Chap 2- Part 1 Flashcards
What is a business environment
The forces outside a business that can affect the firm’s industry and competitive environment
What is a macro environment
The external environment that cannot be control by business
What does PEST stands for
P - political legal environment
E- economic environment
S- social cultural environment
T- technological environment
Why is PEST so important
Because it measures the changes in external business environment that might affect the conpany’s ability to prosper
What is the political/legal environment
The gouvernement relationship with business
What is the economic environment
Consist of factors that affect consumer purchasing power and spending patterns
What is globalization
A movement towards a more interconnected and independant world economy
What is sociocultural environment
Ans interconnected system of different demographic factors
What is a technological environment
The possible ways a company creates value for its customers (equipment, electronics etc..)
