External Factors Of Business Environment - and
Jones , describes how in health care organizations, strategic plans Clinical Practice, Education And Research Words 10 Pages patient through integrated clinical practice, education and research. This clinic is one the world 's most prestigious medical facilities in the world. We are lucky enough to have the Mayo Clinic located right here in the United States. The paper will highlight the factors in external environment which affects the strategic position and operations of the Mayo Clinic. Along with that the report will also highlights the internal environmental analysis specific to the firm. Mayo Clinic is a nonprofit worldwide leader in medical care, research and education for people from all walks of life Mayo Clinic, External Factors Of Business Environment
Natural Environment Economic Forces The economic environment can have a External Factors Of Business Environment impact on businesses by affecting patterns of demand and supply. Companies need to keep a track of relevant economic indicators and monitor them over time. The rise in the number Buziness dual income families in several parts of the world, including urban world, has led to the rise in the incomes for such families. This has resulted in higher demand for lifestyle and luxury products. Such products, such as dishwashers, that are considered in necessities in Western markets, do not even fall into the consideration set of consumers.
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Inflation Buainess refers to an increase in prices without a corresponding increase in wages, resulting in lower purchasing http://pinsoftek.com/wp-content/custom/stamps/diahann-carroll-funny-girl-analysis.php of consumers. When cost of production of products and services is low, they will be sold at lower prices. Inflation rate is higher when costs of producing products or services go up, or when there is too much money chasing too few supplies, prompting suppliers to raise prices and earn higher profits. High inflation rate decreases real wages, i. Inflation will reduce the demand for several products because the customer will ration his income on goods.
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In inflationary times, customers stock items to save themselves from further increase in prices and abandon their favorite brands to buy more economical brands. When costs of production go up, companies should try to withhold increasing prices for as long as possible.
In the long run, companies will have to look for better methods of production and cheaper inputs so that cost of production can be brought down. Recession Recession is a period of economic activity when income, production, and employment tend to fall. Demand of products and services are reduced. During recession, companies should improve existing products and introduce new ones.
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The idea is to reduce production hours, waste, and the cost of materials so that companies can offer products at lower prices. The most potent please click for source to end a recession cycle is to make it attractive for customers to buy more. In recession, business buyers will postpone the purchase of new equipments and materials because they do not know if there will be demand for their products and services. Sellers should be willing to extend credit to buyers to get over their reluctance to purchase. Sales of replacement parts and other services may become an important source of income. Companies should emphasize their top-of-the-line products and promote product value.
Customers with less to spend will look for demonstrated quality, durability, and capability to save time and money. High priced, high value items do well during recession. Companies should understand that though there are specific causes that trigger recession. It is perpetuated because consumers and businesses become uncertain about future and are reluctant External Factors Of Business Environment scared to buy. Once consumers start buying, businesses will start buying automatically. Therefore companies selling to consumers should generate confidence in the consumers by offering them high quality products and services Favtors reasonable prices and also extend credit to them.
Interest Rate If interest rate of an economy is high, Extrrnal will borrow capital at a higher rate and they will set up new businesses only when they are convinced that they can earn External Factors Of Business Environment a rate higher than the interest Envkronment they are paying on the capital.]
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