External influences affecting the firm and its activities Essay

External influences affecting the firm and its activities - Essay Example 5 The article, â€Å"Wal-Mart files legal complaint against growing protests ahead of Black Friday† written by FoxNews.com on November 20, 2012. 6 References 8 Introduction It is factual that no business exists in a vacuum but in an external environment that consist of various factors and other players outside the business. Indeed, there are factors that the business can control. Nevertheless, the presence of external factors which the business cannot control is a fundamental challenge that all businesses face. As such, business manager must consider these factors and establish their influence on the business. The magnitude of external factors’ effect on business progress depends on the type of business and type of influence. We can conveniently classify the external factors into social, legal, economic, political, and technological factors. This paper will draw a comprehensive report on the external influences affecting four different firms and their activities. In doi ng this, the paper will summarize the information in four relevant stories that address external influences on specified firms and their activities.  The companies in this context will include the Starbucks, Cheetham Hill Construction Company, Apple, and Wal-Mart. The article, â€Å"the reality of recession for small businesses? ‘We need help' authored by Julia Kollewe, Nadine Schimroszik and Dan Milmo on 25 October 2012. ... 1). The article notes that although the construction company had recorded fair progress, the company faces serious challenges in generating new business since the recession ended. Indeed, the article reckons that the company now operates under tight margins and the company encounters challenges in paying the employees and the suppliers. In fact, the article notes that the effects of recession on construction manifested the true picture of the economy at the time. Assuredly, most small firms including Cheetham Hill Construction Company now live on a knife edge and they constantly delay payments to suppliers except to the main suppliers (Kollewe, Schimroszik &Milmo 2012, p. 1). More so, the article establishes that the company called for tax breaks to enable the company train a new generation of construction workers. Prior to the recession, the company used to take apprentices every year but now the company cannot afford that subject to the recession. Indeed, since most of the workforc e in construction comes from SMEs, the construction companies are lacking labor supply as the SMEs suffer from the recession (Kollewe, Schimroszik &Milmo 2012, p. 1). Notably, recession has very significant adverse effects on any business. Ideally, the most adverse effect of recession on business is reduced job security as workers prefer recession-proof businesses which have capacity to thrive or survive a recession. Furthermore, small business suffers the greatest loss in a recession subject to their inadequate preparedness, budget constraints, and few resources. Other effects that derive from recession include reduced cash flow, loss of demand, and marketing constraints (Sandilands 2013, p. 1). The article,