this was my business assignment for external influences, i was wondering what was thought about it. i didnt get very good marks for it. the word counts for the articles were 100 words then 1000 words for the report
Article 1: Markets
http://www.smh.com.au/business/mark...il-commodity-price-slump-20150210-13ahzp.html
Baltic Dry Index fall is mainly due to oil, commodity price slump (104 words)
• The cost of shipping has slumped dramatically affecting importers and exporters this effects Australian business if the business uses imported products/export products
• This effects importers as shipping things to their countries cost less and they can make more money by charging the same prices for their products but the shipping cost less, this also effects exporters as they can do the same and send things at a lower price but sell it for the same amount.
• This is good for exporters as they don’t pay as much for the shipping services because the price of oil has gone down to fuel the shipping rigs
Article 2: Market
http://www.theage.com.au/business/dominos-shares-soar-on-upgraded-guidance-20150211-13b2o0.html
Domino's Don Meij eyes McDonald's and KFC customers as pizza sales soar (102 words)
• Dominoes fist half net profit has jumped dramatically to 42.2% to $29.1 million.
• Dominoes has attributed a lot of their success to new management in Europe, the use of technology, cheaper menus and new product being made available
• In Australia sales rose by at fastest rate in 4 years after they introduced their new $4.95 Cheaper everyday pizza range.
• Also with the increase of technology dominoes has achieved a big profit of 60& from their online services.
• By following the demands of this world and being able to adapt they have proven that they are a company not to be messed with.
Article 3: Economy
http://www.smh.com.au/business/the-...uggling-to-pick-up-steam-20150220-13jhbe.html
Why retailers are struggling to pick up steam
• Due to the recourses boom Australian retailers have struggled for sales, this has affected small businesses majorly as some of them don’t get many sales, now they get even less, perhaps putting many businesses into bankruptcy
• Unemployment is at a high and wages have not kept up with the inflation sending customers away from spending.
• With the big increase of online spending and the Australian dollar being where it is it means that many customers take their business offshore and not buying from Australian businesses.
• "Shoppers are increasingly researching products online prior to making purchase decisions, spending significantly more than store-only shoppers," Dr Sean Sands
Article 4: Social/Political
http://www.abc.net.au/news/2014-01-...ackle-sydney-alcohol-fuelled-violence/5210740
'One-punch laws': Sweeping changes to tackle alcohol-fuelled violence in Sydney (104 words)
• Having a state wide closure of bottle shops at 10pm restricts the shop owners from making a profit like they would have before the restrictions
• And shops not being able to serve drinks past 3am can also hinder the profit made at bars and clubs
• Thomas Kelly’s death in 2012 has brought in these restrictions, hopefully it will stop all these alcohol fueled violence
• All these restrictions in the CBD and kings cross majorly affects businesses in the area, having these have dramatically changed the profit made within these businesses
• “Small bars, casinos, restaurants and tourist accommodation facilities will be exempt from the laws”
Article 5: Financial
http://www.theaustralian.com.au/bus...-ford-and-holden/story-e6frg906-1226822823246
Toyota to stop making cars in Australia, follows Ford and Holden (104 words)
• ¬ With Holden and Ford closing in Australia, it mean that thousands of jobs will be lost, and about 30,000 workers out of the job,
• Toyota said that the Australian dollar makes export unviable and the high cost of manufacturing.
• With the dollar changing it is costing lots of companies even the big ones more and more money, this makes the big companies like Toyota, Ford and Holden to stop manufacture here and then costs the economy “$21 billion and many regions will go into recession” Toyota have said
• The dollar will always have an affect on businesses in either a good or bad way
Article 6: Economic
http://www.smartcompany.com.au/grow...ropping-aussie-dollar-mean-for-your-sme.html#
Bet your bottom dollar: What does the dropping Aussie dollar mean for your SME? (102 words)
• The Australian dollar affects businesses in different ways, from export/Import as import prices are said to increase but exporting cost said to be lower and petrol prices for Australian businesses it is not goof when the dollar drops because it usually bring down the confidence of the economy
• The drop in petrol is said to have a positive effect as it is hoped that the customers use the saving on Australian businesses
• The dollar also effects customer confidence, customer confidence is a good thing for business because then the customer tend to be more lenient and spend more than they usually would.
