Business Report outlining internal & external factors contributing to a business

Alan Budday bought Botany Cans one year ago on the bases that it was a successful personal credit line. However in the past year thither have been some major influences affecting the business. This report is expiration to outline internal and external problems that face Botany Cans. The changes concern can take to counteract these problems. How management will in effect implement these into the business.

Internal problems

Decrease in cash flow due(p) to the drop in sales because of the 30% increase in abroad competition. Negotiating new enterprise agreements for the administrative and manufacturing divisions will be prison term consuming process and usually involves making costly changes to the business environment.

External problems

Government introducing new trade agreement and reduced import tariffs will affect Botany Cans due to the increase in abroad competition. As a result market share and bring in will inevitably decrease. The new technologies developed by Allentown technologies is a problem because overseas American companies could introduce these into their company and indeed lower their own per unit cost price.

Changes proposed

Introduce the new drudgery machinery that Allentown technologies have developed. This will in the short term be an expensive venture due to the retrenchment of a cumulation of manufacturing employees and paying their redundancy packages as well as buying this new equipment.



Another cost involved would be provision the employees in running the new equipment. However in the presbyopic term this will slowly increase sales due to the decrease in per unit costs of production.

As a commanding result of the USA trade agreement this enables Botany Cans to put out into the overseas market. Before doing so you must get education on many things for example: weigh up government costs, check out American market and whether or not the American companies are making a profit or not. It is...

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