Subjects

Business

Explore Business
Search

The main internal and external influences which are likely to affect the financial objectives include:

INTERNAL INFLUENCES

Business ownership

The nature of business ownership has a significant impact on financial objectives. A venture capital investor would have quite a different approach to a long-standing family ownership.

Size and status of the business

E.g. start-ups and smaller businesses tend to focus on survival, breakeven and cash flow objectives. Quoted multinational businesses are much more focused on growing shareholder value

Other functional objectives

Almost every other functional objective in a business has a financial dimension – which often brings the finance department into conflict with other functions.

EXTERNAL INFLUENCES

Economic conditions

As demonstrated by the Credit Crunch. The economic downturn forced many businesses to reappraise their financial objectives in favour of cost minimisation and maximising cash inflows and balances.

Significant changes in interest rates and exchange rates also have the potential to threaten the achievement of financial targets like ROCE.

Competitors

Competitive environment directly affects the achievability of financial objectives. E.g. cost minimisation may become essential if a competitor is able to grow market share because it is more efficient

Social and political change

Often an indirect impact. E.g. legislation on environmental emissions or waste disposal may force an business to increase investment in some areas, and cut costs in others

Featured
CPD courses

Teaching the New AQA A Level Business

Join Graham Prior and Jim Riley for a resource-packed CPD day which will help you accelerate your planning and lesson preparation for the new AQA A Level Business. We've packed this day with resources to help teach the new spec content. We also consider how best to approach the challenges of a linear Business course.

Learn more ›

Teaching & learning products

Edexcel A Level Business Year 1 (AS) Teacher PowerPoint Presentations

This resource comprises a complete collection of editable PowerPoint presentations that are ideal for teaching individual topics for the whole Year 1 (AS) teaching content. Each presentation has a consistent, clear and professional format and maps precisely to the specification teaching content.

£75.00

AQA BUSS1 Worked Answers (2013-2014)

Exemplar A grade answers to the three BUSS1 exam papers in 2013 and 2014

£5.00

Close

Business