We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Finance

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What Are Business Drivers?

Mary McMahon
By
Updated: May 16, 2024
Views: 25,814
Share

Business drivers are factors that direct business objectives and assist with the achievement of business goals. These can cover a wide range, from the customers who create the demand for given products to the shipping department responsible for order fulfillment. Identification of business drivers can be an important part of business planning and coordinating, as this may help businesses determine where to direct their focus. Drivers can operate on a specific business, or within an industry as a whole, depending on their nature.

Some business drivers are internal. They are the personnel and departments within a company that contribute to product development, marketing, production, and sales. Sales forces, for example, create a market for a product and work to make sure products and services are delivered in a timely fashion. These internal drivers support the work of a company and may have a common objective in mind, such as the desire to corner a set percentage of the market for a specific product.

External drivers include factors like customers and regulatory agencies. Customers can dictate not just behavior at a business, but across an industry, with demands for specific products and services. They may expect certain features, for example, which members of the industry will need to enable to build and maintain customer relationships. Regulators may influence industries and companies with rules that force them to adapt and change business practices to stay within the law.

Companies with clearly identified objectives can also find their business drivers, the factors that shape and achieve those objectives. They can also rank drivers by level of influence, which may help them find groups that slip through the cracks. For example, a little-known department might actually play a key role in delivering a company's product or service. Investing in that department could result in better returns for the business as a whole. Likewise, a previously unrecognized group of customers might emerge as a more prominent demographic and business driver, with careful analysis.

Failure to respond to business drivers can put a company at a disadvantage. The management may not be able to anticipate market shifts, which would leave them with outdated products and services and no interested customers. Within a company, drivers might become frustrated with working conditions, which could result in less productivity and efficiency. This might lead to lags in product quality and a decline in customer demand that might harm a company's bottom line.

Share
SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Mary McMahon
By Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a SmartCapitalMind researcher and writer. Mary has a liberal arts degree from Goddard College and spends her free time reading, cooking, and exploring the great outdoors.

Related Articles

Discussion Comments
By Certlerant — On Feb 20, 2014

Although all departments and a variety of factors may be important to the identification and utilization of business drivers, as the article indicates, the most important factor has to be marketing.

A good marketing department within a company has its finger on the pulse of the consumer mindset and is able to adapt to changes in the marketplace.

For example, market research would show if a more health conscious society is buying wheat and whole grain breads instead of traditional white bread. This shift in consumer preference alone can drive the future of a bread manufacturer's business model.

Mary McMahon
Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a...

Learn more
Share
https://www.smartcapitalmind.com/what-are-business-drivers.htm
Copy this link
SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.