Questions and Answers
What is the primary purpose of business environment analysis?
To identify business opportunities and threats
Which of the following is NOT a characteristic of a dynamic business environment?
Stability and routine
What is the term for the process of identifying and evaluating the external factors that affect a business?
Environmental scanning
Which of the following is an example of a social factor that can affect a business?
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What is the term for the overall set of external factors that affect a business?
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Study Notes
Business Environment Analysis
- The primary purpose of business environment analysis is to identify and evaluate the external factors that affect a business.
Characteristics of Business Environment
- A dynamic business environment is characterized by constant change, uncertainty, and complexity.
External Factors Affecting Business
- The process of identifying and evaluating the external factors that affect a business is called environmental scanning or environmental analysis.
- Social factors that can affect a business include demographics, lifestyle, culture, and consumer behavior.
- Examples of social factors that can affect a business include changes in population demographics, increase in health consciousness, and shift in lifestyle.
Business Environment
- The overall set of external factors that affect a business is called the business environment.
- The business environment includes factors such as social, technological, economic, and political (STEP) factors.
- Understanding the business environment is crucial for businesses to develop effective strategies and make informed decisions.
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