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Environmental constraints

If there is a new act of parliament (law) about the amount of waste you can produce or the amount of recycling you must do Ikea will be affected. The affect of this is not good for Ikea because Ikea would then have to pay a firm to dispose of the excess waste by recycling. This will cost Ikea dearly because they have many outlets which will need this service. If there is new act of parliament (law) about the amount of vehicles on the road or the type of fuel used to power vehicles which include liquid patrolmen gas or electricity. Ikea will be affected by this because they have many delivery tucks around the world so may need to change the fuels they use which may be much more expensive, so Ikea will have less money to spend on improvements or designing new products.

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If there is new act of parliament (law) about the hours you can use noisy machinery, this will affect Ikea. Ikea will be affected because they would have to limit the amount of products they make which will lead to loss of profit. If there is a new act of parliament (law) about smoking Ikea would be affected because many customers may smoke, and may not go to Ikea because of the smoking band.

If there is a new act of parliament (law) about the amount of space Ikea can take up, Ikea must then build their stores tall and thin to save the environments landscape. If this does accrue Ikea must then spend more money on the structure of the building so there will be less money to spend on refurbishing.

Richards Paints Competitors If Richards paints has a new competitor which has bought a plot near their site which also sold bespoke industrial paint, Richards Pants would be affected. This affect on Richards Paints would be bad because their prices are quite high and will lose all their customers so will be out of business. Richards Paints could prevent this from happening by lowering prices; they could provide lowered prices by buying cheaper raw materials so could sell paint for less money.

Richards Paints could also advertise more in local trade magazines which will make their business better known so customers will most likely buy paint from them if they know the company.On the other hand if there are fewer competitors Richards paints will make more profit so will have money to spend on improvements. Economic Conditions The rise or fall of interest rates may affect Richards paints in a bad or good way.

If Interest rates raise this will be a bad thing for Richards Paints because the owners will the have to pay more money back to the bank because of their mortgages and bank loans. To pay for the bills Richards paints could higher prices, buy cheaper raw materials or even advertise so more customers will purchase more paint, so their will more money to distribute on the bills. Another way they are affect is their customers will also have tom pay more to the bank so will have less money to spend on a new paint job. Richards Paints could lower prices to make it possible for other businesses will pay for paint. Furthermore if interest rates fall Richards Paints will be affected in a good way because they have to give less money to the bank and their customers will also have more money to spend on a new paint job. Because of this Richards Paints could rise prices a little so will then have more money to spend on paying their bills.

The rise or fall of exchange rates may affect Richards’s paints in a bad or good way. If exchange rates fall the pound will be worth less, when Richards’s paints purchase their raw materials from Asia. So if exchange rates fall the pound may be worth less in rupees, so Richards Paints will have to pay more for their raw materials. Because of this Richards Paints could wait until exchange rates rise so they have to pay less for their raw materials.

Income tax may affect Richards Paints if the Income taxes fall or rise. The effect on Richards Paints could be good or bad. If income taxes fall this will mean many customers will have more money to spend, which means more profit. However if income taxes raise many customers will not be able to afford to buy industrial paint. Richards’s paints could lower prices which will mean less profit but could mean more customers. Cooperation tax affects Richards Paints; this can b  good or bad. If Cooperation tax raises Richards paints must pay more money to the council from their profit which means less money for improvements.

However if Cooperation tax falls Richards paints must then pay less money to the council. Unemployment or occupation does not affect Richards Paints because other companies buy the industrial paint and not the public so can afford to pay for paint. Environmental constraints If there is a new act of parliament (law) about the amount of waste you can produce or the amount of recycling you must do Richards Paints produce a lot of waste but is not really affect because they already recycle their waste.

If there is new act of parliament (law) about the amount of vehicles on the road or the type of fuel used to power vehicles which include liquid patrolmen gas or electricity. Richards paints could also use fewer delivery trucks, but this will mean less business. If there is new act of parliament (law) about the hours you can use noisy machinery, this will affect Ikea. Richards Paints will be affected because they would have to limit the amount of paint they make which will lead to loss of profit.

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