Business AT1- Influences in the business environment

Influences in the business environment

external influences, internal influences and stakeholders

External influences

• Factors beyond the businesses control (social attitudes, economic conditions)

LIFT PECS GM

• Legal - Laws and regulations that restrict the business (employment law, consumer protection)

• Institutional - organisations that influence the business (trade union- protect workers), (regulatory bodies- control bodies like stopping scams- government) and (Employer associations- give advice and help protect employees)

• Finance - Deregulation is when the government removes rules foe higher efficiency, more competition rate and more choice

• Technological - As technology grows, business have can higher production rates, more efficiency and new products

• Political - a change in government may result in new laws and standards, which businesses might need to adapt to

• Economic - When the economy is strong, the business spend and invest, when its weak it results in having to save money which is normally by firing employees

• Social - refer to the attitudes, values and beliefs of the community

• Competitive situation - Having multiple business with similar ideas may disturb your business and result to losing customers if they have cheaper prices for better quality

• Geographic - Influence the demography ( particular features in a population→ age, gender, and globalisation

• Markets -

Internal Influences

Stakeholders