Environmental Constraints

Environmental constraints

The environmental changes are structural changes in the world around them which affect demand and supply conditions for their products. Especially, natural disasters might affect the business completely due to the fact it might completely stop the supply of products which following means that the business is not able to sell products for period of time.

However, also the local community might influence the business, too.

For example, applying to my selected business the bakery that I considered to set up might gain an increase in customers due to the fact that my business fits into the Camden Market range of products.

Additionally, changes in population structures might affect patterns for example the growth in the number of elderly people and those living in cities rather than rural areas following which might influence the target group of certain products.

Besides that, Smart Cakes is green – oriented following which means for the business that the business pays attention to recycling as supporting the vegetarian lifestyle. Therefore, the business must only buy (for example) free range eggs so which makes it clear to its customers that the business is also against animal torture. Being green also means to no use too much paper as well as water.

Technological constraints

The technological factors provide opportunities for businesses to adopt new breakthroughs, innovations, and inventions to cut costs and develop new products.

A business producing confectionery like Cadbury Schweppes examines SLEPT factors in designing new products. For example, social factors that it needs to be aware of include changing patterns of eating. Today many consumers like to eat 'on the go' so bite sized chocolate treats are in great demand to top up consumers energy supplies. Legal factors to be kept an eye on include European Union regulations about the content of products that can be advertised as chocolate. Economic factors relate to changes in living standards and how these affect consumptions patters.

Technological change is particularly important today,