How internal and external influences may impact on business opportunities in NSW. Business

4. What are externalities, and how do they typically affect the price of a good or service?

Changes in external forces translate into changes in consumer demand for both consumer products and services. The company must prioritize to determined which factors may have the most impact and influence to the business. These factors are Political, economical, sociological environmental, and legal. Many of these factors are linked together. For example political, government legislation affect the economic factors (for example increasing the VAT). There are many models that can be used to analyze the external environment. LoNGPEST analysis examines the impact of each factor in local, national, and global aspect in the organization. It will help to where the company needs to focus and most important factors to have a sustainable and profitability in a long run(Hassanien, Dale, & Clarke, 2010; Johnson, Scholes, & Whittington). JD Wetherspoon LoNGPEST factors analysis illustrated in table format (see table 2.1). Identifying the key drivers for change is necessarily, this are the high impact factors likely to

Social forces are part of the four macro environmental forces that affect effect industry (Parnell, 2014). “Social forces include factors as societal values, trends, traditions, and religious practices,” that communities and society tends to hold high (Parnell, 2014, pg. 79). The decision that the supermarket made in choosing to back the community’s input in not to sell alcoholic beverages at their store was a social environmental decision that created a challenge for Bob’s possibly. This decision could have an impact on the financial aspect of the business. The brothers felt like more could be gained from the faithfulness by not selling alcohol.

The entrance of new competitors for John Lewis puts a lot of pressure on them to keep original customers. They have to introduce ways of keeping them coming back to their store and not the new competitors who have just set up. They could do this by creating a club card which gains points for every purchase they use, the higher the purchase the more points they get to spend in store in return for products as a reward. If they do not come up with a decent strategy to keep customers coming back then they will more than likely loose many customers to their new competitor which could prove fatal to the financial statement figures. There is also an increased pressure to just reduce prices for a set period in order to calm the hype of a new store being opened in the area. More advertising will also have to be done to compete and to try and fade the other store out of the market.

Acharya et al. look specifically at the externalities that firms bring to the real economy. Undercapitalization is a major

In the diversity Australian environment, business finds that itself experiences a rapidly change and the awareness of putting environmental factors into management is becoming necessary. Thus, for Coles supermarket, when planning strategically, it is important to take the interaction of organization and it environment into management. In so doing, long- term planning becomes geared toward future events and it brings planning more systematic and integrated (Gideon Nieman, Alf Bennett, 2006, pp.27). The business environment includes all the internal and external variables which exert affect on the operation of the business. In addition, the management cannot be carried out effectively and efficiently without taking external factor into consideration. And the internal environment, on another hand, which encompass many areas such as the strategy, business function, management task, setting goals, resource abilities and expectations of interest group must be taken into account.

Internal factors are establishing prices and marketers ought to take into consideration the importance and significance of a number of factors which is the outcome of the organizations choices, results, and actions. These factors are manageable by the organization and they may be modified, if need be. In spite of this, making a swift transformation is not always the answer or the quick fix. For example, product pricing is determined or influenced by the productivity of an industrial facility. The salesperson realizes that rising productivity can decrease of expense of manufacturing every product and therefore lets the salesperson to possibly reduce the price. External factors are not managed by the organization but then again it will influence the choices of pricing. Being able to better comprehend these factors would entail the marketer conduct research to observe and evaluate everything that is going on in all of the markets that the organization works for because of the influences of these factors can differ within the market (Factors Affecting Pricing Decision, 2016). External forces that can impact the organization are unmanageable because the organization does not manage them however, the organization can still take action and adjust to their occurrences and effects with the organizations manageable blend of components from the organizations internal setting. The unmanageable influences in the external setting are rivalry, governmental policies and plan, natural influences, social and cultural influences, demographic determinants, and changes within technology (Bright,

For this analysis, the external factor of competition shall be utilized. The Company has admitted that its industry is highly competitive, whereas competition is based on customer ser-vice; price; store location and appearance, and quality, availability and assortment of merchandise (Home Depot Inc., 2015). The Company has also acknowledged that it faces increasing competi-tion from online and multichannel retailers, who benefit from a lower cost structure, as well as the Company’s customers are increasing their usage of data and knowledge about products and prices (Home Depot Inc., 2015). Additionally, if the Company is unable to aptly respond in an appropriate manner, the Company market share and financial performance may be undesirably impacted (Home Depot Inc.,

All businesses meet the challenges of searching customers (Hisrich & Peters, 1997). To find and expand customers is the biggest challenge to Vincent. Beside of the personal ability, the main reason behind is lacking of an efficient trade platform locally. Vincent noticed that in Australia so far does not have an authority business platform in fashion trading such as exhibition. Although there were some events like Melbourne Fashion Week, they were more likely a big party rather than a trade opportunity. Minniti (2008) claims that entrepreneurship is the system through which financial development happens, however institutions (such as the policy environment) are what dispense entrepreneurial efforts toward productive or unproductive activities

It has been decided by the clients that they are willing to start a new business but still they have not decided regarding the business structures that should be adopted by them for this purpose. Some of the commonly used business structures in Australia are sole traders, partnerships, companies and joint venture. In order to decide the most suitable business sector for the clients, the following questions have been asked.

Operating in a large market with several competitors causes businesses to focus on external factors. Researching the economic, legal, and regulatory forces and trends provide a structured look at where

* Competition – Direct and indirect competitors’ responses. Launching of similar products by competitors could lead to a fight for shelf space.

Refers to the external factors or forces which affects the ability of the company to externally and internally serve its customers.eg. Demography, economic, cultural, political, competitors, legal & technology. The macro marketing environment takes into account

The location of the shop is being selected to match the social status and brand positioning in London.

lack of action that may spark a consumer boycott. This would lead to a decrease in sales and