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Understanding the Business Environment > Constant Change – a Range of Factors > Flashcards

Flashcards in Constant Change – a Range of Factors Deck (15)
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What happens when a business understands its environment?

Organsiations that understand their environemnt will be better able to opearet in it than one that does not


What does Morrison (2006, p4) suggest?

He suggests that the buisness environemnt may be visualised in terms of layers, considering both the internal and external factors surrounding the business that influences its organisations and operations


What are the the 5 layers of the business environment?

Organisation, Local Community, Nation State, Region and World


What are the six majors influences on business environment?

Political, Economic, Social and Cultural, Technological, Legal and Environmental


Impact of influences on business environment?

The influence of any one part of this environment may vary at any given point in time, but they are all exerting an influence on the profitability and decision making of the business/ organisation over time


What do Wetherly and Otter (2011, p4) remind us?

There is a two way interaction with the business and their environment


What does CIPD (Chartered Institute for Personal Development) describe PESTLE as?

They describe it as a 'generic orientation tool' that an organisation can use to determine external pressures and factors that have an impact on operations and stratergy


What does Morrsion (2006, p30) suggest about PESTLE?

That it is a tool for mointering and evaluating forces that impact the organisation in the long term


What does P represent in PESTLE?

Political - type of goverment, fiscal policy, regulation, trading blocs and partners, world trade organisation


What does E represent in PESTLE?

Economic - Free market vs regulated, goverment intervention, supply and demand, economic cycles


What does S represent in PESTLE?

Social and Cultural - national cultures, gender, age, human rights, immigration, ethics


What does T represent in PESTLE?

Technological - Ecommerence, Internet Super highway, Digital Revolution, Big Data


What does L represent in PESTLE?

Regional Laws, court systems, employment laws, trade agreements, regulations and standards


What does E represent in PESTLE?

Environmental - Recycling, Corporate Social Responsbility (CSR), climate change, carbon footprint


Depending on where you live, the relative importance of the issues will be very different. This will be as result of a number of factors such as:

The type of business and its size and geographical spread, the relative development of the country, religion and culture