Understanding External Influenceson Business Flashcards
What are external influences on business?
Factors outside a business that can impact its performance and decisions.
True or False: Economic conditions are an external influence on business.
True
Fill in the blank: _____ influences include changes in consumer preferences.
Social
What does PESTLE stand for?
Political, Economic, Social, Technological, Legal, Environmental
Name one political factor that can influence a business.
Government regulations
What type of external influence is competition?
Market influence
True or False: Technological advancements can create new business opportunities.
True
What impact can inflation have on a business?
Increased costs and decreased consumer spending
Multiple Choice: Which of the following is NOT a social influence? A) Demographics B) Lifestyle changes C) Interest rates
C) Interest rates
What is the effect of legal influences on businesses?
Compliance with laws and regulations affecting operations
Fill in the blank: Environmental influences relate to _____ and sustainability.
Ecological factors
How can changes in consumer confidence affect businesses?
It can lead to changes in spending habits.
What role do global events play in external business influences?
They can affect supply chains, market demand, and regulations.
True or False: External influences are static and do not change over time.
False
What is a direct external influence on a business’s pricing strategy?
Competitors’ pricing
Multiple Choice: Which of the following is an economic influence? A) Tax policies B) Cultural trends C) Technological innovation
A) Tax policies
What can businesses do to adapt to external influences?
Implement strategic planning and market research.
Fill in the blank: _____ influences can include advancements in technology or changes in production methods.
Technological
What is the significance of understanding external influences for a business?
It helps in strategic planning and risk management.
True or False: Social influences only affect large corporations.
False
What type of external influence would a natural disaster fall under?
Environmental
What is the impact of demographic changes on businesses?
It can affect market size and consumer demand.
Multiple Choice: Which is an example of a technological influence? A) E-commerce B) New tax laws C) Cultural shifts
A) E-commerce
Fill in the blank: Businesses must be aware of _____ to remain competitive.
External influences
What is a potential consequence of ignoring external influences?
Loss of market share or business failure.
What can be an effect of changes in government policy on businesses?
Altered operational costs and market access.
