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External influences are factors that affect the business, which the business cannot control. There are many external influences that can affect a business.

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Introduction

External influences are factors that affect the business, which the business cannot control. There are many external influences that can affect a business, such as: Business Competitors Economic Conditions Environmental Constraints I will first discuss the competition faced by Errol Anderson Motors. Errol's main competitors are local garages and other well-known garages, such as Kwik-Fit. They compete on price and quality by providing a good service for a good price. Availability may be a problem for Errol, because Kwik-Fit would have more parts available because they are a national chain and have more money. ...read more.

Middle

Errol Anderson Motors is a local business, but Errol's main competitor, Kwik-Fit, are a national chain, which gives them the edge over Errol as they are more well-known. For Errol to start competing with Kwik-Fit, he would first have to start importing more parts for less popular cars. This would attract more customers to his garage. Economic Conditions Interest rates The interest rate is the cost of borrowing money, and is measured as a percentage. Interest is normally charged by banks to borrowers. The higher the interest rate, the more expensive it is to borrow money. ...read more.

Conclusion

Inflation rates have varied widely over the years. When inflation is high: Interest rates are high, therefore borrowing is expensive Future money values become very uncertain Price lists keep changing Exchange Rates The exchange rate is the conversion rate from one currency to another. Changes in the 3 economic conditions above can affect Tesco and Errol Anderson Motors. If inflation is high Tesco's price list would keep changing, which would cause problems for customers. If there was a rise in the � then fewer tourists would come to the UK, which would mean slightly less customers for Tesco. These changes will also apply for Errol, but it would have a bigger impact on him because his garage is a smaller business. ...read more.

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