Components of External Environment

What are the two well-nigh relevant externalities from Exhibit 2.6 for a firm with which you are familiar? Have these externalities made the cunning in which the firm operates more, or less, attractive to you as consumer? I am familiar with the denounce industry which operates at cheek some relevant externalities or the sphere of influence right(prenominal) the association that shapes how companies do business. Unlike the micro purlieu of a sell store, companies in the sell industry usually cannot influence or change the macro instruction environment and must adapt to changes as they arise. The macro environment includes economic, technological, societal and governmental influences. A retail merchant must understand the economic consumption of each to argue within the retail industry (Marcus 2011). I feel that macro environment is a useful tool to understand the handsome follow word of the environment in which the firm is in operation(p) Technology not tho cre ates new products for retail companies to sell, just in any case plays a study role in changing the way retail companies do business. proficient advancements much(prenominal) as the Internet offer retail customers additional obtain options. Technology also opens new retail markets, such as the Home Shopping Network and web-based retailers such as Amazon.com (Marcus 2011) which I use in buying books.

Barcoding and computerized burster systems have meliorate the retail industry by allowing retailers to originate new processes that adjoin efficiency. Point-of-sale systems increase sales by allowing retailers t o process cash, check, and credit- and debit! -card payments. Secondly, most government policies can have a number of imperious or negative effects on the retail industry. When it comes to governing assistance, such as government-backed loans and subsidies, can second fledgling retailers pose or allow an established come with to keep cost low for consumers. However, government policies can also hinder businesses by imposing regulations that increase costs, such as requiring the...If you want to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper