External Market Forces

Supply Chain delays can affect an organisation’s ability to meet customers’ needs, because:

• Products will become more expensive

• Equipment will become overused

• Products will not be delivered on time

• Products will become less expensive

A rise in inflation rates means:

• Prices of goods and services stay the same

• Sales figures will improve

• Prices of goods and services will increase

• Sales figures will stay the same

When interest rates increase this will:

• Reduce Waste

• Improve sales

• Increase Costs

• Decrease oenership

Which of the following would the banks use to work out inflation??

• Gross Domestic Product (GDP)

• Census Data

• Customer Price Index (CPI)

• Business Tax Paid to Government

Who would be responsible for policy and regulatory change?

• The Organisation

• The Government

• The Employees

• The Customers

Why is it important for an organisation to understand policy and regulatory changes?

• To promote competition amongst organisations

• To avoid penalties for non compliance

• To focus on internal policies rather than external factors

• To increase the organisations revenue

An organisation operating in a competitive market has been forced to raise their prices.

How will this affect the organisation?

• Taxes will increase

• Costs will fall

• Sales will increase

• Demand will fall

Market forces are the change in the number of people or organisations that want:

• Diverse employees

• Stakeholder engagement

• Goods/services

• Financial loss

The UK's economy grows and shrinks according to:

• Change in Government

• Fluctuation of interest rates

• Supply of bank notes in circulation

• Changes in interest rates

What is the result of a decrease in corporation tax on a business?

• Positive cash flow will be harder to maintain.

• Exporting will become more attractive

• Supply chains will be interrupted

• Operating costs will decrease.