Impact and Consequences Internal factors Impact and Consequences

These are factors within the business which can have an impact Management Financial Employees Existing Technology

Financial – there may not be enough money to make purchases Impact – unable to buy material and production/sales stop Consequence – orders not met, customers unhappy, revenue/profits drop Add another impact/consequence of your own

Employees – have the correct staff with the right skills and qualities Impact – if staff don’t have the right skills their work will be of poor quality Consequence – customers will complain about the product quality or might not buy it Add another impact/consequence of your own

Management – manager may not have enough experience or skill in decision making Impact – this could lead to the wrong decisions being made Consequence – loss of business (sales/customers/profit) Add another impact/consequence of your own

Existing Technology – is the technology used the best available or suitable for the task at hand Impact – out-of-date technology could be ineffective or break down Consequence – failure to complete task, fall behind competitors Add another impact/consequence of your own

Corporate Culture This can be defined as “the values, beliefs, traditions and norms related to the organisation that is shared by all its members” It is often called "the character of an organisation“. It influences the ethical standards and behaviour within an organisation.

Benefits of a strong corporate culture Improving/developing corporate culture Employees feel they belong – motivating Creates positive relationships – better communication Customer loyalty – they identify with the organisation Consistency across the organisation Listening to the opinions of employees Training new/existing staff – particularly when introducing new procedures Design of the premises, logos and uniforms Having policies and procedures in place – stating what is expected Summary clip

External factors

An external influence is something that will affect your business but that you have no control over. To look at external influences PESTEC analysis is used. It helps understand the position, potential and direction for a business.

TECHNOLOGICAL POLITICAL ECONOMIC SOCIOCULTURAL ENVIRONMENTAL COMPETITION Handout

Political Health and safety laws Employment laws Consumer protection Environmental protection Competition laws

Economic Inflation Unemployment Interest rates Value of £ Recession

Socio-cultural (Social) Demographics Changing trends and tastes Changing working patterns Ethical issues

Technological Communication Production methods New product development Methods of working

Environmental Weather Recycling of used products Pressure groups Disposal of industrial waste

Competition Product range Pricing Production methods Technology used Tasks