Humanities Alive 8 VC 3E

FIGURE2 There are multiple external factors that influence businesses. These factors occur outside of the business and the business has no real control over them.

Demographics

Trends of the target market

Economic conditions

Factors influencing business opportunities

Changing social attitudes

Government policy

Competitors

Globalisation

Technological innovations

In this lesson we will consider external factors that influence business opportunities in more detail.

Demographics Being aware of demographics can create opportunities for businesses. Demographics are characteristics or statistics relating to the population, including age, gender, ethnicity, employment, income and education. Businesses can use this information to work out what products consumers prefer or to determine their buying behaviours.

648 Jacaranda Humanities Alive 8 Victorian Curriculum Third Edition

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