External Factors Which Affect Business

Question	Answer
External Factors which affect business	The main factor is... the degree of competition – how aggressively do other businesses compete within your market?
Legal	How do changes in legislation affect the business? E.g. changes in employment laws, KiwiSaver, minimum wages.
Economic	How the economy affects a business in terms of taxation, government spending, general demand, interest/exchange rates. How do global economic factors impact New Zealand?
Social Factors	Behaviours and beliefs of consumers, households and communities. Eg. changes in attitude towards health, or an increase in preschoolers in a population.
Political	Do changes within government policy affect your business? e.g. will a decision to subsidise home insulation in houses be good/bad for a specific niche in the market?
Technology	Can you keep up with the cost of new technology? Do you market effectively? Does the rapid pace of change in production processes and product innovation affect a business?
Ethics	Do you consider what is regarded as morally right or wrong for a business to do? For instance will you use non-recyclable products? Will you trade with countries which have human rights violations?

Resource summary

	Created by Sandra Leak over 9 years ago