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Identify the main external influences on your two chosen businesses including references to competitors, economic and environmental constraints.

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Introduction

Task D1 Identify the main external influences on your two chosen businesses including references to competitors, economic and environmental constraints. Ikea External influences are factors outside of the business that affect the business, and it has no control over them. Competition Ikea have got many competitors nearby but this does not have a major affect on them as they are constantly competing on prices, quality, availability and their product range. They have got many different competitors selling the same types of products as them; their main competitors are B&Q, Homebase, Argos, DFS, and Toys R US. These businesses are in similar markets and have a similar kind of product range as Ikea. With Argos Ikea mainly compete on furniture and DIY goods, which are quite similar to Ikea's products. DFS are also competitors of Ikea; with DFS Ikea compete on different types of furniture ranges. Toys R US are competitors of Ikea as well, Ikea compete with Toys R Us on ranges of children's toys. Ikea compete with B&Q on furniture and DIY products. With Argos Ikea compete with most of the items that they sell. ...read more.

Middle

But if exchange rates were to decrease, it would lead to a downturn in Ikea's profits and affect their sales. Environmental constraints Environmental constraints are laws and regulations that businesses needs to follow in order to ensure that they're not harming the environment. Ikea are a business that are very environmentally friendly and try their best to try and keep the environment free of any harm or destruction. Ikea aim to help protect the environment, they try to do this by using only wood or wooden fibres because wood is renewable, recyclable and biodegradable, but only if it originates from well- managed forests. Ikea also try to recycle many of their products because they try to re-use the parts of recycled products in order to make new products to sell in their stores. Ikea try not to waste any of their products, instead they make good use of products which are not bought and recycle them in order to develop new products which will sell. They also sell damaged products, at very cheap prices in order to make some money as well as to ensure that their products are not going to waste. ...read more.

Conclusion

If the pound is weak they are going to get less in exchange for it, but if it is strong they will get more materials in return for it. As there is low employment in the UK at the moment there is more demand from the existing work force to complete construction of houses for example and deliver products of a really high standard. There is also more demand for their products so they have to work hard to ensure that their products are up to the standard of what is required from them. Environmental Constraints Lansing Linde tries to make sure that they are following the rules while they are carrying out work and handling their forklift trucks, they also try to make sure that any unused parts are recycled and used in newer products. They must also be careful with the fuel that they use to power the trucks so that their trucks aren't causing major pollution when they are being operated. They must also ensure that the machinery is safe for their customers so that accidents and injuries can be avoided. Linde must also be very thorough and carry out many tests before they market their products. Manraj Hayre ...read more.

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