ECONOMIC

FA C T O R S
EFFECTING
BUSINESSES
 Supply Shortages

• Significant financial losses due

to delayed or cancelled orders.
• Lost sales and marked shares.
• Damage a companies reputation.
• Customers may say they are
unhappy with their experiences.
Preventing Supply
Shortages

• Assess your supply chain

• Improve supplier collaboration
• Improve customer service
• Stay informed
• Find backup suppliers
• Invest in technology
• Make product changes
 Over Demand

• Greater demand for the product gives the firm

the opportunity to grow the business.
• Hiring more employees to match the demand.
• Forces business to contract.
• Laying off staff.
• Closing factories.
 Preventing Over
Demand

• Pricing discounts
• Promotions
• Marketing campaigns
To find the most effective method to
prevent over demand depends on the
product that business is selling.
 Interest Rates

• Rising interest rates make the

business more expensive across
the board.
• Increasing funding costs.
• Reduce the expected cash flow.
 Preventing Interest
Rates

• Using interest rate instruments such as

interest rate swabs, options or futures
• Refinance/restructure your debt
• Pay your own debt
• Increase your cash reserves
• Review your budget
• Be prepared to make changes
 Petrol Prices

A lot of ongoing global issues have a big impact on our petrol prices including:
• Covid
• Conflict
• OPEC (Organization of Petroleum Exporting Countries)
• Fuel retailers
Some things businesses can do to help save on fuel include:
• Investing in fuel cards (monitor on fuel spending)
• Switch to electric
• Encourage and monitor driving techniques
 Saving on petrol prices

Some things businesses can do to help save on fuel

include:
• Investing in fuel cards (monitor on fuel
spending)
• Switch to electric
• Encourage and monitor driving techniques
 List of articles

Supply shortages - Over demand -

https://www.theguardian.com https://theconversation.com/a
/business/supply-chain-crisis u/topics/supply-and-demand-
983

Interest rates - Petrol prices -

https://www.9news.com.au/in https://www.9news.com.au/pe
terest-rates trol-prices