How have the external environmental factors affected the ability of Nando’s to achieve its aims and objectives?
Unit 1 Task 2
How have the external environmental factors affected the ability of Nando’s to achieve its aims and objectives?
Economic Factors
Businesses are affected by the economy and sometimes the economy can have a dramatic drop in countries causing issues for some business mainly due to 4 factors. These factors are inflation, Economic growth, Exchange rates and unemployment.
Firstly Inflation is an upward movement in the average level of prices. Its opposite is deflation, a downward movement in the average level of prices. The boundary between inflation and deflation is price stability. Inflation can either be negative or positive; it could mean making products more expensive. There are a number of effects of inflation that can create problems for Nando’s. It’s important for the owner of Nando’s to know the effects of inflation. As this will help protect the business during inflationary periods.
Secondly Economic growth is simply the increase in the amount of the goods and services produced by an economy over time. Economic growth depends on productivity and investment. If Nando’s is Successful in this process it means they can generates increased incomes which then fuel demand and encourage further economic growth. This cycle can, however, work in the reverse direction, as falling demand may lead to under-used resources and investment cutbacks meaning for Nando’s there fresh chicken may not be used. In comes may then fall further giving a huge effect on Nando’s.
Thirdly Exchange rates is the price of one country's currency expressed in another country's currency .Exchange rates have a significant effect on companies like Nando’s that do business globally. When Nando’s exchange products or services across borders causing two or more currencies to become involved, fluctuation in exchange rates can lead to gains or losses for the business.
Lastly unemployment is when a person who is searching for employment is unable to find work. Unemployment is often used
How have the external environmental factors affected the ability of Nando’s to achieve its aims and objectives?
Economic Factors
Businesses are affected by the economy and sometimes the economy can have a dramatic drop in countries causing issues for some business mainly due to 4 factors. These factors are inflation, Economic growth, Exchange rates and unemployment.
Firstly Inflation is an upward movement in the average level of prices. Its opposite is deflation, a downward movement in the average level of prices. The boundary between inflation and deflation is price stability. Inflation can either be negative or positive; it could mean making products more expensive. There are a number of effects of inflation that can create problems for Nando’s. It’s important for the owner of Nando’s to know the effects of inflation. As this will help protect the business during inflationary periods.
Secondly Economic growth is simply the increase in the amount of the goods and services produced by an economy over time. Economic growth depends on productivity and investment. If Nando’s is Successful in this process it means they can generates increased incomes which then fuel demand and encourage further economic growth. This cycle can, however, work in the reverse direction, as falling demand may lead to under-used resources and investment cutbacks meaning for Nando’s there fresh chicken may not be used. In comes may then fall further giving a huge effect on Nando’s.
Thirdly Exchange rates is the price of one country's currency expressed in another country's currency .Exchange rates have a significant effect on companies like Nando’s that do business globally. When Nando’s exchange products or services across borders causing two or more currencies to become involved, fluctuation in exchange rates can lead to gains or losses for the business.
Lastly unemployment is when a person who is searching for employment is unable to find work. Unemployment is often used