• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Business Competition.

Extracts from this document...


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.


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.


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.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics 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 GCSE Economy & Economics essays

  1. Case Study: The Home Depot

    According to the information we found (slightly outdated; 1999) the home improvement industry is still in its booming stage. The market structure shifted around 1999 from monopolistic to oligopoly. A monopolistic market is a market in which many buyers and seller trade over a range of prices rather than a single market price.

  2. Critically evaluate the perceived competitive starategies of the five clothing retail outlets, namely Edgars, ...

    Angola was a Cold War enemy of South Africa, yet Angolan business officials are running ads in South African newspapers inviting joint venture investors. The move northward is not without complications. Though some governments have adopted investor-friendly policies such as easing restrictions on foreign ownership and offering incentives for business

  1. external influences

    Therefore, an increase in interest rates can cause problems. That's why Richer Sounds have to sell more goods to cover increased charges for the overdrafts. On the other hand, this is an advantage of always selling good value products. They try to calculate changes in interest rates and build these

  2. External Influences of Richer Sounds and Corus

    If their employees negotiate higher wages, then Corus may also risk losing some of their workers. Price increases inflation Businesses can have two main consequences of inflation. Businesses might suffer falling sales in periods of inflation. In this time, consumers will save more but spend less.

  1. Competition Theory A. Outline the role of competition in ...

    All producers have access to the same technologies. * Factors of production are perfectly mobile - they are able to move from one line of production to another without difficultly. * In the long run, only normal profit can be earned. Any supernormal profit will be competed away by new entrants to the market, forcing prices down to the minimum average cost.

  2. Scarcity and Unlimited Wants.

    Movements Along and Shifts in Supply Curves A change in price never shifts the supply curve for that good. In the diagram below an increase in price results in a movement up the supply curve. The increase in quantity supplied from Q1 to Q2 is sometimes called an expansion in supply.

  1. Changes in the business environment and their impacts on business strategies.

    Suppliers of toothpaste may have quite an easy time but suppliers of luxury goods, for example, may not survive if the recession persists. A much quoted example is the 'oil crisis' caused by the Middle East war in 1973 which produced economic shock waves throughout the Western world, resulting in dramatically increased crude oil prices.

  2. Global Business Plan.

    These elements are considered in all businesses in one way or another. Each element will be discussed as it relates to a specific organization. The first element is the product. AKLLR offers eight different models of floor based and wall mounted air conditioners.

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