External Factors Which Affect Business


Business factors
Sandra Leak
Flashcards by Sandra Leak, updated more than 1 year ago
Sandra Leak
Created by Sandra Leak almost 9 years ago

Resource summary

Question Answer
External Factors which affect business The main factor is... the degree of competition – how aggressively do other businesses compete within your market?
Legal How do changes in legislation affect the business? E.g. changes in employment laws, KiwiSaver, minimum wages.
Economic How the economy affects a business in terms of taxation, government spending, general demand, interest/exchange rates. How do global economic factors impact New Zealand?
Social Factors Behaviours and beliefs of consumers, households and communities. Eg. changes in attitude towards health, or an increase in preschoolers in a population.
Political Do changes within government policy affect your business? e.g. will a decision to subsidise home insulation in houses be good/bad for a specific niche in the market?
Technology Can you keep up with the cost of new technology? Do you market effectively? Does the rapid pace of change in production processes and product innovation affect a business?
Ethics Do you consider what is regarded as morally right or wrong for a business to do? For instance will you use non-recyclable products? Will you trade with countries which have human rights violations?
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