U1 AOS2/ KK1: Business planning & Business Environment Flashcards
Importance of business planning
provides a business with clear direction and how they will respond to certain internal & external factors
The business environment can be broadly separated into:
a) Internal environment
b) external environment
A business has … control over internal factors and decisions and are ultimately made by …
full control; the people within the business
Examples of internal factors
resources; business locations; source of finance; purchasing an existing business vs establishing; types of business structures; CSR for business planning; types of business models; business support services; SWOT analysis
Macro environment
external environment a business works in and which it has no control over
Macro factors
- legal& government regulations
- societal attitudes and behaviour
- economic conditions
- technological issues
- global issues
- corporate social responsibility
Operating factors
external factors that a business has some control over
Operating factors are…
- customer needs & expectations
- competitor behaviour
- suppliers & supply chains
- special interest groups
