Influences In the Business Environment Flashcards
What are the factors that affect business performance in the economic environment?
Economic cycles, interest rates, inflation, consumer confidence
Business performance is influenced by cycles of boom and recession.
Which financial aspects influence business growth and investment?
Availability of funds, interest rates, global financial markets
These factors can significantly impact a business’s ability to expand or invest.
What geographic factors affect market opportunities for businesses?
Location, demographics, global trade patterns
Geographic considerations can create or limit market access.
How do social factors impact business strategies?
Changing consumer preferences, cultural trends, demographics
Businesses must adapt to societal changes to remain relevant.
What legal factors must businesses consider?
Laws and regulations such as consumer protection and employment laws
Compliance with legal standards is crucial for operations.
What political factors influence business environments?
Government policies, taxation, stability
Political conditions can create favorable or unfavorable business climates.
What role do institutional factors play in business operations?
Government agencies, regulatory bodies, industry associations
These institutions can guide and regulate business practices.
How does technology impact business?
Productivity, efficiency, competition
Technological advancements can reshape industries and operational methods.
What is the competitive situation in a market?
Number of competitors, market structure, barriers to entry
Understanding competition is vital for strategic planning.
How does globalization affect business operations?
Changing market trends, e-commerce
Globalization alters traditional business models and market reach.
What internal factors influence a business’s operations?
Products, location, resources, management, business culture
These elements determine a company’s effectiveness and market position.
How does the nature of a product/service affect a business?
Influences production processes and marketing
Product characteristics determine how a business operates and promotes itself.
What is the significance of business location?
Influences accessibility, visibility, target market reach
Location can be a critical factor in customer acquisition and sales.
What types of resources determine a business’s capability?
Human, financial, physical, informational resources
Resource availability impacts operational effectiveness.
What aspects of management influence business efficiency?
Organisational structure, leadership, decision-making processes
Effective management is key to optimizing business performance.
What is business culture?
Workplace values, ethics, company identity
A strong business culture can enhance employee engagement and consumer loyalty.
Who are stakeholders in a business context?
Individuals and groups affected by business decisions
Stakeholders include employees, customers, suppliers, and the community.
