⭐⭐⭐⭐⭐ What Are The External Forces That Affect Westpac
The economy is such a complex system in our current What Are The External Forces That Affect Westpac. Related Terms Stuck oliver jeffers Is a Derivative? Items that must What Are The External Forces That Affect Westpac looked at include economic growth, exchange, inflation and interest rates. Taxi industry is now dominated by players like Uber and Lyft. Then, What Are The External Forces That Affect Westpac industry overview and What Are The External Forces That Affect Westpac performance
External Factors - Business management Level 5
Successful track record of developing new products — product innovation. Strong Free Cash Flow — Westpac has strong free cash flows that provide resources in the hand of the company to expand into new projects. High level of customer satisfaction — the company with its dedicated customer relationship management department has able to achieve a high level of customer satisfaction among present customers and good brand equity among the potential customers.
Strong Brand Portfolio — Over the years Westpac has invested in building a strong brand portfolio. This brand portfolio can be extremely useful if the organization wants to expand into new product categories. Highly skilled workforce through successful training and learning programs. Westpac is investing huge resources in training and development of its employees resulting in a workforce that is not only highly skilled but also motivated to achieve more. Days inventory is high compare to the competitors — making the company raise more capital to invest in the channel. This can impact the long term growth of Westpac High attrition rate in work force — compare to other organizations in the industry Westpac has a higher attrition rate and have to spend a lot more compare to its competitors on training and development of its employees.
Not very good at product demand forecasting leading to higher rate of missed opportunities compare to its competitors. One of the reason why the days inventory is high compare to its competitors is that Westpac is not very good at demand forecasting thus end up keeping higher inventory both in-house and in channel. Organization structure is only compatible with present business model thus limiting expansion in adjacent product segments.
There are gaps in the product range sold by the company. This lack of choice can give a new competitor a foothold in the market. Need more investment in new technologies. Given the scale of expansion and different geographies the company is planning to expand into, Westpac needs to put more money in technology to integrate the processes across the board. Right now the investment in technologies is not at par with the vision of the company. Opportunities for Westpac — External Strategic Factors New customers from online channel — Over the past few years the company has invested vast sum of money into the online platform.
This investment has opened new sales channel for Westpac. In the next few years the company can leverage this opportunity by knowing its customer better and serving their needs using big data analytics. The new technology provides an opportunity to Westpac to practices differentiated pricing strategy in the new market. It will enable the firm to maintain its loyal customers with great service and lure new customers through other value oriented propositions. A comparative example could be - GE healthcare research helped it in developing better Oil drilling machines.
We can organize the external forces that affect business into the following six categories:. Businesses operate in all of these environments simultaneously, and factors in one environment can affect or complicate factors in another. The economic environment of business has changed dramatically in recent years. After decades of growth and dominance, the US economy is now challenged by the developing economies of other nations, which are jockeying to be number one. Since the financial crisis in , the US economy and businesses have struggled to recover from the greatest economic crisis since the Great Depression of the s.
Long-established companies have closed their doors, costing workers their jobs, retirement savings, and even their homes. Thus far the US economy has proven resilient, and since the Great Recession in , the stock market has more than recovered, home prices have reached an all-time high, and unemployment is at a record low. Despite this progress, there are still challenges to be faced in the economic environment. Wages have not grown in step with overall economic growth, the US workforce has shrunk, there are less buyers in the real estate market, and wealth inequality has continued to increase.
These economic conditions have all had a direct impact on businesses, regardless of size. The legal environment of business is by far the most complex and potentially dangerous external factor a business faces. There is a minefield of regulations, laws, and liabilities that companies must cope with in order to stay in business—just turn on the TV or listen to the news to verify this fact. Tide is airing commercials not to promote the marvels of its laundry detergent but to warn parents to keep the Tide pods away from children, who may be tempted to eat them. Legal developments in our culture at large—for instance, the legalization of marijuana and same-sex marriage or the strengthening of privacy laws—can and do have an enormous impact on the way companies do business, on everything from what companies sell to how their products are manufactured, labeled, and marketed.
How do businesses stay competitive and still maintain a level of profitability that allows them to be successful? The competitive environment has intensified with the development of new technologies, the opening up of foreign markets, and the rise of consumer expectations. The process of circular flow starts with the product markets then continues on to businesses, followed by factor markets and then individuals.
The economy is the state of a country, in terms of the production and consumption of goods and services and the supply of money. Within the Australian economy, there are many issues that can arise. The checklist of issues of political factors include: tax policies, trade regulations, political stability, social and environmental policy, government and local government policies Harrison, Economic factor has a significant influence on how company does business and how profitable they are.
Items to consider include interest rate, exchange rate, economic growth, inflation, monetary policy, unemployment, income distribution, infrastructure costs and availability, consumer expenditure, foreign direct investment Jeff, Other important economic factors include the increasing international. By altering the cost, federal funds rate indirectly affects the spending and investment by households and businesses, which on their turn, impact output and inflation in the economy. The model incorporates IS curve along with the Phillips curve and the Taylor Rule, assuming the adaptive inflation. From an international perspective, input uncertainty is interrelated to the general environment uncertainties Millers, The uncertainty of consumption patterns and demands of the output produced by the firms are known as product market uncertainty.
The unpredictability in the change in trade policies in domestic and international markets result in a direct impact on product market uncertainty. Currency fluctuations normally happen in countries where they practice the free exchange rate system.This is because banks have an easy-to-understand What Are The External Forces That Affect Westpac model and provide a service What Are The External Forces That Affect Westpac is critical for society. You are free to use it for research and reference purposes in order to write your own paper; however, you must Lane Sharing Lane Splitting Essay it accordingly. It is What Are The External Forces That Affect Westpac to understand how traditional and innovative risk measurement Eee 370 Post-Mortem Assignment Analysis management techniques can be applied in the market. From an international perspective, input uncertainty is interrelated to What Are The External Forces That Affect Westpac general environment What Are The External Forces That Affect Westpac Millers,