2- Internal Business environment and planning- 2.2-2.16 Flashcards
(20 cards)
Q: What are the two components of the external environment of a business?
A: The macro environment and the operating environment.
Q: What factors are included in the macro environment?
A: Legal, political, social, economic, technological, global, and corporate social responsibility factors.
Q: What does the operating environment consist of?
A: Customers, competitors, suppliers, and special interest groups.
Q: What factors are part of the internal environment of a business?
A: Employees, managers, location, and legal business structures.
Q: How does the external environment influence the internal environment?
A: The external environment has a greater degree of influence on the internal environment of a business.
Q: What are the common legal business structures?
A: Sole traders, partnerships, private limited companies, and public listed companies.
Q: What is the benefit of incorporation for a business?
A: It provides the benefits of limited liability to the owners and separates the business as a legal entity.
Q: What is a business model?
A: The way in which the business runs its operations to generate a profit.
Q: What are some types of business models?
A: Online business, bricks and mortar business, importer/exporter, franchises, and direct-to-consumer businesses.
Q: What are the two options for starting a business?
A: Purchasing an existing business or establishing a new business.
Q: What are the three categories of business resources?
A: Natural resources, labor resources, and capital resources.
Q: What factors should be considered when choosing a business location?
A: Visibility, cost, proximity to customers, suppliers, competitors, and complementary businesses.
Q: What are the two types of finance sources for a business?
A: Internal funds (owner’s capital) and external funds (debt or government grants).
Q: What are some forms of debt financing?
A: Bank overdrafts, bank bills, leasing, trade credit, and mortgages.
Q: What types of support services are available for business owners?
A: Legal advice, financial advice, government support services, and mentorship.
Q: What is a SWOT analysis?
A: A tool that helps identify a business’s internal strengths and weaknesses, as well as external opportunities and threats.
Q: What should a typical business plan include?
A: An executive summary, operations plan, financial plan, and marketing plan.
Q: Why is corporate social responsibility important in business planning?
A: It improves stakeholder welfare and can prevent customer boycotts and employee turnover.
Q: What should a business owner consider regarding the environment?
A: Conducting an environmental audit and setting up an environmental management system.
Q: What staffing issues should be planned for in a business?
A: Safe working conditions, fair wages, and employing from disadvantaged groups.
