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Customers

Customers are the people who purchase the product or use the service.

Customers can influence a business by:

• Increasing the amount of products they buy or services they use - this will result in higher profits
• Decreasing the amount of products they buy or services they use - this will result in lower profits

Banks

Banks are organisations that lend finance to other organisations.

Banks can influence a business by:

• Giving loans to businesses - this enables businesses to grow
• Changing interest rates for loans - this will change the costs to the business

Government

Government is formed by politicians who run the country for the benefit of the population. Governments try to encourage firms to invest and create jobs.

Governments can influence a business by:

• Awarding grants to a business - this can help them to grow or invest in new machinery
• Increasing the tax a business is required to pay - this can lead to decreased profits

Support agencies

Support agencies help businesses to be successful. They can influence a business by giving advice or guidance on how to run the business well - this could lead to a business becoming more successful

Suppliers

Suppliers provide the goods or materials that a business uses.

Suppliers can influence a business by:

• Increasing the cost of raw materials - this means a business may have to increase the price it charges customers or accept a decrease in profits
• Decreasing the cost of materials supplied, the business may have an increase in profits or be able to decrease the price it charges customers

Local communities

The local community is made up of the people who live in the area where the business is located.

• If a local community group protests against the actions of a business it could affect the business’s reputation or lead to a change in the way the business is run