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Controllable And Uncontrollable Factors In Business

1078 Words5 Pages

The economic environment is continually shifting because of changes to economic factors. Financially viable factors are equally controllable and uncontrollable. The convenient factors, such as price, earnings and interest charge are politically controlled. Unmanageable factors, such as purchaser capital and distribution of wealth, change and diverge, making them difficult to calculate. Both the controllable and uncontrollable factors are reasons for the changes in the marketplace and end user demand. The breakdown to account for economic factors leads to pecuniary penalties for businesses and the economy as a whole.

Task 1
Micro-economic business environment
The trade and industry environment of business will lead a pivotal role in shaping …show more content…

Research is practical in investigating prospective customer demand and in developing products that top match preferred benefits. This benefits businesses once they have paid for advertising and utilize other promotional techniques to support brand and its benefits. These selling techniques are significant in achieving competitive advantages above other competitors trying to optimize presentation as consumers make choices based on their wants and …show more content…

Those options refer to procurements of goods and services from production source. As a business, part of your function is to supply and promote products as well as commodities and services that are demanded by a target market segment within the population. In essence, businesses should want to persuade the choices of customers who have restricted budgets to expend on diverse products and services. Supply and demand is one of the most important concepts at the microeconomic point. This is the evaluation of the altitude of consumer demand for selective goods to the existing supply in the marketplace. In a extremely competitive industry in which customers enjoys many choices, supply might surpass demand. Over time, this can cause some businesses to fail. In a further niche market with a small number of providers, chance to succeed in meeting customers requirement may be superior if businesses recommend and promote a worth product with preferred features. Business pricing strategies show a relationship sturdily with microeconomic factors. The ultimate or equilibrium price position exists at the point at which quantity supplied exactly equals quantity demanded. The higher the prices, the lower the range of the people who will purchase them. On the other hand, if businness offer lesser prices than the market demand dictates, businesses must leave

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