Transcript Factors affecting business success

FACTORS AFFECTING BUSINESS SUCCESS
NOTE 11
Introduction to Business BBI2O1
March 2012
FACTORS AFFECTING BUSINESS SUCCESS
Business success is NEVER a given
 Depends on several factors including:
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Personal factors
 Economic conditions
 Government influence
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PERSONAL FACTORS
To be successful an entrepreneur must be able to
both plant and grow his/her business
 The following list of personal traits are generally
required:
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Desire for control
Vision
Passion
Perseverance
Teamwork
http://www.neptec.com/
ECONOMIC CONDITIONS
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Economic conditions that affect business include:
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Supply and demand
Marginal businesses have difficulty in periods of heavy
competition with decreased prices
 Price fixing
 Supply quotas
 Cartels
 OPEC Organization of Petroleum Producing Countries
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Labour market conditions
Labour force
 Unemployment rate
 Subsidies
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Inflation
Purchasing power
 Deflation
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Participation rate
GOVERNMENT INFLUENCE
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In a “mixed market economy” like Canada’s, the
government can influence business by:
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Imposing taxes
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Control the distribution of goods and services
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HST (PST / GST) – on the purchase of goods and services
Customs duties – on imported goods
Excise tax – on spirits, wine and tobacco
Licenses and permits
Marketing boards – control the supply of goods - Milk Marketing
Board, the Egg Marketing Board
Money Supply – The Bank of Canada regulates the supply or money
and the cost of borrowing for major banks
Anti-trust legislation – to oppose the control over supply by any
business – Competition Act
Enforce regulations
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Health and Safety regulations – child car seats, inoculations for
school children
Quality control legislation – new home inspections
Control unethical business practices – through Business Practices
Act and the Consumer Protection Act – price fixing, bait and switch
tactics