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Business Competition.

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Introduction

External Influences. There have often been over the year's external influences, which have affected the business. Some random some not, for example the collapse of the twin towers, due to a terrorist attack in America on 11th September 2001 had a huge affect on the travel industry. This external influences would of certainly affected EasyJet, even though EasyJet didn't fly as far as America the tourists and businessmen would have been sceptical of flying. Transatlantic flights slumped; the knock on affect was that travel agents lost money, companies that made planes lost out, and the tourist industry suffered. Thankfully external influences are not generally so random the following are external influences, which are a little more predictable. Business Competition Rival companies may bring out a cheaper or better product or service. In a competitive market where many businesses offer the same or similar product, businesses must battle for a share of the market this is often achieved by offering a slightly different products or services. ...read more.

Middle

money. If interest teas are high or jobs are scarce people are less inclined to buy therefore stock remains on the shelves, businesses have less money so they produce fewer goods. People and businesses affect the economy of a country the three main changed are: * Interest rates * Prices * Exchange rates Interest rates Interest is the cost of borrowing money. Most businesses will have to borrow money at some stage either to expand, buy new equipment or machinery or to develop new products. If interest rates raise then the cost of borrowing will be greater, if interest rates go down the cost of borrowing will be cheaper. Should the interest rates rise dramatically than businesses could find that they are paying out more than they are making by selling the product or service they originally borrowed the money for, Interest rates also affect the businesses and customers, which buy. This could lead to a downfall in sales. Consumers may be less likely to want to borrow money to purchase goods if rate are too high. Prices. ...read more.

Conclusion

Many years ago business and individuals did not think much about how they operated, noise levels, pollution levels or how they disposed of their waste. Since then attitudes have changed thanks to pressure groups and scientists businesses and the general public are more aware of environmental issues Governments are starting to realise that if we don't change the way we live, work and use natural resources we may permanently damage our planet. Laws now control some business practices to prevent further damage being caused. Laws, which govern such things as: * Air pollution, the prevention of dangerous or harmful gasses being released into the air * Noise pollution, the level of noise emitted by machinery, etc which can be harmful. Noise is measured in decibels. Health organisations recommend a maximum of 55 decibels during the day. * Water pollution, water pollution occurs when hazardous or dangerous chemicals are discharged into rivers, streams, lakes or seas. The main source of water pollution is industry and farming Business Portfolio October 03 Part D. external influences Mr. Laidlaw Jemma Murphy ...read more.

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