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An external influence is an influence that takes place outside the business that still has an affect within the business and their overall performance. The three main external influences are: market competition, economic conditions and environmental constraints. Environmental constraints: Environmental constraints are the environmental issues that affect the business. This means that a business would have to do all the things necessary in order for them to be considered “environmentally friendly” which will increase the reputation of the business.
Some types of environmental issues are pollution (air, noise and water) the wastage of natural resources.
For each of these there are acts that have been put into place which will give a clear guideline to what the business has to abide by in order to stay trouble free, these are: the environmental protection act, clean air act, water resources acts and noise act. Pollution for example this would fall under the clean air act and the environmental protection act. If a business is producing a lot of pollution it may put of the customers and may also make the employees want to leave the business.
Customers will be put of by the business because of the fact that they will feel as the business does not care for the environment, employees may also leave the business as they may feel that they are not doing the things necessary to be environmentally friendly. Weather falls under the clean air act; if a business is creating too much pollution it affects the atmosphere in that area.
The local community may be affected with the high levels of pollution and may complain against the business because of the large amounts of pollution that they are creating.
This would lead to a decrease in the businesses reputation because of the fact that they are not keeping the different stakeholders happy. The clean water act insures that a business does not pollute the water, by pumping chemical waste into the rivers. This would harm the wildlife that may live into the rivers etc. a business must ensure that they do not throw any chemical substances down their drains in order to comply with this act. The last act that there is the noise act; this is when regulations have been set for the amount of noise that a business makes.
Noise pollution would affect the residents as they would be disturbed in their homes. The noise act would contain regulations such as not making noise after a certain time and having machinery etc that does not make a lot of noise. Jaguar: It is vital for Jaguar to abide by all the environmental constraints that have been set in place in order for them to succeed further. Jaguar has acknowledged that they need to follow these environmental constraints and they have carried out certain actions for them to abide by them.
The first action that Jaguar did was to put environmental notice boards in various places of the plant. This will make the employees aware of what they have to do to ensure that they do not break the rules. This would help Jaguar become more environmentally friendly as more of its employees will be aware. The second thing that Jaguar has done is install modern machinery at their plant which is more environmentally friendly for example they have machinery that will clean up the fumes after the cars have been painted.
By doing this it means less harmful gasses will be released into the atmosphere meaning that it will help them contribute to becoming an more environmentally friendly company. Another thing that Jaguar has done to ensure that they are environmentally friends is that they have installed a gas fired hear and power plant, this will help the factory minimise the amount of CO2 emissions that they are producing. This would increase their reputation and will draw in more customers as they will be more aware of how good of a company Jaguar is and it would bring more business their way meaning that they will make more of a profit.
In order to tackle the noise pollution problem Jaguar has made sure that they have insulated all of the factory so that the local residents are not being disturbed, by doing this it means that none of the local residents will have a problem with the business, this means that the production line can carry on and this will help them keep their costs down because we know that it costs Jaguar hundreds and thousands of pounds to stop it.
In order to ensure that Jaguar are abiding by the water resources act they have put covers on top of the drains to ensure that no hazardous liquids can go into the water supplies, it also helps Jaguar as it means that they can do their work freely without having to worry about any problems. Jaguar has also started to recycle; they make sure that they recycle 99% of the unused delivery and packaging materials.
By doing this it means that Jaguar is being more environmentally friendly as these materials can be reused. This would also keep the local community and the environmentally conscious people happy as Jaguar would come across as a “greener” company as they are recycling as much as they can. The last thing that Jaguar has done is that they have changed the material that they are using for the XK and XF models.
Normally Jaguar would use mild steel on the body of their cars but they have now started to use aluminium, by doing this it brings them a lot of advantages. The first advantage is that aluminium is a lot lighter than mild steel, this means that the performance of the cars would increase meaning that the customers will be happier because the car performs better then it would have. The second advantage is that while producing the cars with aluminium it is a lot more environmentally friendly than producing the cars with mild steel.
The last advantage of using aluminium is that it is a lot safer to use than steel, this is because it is a lot springier meaning that in an impact it would reduce the force of the collision, this means that the safety of the car would increase and this would keep the customers satisfied knowing that they are in a safe car. By having all of these activities it helps Jaguar comply with all the laws that have been set by the government, this means that they do not have to deal with any complaints and will not be prosecuted.
Also these activities mean that the business can run smoothly helping Jaguar meet their production targets and this would lead to the business increasing their customer satisfaction and profit. Furthermore by having these activities it means that the employees would be proud to work their because of the fact that they are very environmentally friendly, this would lead to the staff absenteeism going down because of the fact that they are happy to come to work.
This also leads to Jaguar keeping their customers happy because of the fact that the employees will be enjoying their work and this will ensure that the quality of the car goes up. By having these activities it does means having fairly large short term costs but it does bring them long term benefits, for example if jaguar do all these activities it makes their customers more aware of them because of the fact that they are more environmentally friendly, this would lead to their reputation to increase and this would lead to the steady increase in sales bringing back the money that Jaguar has spent on the machinery.
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