Unit 1 AOS 2 Flashcards
what is the business environment?
the surrounding conditions in which the business operates
what are the two categories of the business environment?
internal and external
what is the internal environment?
factors over which the business has some degree of control
what is the operating environment?
The specific outside stakeholders with whom the business interacts in conducting its business.
what are the factors of the internal environment?
- employees and managers
- legal business structure
- type of business model
- business location
- sources of finance
- business support services
what is the external environment?
all the elements outside a business that may act as pressures or forces on business operations
what are the factors of the operating environment?
- suppliers
- competitors
- customers
- special interest groups
how much control does a business have over the operating factors?
A business has less control over these factors than the internal environment.
what is the macro environment?
the broad conditions and trends in the economy and society within which a business operates
what are the factors of the macro environment?
- corporate social responsibility considerations
- global issues
- economic conditions
- legal and government regulations
- societal attitudes and behaviours
- technological considerations
what do changes in the macro environment affect?
Changes in the macro environment can affect ALL businesses, therefore, businesses have no control over these factors
How does the external environment affect the internal environment?
Essentially, anything that happens in the external environment will impact the internal environment of a business and how it runs. Businesses have to adapt to changes in the external environment.
factors of the external environment?
- legal
- political
- social
- economic
- technological
- global
- corporate responsibility
what does the environment consist of?
various stakeholders, each of these stakeholders have an interest in the business and places different demands on the business (interests may be similar of conflict)
do factors change?
factors that make up the business environment are continually undergoing change and act as pressures on operations of a business
