Topic 1.5 - External environment Flashcards
Business cycle
the fluctuations in the the level of business activity over time
Business ethics
the moral principles that are, or should be considered in the business decision-making
deregulation
the removal of government rules and regulations that constrain an industry to enhance efficiency and encourage more competition within the industry
economic growth
measures the changes in the Gross Domestic Product of a country over time
environmental factors
the ecological influences that have a direct impact on the operations of an organization
Ethics
the moral values and judgements that society believes the businesses ought to consider in their decision-making
Exchange rate
the value of a country’s currency in terms of other currencies
external environment
refers to a framework of the STEEPLE factors that are beyond the control of an individual organization, but which affect all businesses and their operations
Fiscal policy
the use of taxation and government expenditure policies to influence business activity
Inflation
occurs when the general price level in an economy continuously rises
Interest rate
a measure of the price of money in terms of the amount charged for borrowed funds or how much is offered on money that is saved
Monetary Policy
the use of interest rate policy to affect the money supply and exchange rates in order to influence business activity
Political factors
in a STEEPLE analysis refers to influences from the role that governments play in business operations, e.g. tax laws and rules or restrictions on trade
Protectionist measures
any measure taken by a government to safeguard its industries from overseas competitors
Social factors
in a STEEPLE analysis are the influences on business related to people in society, their lifestyles and their beliefs
