factors influencing business decisions (slides seven)

Question 1

what are the main factors influencing business decisions?

Answer 1

(1) technology
(2) the business cycle
(3) globalisation

Question 2

why technology?

Answer 2

technology can lead to increased efficiency, productivity, and new product developments
robotics have improved manufacturing processes, reduced costs, and reduced faults in production
IT advancements improve communications + transactions between businesses and customers
technology enables more flexible work arrangements and remote collaboration opportunities

Question 3

why the business cycle?

Answer 3

businesses are affected by the ups and downs of the economic cycle
economic downturns lead to reduced customer spending, impacting business profits, which can lead to layoffs
economic growth = increased consumer spending and improved business profits
consumer confidence can make or break business performance

Question 4

why globalisation?

Answer 4

the world is becoming more interconnected through globalisation; it reduces barriers for trade, investment, and labour across national borders

Question 5

positives of globalisation

Answer 5

expanded markets, even for small businesses
cheaper materials; this is global sourcing
access to labour; this means global businesses now have access to larger talent pools from around the world

Question 6

negatives of globalisation

Answer 6

increased competition; customers can choose from more businesses globally
increased unemployment in some industries; some businesses can’t compete with cheaper imported products and are forced to shut down
environmental and social issues; may exploit workers + damage environment just to reduce production costs