External factors (copy)

Political Factors

based off Tax regulations and new laws.

Influence

  • ensure businesses comply with the law.

  • The decision to leave the european union will have an effect on many UK businesses.

  • Raise or lower of tax will effect company's.

  • Minimum wage

  • Health and safety laws.

Economic Factors

Economic growth, Interest rates, inflation and exchange rates.

Influence

  • In recession consumers will not spend much on goods.

  • Increasing interest rates will make it more expensive to borrow money.

  • A weak pound makes it more expensive to import materials. However, makes it easier for others to buy off the UK as it is cheaper for them.

Social Factors

Life style, fashion, spending habits and trends.

Influence

  • DEMOGRAPHIC- changes in population. An aging population means that there is greater demand for goods and Services in healthcare.

  • LIFESTYLE- Consumers may be becoming more halth cautions so are eating more healthily and Sport / health apps are becoming more popular.

  • ETHICAL- Reduce waste, fair wages and Provide ethically sourced goods.

Market research must be carried out very often.

Technological Factors

changing of technology, research and developement, automation and e-commerce

Influence

  • RESEARCH AND DEVELOPMENT- The steps a business takes in the innovation of new products, systems and services. 3D printers, phones and apps.

  • E-COMMERCE - widens the number of ccustomers, lowers production costs and allows customers to buy online.

  • AUTOMATION - allows machines to do work that was previously done by people. Reducing production Costs.

Organisations must Keep up-to-date to maintain a Competitive advantage.

Environmental factors

  • Climate change and the weather , Recycling & polution

  • socially responsability and environmentally friendly to comply with legislation.

  • social Pressure

  • bad weather may result In a loss of sales. Snow might cause delivery disruptence. not weather might increase sales.

Competitive factors

Imitators - when a product is succesful rival organisations wild atempt to Create cheaper alternatives,.

Price wars- Rival businesses may start price wars.

Loss leader- when a good or service is advertised and sold at below cost price. Attracts customers.

Product differentiation- Business can become more competitive by making THEIR Products Stand out.

  • Establishing a strong brand image.

  • unique selling point.

  • product is better than rivals.