1 external_environment_introduction

1 external_environment_introduction - tutor2u GCSE Business...

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tutor2u GCSE Business Studies Introduction to the External Environment Introduction A business does not function in a vacuum. It has to act and react to what happens outside the factory and office walls. These factors that happen outside the business are known as external factors or influences . These will affect the main internal functions of the business and possibly the objectives of the business and its strategies. Main Factors The main factor that affects most business is the degree of competition – how fiercely other businesses compete with the products that another business makes. The other factors that can affect the business are: f Social – how consumers, households and communities behave and their beliefs. For instance, changes in attitude towards health, or a greater number of pensioners in a population. f Legal – the way in which legislation in society affects the business. E.g. changes in employment laws on working hours. f Economic – how the economy affects a business in terms of taxation, government spending, general demand, interest rates, exchange rates and European and global economic factors. f
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This note was uploaded on 05/20/2010 for the course BUSINESS Exertnal E taught by Professor N/a during the Spring '10 term at Open Uni..

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1 external_environment_introduction - tutor2u GCSE Business...

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