001 Flashcards
________ molds the business decisions and strategies
The business environment
These are the external factors like economic, political or regulatory, social or demographic, technological and natural factors.
It makes up the opportunities and threats of the business
Business environment
This is the business environment____________. These are the resources capabilities and goodwill of the organization, internal power relationships etc.
It decides the strengths and weaknesses of the firm
Internal factors
These are the factors which have a bearing on the business
Factors that influence business decisions and or impact on business performance.
Business environment
There are two types of external environment. ________ are the external factors that have a “direct and intimate” impact on the firm.
Example. Suppliers and distributors
(external environment)
Micro (task/operating) environment
- customers
- suppliers
- competitors
- publics
- financier
- marketing intermediaries
Another type of external environment. Where in________affect the industry “very generally”.
Example. Industrial policy and demographic factors
Macro (general/remote) environment
- economic factors.
- social and cultural factors
-demographic factors - political and government factors
- natural factors
- technological factors
- global factors
An environment composed of:
- Promoters/shareholders
- values
- mission and objectives
- management structure/nature
- internal power relationship
- company image/brand equity
- physical assets/facilities
- R &D and technological capabilities
- human resources.
Internal environment
- Factors that are called “controllable”
- The company has control over it.
Example: personnel, physical facilities, organization and functional means, such as marketing mix etc.
Internal factors
- Called “uncontrollable” factors.
- this is beyond the company’s control.
Example: economic, socio-cultural, government, legal, demographic factors, and geophysical.
External factors
A thorough understanding of a business environment, therefore, is a prerequisite for making any _______
Strategic decisions
What is the significance of a business environment?
Any business decisions in general and strategies are particularly molded by the business environment therefore it is important to understand the happenings in both external and internal environment.
Composes of industrial policies, fiscal policies, trade and tariff policies
Political environment
Encompasses the concepts of cultural adaptation, cultural shock, cultural log
Socio-cultural environment
Compose of the laws that control the investments. Laws that regulate the conduct of the businesses and the environmental laws
Legal environment
Composed of economic policies, monetary and fiscal.
Economic environment
