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External Influences on a Business

In: Business and Management

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External Influences Paper

C. Rutherford

University of Phoenix

Management 417 Business Continuity Planning and Management

June 1, 2009

External Influences Paper

Knowing how to successfully build a business from the ground up is a challenging task. Performance of the business can affect a number of issues, there may be some issues that are controllable like cost being too high or trying to reduce certain costs by finding new and creative ways for employees to work or having to lay off employees and so on. The main problems a business can suffer are the problems in which they cannot control. Businesses have to consider many external influences, how they may affect the company depending on the external influence and the type of business being ran. Here are some of the external influences that have been divided in different categories: • Economic - has to do with changes in interest rates, inflation and economic growth and so on. • Political - governments will often pass laws or pursue policies that can affect the way businesses operate. • Social - people change and develop different views, wants and needs. A drive towards social awareness of the need for recycling or vegetarianism can affect different business in different ways. • Technological - changes in technology can revolutionize the way a business works or leave it in a position where it will be difficult to survive. External Influences (2009) Level two business and economics.

The Red Cross was formed in June of 1959 by a gentleman named Henri Dunant during the Battle of Solferino. The Red Cross was organized to help aid injured soldiers wounded in war. The Red Cross as well as Red Crescent provides relief during and after the event of a natural

External Influences Paper

disaster and helps in developing national societies by local volunteers. The International Red Cross and Red Crescent Movement is the world's largest humanitarian network, in almost every country. International Red Cross (2003) Red Cross and Crescent. Red Cross incorporated the International Committee along with 186 other countries that are there to help the most venerable people regain hope and dignity back in their lives. When speaking of disaster relief, the American Red Cross has five areas in which they offer compassion those areas are community service programs that help people in need, military members and their family’s for comfort and support, the shipping and distribution of blood and its products, international development and reliefs programs along with educational health programs for safety. The Red Cross is an organization where neighbors are mobilized to help one another regardless if they are across the street or in another country during times of emergencies. Every year through out each community there are over 70,000 victims of disasters turn who turn to neighbors, familiar and more than half a million volunteers and 35,000 employees of the Red Cross. (2009) The American Red Cross.Within 700 local chapters, over 15 million people build the skills needed to respond to disasters and or emergencies in the neighborhoods and local communities. Today over four point five million people that give blood yearly to Red Cross in the U.S and the Cross helps tens of thousands of members who are in the services that have been displaced from their families due to the military and helps to rebuild hope to vulnerable individuals throughout the world. On average the Red Cross spends 91 cents out of every dollar invested to put towards programs and humanitarian

External Influences Paper

services. The Red Cross need not be mistaken for a government agency; they solely rely on donations of time, blood work and money from surrounding neighbors. Continuity planning has a major impact on the Red Cross because they provide assistance to surrounding individuals needing help in the event of a disaster or crisis and normally this type of assistance should be planned out and ready to be put into action at the time of an unlikely event. Being able to receive help in the time of a disaster truly depends on the type of disaster it is as well as location. If the damage is widespread for example, like a flood not only will state, federal and governmental resources be provided the American Red Cross will too be accounted for. Usually emergency officials advise businesses and families to prepare to help themselves at least for the next 72 hours after a crisis or disaster strikes. The main focus of company such as the Red Cross during hard times is creating a plan to rescue, find and temporarily house individuals while providing them with food and water and medical care as needed. As mentioned before the Red Cross is known as nonprofit company who demanded the highest quality of ethical performance from their employees down to the volunteers who help and assist them. The Red Cross operates under an ethical code of business which helps them maintain a high standard of conduct that is expected by the American people who allows them to continue their services. Red Cross has an Ombudsman as an impartial way of resolving disputes who provides informal assistance to individuals who may have complaints on the company. The constituents or internal stakeholders consist of volunteer’s employees of the company, donors and suppliers. Information is voluntary and confidential, the informal processes are to be fair and offer different alternates to resolve issues. Formal resolution of
External Influences Paper

disputing, distinguishes ethics and compliance through the Office of the General Counsel and the Office of Investigation. Ombudsman Program (2007) Integrity helpline. The formal investigations look into Red Cross policy violations, waste, fraud and unethical dealings with the Red Cross from volunteers or employees claiming wrong doing. Life is fast and unchanging, nothing can be done to adjust the company’s or the world will change but companies who keep up with the changes that occur can’t turn unstable and the survivability of the organization in jeopardy. Certain situations can and will affect the way business are ran whether it be negative or positive the organization will be effected in some way . As change occurs whether internal or external a company must be reliable, flexible and responsive in a timely and appropriate manner.

Reference Page:

External Influences Business. (2009). Biz/ED. Retrieved June 11, 2009, from

Movement of Red Cross and Crescent. (2003). Red Cross Retrieved June 11, 2009 from

American Red Cross. (2009). Red Cross. Retrieved June 12, 2009 from

Ombudsman Program. (2007). Client Info. Retrieved June 13, 2009 from…...

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