Business environment Flashcards
Internal environment
Directly influence the approach of the operations of a business. Easy to manage.
Owners and managers: (IE)
Effective, skillful and export management foster efficient and effective business
Employees: (IE)
Most important to a businesses success, which is dependent on their performance. To maximize performance a working environment with motivation, job satisfaction and output is vital.
Organisational structure: (IE)
Outlining roles can influence effectiveness. Efficient supervisors and strong communications are required.
E.g how activities are divided and organised.
Organisational culture: (IE)
Refers to shared values, beliefs, attitudes and behaviors. Determines how employees and management interact and how the business functions with business situations
External environment (operational)
Consists of stakeholders outside the business’s internal structure that impact how a business functions
Customers: (EEo)
Provides revenue and certainty, reputation and profit. Business must build, gain loyalty and encourage a customer base to create a competitive organisation
Competitors: (EEo)
Business must consistently monitor competitors to see what they’re doing and do it better.
Suppliers: (EEo)
Business needs to choose reliable, cost effective, and timely suppliers. Must ensure good relationship
Interest group: (EEo)
An organisation that shares interests and desire to work together to protect and promote a specific industry e.g. trade union
External environment (macro)
the wider environment a business has no control over, although they influence operations, decision making and performance.
- Socio-cultural: consumers
- Technological: automation
- Economic: inflation
- Environmental: pollution
- Political: trade regulations
- Legal: Health & safety law
- Ethical: fair trade
