Business – Sources of Information
Everyday life is full of planning processes. To put these plans into action depends mainly on the past and current situations. E. g. If I decide to go shopping, before leaving, I check what I can afford to buy “is it a pair of Prada shoes or just a common pair from any shop”. When decided on the cost, I can visit the shops by setting another plan “would I go to all the shoe shops or have some shops in the past treated me badly?
” When in a specific shop and I find a pair I like I have to check whether that style is out of fashion or if it matches with a specific out fit, or if I have a similar pair at home. As you can see everybody at anytime and anyplace refers to various sources of information – be it internal or external. When a company plans the future for its well being, the most important factor to take into consideration are the different sources of information, which include the internal and also the external sources of information.
When a business takes into consideration these two factors, then the planning of the business’s future objectives are slightly more accurate and improves the business’s performance and profitability. The internal and external sources of information are used to analyse and compare our business to that of other businesses alike. Thus gathering the advantages they have achieved and applying them to our business and not falling into the same trap (disadvantages) that our competitors have gone through. i. e. “Learning from our and other people’s mistakes”
Both internal and external sources of information have their past information, their present/current information and also their future informationWhen the external sources of information are compared to the internal information, we can say that the external sources are more important to gather and contrast – this is because a business in the market must take into consideration what plans and actions are being taken by its competitors, this is because these plans and actions may affect the future plans of its business.
With having various information regarding the external market, it is important to view what is happening around the business and what will affect your business or not. org and Bugeja Accountants hope that you have understood the concept of how and why is it an asset to keep financial information available concerning your business and that of the market sector. We encourage you to start keeping your accounts up-to-date, as you can see they are not as difficult as they seem. If you require any further information or help when dealing with the accounts please do not hesitate to ask.