Page 129 - F1 - AB Integrated Workbook STUDENT 2018-19

External analysis – social, environmental and technological factors

Environmental factors

2.1 How can a business affect or be affected by its physical environment?

Before a company can decide how to look after its environment, it needs to
understand the possible impacts a business and its environment may have on each
other.

Some suggestions of these include:

Business effects upon the Environmental effects upon
environment
the business
 Pollution, such as production  Changing climate may affect a

of rubbish or harmful number of businesses
emissions
 Lack of resources will increase
 Wastage and resources, the cost of raw materials
such as food, water or other
raw materials  Loss of sales – if a business
has a poor environmental
 Destruction of natural record, customers may no
habitats longer wish to trade with it

 Loss of plant and animal  Legislation – polluting
species companies may trigger
legislation by governments.
The additional compliance
costs and fines may reduce
profits.

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