may also be in Morrisons interest to reduce waste and limit the impact of its operation on the environment. This is because by reducing waste, Morrisons will reduce its cost of production and helping Morrisons maximise its profits. Similarly by selling more environmentally friendly products, Morrisons can attract more variety of customers who are willing and attracted to buy from an environmentally friendly firm. Also there will be more customers who will be loyal to Morrisons as they feel more welcomed or associated with Morrisons. Also another benefit of being environmentally friendly by reducing waste is that it will keep pressure groups off Morrisons, so they can sustain their good public image. If Morrisons become more environmentally friendly they can impress their stakeholders especially their staff. So the staff will be more motivated as they feel proud of being associated with a waste reducing firm rather than a wasteful company, so overall firm's productivity will increase. The final benefit of Morrisons being a good waste management practices is that it will reduce the regulatory burden. So by Morrisons handling waste reductions are less likely to breach the legislation and regulations on waste reduction. So by doing this Morrisons is less likely to get fines or charges for waste disposal. In the last 10 years the development of technologies has influenced Morrisons in many ways. ?? ?? ?? ?? 1 YATHURSAN DEVABALAN MR.HOMBO UNIT 14 ...read more.

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