Task 7 BUSINESS REPORT – STUDENT NUMBER: 30829603, 12BST5
EXECUTIVE SUMMARY
This business report is written by Innovative business consultants for the business Blacksmiths Pty Ltd to help increase their sales and expand their business overseas. It will explain how the global market influence could affect the success of the business’ plan to export overseas and recommend cash flow management strategies and cost control that will help the business make profit and achieve its goals.
GLOBAL MARKET INFLUENCES
Global marketing refers to the activity of marketing goods &/or services on a global/ worldwide scale. Global market influences are external influences on a business and therefore may not be significantly controlled by the business itself. The three major financial influences of the global market on Blacksmiths Pty Ltd are economic outlook, availability of funds and interest rates.
Global economic outlook refers to the projected changes to the level of economic growth throughout the world. If the outlook is positive (world economic growth increases), it will help Blacksmiths Pty Ltd overcome their recent problem of decreased sales so they can meet the growing demand thereby, that the business will need to increasing
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This Encourages quick payment as you are offering the customer a reduction on the price or service if payment is made earlier than required. It allows for accounts receivable and payable to move quickly and therefore, the business can pay off its debts and expenses. In the case of Blacksmiths Pty Ltd, providing its creditors with discounts on early payments will help them access funds quickly which they can invest in their business to start an online store to increase sales and profit and export overseas. This not only will benefit the business by being paid on time but is also a better and cheaper option than a bank overdraft as no interest rates