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
Economic conditions
The conditions that refer to the productive performance and financial stability of a nation or other geographic area.
Interest rates
The price paid for money that has been borrowed expressed as a percentage
Tax rates
The percentage of income or spending that is required to be paid to the government by individuals or businesses.
employment levels
measured as the percentage of the labour force who are working in paid employment * can be low or high
corporate social responsibility (CSR)
The ethical conduct of a business beyond legal obligations, considering social, economic and environmental impacts.
CSR two main categories
- environmental considerations
- social considerations
Supply chain considerations consist of
- Sourcing considerations
- retrieving considerations
Retrieving considerations
Transport being road, air, rail and sea
