Trends in Today’s Business World P2 + M2

What is a Trend? In pairs, discuss what you think the word “TREND” means. “A general development in a situation or in the way that people behave.” Cambridge Business Dictionary What “trends” can you think of?

Trends in Business There are 4 types of trends in business: –Social –Technological –Environmental –Ethical

Social Trends  Social trends:  population changes (increasing life expectancy, households and families e.g. more couples cohabiting)  Education e.g. increasing achievements at GCSE,  Labour market e.g. increase in flexible working  Increasing travel for work e.g. longer commutes to work. P2 - In a Word Document, explain what each of these are and how they can affect businesses. –E.g. Population changes means an increase or decrease in the number of people in the country. This can affect a start up business as they must try to meet everyone’s needs. When this changes, they may need to change what they do or sell and how they do it.

Technology Trends –Technology trends: increasing use of information technology, telephony web developments. In the same Word Document, explain what each of these are and how they can affect businesses. –E.g. More and more businesses are developing the work they do on the Internet. This means that a start up business will need to put more money into these projects to ensure they keep up with the competition and stay in the market place.

Environmental Trends – Environmental trends: increase in renewable energy and recycling. In the same Word Document, explain what each of these are and how they can affect businesses. –E.g. Businesses must now prove that they are environmentally friendly. A start up business must make sure they take part in recycling things like their packaging. This means they are following the law and looks good to their customers.

What are ETHICS? In pairs, discuss what you think ETHICS means. “A system of accepted rules about behaviour, based on what is considered right and wrong.” Cambridge Business Dictionary Why do businesses have a code of ethics?

Ethical Trends Ethical trends: –ethical concerns of potential customers e.g. carbon footprint, inadequate pay, values of an organisation and contribution of business to the community. In the same Word Document, explain what each of these are and how they can affect businesses. –E.g. Businesses must make sure they are aware of the ethical concerns of their customers. A start up business must show their new customers that they are sticking to their values and do what is right. Other wise, their customers might not like what they do and will stop going to them.

M2 You must use the table on the shared area, M2, to compare how two trends have impacted on a start-up business so it is easier for people to understand how they might be affected.

D1 Assess the current risks, opportunities and trends in the business environment for a start-up business In a Word Document (this can be added onto your P2 document), assess how each of the four trends you have covered can be both a risk and an opportunity for a start-up business giving examples.