External Influences (Edexcel GCSE Business)

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Steve Vorster

Written by: Steve Vorster

Reviewed by: Jenna Quinn

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

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 to reduce their reliance on a single market or customer base can help them weather economic downturns

    • Cutting costs by reducing staff, renegotiating contracts, or streamlining operations 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

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Steve Vorster

Author: Steve Vorster

Expertise: Economics & Business Subject Lead

Steve has taught A Level, GCSE, IGCSE Business and Economics - as well as IBDP Economics and Business Management. He is an IBDP Examiner and IGCSE textbook author. His students regularly achieve 90-100% in their final exams. Steve has been the Assistant Head of Sixth Form for a school in Devon, and Head of Economics at the world's largest International school in Singapore. He loves to create resources which speed up student learning and are easily accessible by all.

Jenna Quinn

Author: Jenna Quinn

Expertise: Head of New Subjects

Jenna studied at Cardiff University before training to become a science teacher at the University of Bath specialising in Biology (although she loves teaching all three sciences at GCSE level!). Teaching is her passion, and with 10 years experience teaching across a wide range of specifications – from GCSE and A Level Biology in the UK to IGCSE and IB Biology internationally – she knows what is required to pass those Biology exams.