Environmental factors
Environmental factors cover two main aspects:
The physical conditions that a business has to deal with, such as:
- climate change
- weather
The green credentials of global business, including:
- recycling
- pollution
Physical conditions
The weather can have a major impact on a firm’s sales. Many products and services are seasonal and good summers mean the increase in sales of fizzy drinks and sun tan lotion.
Natural disasters and weather events can affect companies. Eg flooding could result in deliveries being negatively impacted, potentially resulting in loss of sales or stopped production for manufacturing firms.
Green credentials
Being a ‘green’ firm is also important. Firms that recycle goods will attract customers who want to buy from companies that are environmentally friendly. Firms that work to minimize their carbon footprint or to cut down on pollution to rivers and the environment may also be more attractive to customers who are interested in the environment.
Companies who cause environmental damage may have a negative impact on business.
