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🌍 Business Environments

Business environments are things such as B2B, B2C and B2M.

Business to customer#

Also known as B2C

The process of selling products and services directly between a business and consumers who are the end-users of its products or services.

Example

Asda, Tesco

Business to business#

Also known as B2B

A form of transaction between businesses, such as ine involving a manufacturer and retailer.

Example

Car parts manufacturer

Business to many#

Also known as B2M

A business that sells goods to all types of available customers and consumers, including wholesalers, retailers, manufacturers, distributors, etc..

Example

Book publishing company

Key factors that can influence business environment#

  • Political
  • Economic
  • Technological
  • Legal
  • Social
  • Environmental

Political#

Decisions and laws that governments make. This includes:

  • Tax
  • Laws
  • Political stability
  • Government policy
  • Corruption
  • Foreign trade policy
  • Labour law
  • Trade restrictions

Economic factors#

The economy includes all activities in a country concerned with the manufacturing, distribution and use of goods and services. The economic climate has a big impact on businesses. The level of consumber spending affects prices, investment decisions and the number of workers that businesses employ.

The economic climate affects businesses in four main ways:

  • Unemployment
  • Changing levels of consumer income
  • Interest rates
  • Tax rates
  • Inflation rates
  • Disposable income
  • Exchange rates

Social factors#

Things that affect the habbit and spending of customers. This includes:

  • Demographics
  • Lifestyles
  • Tastes and trends
  • Population growth rate
  • Age distribution
  • Income distribution
  • Career attitudes
  • Cultural barriers

Technological factors#

The ways new practices and equipment can affect businesses. This includes:

  • ICT
  • Research and development
  • Automation
  • E-commerce

Legal factors#

External factors which refer to how law affects the way businesses operate and customers bahave. Product transportation, profit margins, and viability of certain markets are all examples of things which may be influenced by legal factors.

  • Laws
  • Copyright
  • Patent laws
  • Health and Safety laws

Environmental Factors#

These are things that affect the environment.

  • Carbon footprint
  • Weather
  • Climate
  • Farming
  • Agriculture
  • Climate change
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