External Influences on Business

Fluctuations in consumer spending effects the revenue of businesses.

• Economic

• Financial

• Geographic

• Market

Laws regarding taxation, environment, competition, consumers, employment and workplace safety effect businesses.

• Political

• Legal

• Technological

• Finacial

Change of government from elections bring different policies which can impact businesses.

• Institutional

• Markets

• Technological

• Political

Regulatory bodies, trade unions and employer associations create rules that businesses must follow.

• Institutional

• Social

• Markets

• Competitive Situation

Robotics, online communication and e-commerce can have a positive or negative affect on businesses.

• Social

• Markets

• Technological

• Competitive Situation

Interest rates and access to finance can impact a business wanting to expand.

• Geographic

• Social

• Political

• Financial

Oligopolies make it difficult for new businesses to enter the market.

• Competitive Situation

• Legal

• Social

• Markets

Social media can have a positive or negative impact on businesses.

• Markets

• Social

• Financial

• Geographic

An increase in multiculturalism opens up new opportunities for businesses to sell their products.

• Markets

• Geographic

• Social

• Legal

New trading partners in nearby countries can expand the customer-base of business.

• Competitive Situation

• Markets

• Geographical

• Social