External Influences Affect All Firms Essay example -- Papers

External Influences Affect All Firms Many businesses are quite capable of organising themselves internally, however this does not guarantee complete business success. Businesses have many outside pressures to face, which can become quite complicated to manage. These are called external influences. There are many factors that can affect a business, of which the market is just one. Businesses are tremendously influenced by the markets in which they trade. The size of a business does this: whether it is local, national or even international will affect the nature of the product that they supply and also the quantity. Competition is also a factor that can influence the rise or fall of a business. Communications and methods of transportation such as the delivery of products by air have made the competition in the market place more intense. Many businesses in the United Kingdom now face competition from other continents from around the world. A good example of this is the UK grocery market where the competition had become fiercer following the coming of foreign supermarket chains such as Aldi. Also new products, price changes and take-overs of other businesses can be a big influence. Economical influences are a factor too. Interest rates are the priced paid for borrowed money, this can affect businesses because every month the Bank of England's Monetary Policy Committee (MPC) assembles each month and decides on whether to alter the base rate of interest. So if the MPC decide to alter the base rate of interest this could have sufficient implications for businesses. A rise will result in greater overheads for most businesses,... ...he long run as they buy the product. In conclusion to the title of this essay, 'External Influences Affect All Firms, To What Extent Do You Agree With This Statement?' I believe that this statement is very honest. From the evidence I have given in this essay it is clear that there are a lot of factors that influence and affect businesses. Take the climate, may seem small compared to the other factors, but it has a significant affect if it takes the wrong path. Also the obvious factor - the market itself, its size can cause many problems. Basically every business if it's a large company set in the heart of London, or a small corner shop down the road has to take each factor into consideration to maintain their business stays afoot. Although its hard and definitely impossible to grasp to a full one hundred percent.