Nature of Business

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Nature of business Introduction: A business is a fundamental structure which through time gets affected by certain changes; these changes are referred to as Influences. Influences are categorised under two sub headings internal and external, an internal influence is a change within the business and which the company has control over, an external influence is a affect that a business does not have control over. Internal and external influences can either help or destroy a business depending on how the business manages to adapt through these changes/influences. Section One: External Influence: Social Influence: A social influence is very important towards some sectors of the industry. Throughout life society develops and adapts to different changes in cultures, tastes and fashions. It is the business's responsibility to keep up with these never ending changes to insure they are up to date with the latest services/products that consumers are aiming for. Failure to keep up can deteriorate the company’s reputation towards the public and surely "Die out". Social influences can also bring great benefits towards a business such as if an entrepreneur grasps on an innovative concept which is demanded by society it can lead to great profits. Internal Influence: Resource management: Resource management is another important factor to consider in a business. There are four types of resources a company has to manage. 1) Human Resources, Human resources are generally the employees of the business and are essential to its success. 2) Information resources, Information Resources are data a business has compiled from market research, sales report, economic forecasts, technical material and legal advice. 3) Physical resources include equipment machinery, buildings and raw materials. 4) Financial resources are the funds the business uses to meet its obligations to various
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