U4 4F driving forces part 2

Question 1

All driving forces part 2

Answer 1

• competitors
• legislation
• globalization
• technology
• Innovation
  -Societal attitudes

Question 2

define competitors as a driving force

Answer 2

• competitor can be a major driving for for change
• if they embark on change themselves they may gain competitive advantage
• and steal market share from business which may now need to respond

Question 3

how do competitors drive change

Answer 3

• within industry competitors are all vying for same target market
• therefore a gain for one business may often cause loss for another
• therefore pursuit of increasing market share can be major driving force
  e.g McDonalds / hungry jacks

Question 4

define legislation as a driving force

Answer 4

• legislation = laws & legal regulations that business must follow
• therefore unlike some driving forces, legislation is compulsory driving force for change

Question 5

how do legislation drive change

Answer 5

• business may be forced to change if new legislation introduced
• and current operation breach new legislation
• e.g covid 19 pandemic
  caused businesses to comply with regularly changing legislation

e.g social distancing measures
- worker vaccination requirements
- managing covid cases in workplace

Question 6

define legislation

Answer 6

laws / legal regulations that business has to follow

Question 7

define globalization as a driving force

Answer 7

• the increase in global trade, communication, transportation on global scale
• creates many drives for business to change

Question 8

how do globalization drive change

Answer 8

• some business exposed to global competitors in domestic market
• other may have global opportunity to expand to overseas market
  -through free trade agreements / expanding internet / electronic communication channels
• other may seek global manufacturing options
• to reduce labor cost / outsourcing / obtain raw materials
• from around globe based on quality / price