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Explain the impact on your two chosen businesses of changes in external influences, including reference to competitors, external and environmental constraints.

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Introduction

Task D2 Explain the impact on your two chosen businesses of changes in external influences, including reference to competitors, external and environmental constraints. Competition Competitors have a major impact on businesses and can have a major effect on other contending businesses around them. For instance if a new business opens up and starts to sell the same kind of products as Ikea or Lansing Linde at a cheaper price, it would effect the profit of Ikea and Lansing Linde as they will be losing customers. Or if Ikea or Lansing Linde's current competitors were to lower the prices of their products, this will also have a major affect as they will constantly have to lower prices to compete with their rivals. ...read more.

Middle

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 ...read more.

Conclusion

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. ...read more.

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