LESSON 3 Flashcards
The first layer of the environment is the physical or natural environment.
It is composed of the natural elements that are inherent in the earth. It is divided into climate, physical resources and wildlife.
physical environment
The climatic conditions in a particular region in the Philippines where the business will be established must be evaluated.
climate
The availability of raw materials is another major factor that can influence the success or failure of the business venture.
Physical Resources
The wild plants and animals in the Philippines forests are continually abused.
In view of this, the entrepreneur must ensure that his/her business contributes to the preservation and not the destruction of the ecological system of the local community and our country in general.
wildlife
Changes in the physical environment have a direct impact on the societal environment and the effect can be felt later in the industry environment.
THE SOCIETAL ENVIRONMENT
is generally composed of social, political, cultural, economic, legal and technological forces
The societal environment
The critical evaluation and thorough study of the environment where the business operates is technically called.
environmental scanning
There societal environment is composed of different forces, namely:
- Political
- Economic
- Social
- Technological
- Legal
are elements in society resulting from human interactions that can influence the thoughts, behavior, attitude, actions and even beliefs and customs of the people.
Social Forces
are the various elements usually comprising of the political parties, political systems, and other related political groups that substantially influence the political stability of a country.
Political Forces
basically refers to the integrated characteristics of a group of people or ethnic group in a particular society.
include the following:
1. Religion
2. Language
3. Beliefs
4. Customs
5. Education
culture
are factors which are primarily caused by changes or movements in the Philippine economy that have direct or indirect effects on the entrepreneurial venture.
Economic forces
is the amount of interest that the lender (e.g., banks, financial institutions, and financial intermediaries) charges to the borrower for certain amount within a specified period of time.
Interest rate
are the elements and bodies that are directly involved in the legislation and interpretation of laws and ordinance directly affecting the business.
Legal forces
basically refer to the trends and developments in computer and information technology that have impact in business.
Technological forces
refers to the gathering, critical evaluation and utilization of information on events and activities and their relationships with the physical, societal and industry environment.
Environmental scanning
is a tabular framework of the trends and developments in the different forces in the external environment.
PESTLE Analysis
PESTLE stands for
Political, Economic, Sociocultural, Technological, Legal and Ecological Forces.
This is the environment where business conducts its various entrepreneurial activities.
is the internal environment layer where the trends and changes are easily and immediately felt by the business.
industry environment
refers to the system or institution that handles the affairs of a particular country.
Government
refer to individual person or companies that provide required materials, parts, or services to the business.
Suppliers
are the buyers of goods or services produced or rendered by the business.
customers
are the forces existing in the industry environment that produce, sell, or render products or services which are similar to those of business.
competitors
produce and sell similar products or services
Direct competitors
