Influences on business

The speed at which technology advances is getting faster. Businesses need to be aware of the technology that is available to them, and how it might influence their sales, costs and marketing.

Businesses are increasingly judged on the contribution they make to society. Behaving ethically, without harming the environment, is an important part of this corporate social responsibility.

The economic climate has a big impact on businesses. The level of consumer spending affects prices, investment decisions and the number of workers that businesses employ.

In business, globalisation means operating on an international scale to provide or produce goods and services. Almost all of the goods we use are made of parts sourced from around the world.

The government uses legislation to regulate businesses’ behaviour and prevent them from exploiting people. There are laws to protect consumers who buy from businesses and workers employed by businesses.

The competitive environment relates to how a business is affected by its competition and how it adapts its businesses practices to enable it to compete effectively.