All businesses are impacted by external influences which are largely beyond their control. Foremost among these influences are the various monetary and government fiscal policies, and their concomitant effects. These may include interest rate and currency exchange controls in the case of monetary policies, and tax structures and tariff rates as examples of forms of fiscal policy. Additionally, regulatory and legal regimes established by national, regional and local governments have a direct influence on businesses; some industries are highly regulated and subjected to additional scrutiny, whereas others are only minimally impacted by prevailing regulations, but are obliged to abide by basic legal conventions regarding patents, consumer protections and worker safety.
Listed in the Appendix are tables for the various University of Phoenix Virtual Organizations, along with the key economic, governmental and legal influences that pertain to them. While some influences appear frequently in the table given the scope of their impact across the economy as a whole, such as the GDP growth rate, interest rates, and discrimination laws, the other influences noted relate more specifically to particular industries.
The general rationale behind the key influence selections for each of the Virtual Organizations in the Appendix tables is examined below.
Riordan Manufacturing, Huffman Trucking & Smith Systems consulting manufacturing, transportation, and technology consulting enterprises operate in highly cyclical industries, which mean they are especially sensitive to the state of the economy as a whole. GDP, inflation, interest rates, and consumer confidence are all broad macro indicators of the health of the economy, and they have influence over the fortunes of companies in cyclical industries, like Riordan, Huffman, and Smith. Given that Riordan and Huffman do business internationally, fluctuations in currency exchange rates would impact these companies, as well. The key governmental influences on all three companies stem from tax policy, and...