Business Environment Overview

Physical assets, R&D capabilities, marketing resources, and financial factors are significant.

The macro environment includes broader conditions like economic, socio-cultural, political, and technological factors.

The political environment influences economic and business policies that affect operational guidelines and market conditions.

<p>Economic characteristics such as the level of income and distribution of assets influence demand and pricing strategies.</p> Signup and view all the answers

<p>Social factors dictate the type of products to be marketed and the strategies for their promotion based on cultural norms.</p> Signup and view all the answers

<p>Population size, age composition, and family size are crucial demographic factors.</p> Signup and view all the answers

<p>Technology enhances a firm's capabilities in manufacturing products and delivering services efficiently.</p> Signup and view all the answers

<p>Global economic linkages refer to the interdependencies between economies across the world, impacting trade and investment.</p> Signup and view all the answers

<p>The two main environments are the internal environment and the external environment.</p> Signup and view all the answers

<p>Geographical factors influence business decisions through resource availability, climate conditions, and location advantages.</p> Signup and view all the answers

<p>Technology improves existing production methods and requires entrepreneurial expertise to adapt effectively.</p> Signup and view all the answers

<p>Three components of the macro environment are the economic environment, industrial policy, and monetary policy.</p> Signup and view all the answers

<p>Favorable economic conditions drive investment and expansion opportunities for businesses.</p> Signup and view all the answers

<p>Liberalization refers to the process of reducing government restrictions to encourage more business activity.</p> Signup and view all the answers

<p>The socio-cultural environment affects consumer behavior and preferences, impacting marketing strategies.</p> Signup and view all the answers

<p>Low labor costs can make production more cost-effective, allowing for competitive pricing and increased profit margins.</p> Signup and view all the answers

<p>The two main categories are internal factors, which are controllable, and external factors, which are uncontrollable.</p> Signup and view all the answers

<p>The three levels are the internal environment (factors within the company), the micro environment (closer factors like suppliers and customers), and the macro environment (broader factors like economic and political conditions).</p> Signup and view all the answers

<p>A shared value system among employees fosters alignment and motivation, which contributes significantly to the company's overall success.</p> Signup and view all the answers

<p>Mission and objectives guide a company's priorities, direction of development, and business philosophy, influencing decision-making and strategic planning.</p> Signup and view all the answers

<p>Factors include organizational structure, composition of the Board of Directors, and the professionalization of management.</p> Signup and view all the answers

<p>Internal power relationships affect the level of support management receives from employees and shareholders, significantly influencing decision implementation.</p> Signup and view all the answers

<p>Characteristics such as skill level, quality, morale, commitment, and attitude are critical to determining an organization's strengths and weaknesses.</p> Signup and view all the answers

<p>A strong company image and brand equity are crucial for raising finance, forming alliances, and market positioning, ultimately influencing growth and profitability.</p> Signup and view all the answers

<p>The key components include the economic system, relationships with the government and markets, and the influence of various sectors like capital and global markets.</p> Signup and view all the answers

<p>Economic conditions influence the level of demand and supply, pricing strategies, and overall market trends that businesses must consider.</p> Signup and view all the answers

<p>A capitalist economy relies on free market principles with minimal government intervention, while a socialist economy emphasizes equal income distribution regulated by the state.</p> Signup and view all the answers

<p>Interest rates influence borrowing costs and investment decisions, while exchange rates affect trade balances and currency strength.</p> Signup and view all the answers

<p>The Nordic countries distribute income based on hard work and contributions, emphasizing social welfare and equal opportunity.</p> Signup and view all the answers

<p>The United States, United Kingdom, Germany, and Singapore are classic examples of capitalist economies.</p> Signup and view all the answers

<p>China has incorporated elements of capitalism into its economy to enhance growth while retaining state control over key sectors.</p> Signup and view all the answers

<p>Fiscal policies directly impact national income levels, public spending, and overall economic stability, affecting consumer confidence and business investments.</p> Signup and view all the answers

<p>To incorporate democratic socialism into India's economic structure.</p> Signup and view all the answers

<p>They aimed to facilitate free trade, ultimately strengthening India's economy.</p> Signup and view all the answers

<p>It involves setting an upper and lower limit on exchange rates, allowing for some flexibility within that range.</p> Signup and view all the answers

<p>It establishes guidelines for export and import activities in India.</p> Signup and view all the answers

<p>Interest rates affect demand by influencing purchasing power, while exchange rates impact trade competitiveness.</p> Signup and view all the answers

<p>A mixed economy combines both private and government/state-owned entities in controlling the ownership and exchange of goods.</p> Signup and view all the answers

<p>The U.S. and France are examples of mixed economies.</p> Signup and view all the answers

<p>On December 25, 1991, Mikhail Gorbachev resigned, marking the end of the Soviet Union and the rise of Boris Yeltsin as president.</p> Signup and view all the answers

<p>India's foreign trade policy aims to increase its share of global trade from 2.1% to 3.5%.</p> Signup and view all the answers

<p>India's monetary policy deals with the central bank's control over money supply and interest rates.</p> Signup and view all the answers

<p>Fiscal policy in India controls taxation and guides government expenditure decisions.</p> Signup and view all the answers

<p>India's agricultural policy includes land reform, food security, and the use of innovative agricultural technologies.</p> Signup and view all the answers

<p>The market of labor is integral to India's economic policies, impacting employment and wage dynamics.</p> Signup and view all the answers