Interest Rates

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Interest rates are very important. They tell you how much money you have to repay. For example, If Jaguar was to borrow i?? 50,000 at 5% interest, then jaguar will have to repay an extra cost of i?? 2500. Exchange Rates If i?? 1 is equal to $2 then that would mean a car which is costing i?? 10,000 in the UK, it would equal the cost of $20,000 in the USA. Environment I believe that the two businesses could be affected by environmental constraints for a number of reasons.

For example Jaguar were introduced the ISO 14001 standard, this standard means that it covers all of the aspects of the business. This also includes getting rid of waste, developing (manufacturing), recycling and vehicle parts. They try to care for the environment by using their water paints on their cars. On the other hand they are also affected by Clean Air Act 1993 and also have an environment policy. Supermarkets have to label their goods and recycled products are under pressure to sell organic products and not GM Goods and these are not good for you.

Many have recycling centres in their car parks which is also useful. good for you. Many have recycling centres in their car parks which is also useful. The effect of changes in External Influences on the 2 businesses (d2) There are many effects which may change some factors that they could have on them: As there is much competition to both companies these are the main issues which may cause problems. If a rival brings out a new model of car, this could affect Jaguar as the customers will have huge attention on the new model which therefore will put Jaguar out of business.

If they mount a new advertising campaign the effect would be that this will also put Jaguar out of business because the customers will be more interested in the advertisements and see Jaguar as more expensive and will therefore get put off Jaguar so they will not sell any cars. As china have recently emerged as a major market for cars the effect it may have to Jaguar and other car companies given the low wage rates over there is that this will attract more foreign customers and Jaguar and other car companies wouldn’t sell as much due to China’s major market for cars.

As Boots want to expand their products abroad they will earn double the amount of money that they make know due to the pound against the dollar. If super drug for example reduce their prices this will have as effect on Boots because this is their rival. They will therefore have to compete with this leading cosmetic store to get more customers then them. As Boots have an advantage card and ways of saving money this has as effect on other stores.

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