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Every business wants to achieve its aims and objectives to make a profit. It will try to do this by organizing what it can influence internally: employees, resources, quality etc.
These external influences change from time to time and a business must be able to adapt to them.
business competition
economic conditions
environmental constraints
internal influences
However, a business is also affected by external influences which it cannot control:
There are two types of competition: direct and indirect.
Direct competition includes businesses that sell similar products, e.g. Ford competes with Peugeot and Toyota.
Indirect competition includes businesses that sell slightly different products, e.g. Burger King competes with Starbucks.
Businesses that sell totally different products are also in indirect competition, e.g. Rimmel competes with iTunes and Topshop for the money which teenage girls spend.
Give an example of two businesses in direct competition and two in indirect competition.
The base interest rates of Peru are set by its central bank: the of Banco Central who issue the banknotes.
The base interest rate is the fee the Bank charges its customers, usually other banks, for borrowing money. It determines how much extra must be repaid on top of the original sum in a loan.
However, customers (including businesses) can be charged higher interest rates than the base interest rate because other banks and credit cards set their own rates.
The exchange rate is what one currency is worth in another currency. In the UK it is how much one British pound, called sterling, is worth in a different currency.
For example, if you were going to the USA you would need some US dollars. If the exchange rate was $1.93 to £1 and you exchanged £45, you would receive $86.85 as 1.93 x 45 = 86.85.
Would a US tourist visiting the UK want the US dollar to be stronger or weaker than sterling?
On holidays abroad, it determines how much a tourist’s money is worth. A strong currency is worth a lot – good for tourists; a weak currency is worth little – bad for tourists.
What kinds of problems can excessive pollution and wastage cause to the environment?
The UK government is trying to reduce pollution and wastage by introducing laws to minimize the negative impacts and by setting specific targets that must be met.
Some of the resources that a business uses end up as waste.It makes sense for a business to reduce the amount of waste it produces for financial and environmental reasons by:
Design a poster to encourage businesses to reduce the amount of wastage they produce.