WEEK FIVE BUSINESS ENVIRONMENT

A set of vocabulary flashcards based on the business environment concepts, including SWOT and PESTEL analysis.

Business Environment

The aggregate of all conditions, events, and influences that surround and affect an organization.

Complexity of Environment

The environment consists of a variety of factors that are interrelated and operate together, making it difficult to understand in its entirety.

Dynamic Environment

An environment that is constantly changing due to various influences.

Multi-faceted Environment

The way an environment can be perceived differently by different observers, leading to varied responses to changes.

SWOT Analysis

A strategic planning technique to identify strengths, weaknesses, opportunities, and threats in an organization.

External Environment

Factors outside an organization that create opportunities or pose threats.

Internal Environment

Factors within an organization that impart strengths or cause weaknesses.

General Environment

The broader view of the environment that includes international, national, and local economic factors.

Market Environment

Factors related to groups and organizations that affect an organization's market and business.

Technological Environment

Factors related to knowledge and machinery affecting an organization's operations.

Supplier Environment

Factors regarding the cost and reliability of inputs necessary for production.

Economic Environment

Macro-level factors impacting production and wealth distribution.

Political Environment

Factors related to political systems and their impact on business operations.

Regulatory Environment

Government policies regulating economic activities that affect orgs.

Socio-cultural Environment

Factors related to human relationships, behaviors, demographic trends impacting the organization.

International Environment

Factors operating at a cross-border level affecting business on a global scale.

PESTEL Analysis

Framework analyzing Political, Economic, Social, Technological, Environmental, and Legal factors in strategic management.

Opportunities in SWOT

Favorable conditions in the external environment that enable organizational growth.

Threats in SWOT

Unfavorable conditions in the external environment that risk the organization.

Strengths in SWOT

Inherent capacities an organization can leverage for strategic advantage.

Weaknesses in SWOT

Inherent limitations within an organization that create strategic disadvantages.

Advantages of SWOT Analysis

Simplicity, comprehensive view, supports strategic planning, decision-making, and enhances resource utilization.

Pitfalls of SWOT Analysis

Subjectivity, oversimplification, lack of prioritization, static nature, and potential for misclassification.

Advantages of PESTEL Analysis

Comprehensive overview of external factors, facilitates strategic planning, enhances environmental awareness.

Pitfalls of PESTEL Analysis

Oversimplification, subjectivity, information overload, static nature, and lack of direct strategic guidance.