Flashcards
External Factors Which Affect Business
Cards in this deck (7)
- 1External Factors which affect businessThe main factor is...
the degree of competition – how aggressively do other businesses compete within your market? - 2LegalHow do changes in legislation
affect the business?
E.g. changes in employment laws, KiwiSaver, minimum wages. - 3EconomicHow the economy affects a business in terms of taxation, government spending, general demand, interest/exchange rates. How do global economic factors impact New Zealand?
- 4Social FactorsBehaviours and beliefs of consumers, households and communities. Eg. changes in attitude towards health, or an increase in preschoolers in a population.
- 5PoliticalDo 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?
- 6TechnologyCan 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?
- 7EthicsDo 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?