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Questions and Answers
Which one of the following best defines the Business Environment?
What does the External Business Environment include?
What does the Internal Business Environment refer to?
What considerations are linked with the external environment?
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What should a company's strategy and approach to operations be aligned with?
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Study Notes
Definition of Business Environment
- The Business Environment refers to the internal and external factors that influence a company's operations and decision-making processes.
External Business Environment
- Includes factors outside the organization that can affect its performance, such as:
- Economic factors (e.g. inflation, recession)
- Political factors (e.g. government policies, regulations)
- Social factors (e.g. consumer behavior, culture)
- Technological factors (e.g. advancements, innovations)
- Environmental factors (e.g. climate change, natural resources)
Internal Business Environment
- Refers to the factors within the organization that can affect its operations and decision-making, such as:
- Company culture and values
- Management structure and leadership
- Employee skills and competencies
- Financial resources and management
- Physical assets and infrastructure
External Environment Considerations
- Linked to the external environment are considerations such as:
- Market trends and competitor analysis
- Customer needs and expectations
- Government policies and regulations
- Social responsibility and ethics
- Economic and environmental sustainability
Alignment of Strategy and Operations
- A company's strategy and approach to operations should be aligned with the external environment, taking into account:
- Market opportunities and threats
- Customer needs and expectations
- Environmental and social responsibilities
- Economic and technological trends
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Description
Test your knowledge on the Business Environment with this quiz! Explore the factors and elements that can impact a business organization, both internally and externally. Challenge yourself to understand how these factors can influence a company's performance.
