Business Studies Collins Revision Guide. - StudyGuide.PK

EXTERNAL ENVIRONMENT (1)●A business both has an effect on its external environment and isaffected by it. The external influences on a business are:■ Social■ Legal■ Economic■ Environmental■ Political■ Technological.Social influences●●Society and how it is made up affect business in many ways. Oneway is the demographic make up of the area, for example the ageranges of the inhabitants of the area would affect the market forentertainment. The main categories for analysing the demographicmake-up of an area are:■ age■ social class■ gender■ income■ region of residence.This table gives the usual socio-economic groupings used bybusinesses and government organisations.Social gradeGrade AGrade BGrade C1Grade C2Grade DGrade EOccupationTop professional, e.g. lawyerSenior managerAdministrative or clericalSkilled workerSemi or unskilled workerState dependent, e.g. unemployed85