P6 Flashcards
Two Primary Sources of Business Information:
- External Information
- Internal Information
in which documentation is made
available to the public from a third party
External Information
consists of data created for the sole use
of the company that produces it, such as personnel files, trade secrets, and minutes of board meetings.
Internal Information
VARIETY OF FORMS OF EXTERNAL
INFORMATION:
- PRINT INFORMATION OR PRINT RESOURCES
- TELEVISION AND RADIO MEDIA
- ONLINE INFORMATION
- CD ROM INFORMATION CD-ROM (compact disc read only memory)
Are hard copies of resources, like physical books and newspaper.
PRINT INFORMATION OR PRINT RESOURCES
This source of business information is perhaps the least
helpful of the various external sources available to small business owners. Programs
devoted to general investment strategies and the changing fortunes of large companies
can be found, of course, but the broad-based nature of broadcasting makes it difficult, if
not impossible, to launch programs aimed at narrow niche audiences.
TELEVISION AND RADIO MEDIA
“Large online systems can help overcome the incredible
fragmentation of published information. Many online vendors offer global search
capabilities, allowing access to the contents of dozens of databases simultaneously, the
equivalent of reading dozens of different reference books at the same time.“
ONLINE INFORMATION
is a popular alternative to online services. As the name implies, CD-ROM is not so much an
interactive system; in usage it is close to traditional print.
CD-ROM INFORMATION CD-ROM (compact disc read only memory
Is studying the external factors that affect a business. This includes
things like the political landscape, the economic conditions, the technological environment and more. By understanding these factors a company can develop strategies to optimize its performance within
this context.
BUSINESS ENVIRONMENTAL ANALYSIS
Refers to the factors or forces that influence the operations and
growth of organization.
BUSINESS ENVIRONMENTAL ANALYSIS
(2) TYPES OF BUSINESS ENVIRONMENT:
- INTERNAL ENVIRONMENT
- EXTERNAL ENVIRONMENT
are factors within a company that
affect growth and profitability. As something the business can
control, it can be changed to produce the desired results Internal
factors that influence the business environment include company culture, organizational structure, physical resources and HR policies and processes.
INTERNAL ENVIRONMENT
is comprised of forces around the
business that affect growth and profitability. Businesses can’t
control them and therefore can’t change them
EXTERNAL ENVIRONMENT
TWO GROUPS OF EXTERNAL ENVIRONMENT:
- MICRO ENVIRONMENT
- MACRO ENVIRONMENT
This directly impact your organization’s
daily operations. They are your distributors, competitors, consumers and the general public.
MICRO ENVIRONMENT
impact your organizations decisions.
They are political economic, social and technological spheres.
MACRO ENVIRONMENT
is effective because it gives businesses the bigger picture of
their environment. It identifies the key environmental elements that
impact business decisions, unlike the SWOT analysis.
PESTLE
PESTLE MODEL OF BUSINESS ENVIRONMENT
ANALYSIS:
______ involves factors related to government action. There
are two underlying factors to consider when conducting a business
environment scan of political influences – overall government
stability and the degree to which the government intervenes in the
economy.
POLITICAL
PESTLE MODEL OF BUSINESS ENVIRONMENT
ANALYSIS:
_______ impact business growth directly. Include inflation,
foreign exchange, income per capita, GDP and unemployment rates. These affect consumers’ buying power.
ECONOMIC
PESTLE MODEL OF BUSINESS ENVIRONMENT
ANALYSIS:
_______ consists of societal values, traditions, attitudes and behaviors. Every country has distinct socio-cultural norms, which influence the production, sale or advertising of goods and services.
SOCIAL
PESTLE MODEL OF BUSINESS ENVIRONMENT
ANALYSIS:
_____ entails the use of machines and software to
improve modes of production and product quality. It touches every
part of businesses, and the rate of advancement is astonishing. The
technological factors to consider in this environmental analysis
involve the availability of artificial intelligence, automation, and IT
infrastructure.
TECHNOLOGICAL
PESTLE MODEL OF BUSINESS ENVIRONMENT
ANALYSIS:
______ refers to national laws, government policy, and industry
regulations that affect how businesses work. Include licensing,
consumer protection laws, employment laws and intellectual
property. It gets tricky for businesses targeting a global audience.
You must comply with the laws of your native country and the countries where you operate.
LEGAL
PESTLE MODEL OF BUSINESS ENVIRONMENT
ANALYSIS:
_____ ecological environment refers to the physical
world, such as climate, water bodies, land masses and animal.
Environmental facts to consider in a business environment analysis
are carbon footprints, the impact of natural disasters,
environmental protection laws, and sustainable/ethical production
practices.
ENVIRONMENTAL
- Allows companies to maximize their profit.
- Helps businesses identify growth opportunities, fast/slow-
moving stock items, market trends, etc, ultimately helping
decision-makers see a more concrete picture of the company
as a whole.
PROFITABILITY ANALYSIS
