Possible Responses by Businesses to External Influences
- Businesses may respond to changes in technology, legislation, and economic climate in a variety of ways
- The response varies from business to business depending on their circumstances and objectives
- The key is to stay aware of external influences and to be proactive in responding to them
Responding to changes in technology, legislation and the economic climate helps to ensure business survival
Technology
- Businesses can respond to changes in technology by:
- Investing in new technology that improves the products, reduces costs, increases efficiency, or expands their reach
- Partnering with tech companies to gain access to their expertise and resources
- Training employees to use new technologies effectively
Legislation
- Businesses can respond to changes in legislation by:
- Complying with new regulations which may involve changes to their operations, such as increased reporting requirements or new safety standards
- Lobbying policymakers to influence the development of new legislation through trade associations or directly with policymakers
- Seeking legal advice to help navigate changes in legislation and ensure compliance
Economic climate
- Businesses can respond to changes in the economic climate by:
- Diversifying their products/services to reduce their reliance on a single market or customer base can help them to weather economic downturns
- Cutting costs by reducing staff, renegotiating contracts, or streamlining operations which can help businesses to remain profitable during difficult economic conditions
- Seeking finance from lenders or investors to help weather economic downturns or to fund growth opportunities
