Understanding External Influences on Business

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External Influences on Business

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35 Terms

1

External Influences on Business

Factors outside a business's control that significantly impact its operations and success.

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2

Strategic Planning

Developing robust strategies aligned with market conditions and anticipating changes based on the external environment.

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3

Political Factors

Impact of government policies, regulations, taxation, trade restrictions, and stability on business operations.

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4

Economic Factors

Inflation, interest rates, economic growth, and exchange rates affecting a business's economic environment.

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5

Social Factors

Cultural and demographic aspects influencing customer needs, market size, and consumer behavior.

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6

Technological Factors

Innovations and advancements impacting how businesses operate, compete, and innovate.

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7

Environmental Factors

Ecological aspects like climate change, sustainability, and regulations influencing business practices.

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8

Legal Factors

Laws and regulations governing business operations, including employment, health, safety, and consumer protection laws.

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9

Competitive Environment

Analysis of competitors, market structure, competitive strategies, and barriers to entry within an industry.

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10

Global Influences

Impact of globalization, trade agreements, economic conditions, and cultural differences on business operations.

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11

Ethical Considerations

Principles guiding business behavior, including CSR, ethical sourcing, transparency, and accountability.

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12

Business Operations

What is affected by changes in taxation, trade restrictions, and tariffs?

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13

Business Operations

What term refers to a stable political environment that is generally favorable for business investment?

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14

Political Stability

What term refers to a stable political environment that is generally favorable for business investment?

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15

Brexit

What event introduced new trade barriers and regulatory changes affecting many businesses in the UK and EU?

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16

Profitability

What is impacted by rising inflation, which increases costs of raw materials and wages?

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17

Global Financial Crisis

What event in 2008 led to decreased consumer spending and higher unemployment, affecting business revenues?

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18

What demographic change in many countries has led to a rise in demand for healthcare services and products?

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19

Technological Factors

What type of trends, like increasing health consciousness, can create new markets or affect existing ones?

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20

Innovation

What can new technologies create opportunities for, in terms of products and services?

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21

Innovation

What term describes the implementation of automated processes that can increase productivity but may lead to job displacement?

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22

Automation

What term describes the implementation of automated processes that can increase productivity but may lead to job displacement?

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23

E-commerce

What type of platforms have transformed retail industries, allowing businesses to reach global markets?

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24

Climate Change

What impact, such as extreme weather conditions, can affect supply chains and production processes?

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25

Sustainability

What type of focus on sustainability can influence business practices like reducing carbon footprints?

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26

Employment Law

What term describes regulations concerning minimum wage, working hours, and employee rights that affect labor costs?

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27

Health and Safety Regulations

What are the regulations that ensure workplace safety and can prevent legal penalties?

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28

Consumer Protection Laws

What type of laws ensure compliance with product safety standards to prevent legal issues?

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29

Competitive Environment

What type of environment involves analyzing the number and strength of competitors within an industry?

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30

Global Influences

What influences refer to the impact of globalization and international factors on business operations?

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31

Trade Agreements

What term refers to agreements between countries that can reduce trade barriers and create opportunities for business expansion?

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32

Corporate Social Responsibility (CSR)

What ethical consideration involves engaging in activities that can enhance reputation and customer loyalty?

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33

Ethical Sourcing

What practice ensures that products are sourced ethically to prevent negative publicity?

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34

Transparency and Accountability

What term refers to being transparent in operations and accountable for actions to build trust with stakeholders?

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35

Globalization

What process involves expanding into international markets and introduces challenges like cultural differences?

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