Business Awareness 3 Flashcards
(18 cards)
What does PESTLE analysis stand for?
Political, Economic, Social, Technological, Legal, Environmental
What does PESTLE analysis focus on?
An organisation’s macro environment
What are the components of PESTLE analysis?
- Political factors
- Economic factors
- Social factors
- Technological factors
- Legal factors
- Environmental factors
Define a market.
All of the buyers and sellers of a good or service, or a factor of production
What affects the price and output decisions of a firm?
The market forces of demand and supply
What is illustrated by a demand curve?
The law of demand
What is the substitution effect?
What are conditions of demand?
Factors other than price which can influence demand
What is illustrated by a supply curve?
The relationship between price and quantity supplied
What are conditions of supply?
Factors other than price which can influence supply
What is the equilibrium price?
The price at which quantity demanded equals quantity supplied
At what price is the quantity demanded equal to the quantity supplied?
$12,500
What is the price mechanism?
Functions that influence the movement to equilibrium
What factors influence the level of competition in a micro-economic environment?
What does sustainability concern beyond environmental issues?
- Long-term vs short-term views
- Stakeholder views
- Resource management
What is a challenge of being sustainable?
Balancing short-term financial objectives with a long-term outlook on sustainability
What may hinder companies from investing in sustainable projects?
Lack of support from influential stakeholders
What issue arises from the rarity of certain minerals in manufacturing?
If these are used up faster than they can be mined or recycled, future resources will be insufficient
