Getting Down to Business
Read this section learn about internal and external factors that affect the success of businesses. Pay particular attention to Figure 1.2 to gain an understanding of where each of these factors falls.
Exercises
- (AACSB) Analysis
The Martin family has been making guitars out of its factory in Nazareth, Pennsylvania, factory for more than 150 years. In 2004, Martin Guitar was proud to produce its millionth instrument. Go tohttp://www.martinguitar.com to link to the Martin Guitar Website and read about the company's long history. You'll discover that, even though it's a family-run company with a fairly unique product, it operates like any other company. Identify the main activities or functions of Martin Guitar's business and explain how each activity benefits the company.
- How has the economy affected the business's pricing, revenue, or expansion plans?
- What role have government regulations played in shaping its product offerings, food safety, or labor practices?
- How have the products or services been impacted or influenced by shifts in consumer preferences?
- Has the business responded to environmental concerns or social responsibility pressures, and if so, how?
Name four external factors that have an influence on business. Give examples of the ways in which each factor can affect the business performance of two companies: Wal-Mart and Ford.