External Factors Affecting a Business Essay

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External Factors Affecting a Business INTRODUCTION EXTERNAL FACTORS AFFECTING THE COMPANY'S BUSINESS AND PROSPECTS There are many factors that affect the Company's business and the results of its operations, some of which are beyond the control of the Company. The following is a description of some of the important factors that may cause the actual results of the Company's operations in future periods to differ materially from those currently expected or desired. OBJECTIVE The objective of this paper is to introduce the external factors affecting the jeans industry from a business view. 1. GENERAL ECONOMIC AND INDUSTRY CONDITIONS Any general economic, business or industry conditions that cause customers or potential…show more content…
4. PRODUCT, CUSTOMER AND GEOGRAPHIC MIX The profit margins realised by the Company vary somewhat among its products, its customer business units and its geographic markets. Consequently, the overall profitability of the Company's operations in any given period is partially dependent on the product, customer and geographic mix reflected in that period's revenues. 5. SEASONAL TRENDS The Company experiences some seasonal trends in the sale of its products. For example, sales to the European region are often stronger than the Asian region. Social and cultural elements are strong contributing factors. 6. TECHNOLOGICAL CHANGES AND PRODUCT TRANSITIONS The jeans industry is characterised by continuing improvements in fashion and design which result in frequent introduction of new products, short product life cycles and continual improvement in product price/design characteristics. The Company must effectively manage a product transition and incorporate technology that will improve customer service and demand. 7. INVENTORY MANAGEMENT/SUPPLIES/RAW MATERIALS The Company's ability to manage its inventory has been enhanced by favourable supply conditions in the industry. The Company's manufacturing process requires a high volume of quality components that are procured
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