3- Factors within the external (macro and operating) environment that affect business planning Flashcards
(14 cards)
Q: What are the two main components of the external environment affecting business planning?
A: Macro environment and 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 are some key legal and government regulations businesses must comply with?
A: Business name registration, company registration, local government regulations, employment regulations, trade practices, consumer protection laws, and environmental protection regulations.
Q: Why are societal attitudes and behavior important in business planning?
A: They influence values, beliefs, and trends that affect consumer expectations and business practices.
Q: What is a trend in the context of societal attitudes?
A: A general direction in which people’s attitudes or behavior in society is developing or changing.
Q: What economic conditions should be considered when planning a business?
A: Interest rates, employment levels, tax rates, and levels of consumer confidence.
Q: How do technological considerations impact business planning?
A: They involve adapting to changing markets and technological development.
Q: What is globalization in the context of business?
A: The integration of global markets due to hi-tech communications, lower transport costs, and unrestricted trade.
Q: What corporate social responsibility (CSR) considerations should businesses address?
A: Environmental considerations and the impact on community welfare, employees, customers, and suppliers.
Q: What do customers expect from businesses?
A: High quality goods and services at competitive prices, along with social responsibility.
Q: Why is it important to monitor competitors during business planning?
A: To be aware of existing competitors and potential newcomers in the market.
Q: What is a supply chain?
A: The range of suppliers from which a business purchases materials and resources.
Q: What role do special interest groups play in business?
A: They attempt to influence or persuade businesses to adopt specific policies or procedures.
