Technology is a key external influence on business:
- communication is faster and cheaper
- products can be designed quicker
- new ways of communicating and engaging with customers (social media)
New legislation is also an external influence on business:
- consumer and employment laws
- regulations e.g. when producing an advert, what claims can the business not make about its product
- tax laws
- health & safety laws
- new pension regulations
Other factors in the economy also impact on a business:
- unemployment rates – what is the impact on business if unemployment rises / falls?
- interest rates – what happens if interest rates rise / fall?
- exchange rates – what happens if the pound £ rises or falls against other currencies?