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Discussing factors that influence a company.

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Unit 4 Internal factors are those that influence the company which can be control by them External factor are those that influence the company but are not controlled by them Political Economic Social Technological Political may affect a business Like business, the government have objectives. These objectives can be grouped into Social and Economic Social - Ensure people are safe and secure by providing defence and law and order - Ensure people have access to housing and health care - Ensure people are educated - Improve quality of life Economic - Aim for full employment - Maintain low level of inflation - Achieve a stable balance of payment - Improve standard of living Government adopt three types of policies in order to achieve their objectives. They are the Monetary, Fiscal and Direct control. Monetary Policy Government controls the amount of money in economy by controlling the banks. Main reason of using the policy is that it reduces inflation. To do this they - Increase Interest rate which should reduce the amount of money people will borrow which will reduce demand of a product. ...read more.


Indirect VAT - VAT is added to goods and services Custom taxes - added to imported good Increase indirect taxes --> fall in sales Increase direct taxes --> less money, less demand Spending Increase spending by the government --> reduces in unemployment --> more demand Local Authorities Local authorise are layers of local government such as a district council. They are elected by the local people to represent them and their interest. Local authorities provide services such as schools + housing. They are funded by central government + council + business tax Influences to businesses - maintaining the area - offering grants + loans to local business - enforce business laws such as consumer protection They try to assist a business as much as possible. Planning Permission It is one of the biggest influences on business by the local authorities. A Planning Permission is a formal approval by the Local Authorities, often with conditions, allowing a proposed development to proceed. Full permissions are usually valid for five years; outline permissions, where details are reserved for subsequent approval, are valid for three years. ...read more.


the monopolies + Mergers Commission of any businesses need to be investigated Employment + Law To ensure workers are treated respectfully the government created laws. Health + Safety at work Act - employers are responsible for the safety and health of the worker at their workplace. The employer has to make sure that the employees know how to use a machine or how to use the equipment they use properly. They also have to make sure the equipment is safe to handle. Factories Act - businesses must provide their employees with minimum safety requirement such as toilets and fire escape. Sex Discrimination Act - it is illegal to discriminate someone because of their gender Race Relation Act - it is illegal to discriminate someone because of their race Redundancy Payment Act - People have worked in a business for 5 years part time or have worked 3 year full time have a right to get a week's pay for every year they have worked. (After they quit) Equal Pay Act - men + women should get a equal pay for the same job ...read more.

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