External influences of Valley Grown Salads

VGS may have many potential competitors for example, another company down the road. However because Jimmy and Russo decided that they would not like to expand, competition at this time may not be a significant external influence. External business environment is a factor in VGS but not in growing crops, they grow their vegetables in a greenhouse, the factor lies in road conditions. If for example it snows in Nazing their vegetables will not change but transporting the vegetables may be hazardous and dangerous in the snow especially through the winding roads of Nazing.

Because VGS owns and maintains valley grown nurseries they may need to use a lot of ‘green house gasses’ so in the coming years VGS may need to consider reducing green house gas emissions. Higher oil prices have caused the difficulties that all economies face, VGS may burn oil – related substances in the green house for example, paraffin. The oil prices are at 99.9p a litre – the highest ever, this is a disadvantage also in the transport sector where their refrigerated Lorries guzzle down oil.

Exchange rates may play a part in the gains and losses of VGS for example, if the exchange rates rise by 3 euros to 1 pound and 4 tomatoes cost 1 euro, VGS may make a significant amount of profit just because of the exchange rate, however the exchange may also fall in favour of euro. Because VGS imports produce internationally they will cause much air pollution in the form of carbon dioxide from their lorries and from the importing vehicle.

Evaluation of Chelsea Village’s Strengths and Weaknesses in the light of the External Influences VGS The external influence ‘Competition’ would be a strength to VGS because they seem to have built a friendship between other similar businesses in the area. The external business environment is similar to the weather, however In VGS’s case the external business environment does not play a major factor because they grow all their crops inside a greenhouse therefore the external business environment is a strength.

The external influence ‘Social Factor’ which includes structure of the population and consumer lifestyles may not affect VGS in a bad way because the product they are selling is a food therefore a ‘need Item’ this external influence is a strength also because if the population increase there will be more people, thus more mouths to feed.

The external influence ‘Legal Factor’ this includes the law and how companies must behave in order to stay the right side of the law. VGS is a harmless partnership that produces ‘high quality fresh produce’ however; the external influence ‘Legal factor’ may be a slight weakness because they do in fact use a lot of green house gasses although there has been no legislation passed that involves the use of green house gasses therefore the external influence ‘legal factor’ is a strength for VGS

The external influence ‘Economic factors’ relate to changes in the wider economy, a booming economy promotes consumer spending but an economy in recession diminishes consumer spending. In the case of VGS and their food produce they will not be affected if the economy booms or stoops because their produce is a food, not a luxury, a ‘need’ item, therefore this external influence is also a strength in VGS.

The external influence ‘Technological factors’ will be a great strength for VGS as they do not manufacture any new technology, only foodstuffs. The new technology will also improve the way in which VGS may operate; ultimately decreasing costs therefore this external influence is a good strength. Chelsea Village The external influence ‘External business environment’ concerns, in the case of Chelsea village, the weather. The weather is an important factor because it ultimately effects the outcome of a game – if the pitch is waterlogged a football match may be cancelled. Chelsea village may have no control over this external influence, but if they would like to be in control of this external influence they may need to spend millions of pounds installing a retractable roof over the pitch, therefore the external influence ‘External business environment’ is a weakness for Chelsea village.

The external influence ‘Competition’ in the case of Chelsea village may concern other football teams, when Chelsea F.C are winning in the league this may be a strength however if they are not winning this can also be a major weakness because there are so many other football teams playing against Chelsea F.C, for example Tottenham and Arsenal. Therefore the fans need to be pleased, and losing games will lose them money because fewer fans will come to look.

The external influence ‘exchange rates’ will affect Chelsea village in a good or bad way, for example if Chelsea bought a player when the pound is weak the may need to pay more pounds than if the pound was strong. The external influence ‘Interest rate’ will affect Chelsea village also in a good or bad way, it entirely depends what state the economy is in for example, if the economy is ‘booming’ the people of the country are buying and spending more money, therefore can afford to watch Chelsea play because Chelsea is a ‘want’ product. The external influence ‘Legal Factor’ this includes the law and how companies must behave in order to stay the right side of the law. This may be a bad weakness because of the football hooligans, the F.A may call for the game with no fans, causing loss in ticket sales and reputation.

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