Anonymous
Apr 7
Briefly discuss the external business environment in which the business operates, put references. (14 marks)?
Principle of business entrepreneurship
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Apr 7
The external business environment refers to all the factors outside of a business that can impact its operations and success. This includes economic conditions, political and legal factors, social and cultural influences, technological advancements, and competitive forces.
One key aspect of the external business environment is the economic conditions in which the business operates. This includes factors such as inflation rates, interest rates, and overall economic growth. These factors can impact consumer spending habits, the cost of borrowing money, and the overall demand for goods and services.
Political and legal factors also play a significant role in the external business environment. This includes government regulations, trade policies, and political stability. Changes in regulations or policies can have a direct impact on a business's operations and profitability.
Social and cultural influences can also shape the external business environment. This includes factors such as demographic trends, consumer preferences, and societal values. Businesses need to be aware of these influences in order to effectively target their products and services to the right audience.
Technological advancements are another important aspect of the external business environment. Rapid changes in technology can create new opportunities for businesses to innovate and improve their operations. However, businesses also need to be aware of the risks associated with technological disruptions and ensure they stay ahead of the competition.
Finally, competitive forces in the external business environment can have a significant impact on a business's success. This includes factors such as the number of competitors in the market, their pricing strategies, and their market share. Businesses need to constantly monitor their competitors and adapt their strategies in order to stay competitive.
Overall, the external business environment is complex and constantly evolving. Businesses need to be aware of these external factors and adapt their strategies accordingly in order to thrive in a competitive marketplace.
References:
- Hill, C. W. L., Hult, G. T. M., & Wickramasekera, R. (2019). Global business today. McGraw-Hill Education.
- Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
One key aspect of the external business environment is the economic conditions in which the business operates. This includes factors such as inflation rates, interest rates, and overall economic growth. These factors can impact consumer spending habits, the cost of borrowing money, and the overall demand for goods and services.
Political and legal factors also play a significant role in the external business environment. This includes government regulations, trade policies, and political stability. Changes in regulations or policies can have a direct impact on a business's operations and profitability.
Social and cultural influences can also shape the external business environment. This includes factors such as demographic trends, consumer preferences, and societal values. Businesses need to be aware of these influences in order to effectively target their products and services to the right audience.
Technological advancements are another important aspect of the external business environment. Rapid changes in technology can create new opportunities for businesses to innovate and improve their operations. However, businesses also need to be aware of the risks associated with technological disruptions and ensure they stay ahead of the competition.
Finally, competitive forces in the external business environment can have a significant impact on a business's success. This includes factors such as the number of competitors in the market, their pricing strategies, and their market share. Businesses need to constantly monitor their competitors and adapt their strategies in order to stay competitive.
Overall, the external business environment is complex and constantly evolving. Businesses need to be aware of these external factors and adapt their strategies accordingly in order to thrive in a competitive marketplace.
References:
- Hill, C. W. L., Hult, G. T. M., & Wickramasekera, R. (2019). Global business today. McGraw-Hill Education.
- Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
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