ANALYZING THE BUSINESS ENVIRONMENT (TLE) Flashcards
(13 cards)
Is the key to determining enterprises’ strengths, weaknesses, opportunities, and threats that affect the operation of a business.
Business environment
This may lead the path for development and growth.
Environment trends
This makes the task of managers easier in dealing with business challenges. It also helps build and improve public image.
Environmental analysis
TRUE OR FALSE. The interaction with the environment dopes not help the business analyze its rivals’ strategies, thereby developing its own business techniques accordingly.
FALSE.
Answer: The interaction with the environment HELPS the business analyze its rivals’ strategies, thereby developing its own business techniques accordingly.
What are the six forces influencing business environment?
- Demographical factors
- Economic factors
- Geographical and ecological environment
- Social and cultural environment
- Political and legal environment
- Technological environment
Embodies a basic process in knowing the human population in terms of its size, density, distribution, and other vital data and statistics needed.
Demographical factors
These factors cannot be controlled or managed by the entrepreneurs
Economical factors
Consumers will patronize a product if they have the ability to pay, which is purely dependent on their income.
Economic level/financial capacity
Competition is a trend and therefore it is done extensively by entrepreneurs to outsmart each other by employing some competitive tools.
Competitive forces
The geographical situation of a certain place affects the nature and type of industries or businesses that can be established.
Geographical and ecological environment
This factor can also affect the operation of business in compliance with the social, cultural attitudes and values of the people.
Social and cultural environment
Follow legal systems and adapt government-prescribed policies or guidelines, which are the standard procedures in the establishment
Political and legal environment
Businesses need to keep on updating their products and services to cope with the rapid advancement of technology.
Technological environment
