FINALS: BUSINESS ENVIRONMENT Flashcards
The systematic effort of an organization to meets customer needs with goods and services for profit
Business
It is where the business operation in different countries with different external forces acting upon them.
International Business environment
Environment can be classified into:
Domestic Environment
Foreign environment
International environment
International environment factor of factor of change:
- Political Factors
- Economical Factors
- Socio-cultural Factors
- Technological Factors
- Environment Factors
All factors that affect business socially. Every business works in society. Factors like family, educational institutions, and religions affect business
Social Environment
An environment that affects basic values. Behaviors and preferences of the society, affecting customers’ marketing decisions
Cultural environment
Set of beliefs, customs and practices, behavior that exist within a population
Socio-cultural environemnt
International companies often include examinations of this environment prior to entering their target markets
Socio-cultural environment
What are the factors of socio-cultural environment?
Social, class, groups, opinion leader, family, sociability
Factors that affect social and cultural environment
- Attitude of people
- Demographic factors
- Religion
- Social responsibility
- Taste and preference
- Education
- Family
- Natural factor
- Technological factor
- Income and lifestyle
- Health and safety factors
Elements of socio-cultural environment:
- Attitude of people
- Demographic
- Religion
- Language
- Education
- Family structure
- Social structure
- Class structure
It is the environment in which businesses operate that is dependent on the sum total of economic factors; income, employment, inflation, interest rates, consumer behavior, and distribution of wealth
Economic environment
Business has to adopt technical changes from time to time. Constant innovation is necessary to satisfy customers
Technological environment
It is define as the state, government institution and laws together with the public and stakeholders who operate and influence to the system
Political environment
The process of planning and conducting transactions across national boarders to create exchanges that satisfy the objectives of individual and organizations
International marketing
