Studied by 2 people
External Influences
Political Factors
Economic Factors
Social Factors
Technological Factors
Environmental Factors
Legal Factors
Competitive Environment
Global Influences
Political Factors
factors refer to how government actions and policies impact businesses
Government Policies
These include taxation, subsidies, grants, and spending programs
Regulations and Laws
Employment laws, health and safety regulations, and environmental laws
Trade Policies
Policies regarding trade tariffs and agreements.
stable
Consistency in government policies and leadership can provide businesses with a ____ long-term planning and investment environment.
Economic Factors
include economic growth, inflation, interest rates, and exchange rates.
consumer spending
A strong economy can boost business by increasing _______________
Inflation
Rising prices can increase costs for businesses and reduce consumer purchasing power
investment
High interest rates can increase borrowing costs, reducing business ________
Exchange Rates
Fluctuations can affect businesses involved in international trade
Social Factors
encompass demographic changes, cultural trends, and consumer behavior
Demographics
Changes in population size, age distribution, and income levels
Cultural Trends
Shifts in societal values and lifestyles
Consumer Behavior
Preferences and spending habits of consumers.
skilled labor
The level of education in a population can influence the availability of _________
workforce
Higher education levels can provide a business with a more skilled ______, leading to increased productivity and innovation.
interact
The rise of social media has changed how businesses ______ with customers and manage their reputations.
Technological Factors
involve advancements in technology that affect how businesses operate
Innovation
Development of new products and processes
Automation
Use of automated systems to increase efficiency
Digital Transformation
Adoption of digital technologies
Research and Development (R&D)
Investment in ___________ can lead to new innovations and competitive advantages
Environmental Factors
pertain to ecological and environmental aspects such as climate change and sustainability
Resource Availability
Access to natural resources can affect production and operations.
Corporate Responsibility
Businesses’ efforts to reduce their environmental footprint and contribute positively to their communities
Legal Factors
include laws and regulations that affect business operations.
Employment Law
Regulations regarding minimum wage, working conditions, and employee rights
Health and Safety Regulations
Requirements to ensure workplace safety.
Consumer Protection Laws
Laws to protect consumers from unfair business practices
Intellectual Property Laws
Protection of inventions, designs, and artistic works
Data Protection Regulations
Laws governing the collection and use of personal data.
Competitive Environment
involves the analysis of competitors and market conditions
monopoly, oligopoly, perfect competition
Different types of market structures
Barriers to Entry
Factors that prevent new competitors from entering the market
Substitute Products
Availability of alternative products that can replace a business’s offerings.
Brand Loyalty
Customer preferences for specific brands that can affect market share and profitability
Global Influences
refer to the impact of globalization and international factors on business operations
Globalization
Expanding into international markets
Global Economic Conditions
Economic trends and conditions worldwide
Cultural Differences
Variations in cultural practices and consumer preferences in different countries.
Geopolitical Risks
Political instability and conflicts that can disrupt global supply chains and business operations
Ethical Considerations
involve the principles and values that guide business behavior.
Corporate Social Responsibility (CSR)
Engaging in activities that benefit society and the environment.
Ethical Sourcing
Ensuring products are sourced responsibly
Transparency and Accountability
Being open about business practices and accountable for actions
Fair Trade
Supporting fair wages and conditions for producers in developing countries
Ethical Marketing
Honest and transparent marketing practices that build trust with consumers
Organizational Culture
The values, beliefs, and behaviors that characterize an organization
Internal Influences
Organizational Culture
Leadership and Management
Operational Efficiency
Financial Resources
Human Resources
motivation, productivity
A strong, positive culture can enhance employee ______ and _________
Leadership and Management
The style and effectiveness of leadership and management within a business
Management Skills
Skills required to plan, organize, and control organizational activities
Operational Efficiency
The ability of a business to produce goods and services efficiently
Financial Resources
The availability and management of financial resources
Human Resources
The skills, abilities, and motivation of employees
Business Objectives and Strategy
Goals and plans to achieve them.
Business Objectives and Strategy
Long-term plans to achieve competitive advantage
Operational Objectives
Short-term goals to support strategic objectives.
Resources and Capacity
The assets and capabilities available to a business
Operations and Processes
Activities and procedures used to produce goods and services
Production Methods
Techniques used to manufacture products.
Quality Control
Processes to ensure products meet customer expectations.
Technology Adoption
The integration and use of technology within a business
IT Infrastructure
The hardware, software, and networks used to support business operations
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