Unit 1 AOS 2 KK1 Flashcards
Internal environment/micro environment
factors over which the business has some degree of control over
Stakeholders of the internal environment
Shareholders, managers, and employees
Factors of the internal environment
consists of factors which have the potential to influence the company’s decisions working and strategies
External environment
Factors that the business has no control of
What does the external environment consist of
operating environment, macro environment
What is the Operating environment
Specific stakeholders outside the business with whom they interact while conducting the business
Stakeholders of the the operating environment
Customers, suppliers, competitors, interest groups
Macro environment
the broad conditions and trends in the economy and society within which a business operates
Factors involved with the external environment
factors which can affect the survival, growth, reputation and expansion of the company
PESTLE
political, economic, social, technological, legal, Environmental (CSR)
Political
the political and legal environment which consists of rules regulations and policies which the company needs to adhere eg: covid 19
Economic
Economic activity in regards to interest wages unemployment, exchange rates and inflation
Social
Lifestyle choices cultural expectations, consumer taste, population demographics
Technological
innovation, security levels, disruptive technology such as ai, smartphones
Legal
Health and safety regulations
