Module 4 Flashcards
(30 cards)
Fill in the blank: The _______ environment refers to the natural elements affecting business operations.
physical
What are the three natural elements of the physical environment?
- Climate
- Physical resources
- Wildlife
True or False: Government policies and administrations do not impact business activities.
False
What is the significance of the sociocultural environment for a business?
It includes demographic and cultural dimensions such as values, traditions, family structure, social status, religions, customs, education, and population dynamics.
What does PESTEL analysis stand for?
- Political
- Economic
- Sociocultural
- Technological
- Ecological
- Legal
What does the Environmental Forces Matrix categorize?
The frequency of occurrence and level of effect of various environmental forces on a business.
What are the components of the societal environment that impact business ventures?
- Sociocultural Environment
- Political Environment
- Economic Environment
- Ecological Environment
- Technological Environment
- Legal Environment
Fill in the blank: The process of gathering data and assessing events related to environmental forces is known as _______.
environmental scanning
What is the role of the physical resources in the physical environment?
The availability or lack of raw materials determines the cost of products and long-term operation.
What is the impact of changes in the physical environment on the societal environment?
It affects resource availability and costs, influencing business operations.
What is meant by the term ‘external environment’ in entrepreneurship?
The physical environment, societal environment, and industry environment where business activities occur.
True or False: Entrepreneurs should ignore technological advancements when considering business opportunities.
False
What are the characteristics common among successful entrepreneurs?
- Skills
- Characteristics
- Competencies
What does the term ‘wildlife’ encompass in the context of the physical environment?
The general composition of the ecological system and the need for entrepreneurs to contribute to ecological conservation.
Fill in the blank: The _______ environment includes trends and developments in information technology and scientific discoveries.
technological
What effect did the COVID-19 pandemic have on business operations?
It accelerated the shift to online business platforms and e-commerce.
What is one key factor that influences the political environment affecting businesses?
Political stability, trade regulations, taxation, and government policies.
What is the significance of understanding the legal environment for entrepreneurs?
It involves knowledge of laws and regulations that affect business operations.
What is the importance of assessing the climate when starting a business?
It determines the suitability of the location for the business venture.
What is the expected outcome of completing the module?
Enhanced understanding of environmental factors and improved ability to identify business opportunities.
What are the components of the physical environment?
Climate, Physical Resources, Wildlife, Rainy Seasons, Supplies of Wine, Endangered species
These components significantly influence business operations and decision-making.
What are the key forces in the social environment?
Sociocultural forces, Political forces, Economic forces, Legal forces, Technological forces
These forces shape market dynamics and consumer behavior.
What is the significance of the PESTEL analysis in business?
It helps identify Political, Economic, Sociocultural, Technological, Ecological, and Legal forces impacting a business.
Understanding these forces aids in strategic planning.
Fill in the blank: The three components that have a greater effect on a business are ______, ______, and ______.
[key learning terms]
These components are critical for assessing the business environment.
