The Nature of a Business - Influences in the Business Environment

Question 1

External influences

Answer 1

MC PIGS LEFT

economic, financial, geographic, social, legal, political, institutional, technological, competitive situation, markets

Question 2

Economic Influences

Answer 2

external

recovery, peak, recession, trough

Question 3

Financial influences

Answer 3

external
The finance industry (banks etc.)
Global financial markets

Question 4

Geographical influences

Answer 4

external

Australia’s geographic location within the Asia-Pacific region = growing economy

Question 5

Social influences

Answer 5

external

Businesses need to respond to social and cultural change. ie women ^ in work force, ageing population

Question 6

Legal influences

Answer 6

external
laws affecting business’ = taxation, industrial relations - WH&S, anti-discrimination, equal employment opportunities

Question 7

Political influences

Answer 7

external
Government policies = major impact on business environment. Different government every 3 years – means uncertainty for future polices, impact business confidence

Question 8

Institutional influences

Answer 8

external

main ones - government, Environmental protection agency, ASX

Question 9

Competitive situation influences

Answer 9

external

number of competitors, ease of entry into market, local and foreign competition, market straggles employed by employers.

Question 10

Markets

Answer 10

external

changes in financial, labour and consumer markets

Question 11

Internal influences

Answer 11

mr plc

products, location, resources, management and business culture