Unit 3: Factors That Impact Business Activities Pg 23-36 Flashcards
Explain the nature of the internal environment using SWOT analysis.
SWOT - #Is a tool for auditing an organisation and its environment. #It is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a business venture. #It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. #It is the first stage of planning and helps marketers to focus on key issues.
Describe the complexity of the external business environment using PEST analysis.
#Affects operations greatly, business org does not function alone, wider system, people who are involved in biz make decisions daily. #The decisions are influenced by what is going on in the wider economic environment and successful business monitors the feedback that it receives from the environment regarding its product and practices.
Explain the role of the government in encouraging or restricting business activities.
E p l p
As an Entrepreneur
#Provides goods and services for all citizens to benefit employment, education and training policies. #The Government provides services through its own department or its agencies. #Some floods and services are provided by the Government as it felt that all citizens benefit from them, either directly or in directly, eg. Healthcare and education. #Some goods and services from which the society benefits can only be provided adequately if they are funded and organized at the national level, eg. The armed forces and the police force. #Provides goods and services for all citizens to benefit employment, education and training policies.
Explain the relationship between demand and supply
Quantity demanded is the amount of product people are willing to buy at a certain price.
Law of demand states that: The higher the price of a good, the less people will demand that good.
Quantity supplied is the amount of a certain good that producers/suppliers are willing to supply at a certain price.
Law of supply states that: The higher the price, the higher the quantity supplied.
Explain the economic factors that affect businesses.
Dtggie
Trade Cycles
What happens in a Slump (recession)?
2. Trade Cycles - The economy fluctuates, going through trade cycles of slumps and booms. What happens in a Slump (recession)? Output falls Firms lay off workers Wages and prices fall Unemployment increases Firms stop investing Prosperity falls Firms do badly
Explain the social factors that affect businesses.
Social environment
What are the two characteristic of the social environment affect business operations?
Characteristics of population, e.g. Size, race, age.
Cultural influences and changing trends.
Explain the technological factors that affect businesses.
Technological environment
Changes in technology have impact on business operations:
A) New methods of processing
B) Shorter product life cycle
Explain how worker unions affect business environment.
Worker unions
Associate of workers. In whole or in part. Have substantial impact.
To be involved in bargaining, bargaining with employers, on behalf of the workers regarding/about the terms and conditions of employment and reduce wage inequality.
Unions reduce wage inequality because they raise wages for low-and middle-wage workers, blue-collar workers, and workers who do not have a degree.
Advantages of unionized workers. Fringe benefits Employer-provided, Health insurance Health benefits Vacations Holiday.
State the purpose of doing a SWOT and PEST analysis.
SWOT is used to analyze internal environment.
PEST is used to analyze external environment.
Explain the roles of Government.
As a Entrepreneur ….
As a Planner …
As a Legislator …
As a Promotor ….
Explain why the Government will adjust interest and tax rates.
To prevent inflation
What are the major changes you see in the age structure of Singapore’s population?
What sort of opportunities does it present for business?
#Bigger demand for the products that older people need. #Fewer people available to work #Fewer working have to support a large population.
Adult diapers manufacturers will see an increase in revenue and production.
Analyze the consequences for a business organisation in the event of changing trends.
Higher marriage age - The matchmaking agencies will benefit in the social environment as the higher aged singles to seek for their spouse.
Smaller families, birthrate falling - With lesser children, people will buy out higher quality products.
Increased standard of living - An increase of sales in higher quality products such as high-end furnitures.
Levels of education and training - high-end businesses will have you headhunted because you have higher education and more training.
Explain the role of the government in encouraging or restricting business activities.
e P l p
As a Planner There are many ways in which we can see the Government planning for the future through the following/different policies. #Employment policy #Education and training policy #Regional policy #International policy #Industrial relations policy
Explain the role of the government in encouraging or restricting business activities.
e p L p
As a Legislator #Government can affect the business and economic activities through legislative actions and economic policies. #Business need to know the laws of the country that is being conducted. #The structure of government and administration in a country and its sources of law, court system and legal profession are very important when determining whether the country is suitable for engaging in business ventures. #All business carried out s In Singapore must be registered with the Accounting & Corporate Regulatory Authority either under the Companies Act or the Business Registration Act or sometimes both.