Business Report (1006 Words)
An external influence is an influence that cannot be controlled by the business itself, this leads to many unexpected changes for the business, these changes can be good or bad.
Economical Influence (257 Words)
• With the economy always changing this is definitely an influence that a business cannot control, sometimes this is good and bad, it can good because if there is a sudden “boom” in the economy it can make consumer confidence go up and the business will gain more money for this period of time
• On the other hand there is something known as a “bust” this is not a good time for businesses as it means that less money is being spent due to the consumer who is concerned about job security and more likely to save rather than spend
• A “bust” also affects employees as wages may not rise or even might drop, this might mean that the employees might leave and go somewhere else. This can leave a business employee less and in a bad position
• For example there was a fast food store and it was the only one around so people were “forced” to go to that, then all of a sudden a new shop opens up across the road, and it is more popular and well known than the first fast food store people would stop going to the first store and start going to the new store, creating a “bust” in the old store as they have just dropped in customers but also creating a “boom” would occur in the newer more well known store. This could possibly even put the old store into bankruptcy and suddenly the new store across the road has made a massive profit.
Financial Influence (110 Words)
Another influence is a financial influence due to the deregulation of Australia’s financial system in 1983 it has opened up a more flexible option to the financial sector
• Deregulation means that the government reduces its role and allows greater freedom in how industries operate.
• Development in technology have added even more allowance of financial transactions, it becomes easier to make global transactions. Having this option of finance has helped many businesses to not only be able to use domestic sources for their finance but is able to go global.
• financial influences affect interest rates if they were to rise then it means that there will be less borrowing more investing.
Social Influence (239 Words)
A social influence is the change in tastes, fashions and cultures. Most businesses attempt to keep up with these “fads” so they can impress their customers with some new and interesting products so the customer will buy the product.
• Although businesses are wanting to change there is a big concern for the environment, over the years statistics have shown what effect we are having on the environment and most customers of shop want an environmentally friendly product so the beautiful Australian land can be safe.
• But its not always the customer making the “fads” sometimes through good marketing and advertising the business can make the trends then the business has the upper hand on the customer.
• For example Mcdonalds has put nutritional information on their billboards in the stores allowing the customer to choose their food based on the nutritional information. This is taking over and many stores have recently put calories and or other nutritional information on their boards, making the customer feel like they can be in control of what they eat.
• Although this nutritional information has worked for Mcdonalds some other stores such as KFC have not tried to appeal to a healthy customer basis and kept their same business plans, this has worked well for them as some people don’t go to fast food for a healthy option. But then again Subway has had the healthy option for a while and they have been successful and are going good. It all depends on the trends of the time and even sometimes what the media says is trending because the media is a big part of our lives so many people look at it highly
Strategy to help (400 Words)
Having influences that change it is hard to keep up with what is going on and stay in business, hopefully not going bankrupt.
• Businesses should always try to stay with the trends of the time as much as they can, don’t get too much of one product if the trend is going to change again in a few months, Mcdonalds does this well as they introduce a new products with ads and at its shops, and if they don’t sell enough in a time frame then they discontinue the burger, but if one of the products sells enough or completely booms then they will continue to supply that product for as long as people are still buying it.
• Another example is Pizza Hut, Pizza Hut appealed to their Australian customers by making a vegemite pizza available, they saw an opportunity and they took it, I don’t believe that it went well because I have not seen any more ads. Although it didn’t work out they might as well try because if it does work they will get lots of money from this small leap of faith
• Another example is ABC Learning center, this educational center unfortunately collapsed, mostly because it tried to expand too fast they bought more properties than they needed, this was a problem seeing that they borrowed most of that money so not long after they went bankrupt. Something to keep in mind for a business is not to try to expand too fast and without being sure that you will somehow make money in the future.
• Also, there is a new company called Kloud, this is a cloud storage based company. What they did was notice that what is happening now in the 21st century is that technology is becoming a big factor in a lot of businesses so Kloud offers safe and reliable storage space for big companies. What Kloud did was see the trends and then took advantage of it.
