Business Report Essay

line of business opportunities in NSW atomic number 18 dazeed by intrinsic and external factors. Internal and external factors solve the line of work opportunities as they watch the success and failure of opportunities in the melodic line environment. External influences are factors which generally influence the environment outside the subscriber line and therefore they determine what the anxiety staff inside the stemma must do to adjust with the changes in the external environment.External influences accommodate factors such(prenominal) as economic, monetary, geographic, social, legal, political, institutional, technological, matched blank space and markets. Internal influences are factors equaling the business from within i. e. internally. Internal influences include factors such as product, spatial relation, management, resource management and business culture. The following business report is commissioned to examine the influence of external and internal factors of business opportunities in NSW.The economic influence includes factors which relate to changes in the wider economy i. e. booms and recessions in the economy. The derive of a growing economy allows opportunities for a business to addition profit, so businesses are suitable to experience rising living standards. Booms and upswings benefit business opportunities as they are periods where the economy is going through a positive phase where businesses form the opportunity to harvest-time their positive entirety r so farue. Consequently, this will sounding to a rise in employment, consumer spending and wages.On the other hand, Busts and downswings are periods where businesses are continueioned negatively. An theoretical account of a business which suffered from the negative factors of the economic cycle was Harvey Norman. Sydney Morning Herald (SMH) reported Harvey Norman experienced a downswing period as profits decrease from $128. 95 million to $81. 9 million and total sales had a decline of 7. 3% due to lack of consumer spending. Financial influences involve deregulation which is the removal of government regulations from the industry in hope of upward(a) competition.The expediency of competition allows businesses the opportunity to improve efficiency and productivity of their employers and aim to strike their required goal. Woolworths and Coles have recently removed regulations relating to supplier payments in establish to lower costs and open up opportunities to expand their business and increase profit. Geographical influences such as location will determine the growth and development of a specific business.Geographical influences meeting business opportunities as it appends challenges to increase profits, sales and expansion of business. An example of expansion of business is IKEA who have expanded their business to Melbourne, Australia because of economic growth in the Australian economy. due(p) to dramatic increase in consumer spendi ng, IKEAs profit increased chop-chop and therefore they were able to purchase an 80, 000 metre square warehouse. Geographical influence pushs on business opportunities as it increases employment, sales and expansion of business as seen by the actions of IKEA.Social influences provide opportunities for businesses to change or develop to picture consumer demands. Social influences such as changes in consumer tastes and preferences signifi passeltly impacts on business productivity and opportunities. Failure for a business to satisfy consumers wants can be detrimental to a business and therefore can lead to a decrease in profits and sales or even cessation if they fail to meet consumer demands. An example of social influence on a business is the impact of the style of tog of AussieBum.AussieBum manufactures and sells their products via the internet and are successful as their material and style of the underwear and beach clothing is famous among society. The business is successful as the material they originate is unique. Additionally, the location of the manufacturing is based in Australia further satisfying the taste and preferences on Australian consumers. Social influences for this business includes its consumers demanding Australian manufacturers to maintain uniqueness and reflect the Australian image and consumers demanding products to be purchased over the internet.In this case, AussieBum successfully responds to social influences by having the correct production process of manufacturing their commodities and satisfying consumer demand and preferences. Legal influences impacts on business opportunities as it sets out regulations and laws that impacts business operations. Legal influences sets out guidelines that prevents businesses from severalize or financial rorting. Additionally, legal influences such as laws and contracts can impact businesses as they are forced to buy from specific and this affects their total revenue.An example of legal influen ce on a business is the investigation of Coles. A recent article published by Sydney Morning Herald states that Coles is undergoing an investigation on discrimination between suppliers based on their private cross out brands. This breaches statutes which include anti discrimination laws. Legal investigation is costly and affects consumer purchase and spending at this business. Hence, it is crucial for businesses to abide by legislations to take gain of the opportunities and maintain consumer satisfaction.Political influences impact businesses as government policies can lead to business uncertainty or business confidence. Political influences impact businesses as they implement policies which can change the structure of businesses. An example of political influences on a business is the impact the ampere-second tax has on BHP Billiton, a company in the mining industry. The carbon tax affects the company as BHP Billiton is instantaneously in charge of paying taxes which affect t he companys total revenue as there is an increase in costs.The carbon tax affects business opportunities in BHP Billiton as they are unable to accept new efficient and productive employees due to increase in their costs. Business opportunities in NSW can also be bear upon by tax that can increase business costs and therefore restrict the businesses office to expand or increase their profit or sales. Additionally, the exchange compute can affect the volume of import and exports from global markets hence impact of the price of products.Institutional influences refer to three bodies (Federal, State, and Local) which all have factors which impact business opportunities in NSW. The regulations of institutional influences are the safety and protection of employers in the business, the compulsory minimum wage, payment of taxes, approving new development and dewy-eyed business codes of conduct and abiding by the legal business laws. These factors impact business opportunities as busin esses must abide by these regulations in magnitude to continue running and the breaching of the regulations can result in penalties which may affect the business financially.A recent investigation involving Coles breaching these regulations as they demanded additional payments from their suppliers direct to a decrease in profits and loss of other suppliers. These factors affected Coles as their supply of specific products is decreasing yet they have such high demand but in result arent able to satisfy consumers wants. Business opportunities are impacted by the institutional influences as businesses are forced to run in a certain delegacy as it can affect their financial status as tumefy as their reputation if they fail to do so.Technology is improving at a rapid pace and allowing businesses to produce more efficiently. Technological influences impact vehicle manufacturing businesses such as Holden. Holdens vehicles are produced rapidly because of in advance(p) technology. The n ew Holden Barina features Apples Siri voice command providing more features and improving the product. Additionally, technological influence can impact businesses negatively. For example, technological advancements often switch over employees and this decreases the opportunity of hiring new employment contributing to unemployment.Nonetheless, technological influences provide opportunities for businesses to produce products more efficiently and in turn increase their total revenue. contest is advantageous to both consumers and businesses as it provides opportunities for improvement and demand for consumer satisfaction. A competitive situation often influences businesses to lower prices of its products to gain consumer satisfaction. For example, Woolworths and Coles promote lower prices to make do with one another. This provides consumers with wider range of choice and preferences.More so, they promote consumer points for purchasing goods and work at their store to remain competit ive. Also, Jetstar has a policy which states they will provide a 10% discount on their service if their competitive airlines (i. e. virtuous Australia and Tiger Airways) offer a cheaper price for their service.In recent times financial/capital, labour and consumers have significantly changed. Financial/capital markets have seen global financial/capital flows become more flexible and easily neighborly due to globalisation.Therefore, markets are more integrated. ASX is an example of these changes as the business has now made it more easily accessible for consumers to purchase and sell shares globally over the internet. Financial/capital markets influence business opportunities as businesses in NSW are linked globally are able to communicate and get going more efficiently. However, negative economic influence can impact on domestic markets in NSW which can impede on business operations.