Business Environments and Sectors of the Economy

Flashcards based on lecture notes about business environments and sectors of the economy.

Micro Environment

The internal environment of a business over which the business has full control.

Market Environment

The external environment of a business including customers, suppliers, competitors, and intermediaries, over which the business has some control.

Macro Environment

The external environment of a business including political, economic, social, technological, legal, and environmental factors, over which the business has no control.

P2E2STLE Factors

Political, Physical, Economical, Ethical, Social, Technological, Legal and Environmental factors that make up the Macro environment.

SWOT Analysis

A strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or business venture.

Porter's Five Forces

A framework for analyzing the competitive intensity and attractiveness of an industry.

Public Sector

Part of the economy owned and controlled by the government, providing services rather than making a profit.

Private Sector

Businesses owned and controlled by individuals with the aim of making a profit.

Primary Sector

The sector of the economy involved in the extraction of raw materials from nature.

Secondary Sector

The sector of the economy involved in changing raw materials into semi-finished and finished products (manufacturing).

Tertiary Sector

The sector of the economy involved in selling final products/services to the consumer.

Environmental Scanning

Obtaining information about current and future events that can impact business performance.

Strengths

Internal attributes and resources of an organization that support a successful outcome.

Weaknesses

Internal attributes and resources of an organization that impede a successful outcome.

Opportunities and Threats

External conditions that may help or hinder a company's performance.