CASE STUDY - PRINTING INDUSTRY

Case Study - Printing Industry



Case Study - Printing Industry

Imagine you are an accountant whom Mr Zang has consulted for advice on setting up his business, and explain to him the possible external environmental influences which may have an impact on his proposed business.

Possible External Environmental Influences

PEST Analysis - Printing Industry

Before starting business plans or making decisions, it is vital to examine the external environment. This can be achieved through a PEST analysis, i.e. an investigation of the Political, Economic, Social and Technological influences on a business. In adding it is also important to be aware of the actions of your competitors. These forces are continually in a state of change. (Philip, 1998, pp. 130-135)

Businesses need to take a pro-active approach and be ahead of these changes, rather than hurriedly making alterations to products and processes in a reactive way.

Political

Political changes concern to alterations in government influence and can have gigantic implication for companies. Changes in the main concerns for public expending or the UK's relationships with other nations can open or close major markets. European Union (EU) regulations can have alike consequences while the accession of new members (e.g. Poland) can convey business opportunities. Political alterations are nearly joined up with legal changes. Laws are constantly being revised in a broad variety of localities, for demonstration consumer protection legislation, environmental legislation, health & safety and employment law, etc. (Philip, 1998, pp. 130-135)

 

Economical

Economic changes are nearly associated to social ones. The finances proceeds through a sequence of fluctuations affiliated with general booms and slumps in economic activity. In a rise almost all businesses benefit and in a fall most misplace out. Other economic alterations that sway business encompass alterations in the interest rate, wage rates, and the rate of inflation (i.e. general level of boost in prices). Businesses will be more boosted to elaborate and take risks when economic conditions are right, for demonstration reduced interest rates and rising demand. (Elliot, 2004, pp. 3-11)

Social

Social factors concern to convention of behaviour, flavours, and lifestyles. A major component of this is a change in buyer demeanour producing from alterations in latest tendencies and styles. The age structure of the population furthermore adjusts over time (currently we have an aged population). A comprehending of communal change devotes business a better seem for the future market situation.

Technological

Technological changes have furthermore become especially important in the post-millennium world. This is especially factual in periods of up to date connection technologies. The creation of databases and electrical devices communications have endowed huge amounts of data to be distributed and rapidly circulated in a up to date company endowing huge cost reductions, and often improvements in service. Organisations require to be cognizant of the newest applicable technologies for their business and to surf the signal of change. (Lloyd, 1980, pp. 7-11)

In your role as Mr Zang's accountant, advise him about the possible legal forms he might consider adopting for his business. Discuss the advantages and disadvantages associated with each form and how best ...