Studied by 3 people
External Influences on Business
Factors outside a business's control that significantly impact its operations and success.
Strategic Planning
Developing robust strategies aligned with market conditions and anticipating changes based on the external environment.
Political Factors
Impact of government policies, regulations, taxation, trade restrictions, and stability on business operations.
Economic Factors
Inflation, interest rates, economic growth, and exchange rates affecting a business's economic environment.
Social Factors
Cultural and demographic aspects influencing customer needs, market size, and consumer behavior.
Technological Factors
Innovations and advancements impacting how businesses operate, compete, and innovate.
Environmental Factors
Ecological aspects like climate change, sustainability, and regulations influencing business practices.
Legal Factors
Laws and regulations governing business operations, including employment, health, safety, and consumer protection laws.
Competitive Environment
Analysis of competitors, market structure, competitive strategies, and barriers to entry within an industry.
Global Influences
Impact of globalization, trade agreements, economic conditions, and cultural differences on business operations.
Ethical Considerations
Principles guiding business behavior, including CSR, ethical sourcing, transparency, and accountability.
Business Operations
What is affected by changes in taxation, trade restrictions, and tariffs?
Business Operations
What term refers to a stable political environment that is generally favorable for business investment?
Political Stability
What term refers to a stable political environment that is generally favorable for business investment?
Brexit
What event introduced new trade barriers and regulatory changes affecting many businesses in the UK and EU?
Profitability
What is impacted by rising inflation, which increases costs of raw materials and wages?
Global Financial Crisis
What event in 2008 led to decreased consumer spending and higher unemployment, affecting business revenues?
What demographic change in many countries has led to a rise in demand for healthcare services and products?
Technological Factors
What type of trends, like increasing health consciousness, can create new markets or affect existing ones?
Innovation
What can new technologies create opportunities for, in terms of products and services?
Innovation
What term describes the implementation of automated processes that can increase productivity but may lead to job displacement?
Automation
What term describes the implementation of automated processes that can increase productivity but may lead to job displacement?
E-commerce
What type of platforms have transformed retail industries, allowing businesses to reach global markets?
Climate Change
What impact, such as extreme weather conditions, can affect supply chains and production processes?
Sustainability
What type of focus on sustainability can influence business practices like reducing carbon footprints?
Employment Law
What term describes regulations concerning minimum wage, working hours, and employee rights that affect labor costs?
Health and Safety Regulations
What are the regulations that ensure workplace safety and can prevent legal penalties?
Consumer Protection Laws
What type of laws ensure compliance with product safety standards to prevent legal issues?
Competitive Environment
What type of environment involves analyzing the number and strength of competitors within an industry?
Global Influences
What influences refer to the impact of globalization and international factors on business operations?
Trade Agreements
What term refers to agreements between countries that can reduce trade barriers and create opportunities for business expansion?
Corporate Social Responsibility (CSR)
What ethical consideration involves engaging in activities that can enhance reputation and customer loyalty?
Ethical Sourcing
What practice ensures that products are sourced ethically to prevent negative publicity?
Transparency and Accountability
What term refers to being transparent in operations and accountable for actions to build trust with stakeholders?
Globalization
What process involves expanding into international markets and introduces challenges like cultural differences?
Note 
Flashcard (24)