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External Influences

External Influences in a busines

TermDefinition
What is an external influence in a business Factors over which businesses have no control
Economic influences Economic influences refer to factors that relate to the economic activity in a region, country or world.
Financial Influence How and where from a business sources capital
Geographical influences The effects that geographical changes have on a business
Social influences Businesses need to be aware of and respond to the community’s needs, opinions and attitude
Legal Influences framework of laws and regulations that govern the operation of a business
Technological Influences Developments in technology that result in increased efficiency and productivity.
Political Influences The gov't impacts businesses through policies and decisions
Institutional Institutions place regulations on a business
Competitive Situation Forces businesses to aim to produce the best product at the lowest cost
Types of markets Financial, Labour, Consumer
Financial market Ability to access overseas funding
Labour market Increased demand in skilled workers and labour
Consumer Ability for businesses to sell into a global market
Created by: MrMemer
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