Generally speaking, businesses operate in an external environment and so are all expected to be subjected to many different external influences, from which evolve around many different factors. These factors are possible influences to both Boots and Pwc, they include the following: Social factors Relate to change in society and social structures. Adjustments in the structure of the population and in consumer lifestyles and behavior affect buying patterns. Legal factors Recount to changes in laws and regulations. Businesses must be wary of keeping within the law and foreseeing ways in which changes in laws will affect the way they must behave
Economic Factors Correspond to a change in the wider economy. A growing economy provides greater opportunities for businesses to make profits, so businesses welcome rising living standards. Political factors Relate to the ways that a change in government and government policy might influence a business. Technological factors Allowing opportunities for businesses to adopt new breakthroughs, innovations, and inventions to cut costs and develop new products. Not only do these factors fit into the external influences of Boots but a major external influence would be competition. Boots has many competitors, these include the following:
Marks and Spencer Tesco Debenhams Kingfisher Sainsbury Smith &nephew Alliance Unichem Reckitt & Benckiser Gus These competitors would be considered competitors because they sell the same or similar things and provide similar services. Because of this, they attract the same type of customers. This means that these businesses would be fighting to get the better of the public and have members of the public choose their business in comparison to a one similar to theirs. They also might sell their products at different prices. These businesses would also be located in the same types of areas.
For instance Boots would face a huge amount of competition with Tesco because they as a company are understood to be preparing a price-cutting campaign across a range of products. This campaign will focus on more than 600 products including health, beauty and baby items including medicines, dental care and baby wipes. Each of these could be seen as occupying traditional Boots’ territory. Tesco are believed to be prepared to spend 70 million on the cuts. In the market for prescription medicines, where Boots is the leading player, the main competition comes from UniChem (who own moss pharmacies) and Superdrug.
Some of the things affecting boots would be its economical factors. These involve things such as: inflation and wages. To elaborate on this, if prices change on certain products or services then this might have a huge affect on the amount of customers that pay for any of their products or services. For example, if I was to purchase a facial cream that costi?? 0. 99 and I then went back later to buy the same cri?? me as I thought it was very affective and it turned out its price had increased by 1. 00 and therefore had risen from i?? 0. 99 to i?? 1. 99, I might decide not to buy it anymore as in my eyes it may not seem worth the bother.
Boots may also have a lot of environmental factors affecting the way it performs as a business. This may include pollution which could prevent a company from attracting in-going customers as a result of their shop being situated in a Polluted area. If this is the case, many customers would feel less obligated to shop at its stores. To add, we could bring up the subject of recycling and see how this may also affect the business. To be more descripting, boots may recycle a lot of their used packaging etc. and for some customers this may seem a good thing as it saves money however this wouldn’t be the case for all customers.
The reasons for this is that others may not like the idea that other peoples used products could be re-made and sold them. This could be because they might be feel that their receiving the left-over of some customers etc. Another environmental factor that could have an affect on boots is the Carbon footprint. This can be defines as: a measure of the impact the company has on the environment through its carbon dioxide emissions and other greenhouse gas emissions to the atmosphere. The level of Unemployment and satiability could also affect Boots as a business.
This is because the level of unemployment may rise and so it means more and more people are living of other people’s money. This means that tax pay is rising and so Boots’ have to increase the amounts of money they give away and therefore, lower their income. Also it could be said that the level of job satisfaction is decreasing. Job satisfaction describes how content an individual is with his or her job and if this is decreasing then this could lead to an even bigger increase of unemployment because people could become so fed up with their job which could amount to them quitting.
Not only could these but scientific factors also influence a business like Boots. For example green issues like the green house affect are causing the environment to waste energy and so this means that more money would be needed to pay for central heating and other gas related supplies in big companies like boots. Also these green issues are affecting wildlife and definitely causing pollution. This may result in the area where Boots or Pwc has related their business being corrupted. With the carbon footprint, Carbon emissions are increasingly resulting in financial costs for companies.
Pwc would also have many competitors that would be considered as external influences. These competitors include: the other “big three” firms; Ernst Young Deloitte KPMG For instance, Ernst Young would be a huge competitor of Pwc because they both uphold services that deal with capitalism and other major financial issues. As evidence to this, Pwc was attacked since chairman of the big four firm attacked Pwc’s mathematical model that predicted the firms audit fees rose from 12% from one year to the next following the merger of Price Waterhouse and Coopers ; Lybrand in 1998, due to market concentration.
This is an example of how the rivals between Pwc and its competitors can result in serious consequences for the businesses reputation. As mentioned before there are several factors that could affect a business including the affect of; green issues. Pwc could also be affected because of levels of unemployment since they are a business that is their to help society financially they as a business could be taken advantage of when it comes to paying taxes and their willingness to give money to those on benefits.