The External Environment

Question 1

Business Planning

Answer 1

BP is the process of establishing a business’s goals & developing strategies to achieve them

Question 2

The External Environment

Answer 2

The EE involves the surrounding factors that can impact a business which it has minimal control over

Question 3

Operating Factors

Answer 3

OF are the primary external factors impacting a business that is has some control over

Question 4

Macro Factors

Answer 4

MF are social, legal, technological and economic conditions that a business operates in and has no control over

Question 5

Legal & Government Regulation

Answer 5

… are the laws & rules made by parliaments & governments, as well as decisions made by the courts

Question 6

Employment Laws & Regulations

Answer 6

… are rules that govern the relationship between employers & employees

Question 7

Environmental Legislation

Answer 7

… is the set of laws that aim to preserve the environment

Question 8

Industry Regulations

Answer 8

… are rules that specific to businesses within a certain industry

Question 9

Council Regulations

Answer 9

.. are local government rules made to govern businesses operating in a specific geographic area

Question 10

Tax

Answer 10

… is a compulsory payment to the government, which is used to finance the provision of public G&Ss, such as courts & police services

Question 11

Taxation Requirements

Answer 11

… are laws and rules related to tax that apply to all businesses

Question 12

Societal Attitudes

Answer 12

… are the ideas, values & beliefs held by people in a particular society

Question 13

Societal Values & Beliefs

Answer 13

… are the principles, standards & assumptions upheld by individuals or a group of people, which influence how they make decisions

Question 14

Societal Trends

Answer 14

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Question 15

Economic Conditions

Answer 15

… are the conditions that exist in relation to the productive performance & financial stability of a nation or other geographical area.

Question 16

Interest Rates

Answer 16

… is the price paid for money that has been borrowed, expressed as a percentage.

Question 17

Employment Levels

Answer 17

The EL is measured as the % of the labor force who are working in paid employment

Question 18

Tax Rates

Answer 18

… is the % of income or spending that is required to be paid to the government by individuals or businesses

Question 19

Consumer Confidence

Answer 19

… is a measure of consumers feelings & expectations about current & future economic conditions

Question 20

Technological Developments

Answer 20

… are the invention & innovation of tools that solve problems and enhance processes

Question 21

Globalisation

Answer 21

… is the process by which governments, businesses, and people across the globe becoming more interconnected, allowing for increased international trade & cultural exchanges

Question 22

Overseas Competitors

Answer 22

… are businesses that are located in other countries that operate in the same industry and offer a similar good or service

Question 23

Overseas Market

Answer 23

… are any markets that are outside of a business’s own country of operation

Question 24

Offshoring of Labour

Answer 24

… involves a business moving its services or processes to another country

Question 25

Exchange Rates

Answer 25

An ER is the relative price at which the currency of one country can be exchanged for the currency of another country.

Question 26

Online Sales

Answer 26

... involves buying and selling G&Ss using the internet and is also referred to as e-commerce.

Question 27

Copyright

Answer 27

... is a free & automatic protection used on original ideas such as writing, sound, films & photographs

Question 28

Trademark

Answer 28

... is an exclusive right grants over a unique aspect of a business, such as a symbol, sound or number that is used to distinguish the business or its products

Question 29

Patenting

Answer 29

... is a license that provides a business with exclusive rights to use innovative devices, substances, methods and processes.