External influences Economy Interest rates Most businesses will need Es

External influences Economy Interest directs Most business linees go out need to seize on money. The interest rate will affect how much it be.External influencesEconomyInterest ratesMost businesses will need to borrow money. The interest rate willaffect how much it costs a business to borrow money. If the interestrate is high the money a business owes is more than before. A 20%interest rate rise would affect Cadburys they would have to payextra money towards the loan. This too would affect Sainsburys in thesame appearance. Any interest rates that go up will affect a business becausethe business needs to make up the costs and the only way to do this isto higher the prices of their service or products. The company mighthave to borrow more money to pay for the interest rate going up.CompetitionCompetition is where rival businesses aim their products at thesame customers and try to win and keep their custom. Sainsburys maincompetitors are tescos, Asda and Morrisons. They all sell sustenance andhousehold goods. Asda could sell more food than them so Sainsburyswould get less customers, Cadburys main competition is Masterfoods,coca cola, Walkers and Rowntrees. If Cadbury in the next social class didntrelease any more chocolates or sweets and rowntrees released differentsweets even though people would still buy Cadburys old ideas theywould buy rowntrees new products. This way Cadburys would loose moneyand they would loose customers buying their ...