Intro to business Past exam paper

41000 It includes variables like suppliers, customers, competitors and public. On the other hand, macro factors are those that have an indirect impact on the business, also known as PESTEL. It includes factors that create opportunities and threats to business and is categorized as the far environment. These include variables such as political, environmental, socio-cultural, technological, economic and legal. (ii) The purpose of macro environment analysis is to determine the opportunities and threats to the farming industry as a whole and those outside the control of the company. External factors that affected the agricultural industry includes economic, technological, socio-cultural, environmental and political. All factors were considered as they play a part in determining the overall business environment. Economic factors include inflation rate, growth in spending power, exchange rates and economic growth. Opportunities can be that higher national income growth may boost demand for a firm’s products and chances for expansion increases. On the other hand, a strong currency may make exporting more difficult as prices in terms of foreign currency rises. Also inflation may provoke higher wage demands from employees and raise costs. With respect to technological factors, internet played a crucial role and gave way to online orders and delivery systems. Opportunities in the future may include complex operational systems installation that may cut down on labor costs, improve quality and lead to new innovations and make it attractive as a segment. Threats can be the probable advancement of technology making prior systems obsolete. Socio- cultural factors played an equally important role in farming industry. Change in trends where consumers demand for fresh products provided business opportunities to farmers and provide scope for innovation. Entertainment dimension added onto the development of this industry. However, trends changes and there exist a niche market that demands such products which might get concentrated. This can thus pose as a threat to agricultural industry. In Environmental factors, Physical factors of climate relief and soils affected the business positively. With major climate changes and greater environmental awareness this external factor is becomes a significant issue for firms to consider. However, going for environmental friendly products and processes can create business opportunities now and in the future as well. Threats can be Laws on waste disposal, energy consumption, pollution monitoring etc. that would add to the cost of the businesses operating. 2. (i) Two main sources of U.K. laws include Legislation (Statue Law), Common Law (Judge-made Law) and the European Communities law. Legislation are most authoritative and passed by parliament whereas common law includes cases where there was no judicial precedent but which were known to exist since time memorial. Company law, or corporate law, of U.K. can be broken down into two main fields. Corporate governance in the UK mediates the rights and duties among shareholders, employees, creditors and directors. Corporate finance concerns the two money raising options of incorporators the above mention laws can directly affect the operations of Ford Company in UK. (ii) There are broadly four types of business ownership. The most basic form is sole proprietorship. It is owned by one person who is the in charge of day-to-day activities of the business and owns all the assets and bears