KK5: Driving forces (external)

Question 1

Competitors

Answer 1

One of the core aspects of operating a business is competing against rival businesses. If a business
fails to compete within its respective market, it will struggle to survive.

Question 2

Legislation

Answer 2

All businesses are required to comply with laws and regulations to avoid fines, suspensions,
or even closure.

Question 3

Pursuit of profit

Answer 3

One of the main objectives of all businesses is to make a profit. Businesses are encouraged
to implement changes that improve their financial performance.

Question 4

Reduction of costs

Answer 4

All businesses should aim to reduce the costs of their operations. The reduction of costs can act
as a driving force as businesses may implement change to improve efficiency and effectiveness,
and reduce unnecessary costs that may arise in business processes. S

Question 5

Globilisation

Answer 5

The existence of free trade means that businesses are
now operating in a single global market and are constantly facing pressure from international
competition

Question 6

Technology

Answer 6

As technology is constantly progressing, it will always act as a driving force for change.
Using technology, businesses can increase the efficiency and effectiveness of their operations,
cutting costs and improving overall productivity

Question 7

Innovation

Answer 7

With constant pressure from competitors, businesses should always aim to improve existing
products and services or introduce new ones.

Question 8

Societal attitudes

Answer 8

As the attitudes and beliefs of society are constantly changing, businesses need to ensure that their
operations align with societal attitudes and behaviours.