Influences in the business enviroment Flashcards
External:
Includes those factors over which the business has very little control.
Internal:
Includes those factors over which business has some degree of control.
Recovery:
Increasing consumer spending.
Increasing business investment.
Sales and profit raising.
Unemployment falling.
Recession:
Decreasing consumer spending.
Business expectations increasingly pessimistic.
Decreasing business investment.
Sales and profits falling,
Unemployment.
Peaks:
Wages and salaries at high levels.
Business operating at full capacity.
Sales and profits at the highest level.
Low level of unemployment.
Inflation may increase.
And Increase in consumer spending.
Troughs:
Wages and salaries at low levels.
Business operating at below full capacity.
Sales and profits at lowest levels.
Consumer spending is at the lowest levels.
High level of unemployment.
Inflating may remain stable or fall.
Product:
Affect a range of internal structure and operations within a business.
Product influences are:
Good and services.
Product influences.
The size of the company.
Location:
Location can be the difference between success and failure.
Choosing a location is one of a company’s most important decisions.
A bad location is a liability.
Retail and service stores need a constant flow of walk-in traffic.
Resources:
Human resources: These are the employees of the business.
Information resources: Knowledge, data for research, sale reports, economic forcsts, and technical material.
Physical resources: Equipment, machinery, building, and raw materials.
Financial resources: Funds used to meet obligations.
Management influence
Influence in management is the ability of someone in an executive position to shape the attitudes and viewpoints of others..
Business culture:
All businesses have their own culture- the values, ideas, and beliefs shared by the staff and managers.
Language staff use and staff treat each other and customers.
Values, Symbols, Rituals, Heroes.
Culture and organisation structure:
Culture is evident in an organisation’s structure.
Conform to the culture of loyalty and respect.
Management’s role in developing business culture:
Once a positive business culture is in place, it must be kept alive.
Staff needs correct training.
Managers must reinforce values by communicating with the staff.
Stakeholder:
A stakeholder is any group or individual who has an interest in or is affected by the activities of a business.
Shareholders:
Shareholders purchase shares in a company; they become partial owners. Shareholders get to share their concerns about the company at meetings. They expect a fast return on investment.
Managers:
Managers have a major influence on a business. Managers need to try and run a company profitably and successfully. Managers have a lot of policies and guidelines to follow.
Employees:
Employees are vital to a company’s organisation and success. When employees are valued, paid fairly, trained properly, and treated ethically, they will be much more valuable to an organisation.
Customers:
Customers are powerful stakeholders in the external part of a company. They can seek compensation if they have been treated badly or the product isn’t up to standard.
Society:
Members of the community expect a lot from organisations, like being environmentally friendly. Socially responsible companies do a lot of activities with the community.
Environment:
There is growing pressure for companies to be sustainable for the environment. Happens with all sizes of companies ranging from local to global.
