The external influences on the UK econnomy

external influence

1. External Influences on Business

2. External Influences on Business
The Economy
Business Cycle
Unemployment
Inflation
Interest Rates
Exchange Rates
Taxation
Morals
Business Ethics
Conflicting aims
Appreciating different cultures
Social Constraints
Stakeholders
The Environment
Technological impacts
Population/Demographic changes
Government
Legal Regulations Competition
EU Health & SafetyPolitical

3. External Influences on Business
External
Influences
Technology and Changing
Social Attitudes

4. External Influences on Business
•New Technology:
–New business opportunities
–Creation of substitutes
–Opening up of new markets
–Technical progress in foreign countries
–Productivity
–Ways of working
–Communication
–Cost of investment versus return

5. External Influences on Business
•New business opportunities:
–Within the same industry? (Core
business)
–Totally new markets/opportunities
–Amount of investment needed
–Market research –do consumers
need the product?

6. External Influences on Business
•e.g.
•Canon –core business, optical
technologies:
–cameras, photocopiers, scanners,
projectors, calculators, binoculars, digital
cameras, printers, projectors
•New markets–Discmans? DVD
players? Flat Screen TVs? Plasma TVs?
•Risk versus gain

7. External Influences on Business
•Threats:
–Cheaper alternatives from abroad –
CFC technology, bio-technology,
computer and micro-processor
technology (especially China?)
–Rivals producing substitutes –PS2 X-
Box and Game Cube
•How to react?

8. External Influences on Business
•Working practices:
–Technology and productivity –impact
on workers, morale, motivation?
–Implications for ‘old’ plants (e.g.
Longbridge versus Sunderland?
–Flexible working –working from home,
hot desking, mobile computing (wireless
networks) video-conferencing

9. External Influences on Business
•Communication:
–Faster?
–More efficient? –if so why have
some firms banned the use of e-mail
at work for any purpose?
–Impact on motivation, morale and
worker attitudes
–To what extent does the message get
through?

10. External Influences on Business
•Changing Social Attitudes:
–Social ‘class’ –changing socio –economic
groupings
–Links with behaviour and demand (e.g.
growing number of pensioners; those who
smoke or drink certain types of alcohol)
–Changing tastes –concern for ‘green’
production, attitudes to fur, wine versus beer;
vegetarians, (long term or short term?)
–Changing lifestyles –convenience and fast
foods, use of freezers, use of cars, amount of
leisure time and how it is used etc

11. External Influences on Business
•Changing income structures
–Distribution of income
–Regional distribution of income
–Impact of government taxation on
disposable incomes
–Relative income elasticity of demand for
different goods and services