Ikea and Lansing Linde will have to improve the quality of both their services and their products in order to gain more customers than their competitors otherwise they will not sell as many products. In order to keep on level terms as their competitors and make more profit than them Ikea and Linde will have to look at their own product ranges and services and think of new ways in which they could be more effective.
Economic Conditions
If Interest rates were to rise it would have a major impact on both of the businesses. This will mean that both businesses will have less money and customers will not go out spending as much as they would if the interest rates were low. If interest rates were to decrease then it will be the complete opposite, the companies will have more money and there will be more people willing to spend money.
Interest rates will have an effect on Lansing Linde because they have to borrow money from the bank if they want to expand their business, and if interest rates are high they will suffer from it as they will have to pay more back to the bank in interest. Ikea will also suffer if interest rates rise because if interest rates rise it will mean that people won’t be looking to spend money on furniture.
In the UK there is a high number of people who are unemployed it means that there are less people who are earning a lot of money, so therefore people don’t have as much money to spend, this means that they will be concentrating more on spending their income on food rather than other essential items. This will also mean that Ikea and Linde will lose out on customers because of the fact that there are so many people who are unemployed.
Exchange rates also play a major part in the trade of both businesses as they are both world-based. If exchange rates were to rise the cost will be too expensive for overseas buyers and they may decide to go somewhere else to buy their products. But if exchange rates were to fall this would be a massive bonus as it would bring in more buyers and more trade.
Environmental Constraints
These laws have a major impact on businesses. They may have cost implications for businesses and introduce new procedures which have to be followed. For Ikea the government have been promoting public transport in order to avoid traffic congestion. It may also encourage more people to use the public transport facilities; this will also reduce the amount of pollution because public transport uses less harmful fuels to power the vehicles.
For Lansing Linde the environmental constraints also have a major impact on them as they have to be very careful and try their hardest to stick to the rules and regulations in order to try and look after the environment by not harming it. This is done by Lansing trying to make sure that they making sure that they use harm-free fuels to supply power for their forklift trucks.
