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Business Proposal - Coursework Example

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The external business environment comprises of factors that have the potential to become opportunities or threats to the business depending on how the business reacts to it. In reality, no business exists in a vacuum of its own; other businesses offering similar or related…
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Business Proposal
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Business Proposal

Download file to see previous pages... For this reason, there is always the need for a business to derive strategies by which it can rely on to adapt to the external environment. The factors in the external business environment play a big role in determining the operations of the internal functions. This is because; the business is expected to keep continually realigning its internal operations in order to remain relevant and effective. The external business environment is very dynamic; every day, new economic conditions always arise, legislations, competition strategies among other factors.
This paper discusses the economic factors that affect the business in various ways; it focus on mobile phones, as the product that is traded most in many places for economic and social reasons. In addition, it examines the pricing approaches that are used in an imperfect market structure and the factors guiding the pricing in relation to demand patterns
The economic factors in the business external business are hard to predict, for instance, the global recession has affected many businesses, making them look for various cost-saving and waste reduction approaches. While some businesses focus on ways to reduce their expenses and increase their, efficiencies, there are those that resolve to outsource functions in order to cut down on their costs. Businesses that effectively manage their external environment effectively end up becoming market leaders, with increased rates of turnover and profitability.
There are different types of market structures that exist in an economy, these structures are determined by the types of products being sold, the number of buyers and sellers and their knowledge of the market among other factors. Monopolistic market structures are those characterized by a high competition between many large firms and individuals (Maurya 2008). This market structure is almost similar to a perfect competition only that here; there ...Download file to see next pagesRead More
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