Refers to how businesses are impacted or influenced by external factors such as government actions (e.g., regulations), economic conditions, market trends, changes in consumer behavior or preferences.
Related terms
Economic recession: A significant decline in economic activity that affects businesses negatively, including reduced consumer spending and increased unemployment.
Consumer demand: The level of interest or desire consumers have for a particular product or service; it directly impacts business sales and profitability.
Competitive advantage: The unique qualities, resources, or strategies that set a business apart from its competitors and give it an edge in the market.