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Unit 29 P4 - External Factors That Can Affect A Business

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Introduction

Humzah Ahmad Unit 29- P4 The retail environment Macro environment- Retailers are endangered to external effects over which they have no control. These external influences are also recognized as macro-environmental factors and can include the alterations in consumer and business confidence and Changes in the housing market Successful retailers are the ones that get ahead and react for that reason. External factors must not be ignored as they might position a risk to the long-term survival of an association. A retailer?s macro environment may be affected by the resulting external impacts; altering customers? tastes, Retailers giving similar goods at reduced prices, quickly changing market. Government policy- This can have an impact on the macro- environment of retailers. For instance, political choices can effect on crucial factors such as education and health issues affecting the workplace, trade barriers, legislation and economic infrastructure. Other government are going to be explained in the following sections. Trading hours- The Sunday Trading Act 1994 rules a retailer exact to trade on a Sunday. The act permits shops to open, but limits opening times of bigger stores of more than 280m squared to a limit of 6 hours. Furthermost shops opening on Sundays have a habit of opening at 10am to 4pm. The legislation was met with significant opposition. Nonetheless, the shop workers trade union USDAW {union of shops, distributive and allied workers} finally decided to care the 6 hour Sunday trading in reoccurrence for a trust that Sunday working would be harshly voluntary and premium pay would be given. ...read more.

Middle

New technologies- Technology is fundamental for making sure a competitive benefit in a worldwide marketplace. New technologies allow services and products to be made cheaply and to a fine quality and they give the customer a selection of innovative services and products, such as internet banking. Flight, theatre and games tickets can all be purchased on the web getting rid of the need to queue up or telephone a reservation. These recent technologies have also had an impact on traditional industries such as publishing-books can now be downloaded from the web to a PC, an iPod or handheld digital book reader. Likewise, technology allows businesses to converse with the consumer through customer relationship management, poster ads and personalised messaging. Economic growth- This is measured by the yearly change in Gross Domestic Product and is typically uttered as a percentage. It can be inclined by many factors such as higher business savings and improved productivity. For retailers and customers, economic growth gives advantages including extra disposable income, formation of jobs and decrease in less paid jobs. There are disadvantages of economic growth such as Additional pollution due to higher production stages, Decrease in non-renewable resources such as oil and the rich society might be the only ones that promote. Recession- This can have a big impact on the retailing trade and use mostly accompanied by a reduction in the value of the stock market, a rise in unemployment and a decline in the property market. ...read more.

Conclusion

Also Marks & Spencer by Autograph, blue harbour and other individual designer products Development of shopping for a mobile population- The surge in mobility of the populace is making new retail openings for associations. Selected of these opportunities are discussed in the following sections. Airports- This continues to increase as the figures of destinations being aimed by low cost carriers are on the upsurge. Airport management reflects retail as an important factor in converting revenue. For example, Heathrow airports terminal 5 gives a variety of retail outlets selling goods such as old-fashioned and modern gifts, luggage and travel-related products and jewels, accessories and watches. They too interest high street stores such as HMV, WHSmith, Accessorize and Boots the chemists?. Railway stations- Passenger statistics are rising on the national rail system. Closeness shops, confectionary stores, tobacconist shops are all relishing an increase in claim. Goods such as DVD?s, music, electrical items, tailored and gift consumptions are accessible at the stations. They too have tested with health and beauty operatives such as Boots, The Body Shop and Superdrug. High prices accessory stores such as Vodaphone and the stationer Paper chase have also connected to the market. Motorway service areas-These give a selection of food openings as well as Marks & Spencer, Somerfield, Waitrose and Thornton?s. They also have modern high street retail outlets such as WHSmith and Fonebiz. Retail passages within these MSAs are limited on the capacity of their stocks. They cannot flog off liquor or not can they publicize their brands. A review of these instructions would permit these outlets to develop in line with customer requests and desires. ...read more.

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