Class 5: Business Environment Flashcards
What is business environment?
These are the factors that facilitate or hinder the activities of a business
Factors that affect business are:
Social, Economical, Political, and Technological factors
What are the types of business environments?
Internal and External
Define Internal environment
These are some of the controllable factors within the boundaries of the business
Give some examples of factors of internal environment
Employees
Customers
Owners
Define External environment
These are some of the uncontrollable factors outside the boundaries of a business
List the segments of External environment
Technological environment
Social “
Political “
Economic “
Legal “
List some factors that affect economic environment
Changes in unemployment rate.
Recession.
Changes in interest rate.
Inflation and deflation.
Demand and supply fluctuations.
Changes in consumer income.
Competition.
Some of the factors that affect legal environment are:
Elements relating to al levels of government
List some of the factors that influence technological environment
The Internet.
Computers.
Social networks.
Cell phones.
Databases.
Bar codes.
Factors that affect social environment include:
People’s beliefs/religions.
Culture (customs and traditions of people).
Diversity.
Demographics.
Changes in consumer preferences.
Mention some of the factors that affect Political environment
Political stability.
Government’s style of leadership.
The attitudes of government officials towards business.
General stability and peace in a country.
What are some of the characteristics of a business environment?
Complexity
Dynamism
Far reaching impact
Unpredictability
Variation
