Internal And External Influences That Help Shape Businesses

871 WordsMar 30, 20154 Pages
This business report will explore the internal and external influences which help shape businesses. The NSW government has All business decisions about how and what to produce are affected by the environment in which the business operates. Successful business managers have a good understanding of the environment in which the business operates. This allows them to respond positively to changes that take place and prepare for the impact such changes will have on their business operations. It is through these influences which shapes a business’s productivity and success. Internal influence: They are factors which businesses have some degree of control like location, management and business culture. Location influences: The position of the business is an integral component to its success as the location can either make or break the business. Visibility: A business must be visible to customer’s in order to attract them and achieve optimum customer flow. However, some companies concerned with manufacturing would choose a low-visibility location as it is not a vital consideration to attract customers, Cost: If the business relies on passing customer traffic and maximum exposure, then the expensive cost factor is unavoidable. These types of businesses include coffee shops or cafés and retail shops. Some businesses like manufactures and mechanics do not rely on customer traffics and thus they use low cost sites. However, businesses nowadays are able to communicate with their
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