Understanding the external environment for businesses (Ch3)

Created by: chloeskellern
Created on: 17-05-17 13:19

In the business and external environment diagram, what does the middle ring indicate

The competitive environment

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The outer ring (general external business environment) involves the broader influences that affect all businesses. These are referred to as the PESTLE factors. What does PESTLE stand for?

Political, Economic, Social, Technological, Legal, Environmental

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“The amount of a product that consumers are willing and able to buy at any given price over a period of time”. What is this the definition of?

Demand

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‘Shampoo and conditioner’ and ‘fish and chips’ are examples of what type of product?

Complementary Products

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Give three examples of products where the businesses selling these would notice seasonal fluctuations in demand.

Ice cream, clothing, pumpkins

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When competition between firms is based solely on price, what is often sacrificed?

Product quality

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What is the current NMW for those under 18 years old?

£4.05

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A rise in income levels is likely to lead to an increase in demand for what type of products?

Luxury

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Interest rates are the cost of _____________ money and the return for _________ money. Fill in the blanks

Borrowing, Lending,

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Would a rise in interest rates have a positive or a negative effect for businesses that have a large amount of long-term loans?

Negative

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Will a fall in interest rates likely lead to an increase or decrease in the cost of goods bought on credit?

Decrease

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Saving money is more likely to be attractive (and therefore demand for consumer goods reduces) when interest rates rise or fall?

Rise

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Give an example of a good or service whose demand would be likely to increase as a result of an ageing population?

Health service, Cruises, Stair lifts

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Why do so many businesses not dispose of waste in a safe way?

Costly

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The WEEE Directive came into force in January 2014; it requires manufacturers to recycle all unwanted electronic appliances. What does WEEE stand for?

Worldwide Electrical and Electronic Equipment Directive

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How many products are now labelled with the fairtrade mark?

4500

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Other cards in this set

Card 2

Front

The outer ring (general external business environment) involves the broader influences that affect all businesses. These are referred to as the PESTLE factors. What does PESTLE stand for?

Back

Political, Economic, Social, Technological, Legal, Environmental

Card 3

Front

“The amount of a product that consumers are willing and able to buy at any given price over a period of time”. What is this the definition of?

Back

Card 4

Front

‘Shampoo and conditioner’ and ‘fish and chips’ are examples of what type of product?

Back

Card 5

Front

Give three examples of products where the businesses selling these would notice seasonal fluctuations in demand.

Back

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Understanding the external environment for businesses (Ch3)