Ford Motor

Management cannot directly control external factors, particularly the familiar state of the economy. Although a booming economy may positively influence admit, the effect may not be the equivalent for all productions. Furthermore, certain economic activities affect some goods and services, only if not others. Local, regional, and national governments affect call for by brief legislation regarding taxes, cheer rates, or environmental regulations. For example, since the May 1997, the interest rates in UK have g single up one percentage point. Prior to this increase the housing market in London was seeing an average price increase of 8% per annum. Analysts suggest that the price rises are about 3.5% since August 1997.

In economic terms three types of indicators are recognised which affects the demand levels for goods and services. Leading indicators are prison term series with turning points that normally precede the peaks and troughs of the widely distributed bank line cycle. Coincident Indicators are time series with turning points that generally match those of the general business cycle. Lagging indicators follow the turning points, typically after some(prenominal) weeks or months.





In short, external factors which will have a contributory affect on demand are: - the general state of economy, government policy, consumers taste, public perception of the products on beseech by a firm, competitors response and action, the court and availability of complementary products. See table 1 for typical economic indicators.

Internal Factors
Internal decisions can affect the demand for products or services. By recognising the impact of these decisions can be controlled, the concern can respond actively, rather than passively, to demand.

The term demand caution describes the process of influencing the timing and volume of demand or adapting to the undesirable effects of unchangeable demand patterns. Factors such as product design, price and advertising promotions, packaging design, salesperson quotas...If you want to sting a full essay, order it on our website: Orderessay



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