Internal Factors In Business

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As the modern world is becoming a big cluster of various businesses, it is necessary to understand basic principles on which such businesses are based. For better understanding, it is important to know that there are external as well as internal factors affecting each business, its structure and success. Some of the external factors are a structure of competition in the particular market, trade restrictions, consumers’ interest, and a company’s market strategy. On the other hand, basic internal rules that affect each business are internal hierarchy and recruitment strategy. In order to understand what each factor presents and how it affects a business, it is best to look at real life examples. Firstly, an external factor that businesses are…show more content…
The main argument in favor of industries is a job market. As seen in the previous example of the INS and supermarkets, if there are no trade restrictions protecting the interests of various industries, some of them can get shut down, which results in a loss of jobs. Nevertheless, when certain industries are protected by trade restrictions, they can establish monopoly more easily, thus harming the consumers. However, by protecting an industry, the government is shielding only a part of population hired in that industry while the protection of consumers applies to the entire population because everyone is a consumer. A good predictor of how well the consumers’ interest is promoted is consumer price index (CPI) that measures the monthly “changes in prices of a fixed basket of goods purchased by a typical consumer in an urban area” (Pride, Hughes & Kapoor, 2017). Although it seems like the consumers’ interest has not been favored recently as “starting late last year, the consumer price index (CPI) jumped, and the increase is accelerating as we start 2018” (Foster, 2018), companies that do value consumers’ interest are usually granted both, customer satisfaction and success in their…show more content…
Although food preference varies among countries and cultures worldwide, McDonald’s remains on top as one of the most powerful restaurant chains in the world. How is that possible? When introducing its food to different areas of the world, McDonald’s adjusts its menus and even prices to the consumers’ preferences (Haim, 2013). For instance, instead of a fast food, McDonald’s started a chain of fancy restaurants in France because the French do not consume fast food as they like to take their time eating (Haim, 2013). What is more, they even opened a vegetarian restaurant in India because most of the population there is vegetarian (Haim, 2013). Even though it seems like a lot of adjusting for a restaurant chain to go through, that is how McDonald’s remains successful in the market and makes about $36 billion a year (Hamer, 2018). Therefore, taking the consumers’ interest into account seems to favor not only consumers, but also
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