Dynamic nature of business

• External factors that are outside a business's control include: technology, economy, legislation, and the environment
• Technology:

  • Rapid improvement in technology has led to the growth of e-commerce and the reduction of physical outlets
  • Businesses have altered their marketing mix, particularly in terms of distribution channels
• Economy:

  • Low interest rates provide cheap finance for businesses, allowing for quicker expansion
  • A weak pound makes UK exports cheaper in international markets, encouraging market development and global expansion
• Legislation:

  • The uncertainty of the Brexit vote has caused businesses to change operations, moving towards "just in case" strategies
  • Calls for an increase in the minimum wage may lead to higher labor costs and encourage businesses to switch to automation
• Environment:

  • Consumers are more conscious about the environment, leading businesses to change production processes and sourcing practices to be more ethical
• All business environments change constantly and are impacted by a number of different national and international factors.