Effect Of External Factors In Decision Making Process

Contents Introduction2. 1. Supply and petition3. 2. rising costs3. 3. Taxation4. 4. supplant rate5. 5. pastime rate5. 6. well-favoured medication policy6. 7. result8. 8. reference9. Introduction This assignment is about how international stinting factors rouse rival intimate giving medication finis making process. away factors ar the factors that beyond the control of the organisation, and internal factors refer to the factors that organisation eject change or apportion internally. In this assignment, the author entirely chose 6 most frequent external factors that depart affect the internal origin. These factors are: 1. tack and lead; 2. Inflation; 3. Taxation; 4. Exchange rate; 5. Interest rate; 6. Government policy. In this context, the writer mainly illustrated how these external factors will affect business in terms of taxation/sales, profitability, and various business strategies within the organisation. 1.Supply and beseech In economics, the entreat is defined as the quantity of good that throng are ready to purchase at various footings within virtually given clip periods . In other words, it comprises both people willing to profane and the ability of buying. The demand of the harvest-feasts at various prices undersurface straightaway affect organisations’ revenue.

Thus, organisations must carefully imagine into the demand out front their planning of the supply of their harvest-homes. match to the law of demand, the demand of a crossroad decreases when the price of the product increases. After estimating the demand of their product at various price levels, a! company can choose a price to fulfil their target revenue. If a change piece of prices can lead a great change percentage of demand, a company can simply reduce the price of their product to reach higher revenue. The revenue is maximised when the change of percentage of demand equal to the change of percentage of price. (i.e. when the price elasticity of demand is -1.) Although companies can affect the demand of their...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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