1. Business as a Dynamic Activity Flashcards
What are the internal factors?
-finance available
-ability of staff
-information available
-ICT available
-ability of management
-changes in costs
What are the external factors?
-political factors
-economic factors
-social factors
-technological factors
-environmental factors
-competitive factors
-ethical factors
what is the political factors?
UK and European Union (EU) laws and political decisions affect every business in the UK
Businesses must comply with laws or face heavy legal penalties or even prosecution
What is the economic factors?
-inflation
-exchange rates
-interest rates
what is the social factors?
-demographic changes
-socio cultural changes (more women work, increased concern about the environment)
What is the technological factor?
firms must keep up with the new technology or face loosing customers, sales and profits
What is the environmental factor?
-storms
-floods
-pollution
-noise
-climate and weather changes
what is the competitive factors?
most businesses now face both domestic and foreign competition
what is the competitive factors?
most businesses now face both domestic and foreign competition
what is the ethical factor?
as a set of values and principles that influence how organisations behave
what is the ethical factor?
as a set of values and principles that influence how organisations behave
what are strategic decisions?
the long-term decisions about where the organisations wants to be in the future
senior managers and owners make these decisions
what are strategic decisions?
the long-term decisions about where the organisations wants to be in the future
senior managers and owners make these decisions
what are tactical decisions?
the medium-term decisions - how the strategic decisions are to be achieved
they are made by middle management or departmental managers
what are operational decisions?
the short-term (day-to-day) decisions
usually made by junior managers and supervisors but all staff may make this type of decisions
