external environment

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  • Created by: miss_umu
  • Created on: 04-05-17 09:57
Political Environment
A change in government policy can change the environment that businesses are working within. If demand in the economy is too high the government can attempt to reduce it; raising taxes. If demand is too low; lower taxes & raise incomes.
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Economic Environment
When interest rates are high, people are being given a large reward for saving money and people who have borrowed money are having to pay a lot back; spending in economy decrease.When interest rates are low, there is no longer an incentive to save.
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Social Environment
The social environment is made up of demographic change, but also the approach of different stakeholders. As our views and attitudes change, the difficulties that businesses face change in line with these things. Eg: lifestyle & ethical issues
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Technological Environment
New processes allow business to adapt and become more efficient. The internet has been a stem of technological change. It has helped transform the way we live our lives, as well as how businesses perform.Technological change is expensive.
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Legal Environment
Health and Safety laws ensure that all people are kept safe.Consumer protection laws protect consumers of products(30 day refund law). Competition legislation ensures that there is not an unfair amount of competition in the market.
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Environmental Environment
Ethics also come into the environmental environment. Fairtrade products are favoured by a lot of consumers.This factor of the external environment covers things such as environmental damage.
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Competitive Emnvironment
Competition is usually a good thing for consumers as it means that prices are kept low. You could get away charging more for a product if it is better quality. This makes consumers deem it worthwhile to spend more money; better quality
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Other cards in this set

Card 2

Front

When interest rates are high, people are being given a large reward for saving money and people who have borrowed money are having to pay a lot back; spending in economy decrease.When interest rates are low, there is no longer an incentive to save.

Back

Economic Environment

Card 3

Front

The social environment is made up of demographic change, but also the approach of different stakeholders. As our views and attitudes change, the difficulties that businesses face change in line with these things. Eg: lifestyle & ethical issues

Back

Preview of the back of card 3

Card 4

Front

New processes allow business to adapt and become more efficient. The internet has been a stem of technological change. It has helped transform the way we live our lives, as well as how businesses perform.Technological change is expensive.

Back

Preview of the back of card 4

Card 5

Front

Health and Safety laws ensure that all people are kept safe.Consumer protection laws protect consumers of products(30 day refund law). Competition legislation ensures that there is not an unfair amount of competition in the market.

Back

Preview of the back of card 5
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