2a Business planing and the business environment

Question 1

What is business planing?

Answer 1

Business planning is the process of establishing a business’s goals and developing strategies to achieve them.

Question 2

What is the Macro environment?

Answer 2

External conditions that the business has no control over.

Question 3

What is the Operating environment?

Answer 3

External conditions that the business has some control over.

Question 4

What are the 6 Macro factors?

Answer 4

Global Issues
Legal and Government Regulations
Technological Issues
Economic Conditions
Social Attitudes and Behaviour
Corporate Social Responsibility Issues

Question 5

What are the 4 Operating factors?

Answer 5

Customer Needs and Expectations
Competitors Behaviour
Suppliers and the Supply Chain
Special Interest Groups

Question 6

What is the Internal environment?

Answer 6

Internal conditions that the business can control.

Question 7

What are the 9 Internal factors?

Answer 7

Resources
SWOT Analysis
Business Location
Sources of Finance
Types of Business Structure
CSR for Business Planning
Types of Business Models
Business Support Services
Purchasing an Existing Business vs Establishing a Business

Question 8

External environment vs internal environment

Answer 8

Similarities:
- They both make up the business environment
- Businesses need to consider both the internal and
external environment during business planning

Differences:
- The business has control over the internal environment,
whereas, the business has reduced/no control over the
external environment

Question 9

Macro factors vs operating factors

Answer 9

Similarities:
- They both make up the external environment

Differences:
- The business has some control over operating factors,
whereas, the business has no control over macro
factors
- Operating factors are directly outside the business
which the business closely interacts with, whereas,
macro factors are entirely separate and are conditions
that impact all businesses within an industry