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Questions and Answers
What does the business environment refer to?
What is included in the external macro environment?
What is the purpose of analyzing the macro marketing environment?
What is the external micro environment composed of?
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What does the internal environment consist of?
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Study Notes
Business Environment
- Refers to the internal and external factors that affect a business's performance and decision-making
External Environment
- Comprises of macro and micro environments
Macro Environment
- Includes external factors that affect all businesses, such as:
- Economic factors (e.g. inflation, recession)
- Political and legal factors (e.g. government policies, laws)
- Social and cultural factors (e.g. demographics, lifestyles)
- Technological factors (e.g. advancements, innovations)
- Environmental factors (e.g. climate change, sustainability)
Purpose of Analyzing Macro Environment
- To identify opportunities and threats that can impact business strategy and performance
External Micro Environment
- Comprises of external factors that affect an individual business or industry, such as:
- Customers
- Suppliers
- Competitors
- Intermediaries (e.g. distributors, wholesalers)
Internal Environment
- Consists of factors within an organization that affect its performance, such as:
- Organization structure and design
- Corporate culture and values
- Human resources and talent
- Financial resources and systems
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Description
Test your knowledge of market and business environments with this quiz. Explore the factors and forces affecting firms' customer relationships and decision-making behavior. Assess your understanding of the three levels of business environment and their impact on organizational decision-making.
