Growth of business is totally dependents of the environment. Gradually effect of external environment in every kinds of business is increasing. As a result, it is creating different types impact over the organization. Generally, business environment of a particular organization is dependent in four parameters and that are customer behavior, competitor strategy, government policy and regulatory and public opinion. All those parameters are directly or indirectly related with the business.
Customer behavior suggests the marketplace of a particular organization. With the help of customer behavior, it is possible to understand the acceptance rate of a particular product. Generally, customer behavior depends on some parameters and that are economic condition, marketing camping, personal preference and purchasing power. Woolworths is an Australian leading supermarket and grocery shop. Therefore, with this all the above-mentioned parameter is specifically connected (Prajogo & McDermott, 2014).
For any organization, government economic policy makes huge impact because government gives or provides financial help to the states. As a result more privatizations is introduced and the outcomes is more competitions between various sectors. Apart from that taxation policy affect the cost of the business. As a result increase of tax also increases the cost of a particular product that makes direct impact over the consumers. Some time government makes changes in laws according to their political policy. The impact of this regulatory policy forces the organization to change strategy.
Competitive strategy makes huge difference for the growth of the business. Generally competitive strategy consists of cost, innovation, strategic alliance and differentiation. These major factors bring success for any business and at the same time decrease the business growth.
In case of Woolworths if the competitor organization is more power full then it will reduce the business growth of Woolworths.
Public opinion is another factor that suggest the actual condition of the market if the public opinion about an organization or any product is positive that means consumer is using that particular product. At the same time, negative public opinion is decrease the sale of a particular product.
Negative impact of the above-mentioned parameters creates various kinds of difficulties for any organization. As a supermarket industry Woolworth required all those external factors because lack of marketing reduce the customer base. Beside that increase of cost price some time makes negative impact over customers but in most of the case increase of tax force to make this decision. Another challenge is huge competition in the respective market that minimize eh scope and customer base. The effect reflects in the annual revenue or it also happens that marginal profit is generated (Dobscha, Mentzer & Littlefield, 2015).
From the above discussion, it can be deduced that all the external factors provides major impact over the success of a business. In this discussion all, the external factors that make differences in the business are introduced. After that, the discussion focuses all challenges and problems that are facing any organization. Therefore from the discussion it can be concluded that to make proper growth in the business it is very important to identify all the challenges and need proper solution so that any organization can make proper solution for them.
From this mentioned topic, it is possible to understand that all the external factors that makes success in the business and reflect all the factors that create difficulties and risk factors. From the above-mentioned discussion, it can also be understood all these external factors are key principles for the success of any business.
Dobscha, S., Mentzer, J. T., & Littlefield, J. E. (2015). Do external factors play an antecedent role to market orientation?. In Proceedings of the 1994 Academy of Marketing Science (AMS) Annual Conference (pp. 333-337). Springer, Cham.
Prajogo, D., & McDermott, C. M. (2014). Antecedents of service innovation in SMEs: Comparing the effects of external and internal factors. Journal of Small Business Management, 52(3), 521-540.
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