How Environmental And Global Events Could Affect A Business.
Unit 38- M3
Environmental concerns: Here there can be many issues that will occur for AL-MURAD as they would need to be aware of all changes made within the environment and are not harming the environment in anyways. So here they would have to make sure that they consider recycling their products that they use such as papers, packaging of the tiles as this would be helping the environment stay healthy and green avoiding harm to nature as this can cause pressure groups to cause problems or can also have an impact on the countries that the tiles are received from. So once they are environmentally aware then this will have a good reputation on AL-MURADs and would avoid pressure groups in which can even lead AL-MURAD to close down.
There are many other environmental concerns such as chemical products from production and highly toxic under from nuclear power generation. AL-MURAD can be affected with such environmental concerns as the more pollution and waste is caused in the air the more is going to have an impact on climate change, and to make tiles there has to be a certain weather but if the weather is not right to make tiles due to the environmental concerns then AL-MURAD will have a delay in receiving tiles and it would take longer to sell the items or may even lose customers due to not having the tiles that are needed. If certain tiles are not been sold then to get rid of the product there has to be certain way to disposal them to avoid environmental concerns as if they cause problems that affect the environmental they are affecting their own business, due to the climate change, so there would be a positive impact if AL-MURAD was environmental friendly also to avoid pressure groups also.
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War and Political instability: The government will raise taxes to finance the war efforts which then will reduce the domestic demand. So loads of money will be lost from the country and jobs will be lost and less people will receive loans due to less money coming into the country as much of it is going out for the war expenditure, this can lead to recession also.
AL-MURAD will have a great impact on their business if UK goes to war with the country where they receive their tiles from Pakistan, this could lead them to close their business down. It can even delay the process of tiles being delivered to them and more checks will be taking place on the goods coming in and out of Pakistan (more security checks). Also they might spend money on insurances but may not receive any income. As if the UK is going into recession then customers will not be able to afford luxury items having a great impact on their business as well as employees losing their jobs.
Terrorism: Looking at AL-MURAD as they receive their tiles from overseas such as countries like Pakistan they may be effected such as economy issues within that country such as the suicidal attacks, earthquakes etc... Such issues are built up and certain firms that have made contracts with AL-MURAD may cancel them or stop making contracts as they may be led to think that the tiles may not be delivered on time or not made at their best ability. It could be that there can be conflicts made between both the countries where the tiles are received from UK and all products imported from there will not be allowed this can cause a great deal of problem for AL-MURAD as they will not have any tiles to sell putting their business as a great risk.
Organization of the Petroleum Exporting Countries (OPEC): Oil is used constantly but the supply of the oil is not, oil is mainly received from the middle east countered like, Saudi Arabia, Iraq etc…. so OPEC comes from an organisation that meet their needs as oil exporters, so they pay countries from the middle east to receive the oil. Here if countries from the middle east stop supplying oil then many countries from Asia and UK etc… begin to lose out on a lot so if Pakistan does not receive any oil then tiles cannot be made, there would be no oil for transportations to import tiles, this can have a negative impact on AL-MURAD as they will not be receiving any tiles at all leading their business to close down as there would be no tiles to sell. Here if the oil supply is low then the prices would go very high, it would become very expensive to make the tiles as well as receiving the tiles back to the UK due to the high prices of transportation, this would have a negative impact on AL-MURAD as then they would have to put their prices of tiles high and then it would be expensive for customers to buy in which here AL-MURAD will be losing a lot of money.
European Trade policy: The European operates a single European market which means that the members of EU can trade with each other without any restrictions. There are many countries that have the right material to make tiles, Poland is part of the EU and they provide marble which is the best material for tiles and a great deal of benefit for AL-MURAD as it will be a luxury item for customers as it is difficult to find marble tiles and are very expensive if they are made within the UK.
If AL-MURAD begin importing tiles from Poland then it will be cheaper for them and beneficial for their business, because importing tiles from Poland would not have to go through as many processes as such countries already be aware of the EU law and regulations, such as checks, security, transportation etc…
Global issues: Global issues are caused by both economic and political international events; they make a big effect on the activities of businesses within the UK and international. Issues such as terrorist’s attacks and war can lead to great problems for businesses all over the world due to a life risk.
According to certain global economy issues such as terrorist attacks such as 9/11 straight away there was major changes made in the wide range of many companies shares. And some shareholders sold their shares as pressure of protection and security builds up, this affects many companies and issues. AL-MURAD would here then have to focus on the different issues and take in consideration of all the global issues occurring around the world as everything links with one another specially when AL-MURAD receive their tiles from overseas.