• Basically a strategy is to always try to stay on top of trends as much as you can, but don’t order too many products for the trend and it might not stay for long, only try to get the amount you need. Staying on top of trends also means technology so try to be technological in your business and you will surely attract customers. If you follow this your business will be A ok
BIBLIOGRAPHY
• Mason, M 2015, why retailers are struggling to pick up steam, SMH, viewed February 20 2015
< http://www.smh.com.au/business/the-economy/why-retailers-are-struggling-to-pick-up-steam-20150220-13jhbe.html>.
• Mason, M 2015, Baltic Dry Index fall is mainly due to oil, commodity price slump, SMH, viewed February 15 2015
< http://www.smh.com.au/business/markets/baltic-dry-index-fall-is-mainly-due-to-oil-commodity-price-slump-20150210-13ahzp.html>.
• Mitchell, S 2015, Domino's Don Meij eyes McDonald's and KFC customers as pizza sales soar, SMH, viewed February 15 2015
<http://www.theage.com.au/business/dominos-don-meij-eyes-mcdonalds-and-kfc-customers-as-pizza-sales-soar-20150211-13b2o0.html>.
• Robb, K 2015, Bet your bottom dollar: What does the dropping Aussie dollar mean for your SME?, Smart Company, viewed February 22 2015
< http://www.smartcompany.com.au/growth/economy/45459-bet-your-bottom-dollar-what-does-the-dropping-aussie-dollar-mean-for-your-sme.html#>.
• Wallace, R 2015, Toyota to stop making cars in Australia, follows Ford and Holden, The Australian, viewed February 22 2015
< http://www.theaustralian.com.au/business/news/toyota-to-stop-making-cars-in-australia-follows-ford-and-holden/story-e6frg906-1226822823246>.
• Unknown, U 2015, 'One-punch laws': Sweeping changes to tackle alcohol-fuelled violence in Sydney, ABC, viewed February 20 2015
<http://www.abc.net.au/news/2014-01-21/one-punch-laws-to-tackle-sydney-alcohol-fuelled-violence/5210740>.
Article 1: Markets
http://www.smh.com.au/business/mark...il-commodity-price-slump-20150210-13ahzp.html
Baltic Dry Index fall is mainly due to oil, commodity price slump (104 words)
• The cost of shipping has slumped dramatically affecting importers and exporters this effects Australian business if the business uses imported products/export products
• This effects importers as shipping things to their countries cost less and they can make more money by charging the same prices for their products but the shipping cost less, this also effects exporters as they can do the same and send things at a lower price but sell it for the same amount.
• This is good for exporters as they don’t pay as much for the shipping services because the price of oil has gone down to fuel the shipping rigs
Article 2: Market
http://www.theage.com.au/business/dominos-shares-soar-on-upgraded-guidance-20150211-13b2o0.html
Domino's Don Meij eyes McDonald's and KFC customers as pizza sales soar (102 words)
• Dominoes fist half net profit has jumped dramatically to 42.2% to $29.1 million.
• Dominoes has attributed a lot of their success to new management in Europe, the use of technology, cheaper menus and new product being made available
• In Australia sales rose by at fastest rate in 4 years after they introduced their new $4.95 Cheaper everyday pizza range.
• Also with the increase of technology dominoes has achieved a big profit of 60& from their online services.
• By following the demands of this world and being able to adapt they have proven that they are a company not to be messed with.
Article 3: Economy
http://www.smh.com.au/business/the-...uggling-to-pick-up-steam-20150220-13jhbe.html
Why retailers are struggling to pick up steam
• Due to the recourses boom Australian retailers have struggled for sales, this has affected small businesses majorly as some of them don’t get many sales, now they get even less, perhaps putting many businesses into bankruptcy
• Unemployment is at a high and wages have not kept up with the inflation sending customers away from spending.
• With the big increase of online spending and the Australian dollar being where it is it means that many customers take their business offshore and not buying from Australian businesses.
