BUSINESS DRIVERS Meaning and
Definition
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Business drivers are the key factors or influencers that determine the success or failure of a business. They are the strategic elements that guide and shape the direction of a company, and they help in achieving its objectives and goals. Business drivers can be classified into different categories, such as financial, operational, market, technological, and legal.
Financial drivers focus on the financial aspects of a business, including revenue growth, profitability, cash flow, and return on investment. Operational drivers concentrate on improving operational efficiency, reducing costs, increasing productivity, and managing supply chain and logistics effectively.
Market drivers revolve around understanding customer needs and preferences, market demand, competition, and market share. Technological drivers involve leveraging technology and innovation to gain a competitive advantage, improve business processes, and develop new products or services.
Legal drivers encompass compliance with laws, regulations, and industry standards to mitigate legal risks and maintain ethical practices. All these drivers interact and influence each other, and businesses need to identify and prioritize them based on their unique circumstances and goals.
Understanding and effectively managing business drivers is crucial for a company's success as they enable businesses to make informed decisions, allocate resources appropriately, and adapt to dynamic market conditions. By continually monitoring and evaluating these drivers, businesses can identify opportunities for growth, address challenges, and ensure the long-term sustainability and profitability of their operations.
Etymology of BUSINESS DRIVERS
The word "business" comes from the Old English word "bisignes", which meant "anxiety" or "care". Over time, it evolved to mean "occupation" or "employment".
The word "driver" comes from the Middle English word "driven", which meant "to push, propel, or force". It can also be traced back to the Old English word "drifan", which meant "to drive" or "urge forward".
When combined, the term "business drivers" refers to the factors or forces that push or propel a business forward, such as strategies, goals, objectives, or key performance indicators.
