External factors affecting business

4,070 views

Published on

http://www.business.govt.nz/tools-and-templates/educational-resources/external-influencers-in-business

Learn about external influences on a business.

Ask students what outside sources of pressure and influence could be applied to a business. Make a list of examples with the class. Ask students for an example of an ethical business and an unethical one, and start a discussion on how important it is for the students that businesses act in a socially responsible way.

Have students study the topic handout individually before forming into groups of four for the quiz. Each team only has a few moments to discuss the question and give an answer. Give points accordingly for good ideas. For question 3 (List THREE ways that ethical business operations benefit business), answers can include: Improved reputation, Highly motivated staff, Increased efficiency and productivity, and Reduced costs.

Ask students to use the topic handout and their own research to write a series of fictional newspaper articles on the three scenarios outlined in the worksheet: Dangerous supermarket produce, New restaurant with no disabled access, and Contaminating emissions.

**Resources

- www.business.govt.nz/tools-and-templates/educational-resources/external-influencers-in-business/External-Influencers-in-Business_Handout.doc
- www.business.govt.nz/tools-and-templates/educational-resources/external-influencers-in-business/External-Influencers-in-Business_Student-worksheet.doc
- www.business.govt.nz/managing/marketing/advertising/what-is-the-advertising-code-of-ethics

**Sudent Handout

External influencers in Business
It may look like businesses have complete autonomy in the decisions they make, but in reality there are a host of ‘external influencers’ putting pressure on them.

CUSTOMERS
Customer demand and taste fundamentally guides what goods and services companies choose to provide.

PRESSURE GROUPS
Groups like Friends of the Earth and Greenpeace, for example, try to influence businesses that may have a negative influence on society and the environment.

COMPETITORS
The performance of competitors, and indeed the decisions they also make, can have great influence.

GOVERNMENT
The government legislates to make sure businesses meet certain standards and forms of compliance, such as tax and minimum wage requirements.

Published in: Business, Economy & Finance
  • Be the first to comment

External factors affecting business

  1. 1. External Influencers in Business
  2. 2. External Influencers… …Are groups or elements outside a business that can influence its decisions by putting pressure on it www.business.govt.nz
  3. 3. Types of External Influencers• Customers• Pressure Groups• Competitors• Government www.business.govt.nz
  4. 4. Business EthicsBusiness decisions can havefar-reaching consequencesBeing socially irresponsiblecan damage competitivenessBut businesses sometimes actunethically while remainingwithin the lawwww.business.govt.nz
  5. 5. Ethical decisions……Can involve:-Pollution-Corruption-Workplace standards-Employee rights-Consumer healthwww.business.govt.nz
  6. 6. Benefits of being ethical?- Improved goodwill- Better reputation- Motivated staff- Increased efficiency and productivity- Reduced costswww.business.govt.nz
  7. 7. Find Out MoreFacebook.com/business.govt.nzTwitter.com/business_govtNZLinkedin.com/company/business-govt-nzSlideshare.net/MED-Businessbusiness.govt.nz

×