• "Shoppers are increasingly researching products online prior to making purchase decisions, spending significantly more than store-only shoppers," Dr Sean Sands
Article 4: Social/Political
http://www.abc.net.au/news/2014-01-...ackle-sydney-alcohol-fuelled-violence/5210740
'One-punch laws': Sweeping changes to tackle alcohol-fuelled violence in Sydney (104 words)
• Having a state wide closure of bottle shops at 10pm restricts the shop owners from making a profit like they would have before the restrictions
• And shops not being able to serve drinks past 3am can also hinder the profit made at bars and clubs
• Thomas Kelly’s death in 2012 has brought in these restrictions, hopefully it will stop all these alcohol fueled violence
• All these restrictions in the CBD and kings cross majorly affects businesses in the area, having these have dramatically changed the profit made within these businesses
• “Small bars, casinos, restaurants and tourist accommodation facilities will be exempt from the laws”
Article 5: Financial
http://www.theaustralian.com.au/bus...-ford-and-holden/story-e6frg906-1226822823246
Toyota to stop making cars in Australia, follows Ford and Holden (104 words)
• ¬ With Holden and Ford closing in Australia, it mean that thousands of jobs will be lost, and about 30,000 workers out of the job,
• Toyota said that the Australian dollar makes export unviable and the high cost of manufacturing.
• With the dollar changing it is costing lots of companies even the big ones more and more money, this makes the big companies like Toyota, Ford and Holden to stop manufacture here and then costs the economy “$21 billion and many regions will go into recession” Toyota have said
• The dollar will always have an affect on businesses in either a good or bad way
Article 6: Economic
http://www.smartcompany.com.au/grow...ropping-aussie-dollar-mean-for-your-sme.html#
Bet your bottom dollar: What does the dropping Aussie dollar mean for your SME? (102 words)
• The Australian dollar affects businesses in different ways, from export/Import as import prices are said to increase but exporting cost said to be lower and petrol prices for Australian businesses it is not goof when the dollar drops because it usually bring down the confidence of the economy
• The drop in petrol is said to have a positive effect as it is hoped that the customers use the saving on Australian businesses
• The dollar also effects customer confidence, customer confidence is a good thing for business because then the customer tend to be more lenient and spend more than they usually would.
Business Report (1006 Words)
An external influence is an influence that cannot be controlled by the business itself, this leads to many unexpected changes for the business, these changes can be good or bad.
Economical Influence (257 Words)
• With the economy always changing this is definitely an influence that a business cannot control, sometimes this is good and bad, it can good because if there is a sudden “boom” in the economy it can make consumer confidence go up and the business will gain more money for this period of time
• On the other hand there is something known as a “bust” this is not a good time for businesses as it means that less money is being spent due to the consumer who is concerned about job security and more likely to save rather than spend
• A “bust” also affects employees as wages may not rise or even might drop, this might mean that the employees might leave and go somewhere else. This can leave a business employee less and in a bad position
• For example there was a fast food store and it was the only one around so people were “forced” to go to that, then all of a sudden a new shop opens up across the road, and it is more popular and well known than the first fast food store people would stop going to the first store and start going to the new store, creating a “bust” in the old store as they have just dropped in customers but also creating a “boom” would occur in the newer more well known store. This could possibly even put the old store into bankruptcy and suddenly the new store across the road has made a massive profit.
Financial Influence (110 Words)
Another influence is a financial influence due to the deregulation of Australia’s financial system in 1983 it has opened up a more flexible option to the financial sector
• Deregulation means that the government reduces its role and allows greater freedom in how industries operate.
• Development in technology have added even more allowance of financial transactions, it becomes easier to make global transactions. Having this option of finance has helped many businesses to not only be able to use domestic sources for their finance but is able to go global.
• financial influences affect interest rates if they were to rise then it means that there will be less borrowing more investing.
Social Influence (239 Words)
A social influence is the change in tastes, fashions and cultures. Most businesses attempt to keep up with these “fads” so they can impress their customers with some new and interesting products so the customer will buy the product.
• Although businesses are wanting to change there is a big concern for the environment, over the years statistics have shown what effect we are having on the environment and most customers of shop want an environmentally friendly product so the beautiful Australian land can be safe.
