Negative effects include anything which has any relation towards global warming. As any business I will be using electricity, throwing away rubbish and also noise pollution with my idea to advertise my business near the market with a live production this will produce a lot of noise pollution.
Positive and Negative effects on existing businesses
There are many positive to my business as there is not any competition to deal with so I don’t have to worry about people looking to any competitors for information and purchase their package as they can come direct to us without other businesses entering their mind. Furthermore elaborating on this idea of no competition it allows my business to put prices higher than expected as I do not have to reduce the prices to a price which is competing with competition from existing businesses, so it allows us to put the prices slightly higher and which allows me to have profit maximisation straight away. With time Economies of scale will be introduced to my business which means that the unit cost of production is to fall in size as my business grows. As my business is beginning to raise awareness and finance I will consider lowering prices if my business starts to grow in size and value. Furthermore, with no competition I can establish myself in the area and be the first one to open such a shop in the area and surrounding then that means my business will be well known, so if new competition was to open up then I would have the upper hand as I would have the experience and the name credibility so that people would come to me first then the new competition.
On to the negative aspects, without competition I cannot save money on infrastructure as with competition we could speak to each other and agree on sharing some services such as delivery, cleaning etc, this could trigger a positive multiplier effect and reduce cost by a huge margin. In addition to this, without any competition I wont be able to judge how their business is actually working and is a success or not and come up with a conclusion as to what their weaknesses are and their strengths are so that if my business are making the same mistake I can change the way I’m running the problem and come up with a solution to mend it. On more point that is a problem is that my business is a innovating company new to the market so I cannot review on other business if they are doing well or not, this means that my business will be a huge gamble, as it will either be a hit or be a misfiring disaster.
Solving the negative problems
I will try to solve problems surrounding society, by cleaning the work place and having regular checks that my business will be in a tidy and organised environment to prevent the infestation of rodents as its unhealthy and puts a danger to society. So putting out the rubbish and also recycling papers, bottles, cans and more then I will also be helping the environment and also be helping the image of my business by having a good reputation for being green and also keeping the community as clean as possible improving the businesses name further. Also, I could cut energy usage by using electrical appliances that don’t use a lot of energy and using energy efficient light bulbs than the normal ones as well.
Solving problems related to no competition will be accomplished by firstly, kick starting my business and making a success so that someone else will consider establishing their own business with the same idea as they can see that my business is doing extremely well in the market and so that they can have a share of the profits and have some competition which could befit my business in the following ways. Firstly, it can be a great way to save money by sharing infrastructure this way we don’t have to spend so much of our profits on bills, for material like travelling, communication and others along the same line, which then for both our business to flourish the money saved can be used to expand our business. Furthermore, with competition we can witness the positives and negatives of each others business so that we can improve on our mistakes and make my business a greater force in the market.
