LESSON 1 Flashcards
factors or elements affecting a business organization.
It may be divided into the External and Internal Business Environments.
BUSINESS ENVIRONMENT
seeking for and sorting through data about the environment
Environmental scanning
refers to the factors/elements outside the organization which may affect, either positively or negatively, the performance of the organization
External business environment
-refers to the factors/elements within the organization which may effect, either positively or negatively, the performance of the organization
Internal business environment
period of above normal general price increases, as reflected in the consumer and wholesale price indexes
Inflation
the total amount that a borrower must pay annually to the lender and above the total amount borrowed
Interest rates
consumers change in preference of goods and services offered
Changing options
consumers’ changing ways of spending their money on goods and services
People’s spending habits
The general business environment includes the:
economic, sociocultural, politico-legal, demographic, technological, and world and ecological situations.
Inflation, rates of interest, changing options in stock markets, and people’s spending habits are some examples of:
factors/elements of economic situations
may affect management practices in organizations.
Economic situations
include the customers’ changing values and preferences; customs could also affect management practices in companies.
Sociocultural situations
refer to national or local laws, international laws, and rules and regulations that influence organizational management.
Politico-legal situations
such as gender, age, education level, income, number of family members, geographic origin, etc., may also influence some managerial decisions in organizations.
Demographic situations
of companies involve the use of varied types of electronic gadgets and advanced technology such as computers, robotics, microprocessors, and others that have revolutionized business management;
technological situations
are related to the increasing number of global competitors and markets, as well as the nature and conditions of the changing natural environment.
World and ecological situations
are parties likely to be affected by the activities of the organization, while customers are those who patronize the organization’s products and services.
Stakeholders
are special-interest groups that try to exert influence on the organization’s decisions or actions.
Pressure groups
=execute the company’s strategies and are important for the maintenance of the company’s stability.
=are comprised of those who work for another or for an employer in exchange of salaries/wages or other considerations.
EMPLOYEES
(SWOT)
Internal strengths and weaknesses, opportunities, and threats
Adapting to environmental uncertainties must start with developing a
competitive mindset
also known as business forecasting, is a method of predicting how variables in the environment will alter the future of business.
business prediction
