Internal and External influences

Question 1

Internal environment

Answer 1

Things the business has some control on - Location, products and resources

Question 2

External environment

Answer 2

Things businesses have little control over- Government policies and social attitudes

Question 3

External influences on a business

Answer 3

Markets, economic, social, technological, institutional, geographic, financial, legal, political and competitive situation

Question 4

Location factors

Answer 4

Visibility, Cost and proximity to consumer/supplies/support

Question 5

Economic/business cycle

Answer 5

Recovery: Unemployment falling
Recission: Sales and profits falling
Peaks: Inflation may increase
Through: High level of unemployment

Question 6

Political influences

Answer 6

Taxation, Labour markets reform, Environmental management and social reforms

Question 7

Institutional influences

Answer 7

Government: Federal, state, and local
Regulatory bodies: EPA, ASIC, ACCC
Other: ASX