5. External Influences

What changes may businesses respond to?

• Technology

• Legislation

• Economic Climate

How can a business respond to changes in technology?

• Investing in new technology that improves the products, reduces costs, increases efficiency or expands their reach

• Partnering with tech companies to gain access to their expertise and resources

• Training employees to use new technologies effectively

How can a business respond to changes in legislation?

• Complying with new regulations which may involve changes to their operations, such as increased reporting requirements or new safety standards

• Lobbying policymakers to influence the development of new legislation through trade associations or directly with policymakers

• Seeking legal advice to help navigate changes in legislation and ensure compliance

How can a business respond to changes in economic climate?

• Diversifying their products to reduce their reliance on a single market or customer base can help them weather economic downturns

• Cutting costs by reducing staff, renegotiating contracts, or streamlining operations can help businesses to remain profitable during difficult economic conditions

• Seeking finance from lenders or investors to help weather economic downturns or to fund growth opportunities