UNIT 7A BUSINESS EXTERNAL ENVIRO - INFLUENCES ON CORP OBJ/DESCISIONS Flashcards
What are the elemnt sof external enviro that can influence corp obj
state of econ
price on global mkts
tech changes
migration
what is ukk econ stil feeling effects of
deep recessoin 2008-9
how do we know UK still feeling efects of financial criss
2017 resoultion foundation revelaed
avg real wages in 2022 still be more than £20 lower/week than before start of financial crisis
t/f consumer spending after global crissis 8/9 has still held up even after inflation been taken into account
T
consumer sepnding still held up but this is supported by
consumers increasing their borrwinf
why have bs had to adjust their corp obj to reflect
4 marks
consumer spending still held up after 8/9
but this is supported by increasing their borrowing
so ability of consumer to spend money is curtailed
and we seek value for money and comp prices
give eg of bs adjusting corp obj to reflect fact consumer spending curtailed and we look for comp prices and seek value for money
lots of uk bs revisited corp obj in erms of sales and number of shops/stores required
629 stores closed in UK in 2017
by november 2018 1,826 stores closed
consumer spending in 2017 showed what changes
substantial changes in its pattern over a period of just one year
how in 2017 did spenfing change
recreationa and culture risen + transport, clothing , footwear
expenditure on restaurants and hotels declined
recreationa and culture risen + transport, clothing , footwear
expenditure on restaurants and hotels declined
what effect does this have on startgeic descision making
shape SD
across range of manufacturing and service industries
changes in global prices of commodities such as oil and wheat impact
heavily on startegic descison making and objective setting
in many industries
in sept 2018 oil prices rose around 44% compared to 2017 what does thi sdo
affect cost of many firms
encourage them to increase prices
he rising oil prices (after prolonged falls in 2018 affected oil companies how
3 MARKS
SD ro restore exploration activity + increase day 2 day operations
66% of senior oil and gas professionals surveyed copmany would maintain or increase capital spending
increase jobs and outpu of oil - at least in ST
HOW CAN TECH IMPACT SD and obj setting
2 marks
encourag efirms to adopt obj based on capital intensive prodcution
use robots and other forms of tech to replace labuor in produciton
how has tech affect labour jobs example
automatic checklouts of shops
how have tech impact bs models e.g retailers
potential of internet allows reach cusomters and supply products 24 horas a dia
many banks changing corp obj why
changing consumer behaviour reflected in bigger use of internet
give example of bank setting corp obj based on greater use on internet
what implications does this have
RBS closed 162 banks wales and enflang - 2018 announced
huge implications for bs operations
bmw set itself obj of what using robots on its car manufacturing and production lines
large scale expansion
how does bmw plan to use tobots
desing additional plans for collaborative robots
tallation of bmw robots has what significant impications
companies startegic desciosns e.g trainng and recruitment
for the last 20 years UK has been subject to
hihg levels of migration
t/f high net migration in UK
t
what 2 things does immigration affect/provide
workforce available
additional consumers of products for many firms
UK unis atract how many students overseas
440k
UK unis atract 440k many students overseas affects corp obj in terms of
scale of operation
range of courses
why is agriculture for example in east anglia affected by migration
dependent on migration labour as low cost alt to mechanisation
