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Every business is affected by some factors that cause businesses to fall or rise. In this unit, we are going to discuss some of the factors that affect businesses so that the learner will have a deep understanding of the forces that affect businesses.
Political factor
Political factors have a huge influence on the businesses around the world. Policies introduced by the government are supposed to be followed by the businesses to make the trade easy and smooth. Those policies affect the business in a very significant manner. In today’s digital era, the technology is introduced at work places which has emerged a new culture called “work from home”. This culture has also affected the business.
Taste and preferences
Demand and supply of any product or service depend on consumer behaviour. Consumer behaviour is something which is uncontrollable and changes rapidly. A good businessman must be aware of consumer behaviour and what the consumer is demanding in the current times. Most of the businesses fail because they fail to understand the consumer’s needs and they end up losing it all.
Change in technology
The technological change in any product or service has a huge impact on the business. When the technology is introduced in any product, it ultimately changes the entire business. New strategies for sales and marketing are developed, the manufacturing.
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