exam Flashcards
external factors
involves the surrounding factors that can impact a business. minimal control.
internal factors
made up of elements created by the business within the business.
CSR
when a business goes above and beyond their legal obligations of a business taking into account the environment, society/community and employees.
economic conditions
1. interest rates
2. business and consumer confidence
is the price charged or paid for the use of money. usually on annual percentage of the amount loaned or deposited.
(can’t match their competitors price as total spending is down. interest rates are high due to its consumers. finding cheaper alternatives.)
how individuals feel about current and future economic conditions.
labour resources
people who provide the business with skills and qualifications to conduct business activities.
operate machinery and transportation for the business.
capital resources
man made goods used in the production of goods and services.
produce goods and services faster, whilst providing faster and better transformation to deliver higher quality g+s to increase profit.
macro environment
the broader conditions and trends of the economy or society in which a business operates in.
eg. societal attitudes and behaviours and CSR and global issues
operating environment
refers to the specific outside elements that a business interacts with and conducts business with stakeholders.
eg. competitors behaviour and supply chain and suppliers
overseas markets and online sales
businesses set up locally and internally to allow for a more diverse customer base.
strengths = access to new customers and diverse customer base.
new products and services into the business.
weaknesses = cost may be too high for exchange rates and the shipping cost.
online sales are goods and services produced via the internet.
environmental lobby group
Are organisations that advocate for the protection of the environment.
They launch campaigns against businesses conducting activities that are harmful to the environment.
guide businesses to be sustainable when operating a new business.
protesting to the government through social media.
competitors
other businesses who offer competing goods and services to the ones offered by the business.
(a business may need to reconsider its manufacturing and operating costs to determine if they can produce their product at the lowest cost so they can offer lower prices.)
awareness of competitors = efficiency in production.
competitive advantage develops strategies to make sure it has an edge over competitors.
economic conditions
refers to the influences that relate to the economic activity in a country or region and includes, interest rates, wages, employment, exchange rates and inflation.
business support services
mentors (provide expert opinions and strategies) and financial support services (able to sustain itself or not, manage finance and goals)
legal government regulations
council regulations
(local business activities are affected by the local government)
environment protection legislation (protect environment from harmful business activities.)
sources of finance
1. equity capital
2. debt capital
money contributed to a business by an investor in exchanged for partial ownership. (public or private)
money that has been lent to a business by an external source that must be paid back overtime with interest.
