External and Internal Factors Effecting a Business
International Factors Affecting Patton Group
Changes in the international economic environment have an effect on the Patton Group in a variety of different ways. Some changes can have quite a large and significant impact. For example, a change in oil prices will have a large knock-on effect on the Patton Group, as they, like every other company in industrialised nations, require oil to run their machinery and vehicles in order to work effectively. Uncertainty about oil creates a concern that countries cannot maintain supply, pushing prices up as demand increases although supply decreases. Countries start to demand more oil which also pushes up the price, and if a country gets too greedy with their oil supply, it can increase tension between nations. When there is a price increase in oil, it has to be passed on to the consumer via the Patton Group. This could push the cost of the project over the edge and Patton group may end up losing jobs.
War and political instability also causes issues which can affect businesses. Countries become unstable and there is an uncertainty which affects global trade and markets. If a business such as the Patton Group is operating in an unstable country when war is declared, it may lose investments which have been made in that country, and it will also lose time and progress on the work being carried out, as they must try to get all their employees home as safely and quickly as possible. Investors in that country will hold on to their money until the crisis is over – this causes a slowdown in world trade. Even if the Patton Group isn’t operating in an unstable country, it will still be affected by a global slowdown in trade, which can lead to a worldwide recession if it is not managed correctly.
Environmental concerns and actions are also a factor of changes in the international economic environment that affects the Patton Group. There are tight controls from the UK & EU on pollution and waste management. The Patton Group must
Changes in the international economic environment have an effect on the Patton Group in a variety of different ways. Some changes can have quite a large and significant impact. For example, a change in oil prices will have a large knock-on effect on the Patton Group, as they, like every other company in industrialised nations, require oil to run their machinery and vehicles in order to work effectively. Uncertainty about oil creates a concern that countries cannot maintain supply, pushing prices up as demand increases although supply decreases. Countries start to demand more oil which also pushes up the price, and if a country gets too greedy with their oil supply, it can increase tension between nations. When there is a price increase in oil, it has to be passed on to the consumer via the Patton Group. This could push the cost of the project over the edge and Patton group may end up losing jobs.
War and political instability also causes issues which can affect businesses. Countries become unstable and there is an uncertainty which affects global trade and markets. If a business such as the Patton Group is operating in an unstable country when war is declared, it may lose investments which have been made in that country, and it will also lose time and progress on the work being carried out, as they must try to get all their employees home as safely and quickly as possible. Investors in that country will hold on to their money until the crisis is over – this causes a slowdown in world trade. Even if the Patton Group isn’t operating in an unstable country, it will still be affected by a global slowdown in trade, which can lead to a worldwide recession if it is not managed correctly.
Environmental concerns and actions are also a factor of changes in the international economic environment that affects the Patton Group. There are tight controls from the UK & EU on pollution and waste management. The Patton Group must