External influences Economy Interest rates Most businesses will need

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External influences Economy Interest rates Most businesses will need
to borrow money. The interest rate will affect how much it costs.

External influences

Economy

Interest rates

Most businesses will need to borrow money. The interest rate will
affect how much it costs a business to borrow money. If the interest
rate is high the money a business owes is more than before. A 20%
interest rate rise would affect Cadbury’s; they would have to pay
extra money towards the loan. This too would affect Sainsbury's in the
same way. Any interest rates that go up will affect a business because
the business needs to make up the costs and the only way to do this is
to higher the prices of their service or products. The company
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If they did lower their prices
they would loose money anyway so it is a hard move for the other
stores. Cadburys could update products such as dairy milk. Or they
could change the packet and make it more flashy or different. E.G

Sainsbury's could sell healthier foods like their ‘be good to
yourself’ range. This is very successful because Jamie Oliver is
advertising and when he says it’s good it is good. Vouchers for active
kids will make people buy their products. Nectar points will make
people buy the products too because people will spend money and save
money at the same time.

The Environment

The environment can be a big factor in the running of a business
because if they do anything to affect the environment they will get
loads of environmental protesters trying to close down the factory or
trying to ban the product. If Cadburys were to produce too much
pollution they would be greatly concentrated on and their reputation
would be lost. In their case they would loose a lot of money because
they only sell edible products so they would be closed down, [IMAGE]but
if Sainsbury's got accused of polluting too much they could do a whole
range of things because they don’t just sell edible foods and they
don’t make the food in their own shop (except for bread and fish).
Cadbury have a website to promote the environment friendly use of
materials and it…