Business Environment

Question 1

5 elements of eternal environment

Answer 1

Socio-cultural
Economic
Political & legal
Technological
Competitive

Question 2

Eternal factor : socio-cultural

Answer 2

Demographics : characteristics of customer needs, number of customers
Values, beliefs & preferences : regional differences, changing values (healthier, trends, etc)

Question 3

External factor : economic environment

Answer 3

Strength of the economy : writhing a country or region, changes to the economic conditions (business cycle, recession, expansion), currencies

Question 4

External factor : political and legal

Answer 4

Political : stability, international trade agreements, environment
Legal : laws on incorporation, income taxes, consumer protection, warranties

Question 5

External factor : technological

Answer 5

Internet, robotics, AI, changes to business practices ( automation, cheap and abundant energy, affordable transportation)

Question 6

External factor : competitive

Answer 6

Behaviour of competitors : marketing, operations, HR
Level of competition in industry : perfect competition, oligopoly, monopoly, etc

Question 7

+ external factor : natural

Answer 7

Weather
• Hurricanes
• Tornadoes
• Seasons

Natural disasters
• Tsunamis
• Earthquakes
• Volcanoes
• Fires