Business Environments Flashcards
List some aspects of the internal environment.
- Factors that directly influence the approach and the success of the operations inside the business
- Easier to manage than the external environment
- Have both negative and positive factors
What are some factors in the internal environment?
- Owner/s and managers
- Employees
- Organisational structure
- Organisational culture
How can we better manage owner/s and managers as an internal factor?
- A business needs to have an effective management team in order to succeed
- Leadership and management styles need to be appropriate to the business to
How can we better manage employees as an internal factor?
- They are the business’s most important asset
- Crucial to recruit and select the most appropriate employees for the business
- Vital to provide a working environment that maximises performance, motivation, job satisfaction and output
Define organisational structure.
A formal structure that outlines the roles and responsibilities of each member in the business
What is the optimal organisational structure for a business’s success?
- Highly structured organisations with efficient supervisors and strong communication lines positively influence and performance
Define organisational culture
- The shared values, beliefs, expectations, attitudes and behaviours of the people in the business
List some aspects of the external operating environment.
- Directly impact the operations of the business
- Consists of stakeholders outside of the internal structure of the business
Who are some of the stakeholders in the external operating environment?
- Customers
- Competitors
- Suppliers
- Interest groups
How can a business better manage customers as an external operating factor?
- A positive relationship must be established with customers as they provide revenue and certainty
- Establishment of a strong customer base, gaining loyalty from customers, continued building of relationships and encouraging more customers to create a competitive organisation.
- Effective customer service policies for a high level of customer satisfaction
Define competitor
A person or entity that offers competing products or services
How can a business better manage its competitors?
Consistent monitoring of competitors to see what they are doing and try to do it better
Define supplier
A person or organisation that provides a product or service
What does a business expect from its suppliers?
Need to be reliable and provide the necessary resources in a timely and cost-effective manner
How can a business better manage its suppliers as an external factor?
- Several suppliers are needed to stay competitive, allows for negotiation on prices
- Positive relationship with suppliers ensures possibility of new offers and good services
