Unit 1 Business Management Area of Study 3 - external environment 2023

macro environment

factors that impact on

the business and are

outside the control of any

one business

permit

law or regulation

or some type of official

approval to perform a task

or complete an activity

societal attitudes

acquired tendency to

evaluate social things in a

specific way. Attitudes can

be characterised by positive

or negative beliefs, feelings

and behaviours towards

others or a particular entity.

rate of interest

the amount

charged, expressed as a

percentage of principal, by

a lender to a borrower for

the use of assets. Interest

rates are typically noted on

an annual basis.

technology

practical

application of science to

achieve commercial or

industrial objectives

exchange rate

the price

of a country's currency in

terms of another currency

offshore labour

refers to

work that is done in another

country

patent

a right that is

granted for any device,

substance, method or

process that is new,

inventive and useful

copyright

exists to protect

the original expression

of ideas (not the ideas

themselves).

trademark

a right that is

granted for a letter, number,

word, phrase, sound, smell,

shape, logo, picture and/or

aspect of marketing

online sales

when a

person purchases a product

or service via the internet.

Online shopping has become

popular because it is

convenient and can be done

from anywhere.

corporate social responsibility

the

commitment by

organisations to conduct

their business in an

ethical manner that is 'above and beyond their legal requirements'. They take

responsibility for the

economic, social and

environmental consequences

of their activities.

operating environment

the environment

immediately external to

a business with which it

has close interaction when

conducting its business

activities

consumer

a person or

group who uses a product

customer

someone who

buys goods or services

customer expectations

the value that customers

believe they will gain from

purchasing a particular

good or service

customer needs

something customers

require because it is

essential or very important

rather than just desirable

competitior

a business

rival in the same market for

products or services offered

by the business

supplier

supplies the

inputs (resources) required

for the production process

supply chain

system

of organisations, people,

activities, information

and resources involved

in moving a product or

service from suppliers to

manufacturers and then on

to consumers

special interest group

a group of people or an

organisation seeking

or receiving special

advantages or privileges

lobby group

a group

that aims to influence

organisations or

governments in their

decision-making processes

fair trade

trade between

companies in developed

countries and producers

in developing countries in

which fair prices are paid to

the producers

business association

membership organisation

engaged in promoting the

business interests of its

members

industry association

representative body for a

particular industry group

union

an organisation

of workers or employees

who have joined together

to achieve common goals

such as higher pay, better

working conditions and job

security