External Influences Flashcards

All 5 cards in this deck

What are external influences on a business?

Factors outside the business's control that affect it, such as changes in technology, legislation and the economic climate.

Give one way a business could respond to a change in technology.

Train existing staff and recruit employees with up-to-date technical skills, or treat the change as an opportunity to offer new services.

Give one consequence of a business failing to respond to changes in technology.

Customers expect up-to-date services and will go to competitors instead, threatening the business's growth plans.

Give one way a business could respond to new legislation.

Train staff so the business complies, change working practices or raise prices to cover the extra costs.

Give one way a business could respond to a fall in consumer incomes.

Cut prices or offer cheaper, value products; it could also reduce costs, for example by cutting the workforce.