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 might
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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