The United States economy is one that is ever-changing, and its efficiency is constantly debated over. Capitalism has a vast amount of control over the economy, though in many cases it can be harmful. Mia Waldron defines capitalism as “An economic system characterized by private or corporate ownership of capital goods; by investments that are determined by private decision; and by prices, production, and the distribution of goods that are determined mainly by competition in a free market” (2009). While this seems like a functional system, it has many drawbacks that reinforce the need for a different system or adjustments to the way it runs now. It will be seen that capitalism negatively impacts education, living standards, wealth equality, and creates pollution as well as monopolies.
Economic-what kind of influence economy might have in terms of general demand, exchange rates, taxation, government spending, European and global economic factors. Social-what kind of influence consumers, households and communities might have by their behavior or beliefs. For example a change of life style, a rapid growth of pensioners. Technical-what kind of influence might have a dynamical change in product innovation, or production processes. Environmental-what kind of influence might surrounding environment have on the business.
External factors: The external factors include opportunities and threats that exist in the environment. They are Outside influences that affect the performance and productivity of a business. The external factors that are uncontrollable includes: • The economy local, national, or international • Funding sources foundations, donors and legislatures • Demographics changes in the age, race, gender and culture of those you serve or in your area • social and cultural forces dynamics and structure of individuals and groups and their behaviors, patterns of behavior, lifestyles and believes • Government policies rules and lows Opportunities: opportunities are attractive factors in the market or the environment that the business can be benefited. These factors may include vendors who wish to work with the organization to achieve success, the positive perception of the organization by the public, and the conditions of the marketplace that would make the project in demand .Some of the opportunities that Hutchison Port Sohar takes advantage of are: • Expand to new and larger location:
For example, interest rates affect a bank cost of capital and therefore to what extent a business grows and expands.. For example, according (Saleem, 2015) the ringgit’s rapid decline and worsening global economy that impact investors and consumers to make an investment in the country will define as the economic issue. Not only this, the implementation of GST also affects the rate of export and import in the country. Again, exchange rates affect the costs of exporting goods and the supply and price of imported goods in an
Moreover, this can affect the firm’s earnings both currently or in the future. There are several techniques used to detect discretionary earnings in a firm. These techniques can be found under two main methods of detecting earnings management, namely; the accruals earnings management and the real activity earnings management. The accruals type of earnings management occurs when the managers use whatever conclusions drawn to make decisions that can cause a difference in the earnings of the firm. The real activity type of earnings management puts more risk on the managers as well as the firm.
This part of the thesis will introduce different studies conducted around the effects of working capital management, in particular the impact on cash conversion cycle or net trade cycle, on corporate profitability. Industry effect on working capital Working capital management can be very different across industries as the needs and policies vary heavily from industry to industry. Study the different strategies employed by companies to manage their working capital across different industries. Their purpose is to find out if industries that tend to have aggressive investment policies also follow aggressive financing strategies. They also study the stability of working capital policies over time.
There are different areas in the context of business management whereby alterations towards behaviours, communication style as well as cultural implications can be observed. Communication is the major aspect in business and coordinating with varied range of individuals require intense communication styles and abilities. Cultural elements ate simply distinctive ways of living, as it refers to values, social norms and foundation on which a specific group of people base reasoning as well as involves pluralism. In reference, the possible impact of cultural difference on communication is significant. Researchers of culture determines that culture has a higher influence
A STEEP (Social, Technological, Economic, Environmental and Political) analysis is a tool usually used in marketing to evaluate several external factors which effect an organization. Social factors includes culture aspects, health consciousness, population growth rate and age distribution. This can categorized into: change in life cycle, population and literacy rate. Technological factors in banks sector play important role in control mechanisms as well as services provide by them. It include Technological aspects like R & D activity, automation, technology incentives and the rate of technological change.
The macro-environment: The macro environment is concerned with broad trends and patterns in society as a whole, which may affect the working of organisations. PEST analysis is a strategic tool to learn about the organization’s working environment and the factors that could affect it. A PEST analysis including legal and environmental parameter is called a PESTEL analysis. Political Political factors can influence an organization’s activities in many ways. It can either be advantageous for the company or there can be levies and duties on the company.
Build up and nurture mechanical popular government in view of work association in the sharing of benefits and of administrative choices. 8. Mingle mechanical movement by including the administration cooperation as a business. Industrial relations in a nation are affected, to a huge degree, by the type of the political government it has. In this manner, the destinations of modern relations are prone to change with change in the political government over the nations.