🌍 Business Environments
Business Environments such as B2B, B2C and B2M
Business to customer
Also known as B2C
The process of selling products and services directly between a business and consumers who are the end-users of its products or services.
Example
Asda, Tesco
Business to business
Also known as B2B
A form of transaction between businesses, such as one involving a manufacturer and retailer.
Example
Car parts manufacturer
Business to many
Also known as B2M
A business that sells goods to all types of available customers and consumers, including wholesalers, retailers, manufacturers, distributors, etc.
Example
Book publising company
Key factors that can influence business environment:
- Political
- Economic
- Technological
- Legal
- Social
- Environmental
Political
Things such as decisions and laws that governments make. Includes:
- Tax
- Laws
- Political stability
Economic factors
The economy includes all activities in a country concerned with the manufacturing, distribution and the use of goods and services. The economic climate has a big impact on businesses. The level of consumer spending affects prices, investment decisions and the number of workers that businesses employ.
The economic climate affects businesses in four main ways:
- Unemployment
- Changing levels of consumer income
- Interest rates
- Tax rates
Social factors
Things that affect the habbit and spending of custoers. Including:
- Demographics
- Lifestyles
- Tastes and trends.
Technological factors
The ways new practices and equiptment can affect businesses. Including:
- ICT
- Research and development
- Automation
- E-commerce
Legal factors
Extrernal factors which refer to how the law affects thr way businesses operate and customers behave. Product transportation, profit margins, and viability of certain markets are all examples of things which may be influenced by legal factors.
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