Business Environment & Stakeholders Flashcards
What are the two main types of business environments?
A: Internal and External.
What are the key internal factors affecting a business?
Employees, management, corporate culture, resources.
What are the external macro-environmental factors?
Social, Technological Political, Economic, Environmental Legal, Ethical (STEEPLE).
What is the difference between a stakeholder and a shareholder?
A stakeholder has an interest in the business (e.g., employees, customers), while a shareholder owns company shares.
Who are the key stakeholders in a business?
Customers, employees, suppliers, government, community, shareholders.
Why do businesses need to consider environmental sustainability?
A: To meet legal requirements and improve reputation.
How do businesses manage stakeholder expectations?
A: Through corporate social responsibility (CSR) and ethical decision-making.
What is corporate social responsibility (CSR)?
A: A business’s commitment to ethical operations and giving back to society.
How can economic changes impact businesses?
Interest rates, inflation, and economic downturns affect consumer spending.
Why is understanding the business environment important?
It helps businesses plan, adapt, and stay competitive.