• But its not always the customer making the “fads” sometimes through good marketing and advertising the business can make the trends then the business has the upper hand on the customer.
• For example Mcdonalds has put nutritional information on their billboards in the stores allowing the customer to choose their food based on the nutritional information. This is taking over and many stores have recently put calories and or other nutritional information on their boards, making the customer feel like they can be in control of what they eat.
• Although this nutritional information has worked for Mcdonalds some other stores such as KFC have not tried to appeal to a healthy customer basis and kept their same business plans, this has worked well for them as some people don’t go to fast food for a healthy option. But then again Subway has had the healthy option for a while and they have been successful and are going good. It all depends on the trends of the time and even sometimes what the media says is trending because the media is a big part of our lives so many people look at it highly
Strategy to help (400 Words)
Having influences that change it is hard to keep up with what is going on and stay in business, hopefully not going bankrupt.
• Businesses should always try to stay with the trends of the time as much as they can, don’t get too much of one product if the trend is going to change again in a few months, Mcdonalds does this well as they introduce a new products with ads and at its shops, and if they don’t sell enough in a time frame then they discontinue the burger, but if one of the products sells enough or completely booms then they will continue to supply that product for as long as people are still buying it.
• Another example is Pizza Hut, Pizza Hut appealed to their Australian customers by making a vegemite pizza available, they saw an opportunity and they took it, I don’t believe that it went well because I have not seen any more ads. Although it didn’t work out they might as well try because if it does work they will get lots of money from this small leap of faith
• Another example is ABC Learning center, this educational center unfortunately collapsed, mostly because it tried to expand too fast they bought more properties than they needed, this was a problem seeing that they borrowed most of that money so not long after they went bankrupt. Something to keep in mind for a business is not to try to expand too fast and without being sure that you will somehow make money in the future.
• Also, there is a new company called Kloud, this is a cloud storage based company. What they did was notice that what is happening now in the 21st century is that technology is becoming a big factor in a lot of businesses so Kloud offers safe and reliable storage space for big companies. What Kloud did was see the trends and then took advantage of it.
• Basically a strategy is to always try to stay on top of trends as much as you can, but don’t order too many products for the trend and it might not stay for long, only try to get the amount you need. Staying on top of trends also means technology so try to be technological in your business and you will surely attract customers. If you follow this your business will be A ok
BIBLIOGRAPHY
• Mason, M 2015, why retailers are struggling to pick up steam, SMH, viewed February 20 2015
< http://www.smh.com.au/business/the-economy/why-retailers-are-struggling-to-pick-up-steam-20150220-13jhbe.html>.
• Mason, M 2015, Baltic Dry Index fall is mainly due to oil, commodity price slump, SMH, viewed February 15 2015
< http://www.smh.com.au/business/markets/baltic-dry-index-fall-is-mainly-due-to-oil-commodity-price-slump-20150210-13ahzp.html>.
• Mitchell, S 2015, Domino's Don Meij eyes McDonald's and KFC customers as pizza sales soar, SMH, viewed February 15 2015
<http://www.theage.com.au/business/dominos-don-meij-eyes-mcdonalds-and-kfc-customers-as-pizza-sales-soar-20150211-13b2o0.html>.
• Robb, K 2015, Bet your bottom dollar: What does the dropping Aussie dollar mean for your SME?, Smart Company, viewed February 22 2015
< http://www.smartcompany.com.au/growth/economy/45459-bet-your-bottom-dollar-what-does-the-dropping-aussie-dollar-mean-for-your-sme.html#>.
• Wallace, R 2015, Toyota to stop making cars in Australia, follows Ford and Holden, The Australian, viewed February 22 2015
< http://www.theaustralian.com.au/business/news/toyota-to-stop-making-cars-in-australia-follows-ford-and-holden/story-e6frg906-1226822823246>.
• Unknown, U 2015, 'One-punch laws': Sweeping changes to tackle alcohol-fuelled violence in Sydney, ABC, viewed February 20 2015
<http://www.abc.net.au/news/2014-01-21/one-punch-laws-to-tackle-sydney-alcohol-fuelled-violence/5210740>.