Essay about The External Environment and Its Effect on...

The external environment in which businesses operate can have a significant effect on their success. To what extent do you think that the external environment in the UK is favourable for businesses at the moment? Justify your answer with reference to external factors and/or businesses that you know. (40 marks) You must include a plan. 3  ½ pages handwritten. Not petrol? Can argue against in evaluation – favourable for some industries but not others Make a point, explain and evaluate (3-4 main points) The external environment for a business is equally as important to its success (or otherwise) as it’s internal environment. This is because external factors will directly impact on the business. These factors are complex and wide†¦show more content†¦For a manufacturing company like Cadbury, a growing UK population is leading to more sales opportunities. Changes in eating habits, with fewer families sitting to eat regular meals together has continued to fuel the ‘on the go’ eating trend, which has lead to the launch of more snacking type product offers, increasing Cadbury’s portfolio of products. Finally, the current and ongoing concern around healthy eating, obesity, sugar and fat intake has necessitated reviews of product recipes, formats and consumer communications. EG there have been a lot more restrictions on advertising to children, which has recently been banned for certain product types. The Technological landscape has seen massive change over recent years and an understanding of this is vital for business owners. This covers areas such as basic infrastructure level, rate of technological change, spending on research development, technology incentives, legislation regarding technology, technology level in your industry, communication infrastructure, access to newest technology, Internet infrastructure and penetration. 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