Effect Of External Factors In Decision Making Process

Contents Introduction2. 1. Supply and petition3. 2. rising impairments3. 3. Taxation4. 4. supplant rate5. 5. worry rate5. 6. bounteous medication policy6. 7. result8. 8. reference9. Introduction This assignment is about how outer sparing factors rouse rival inner(a) giving medication purpose making process. away factors argon the factors that beyond the control of the organisation, and internal factors refer to the factors that organisation eject change or allocate internally. In this assignment, the author entirely chose 6 most common external factors that depart affect the internal origin. These factors are: 1. total and penury; 2. Inflation; 3. Taxation; 4. Exchange rate; 5. Interest rate; 6. Government policy. In this context, the writer mainly illustrated how these external factors will affect business in terms of revenue enhancement/sales, profitability, and various(a) business strategies within the organisation. 1.Supply and i mplore In economics, the take up is defined as the quantity of good that plurality are ready to purchase at various termss within approximately given clip periods . In other words, it comprises both people willing to profane and the ability of buying. The demand of the harvest-feasts at various prices seat straightaway affect organisations’ revenue.

Thus, organisations must carefully find out into the demand out front their planning of the supply of their harvest-times. tally to the law of demand, the demand of a product decreases when the price of the product increases. After estimating the demand of their product at various price lev! els, a company can choose a price to fulfil their target revenue. If a change piece of prices can lead a great change percentage of demand, a company can simply reduce the price of their product to reach higher revenue. The revenue is maximised when the change of percentage of demand equal to the change of percentage of price. (i.e. when the price elasticity of demand is -1.) Although companies can affect the demand of their...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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