EXTERNAL ENVIRONMENT SAC Flashcards
Operating environment factors
- Customer needs and expectations
- Competitors behaviour
- Suppliers and the supply chain
Customer needs and expectations factors
Convenience, quality, CSR, customer service
Competitors behaviours factors
Similar goods, unique goods/services, competitive prices, differences as quality
Suppliers and the supply chain factors
time, shipping costs, availability, accessibility, legal requirements
Macro environment factors:
- Government and legal regulations
- Economic conditions
- Global considerations
- Technological considerations
- Corporate social responsibility (CSR)
- Societal attitudes and beliefs
Government and legal regulations factors:
Employee, environmental, council, industry, taxation.
Economic conditions factors:
Consumer confidence, interest/tax rates, employment levels.
Global considerations factors:
Overseas markets, exchange rates, overseas competitors
Technological considerations factors:
Constantly updating, expensive, hard to maintain
Corporate social responsibility (CSR) factors:
Environmental consideration, social considerations
Societal attitudes and beliefs factors:
- Trends
- Values and beliefs
Operating environment definition:
The primary external factors impacting a business that it has some control over.
Macro environment definition:
Social, legal, technological, global and economic conditions that a business operates in and has no control over.
External environment definition:
Factors surround a business that can impact operation, which the business has minimal control over.
Offshoring of labour
Businesses moving its services or processes to another country
