unit 1 aos 3 external environment Flashcards
the external enviroment
The external environment involves the surrounding factors that can impact
a business, which it has minimal control over.
macro factors
are social, legal, technological, global, and economic conditions that a business operates in and has no control over.
operating factors
are the primary external factors impacting a business that it has some control over.
legal and governement regulations
are the laws and rules made by parliaments and governments, as well as decisions made by the courts.
Employment laws and regulations
are rules that govern the relationship between employers and employees.
Environmental legislation
is the set of laws that aim to preserve the environment.
Industry regulations
are rules that are specific to businesses within a certain industry.
Council regulations
are local government rules made to govern businesses operating in a specific geographic area.
Taxation requirements
are laws and rules related to tax that apply to all businesses.
Societal attitudes
are the collective values, beliefs, and opinions held by a group of people.
Societal behaviour
is the way people act and respond in various situations
Values and beliefs
are the principles, standards, and assumptions upheld by individuals or a group of people, which influence how they make decisions.
Economic conditions
are the conditions that exist in relation to the productive performance and financial stability of a nation or other geographical area.
interest rates
An interest rate is the price paid for money
that has been borrowed, expressed as a percentage
tax rates
A tax rate is the percentage of income
or spending that is required to be paid to the government by individuals or businesses.
business confidence
consumer confidence
is a measure of consumers’ feelings and expectations about current and future economic conditions.
Technological developments
are the invention and innovation
of tools that solve problems and enhance processes.
Productivity
is the number of goods or services that are produced compared to the number of resources used in the production process.
Effectiveness
is the extent to which a business achieves its stated objectives.
Automated production lines
are machinery and equipment that are arranged in a sequence, and the product is developed as it proceeds through each step.
Overseas competitors
are businesses that are located in other countries that operate in the same industry and offer a similar good or service.
Globalisation
is the process by which governments, businesses, and people across the globe are becoming more interconnected, allowing for increased international trade and cultural exchange.
Differentiation
involves a business distinguishing its goods and services from competitors that are selling similar items in the market.
A free trade agreement
is an international contract that reduces or eliminates trade barriers between two or more countries.
Offshoring of labour
involves a business moving its services or processes
to another country.
An exchange rate
is the relative price at which
the currency of one country can be exchanged for the currency of another country.
CSR
refers to a business’s ability to go above and beyond legal obligations about social, economic, and environmental considerations.
customer needs
are the essential requirements that customers intend to fulfil with the purchase of a good or service from a business.
Customer expectations
are the values or benefits that customers seek when purchasing a good or service from a business.
Competitors
Competitors are businesses that operate
in the same or similar industry and offer a similar good or service.
stakeholder
In business, a stakeholder is any individual, group, or party that has an interest in an organization and the outcomes of its actions.
Customer retention definition
a company’s ability to turn customers into repeat buyers and prevent them from switching to a competitor.
suppliers
are individuals or businesses that provide the resources required to produce goods and services.
A supply chain
is the network of individuals
or businesses that are involved in producing and distributing a good or service to customers.
Inputs
Inputs are the resources used by a business to produce goods
and services.
Outputs
Outputs are the final goods or services produced as a result of
a business’s operations system, that are delivered or provided to customers.
A wholesaler
is a business that sells products in large quantities and at lower prices than retailers.
A retailer
A retailer is a business that sells products directly to customers.
Special interest
Special interest groups
are organisations or a group of people that seek to influence laws, policies, or behaviours to benefit
a specific cause.
Unions
Unions are organisations composed of individuals who represent and speak on behalf of employees
in a particular industry to protect and improve their wages and working conditions.
An employee strike
An employee strike is a mass refusal by employees to work under particular wages or conditions.
Business associations
Business associations are organisations that advise and support businesses in a particular industry.
Environmental lobby groups
Environmental lobby groups are organisations that advocate for
the protection of the environment and
promote environmental issues to businesses, the government, and the public.
