Business BTEC Level 3 Unit 5 Assignment 2 - 100% Verified.

Business BTEC Level 3 Unit 5 Assignment 2 - 100% Verified. Explain the external factors that influence a selected business considering trading internationally. Political Factors: One beneficial factor is being part of a trading community like the EU; however, this means there are certain rules and regulations to follow. The government will support certain industries for example, companies that deal with renewable energy and offer benefits to the country. This support is not available to all industries. What the government also does is offer certain locations lower business rates and other incentives to encourage more trade. Lastly the government also offers support in relation to labour, for example apprenticeships and training. Economic Factors: these factors can change price of goods and customer spending power; therefore, they can affect a business’s profitability. Some examples include economic cycle and GDP, employment rates, interest rates, inflation, exchange rates and taxation. Social Factors: To accommodate the changing preferences of UK customers, Tesco has responded by expanding their selection of non-food items for sale. This is in line with the observed trends that show a shift towards either bulk buying or traditional single shop purchases. The retailer's efforts to adapt to these trends demonstrate their commitment to providing a comprehensive shopping experience for their customers. By offering a wider variety of non-food items, Tesco aims to meet the diverse needs and preferences of their clientele. Technological Factors: Tesco have been one of the leaders in the market of implementing modern technology which has forced competitors to follow this technology. They have been like pioneers in this way in terms of they have implemented online shopping with delivery and self-service checkout both things have made customers lives a whole lot easier and more convenient. Legal Factors: in the ways of international trading Tesco must abide by government policies and certain other laws that affect Tesco’s performance. For example, the food retailing commission 2004 this means they cannot change the price of items without notice. Environmental Factors: there is a lot of pressure on Tesco in terms of the environmental factors. The way they are combatting this is by obliging and offering to reduce its carbon footprint by 60% they can also lower the waste produce of its stores. P6 – Explain how business support systems enable a selected business to trade internationally Business support systems (BSS) are a set of integrated systems that help businesses manage their operations and customer interactions. These systems can play a crucial role in enabling a business to trade internationally by providing several key functions, such as: Global Payment Processing: BSS can integrate with global payment gateways and provide a secure and convenient way for businesses to accept payments from customers in different countries. Foreign Exchange Management: BSS can help businesses manage currency conversion, allowing them to easily transact business in multiple currencies. Tax Compliance: BSS can help businesses manage tax compliance requirements in different countries, ensuring that they are compliant with local tax regulations. Logistics and Shipping: BSS can provide businesses with shipping and logistics services, helping them to manage the delivery of goods to international customers. Customer Relationship Management: BSS can help businesses manage customer interactions, providing them with a centralized repository for customer data and communication history, regardless of location. By providing these essential functions, BSS can help businesses to streamline their international trade operations, reduce operational costs, and increase customer satisfaction.