1.5.5 External Influences

• The main types of external influences include economic, political, social, technological, legal, and environmental
• Social and cultural influences are related to changing consumer trends and demographics
• What is the impact of external influences on businesses?

  Requires adaptation
• Give an example of an economic influence.

  Interest rates
• What are the main types of external influences on a business?

  Economic, political, social, technological, legal, environmental
• What is the impact of new innovations on businesses?

  Improved efficiency
• Technological influences can present both opportunities and threats for businesses.


  True
• Technological advancements can improve business efficiency but threaten traditional business models.


  True
• Technological changes only present opportunities for businesses.

  False
• Inflation always reduces business costs.

  False
• Cultural shifts require businesses to align their values and practices with evolving social expectations.


  True
• What are external influences on business?

  Factors outside business control
• What are economic influences on business?

  Factors like inflation
• Environmental influences include climate change and resource scarcity.


  True
• External influences are factors outside the control of a business.
• Understanding external influences is crucial for business success.

  True
• External influences always present threats to businesses.

  False
• How does automation influence businesses?

  Replaces manual tasks
• Environmental influences create opportunities and threats related to climate change and sustainability concerns
• Digital disruption uses technologies like e-commerce and social media to disrupt traditional business models
• Higher interest rates increase the cost of borrowing
• Businesses must adapt their marketing strategies to meet changing consumer trends
• Understanding external influences is crucial for businesses to remain competitive and successful
• Digital disruption is exemplified by companies like Netflix, Amazon, and Airbnb
• What statistical characteristics of a population do demographics refer to?

  Age, income, ethnicity
• Compliance with legal influences is essential for businesses to avoid penalties and maintain a good reputation.


  True
• How does climate change affect businesses?

  Disrupts supply chains and increases costs
• Why is understanding external influences crucial for a business?

  To remain competitive and successful
• Adapting to technological changes is crucial for long-term success
• Businesses must continuously monitor and adjust strategies in response to technological changes for long-term success.


  True
• Technological influences include new innovations and automation.


  True
• What is a legal influence on business?

  Laws and regulations
• What is a technological influence that disrupts traditional business models?

  Digital disruption
• Environmental influences include climate change and resource scarcity
• Digital disruption refers to the use of digital technologies like social media and mobile apps
• Name the six main types of external influences on business.

  Economic, political, social, technological, legal, environmental
• What are technological influences on businesses primarily concerned with?

  New innovations and automation
• What are economic influences on businesses primarily related to?

  Broader economic factors
• What are social and cultural influences on businesses primarily driven by?

  Societal trends and norms
• What is the definition of external influences on businesses?

  Factors outside business control