The factors outlined below will have an influence on operations management decisions

Social Factors (Cultural):

• Changing tastes will affect the demand and therefore what goods a business is going to produce/sell
• An increase in a demographic within a country will change the levels of demand for a product

Ethical Factors:

• Consumers are more environmentally conscious which means a businesses needs to be eco-friendly in their production
• Consumers are more conscious by who makes the goods, for example they wouldn't buy clothes made in a sweatshop

Environmental Factors:

• The use of resources that may be harmful to the environment have to be considered as more consumers favour environmentally friendly products

Legal Factors:

• Complying with the law is essential, not doing so may damage the reputation of the business and lead to fines
• Legislation like the Health and Safety Act impacts how production can take place

Economic Factors:

• The state of the economy will affect the costs of production
• The level of unemployment will affect how easily labour can be found
• The level of growth within the economy, when it is growing businesses are more likely to expand their production
• If a business exports the strength of the pound will affect their production

Political Factors:

• The nature of the government in power, if they pass anti-business legislation it will affect how much a business will produce
• Any legislation being passed in the EU that will affect a business

Technological Factors:

• Rapid technological advances means a business will have to spend more on research in order to keep up
• Advances that make machines more efficient has an effect on operations for a business