1.4 External and internal environment

Business Environment

Refers to all the forces that impact the functioning of a business, including external and internal factors.

PEST Analysis

A framework used to analyze the external environment, focusing on Political, Economic, Social, and Technological factors.

STEEPLE Analysis

An extension of PEST analysis that includes Social, Technological, Economic, Environmental, Political, Legal, and Ethical factors.

SWOT Analysis

A strategic planning tool used to identify Strengths, Weaknesses, Opportunities, and Threats related to a business.

Internal Environment

Refers to factors within a business, including management, resources, and corporate culture.

External Environment

Consists of factors outside the business that influence operations, such as customers, competitors, and suppliers.

Micro Environment

The immediate environment surrounding a business, including customers, competitors, suppliers, and market intermediaries.

Macro Environment

Broader societal forces that impact the micro environment, including economic, political, technological, legal, and socio-cultural factors.

Stakeholders

Individuals or groups who have an interest in the decisions and activities of a business, such as employees, customers, and investors.

Corporate Culture

The shared values, beliefs, and norms that influence how employees behave in an organization.

Mission Statement

A formal summary of the aims and values of a company, outlining its purpose and goals.

Value System

The core principles that guide a business’s actions and decisions.

Organizational Objectives

Specific, measurable goals that a business aims to achieve as part of its overall strategy.

Strategic Planning Tools

Frameworks and methods used to support strategic planning and decision-making in business management.

Economic Dimension

Factors related to the economy that affect business operations, such as inflation, exchange rates, and economic growth.

Socio-Cultural Dimension

The cultural aspects and demographic characteristics of society that influence business practices.

Competitive Advantage

The unique edge that allows a business to outperform its competitors.

Market Analysis

The process of assessing the dynamics of a market concerning competition, demand, and opportunities.

Brand Equity

The value added to a product or service by having a well-known brand name.

Diversification

A strategy to increase profitability by expanding into new markets or product lines.

Value Proposition

A statement that explains how a product solves customers' problems or improves their situation.

Customer Segmentation

The practice of dividing a customer base into groups for more targeted marketing.

Business Model

A company's plan for how it will generate revenue and make a profit.

Supply Chain Management

The management of the flow of goods and services from raw materials to the final product.

Market Penetration

The strategy of increasing sales of existing products in current markets.

Innovation

The process of translating an idea into a good or service that creates value.

Lean Management

A methodology focused on minimizing waste while maximizing productivity.

Corporate Social Responsibility (CSR)

A business model that helps a company be socially accountable to itself, its stakeholders, and the public.

Customer Relationship Management (CRM)

Technology for managing all your company’s relationships and interactions with current and potential customers.

Economic Moat

A competitive advantage that allows a company to protect its profits and market share.

Operational Efficiency

The capability of a company to deliver products or services to its customers in the most cost-effective manner.

Key Performance Indicators (KPIs)

Quantifiable metrics that reflect the critical success factors of an organization.

Market Share

The portion of a market controlled by a particular company or product.

Risk Management

The process of identifying, assessing, and controlling threats to an organization's capital and earnings.

E-commerce

Buying and selling of goods or services using the internet.

Intellectual Property

Creations of the mind for which exclusive rights are recognized.

Market Trends

Patterns and shifts in consumer behavior that indicate the current state of a market.

Brand Loyalty

When consumers repeatedly purchase a specific brand due to positive experiences.

B2B (Business to Business)

Transactions conducted between companies, rather than between a company and individual consumers.

B2C (Business to Consumer)

Transactions where businesses sell directly to consumers.

Content Marketing

A marketing strategy focused on creating and distributing valuable content to attract a target audience.

Project Management

The practice of initiating, planning, executing, and closing the work of a team to achieve specific goals.

Human Resources Management (HRM)

The process of hiring, training, and managing employees.

Market Development

A growth strategy that identifies and develops new markets for existing products.

Consumer Behavior

The study of how individuals make decisions to spend their resources on consumption-related items.

Social Media Marketing

Using social media platforms to promote products or services.

Trade Marketing

The strategy used by manufacturers and suppliers to drive demand for products through retailers.

Corporate Governance

The system of rules, practices, and processes by which a company is directed and controlled.

Employee Engagement

The emotional commitment employees have to their organization and its goals.