Yr 12 Business Studies Assessment

Yr 12 Business Studies Assessment Task 2

HOW DOES AN UDERSTADING OF THE INFLUENCES ON OPERATIONS CONTRIBUTE TO BUSINESS SUCCESS?

Many factors contibute to a businesses success. However, in order for the business to actually succeed, we first need to understand how the influences on operations help the business succeed. Influences on business operations include such things as; Globalisation, technology, quality expectations, cost-based competition, government policies, legal regulation, environment sustainability, corporate social responsibility, supply chain management, overcomig resistance to change, outsourcing and product or service design. The success of a business can be assessed by a range of different factors including; Operational
goals/objectives, financial goal/objectives, marketing goals/objectives and human resource goals/objectives.
Businesses are not just affected by the environment directly around them. They are also affected by the external environment. The global factors that influence a business are; legal, political, social, technological and economic. To develop a business strategy you must first understand these factors.
SOCIAL FACTORS: These are changes made in social structures.
These factors provide insights into behaviour, tastes, and lifestyles patterns of a population. Buying patterns are greatly influenced by the changes in the structure of the population, and in consumer lifestyles.1. http://www.businessteacher.org.uk/business-environments/global-factors-strategy/. Age, gender, wealth, etc all influence the buying patterns and understanding of such changes is essential in order to develop strategies which are in line with the market situations. In the global market it is important that when business strategies are put together the different cultures and societies are taken into account. Religion, language and lifestyle patterns of consumers are all important information for successful business
management.
LEGAL FACTORS: A major factor in the way a business functions are changes in laws and regulations of the government. For a business to be successful they need to understand the legalities of certain situations and be able to adjust to changes to law or regulations. Laws are constantly changing so flexibility is important. From the point of view of a business it is important that they understand these changes especially in the areas of consumer protection legislation, environmental legislation, health and safety (OH&S) and employment law, etc.
ECONOMIC FACTORS: These changes are ones made to the global economy.
A rise in living standards would ultimately imply an increase in demand for products thereby, providing greater opportunities for businesses to make profits. An economy witnesses fluctuations in economic activities. This would imply that in case of a rise in economic activity the demand of the product will increase and hence the price will increase. In case of reduction in demand the prices will go down. Business strategies should be developed keeping in mind these fluctuations.2.http://www.businessteacher.org.uk/business-environments/global-factors-strategy/. Other factors that would influence a business are changes in interest rates, wage rates, and the rate of inflation. In the case of low interest rate but increased demand businesses will be encouraged to take a risk. Therefore there is need for room for these fluctuations in business strategies.
POLITICAL FACTORS: Political factors are changes made in government and government policies. These factors greatly influence the operation of a business. The government and their polices have a huge influence on the regulation of businesses and they control the spending power of consumers and other businesses. A business must consider the stability of the political environment, government policies on the economy,
etc.
TECHNOLOGICAL FACTORS: These factors greatly influence as they provide opportunities for businesses to adopt new innovations and inventions. These things help the business to reduce costs and develop new products. With changes in modern technology huge amounts of information can be securely shared by means of databases thereby enabling vast cost reductions and significant improvements in service. In order for a business to remain competitive and strong they need to understand the latest relevant technological advancements. Technology is the one thing that helps a business remain competitive and is a major driver of globalisation. While designing the business strategies firms must consider if use of technology will allow the firm to manufacture products and services at a lower cost. Firms can select new modes of distributions with the help of technology. It has become easier for companies to communicate with their customer in any part of the world. 3. http://www.businessteacher.org.uk/business-environments/global-factors-strategy/
There is also a lot of pressure on businesses to ensure that their products are good enough to sell. This is known as quality expectations. The minimum expectation of a good or service is that it does its intended job or service and work for a set amount of time.
Cost-based competition means that a business sets its prices at ones that are able to make a profit for the business however are also lower than those businesses that they are directly in competition with. Once they sort out prices the business is able to fit everything else into place.
If a business can understand all influences that could directly affect their business than they will be able to put everything into place and all objectives have more of a possibility to be reached. In order for a business to be successful they must do research into everything that could affect their business and be aware of any changes that could be made that would affect them.