Topic Videos

Understanding Business Revenues (2) – Short- and Long-Term Factors

Level:
AS, A-Level, IB
Board:
AQA, Edexcel, OCR, IB, Eduqas, WJEC

Last updated 7 Sept 2022

In this video, we spend a few minutes considering some of the short and longer-term factors that influence the growth of revenues for a business.

Understanding Business Revenues (2) – Short- and Long-Term Factors

Seasonal and Cyclical Factors

In many markets, sales are seasonal and so are revenues. Examples?

  • Tourism and travel, leisure activities
  • Retail and hospitality, seasonal food and drink

Cyclical factors are the macroeconomic variables affecting demand:

  • Unemployment levels, job security and real wagesInterest rates on loans
  • Consumer confidence / general economic uncertainty

Longer Term Factors Affecting Business Revenues

Changes in the strength of competition within a market:

  • Hotels v AirBNB
  • Cinemas versus subscription streaming services

Long-term changes to the age structure of a country’s population

  • Longer-term shifts in consumer tastes and preferences
  • Rise of plant-based foods, protein drinks, low-sugar & low salt food
  • Growth in demand for non-alcoholic drinks

Technological changes – creating new demand for innovative productsWhat are you spending money on now that you didn’t 5-10 years ago?

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