4F - Driving forces pt2

Question 1

Competitors as a driving force

Answer 1

• It is important that all businesses respond appropriately to changes made by rival firms.
• This makes competitors a driving force for change as a business must always adapt to remain competitive.

Question 2

Legislation as a driving force

Answer 2

• All businesses are required to comply with laws and regulations to avoid fines, suspensions, or even closure.
• A business may be forced to change if new legislation is introduced.

Question 3

Globalisation as a driving force

Answer 3

• The trend of increasing globalisation means that more businesses are operating on a global scale due to the removal of trade barriers.
• This often results in prices being driven down in the market as businesses can afford to lower their prices.

Question 4

Technology as a driving force

Answer 4

• businesses can increase the efficiency and effectiveness of their operations, cutting costs and improving productivity.
• Businesses should take into consideration of relevant technological advancements when producing goods and services.

Question 5

Innovation as a driving force

Answer 5

• businesses should always aim to improve existing products and services or introduce new ones.
• Many businesses will continuously innovate their products or procedures in order to increase sales and market share.

Question 6

Societal attitudes as a driving force

Answer 6

• As the attitudes and beliefs of society are constantly changing, businesses need to ensure that their operations align with societal attitudes and behaviours.
• The internet has made it easier for society to be more aware of how businesses are operating, meaning that failure to adapt to the changing environment can result in the business losing sales and profits.