• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
Page
  1. 1
    1
  2. 2
    2
  3. 3
    3
  4. 4
    4
  5. 5
    5
  6. 6
    6
  7. 7
    7
  8. 8
    8
  9. 9
    9
  10. 10
    10
  11. 11
    11
  12. 12
    12
  13. 13
    13
  14. 14
    14
  15. 15
    15
  16. 16
    16

external influences on a business

Extracts from this document...

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.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Structures, Objectives & External Influences section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Structures, Objectives & External Influences essays

  1. Btec National Business Level 3 Year 1 - Exploring Business Activity

    They may, in some countries, be subject to state scrutiny if they wish to qualify for charitable status. Voluntary sector organisations are Oxfam. Types of ownership Sole trader - most small businesses are sole trader. Examples include plumbers, hairdressers, newsagents and fishmongers.

  2. Political, legal, social factors affacting Tesco.

    Therefore without the funds from the government to the NHS there would be no patient transport services available. The economic factor also affects the NHS's pharmacy as the NHS buys medicine with the money that they get from the government just like they do with patient transport services.

  1. Describe the stakeholders of the organisation, why they are interested in it, and give ...

    Employees Employees as stakeholders again are very vital to a business such as Morrison's, there interest and influences in the business is the job, there will be an positive flow of productivity in the business activates within the business. Morrison's must be able to make sure that they keep there

  2. The Business Environment Coursework. Describe the type of business, purpose and ownership of ...

    resources/Personnel - deals with people, works with recruitment, staff absences, and issues staff may have, sometimes they may deal with payment of the staff and employment contracts along with finance and legal departments Finance - Accounts, wages, VAT returns and anything else to do with money.

  1. For my portfolio, I was asked to do an assignment on two businesses. I ...

    The suppliers of Vectone Gnanam Telecom also interested that their business is stable so they keep on purchasing from them. C) Expectation of stakeholders in Tesco Tesco stakeholders expect Tesco to open more stores and make more profit and to increases their sales.

  2. Comparison of stakeholders interest and influence. Apple vs. Mercedes Benz

    Apple Inc. Customers ? Customers know the biggest weakness of Apple, which would be time as technology constantly changes, Apple has to keep up with it and research and develop the latest gadget. Competitors are also dealing with the same issue.

  1. Investigating Business. Tesco PLC. I will be describing the aims and objectives of ...

    Tesco?s customers, If Tesco?s customers aren?t looked after then it could mean that Tesco?s staff doesn?t think that they?re being looked after, Tesco believe that their people deserve an employer who cares as it is one of their values ?Treat people how we like to be treated?.

  2. Political, legal and social factors impact on businesses The two businesses I will compare ...

    This is a law which affects businesses but supports the customer. Health and safety at work act (1974) - This law ensures that employers provide healthy and safe working conditions and employees must act in a safe and responsible way.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work