EXTERNAL FACTORS AFFECTING A BUSINESS

External Factors Affecting a Business



External Factors Affecting a Business

Introduction

A business as such does not operate on its own. It cannot neglect the external factors and must account for any change in the external environment if it is to maintain its position on a firm footing. Any change in the outside environment that induces a change in the internal environment of a business while also affecting its policies or strategies along with subsequently imposing its influence on the employees is an external influence (Barlow, 1998,, 222).

There are many external factors that could affect a business organization and also have its impact on the employees. These may be of a social, cultural political, economical, or technological nature. At times, changes in legislation could also prompt changes. It could also be the result of competitiveness of a product or changes in the taste that could catalyze a significant change (Barlow, 1998,, 222).

Such changes may not be under the control of any organization but would have an impact on them. Change in legislation with regards to manufacture and sale of toys in Australia was one factor that had strong implications on the toy industry. Subsequent changes in toy manufacturing laws along the globe unduly affected the exports of the toy industry. It also induced several other changes in such organizations. These changes were needed in order to conform to the new laws and regulations (Barlow, 1998,, 222).

Discussion

There has been a recent hype in consumers' outlook towards toys in which phthalates chemicals are used as a means of softening PVC (polyvinyl chloride). There was a growing speculation in the public opinion with regards to the usage of such chemicals. Though health experts had indicated that there were no health risks involved by the presence of such toxic materials in such toys, yet there could be significant threat, in case the child chewed on them. This would result in the release of toxic materials into the saliva of the children and consequently pass into the digestive tract. Health complications emerging as a result of such an act would include adverse effects on the development of an individual along with affecting the reproductive organs. In males, it causes a decrease in sperm count. (STERN, S.1990) (Barlow, 1998,, 222).

Awareness over the threat has existed since a long time. The European Union took measures as early as 1999 restricting the concentration of such chemicals in toys products to 0.1 percent. Then the USA followed suit as it passed the Consumer Product Safety Improvement Act. A part of that legislation restricted the concentrations of products like DEHP, DBP and BBP to 0.1 percent. There were other stringent measures also restricting the usage of chemicals like DINP, DIDP and DnOP (Barlow, 1998,, 222).

Australia did not stay away from such endeavors too. In February 2011, under the latest consumer law, about ten products used by children that included toys were banned on account of the 1% concentration of the chemical DEHP (diethylhexyl phthalate) in these products ...