External factors influencing business
_________________ is the process of connecting countries around the world through trade, finance, and communication.
Globalisation
Name the external factors influencing Business (PESTE)
- Political
- Economic
- Social
- Techonological
- Ethical
Formal working documents which set out the overall goals of a business and the strategies to achieve them.
Business Plan
Name 3 Business Performance Indicators.
Return on invested capital
Profitability
Market share
Value to customers
Reputation
It is the increasing use of the Internet and other electronic networks to conduct business transactions.
E-commerce
Which are the 5 M’s?
Management
Manpower
Machine
Material
Money
"The focus an organization has on developing its products and processes" is an aim related to:
a. Market Share
b. Research and development
c. Product Quality and service
d. Diversification
b. Research and development
This means how much money a business earns after paying its costs:
a) Market Share
b) Profitability
c) Value to customers
b) Profitability
Is this transaction B2B or B2C?:
"A farm sells vegetables in bulk to a restaurant".
B2B
Name 3 benefits of E-commerce.
Have access to narrow market segments
Access to global markets
Larger product availability from a variety of sellers
Virtual market allows many competitors which reduces price
New marketing tool for exiting products
Create a 'level playing field' for small businesses with big businesses
Location and time independence
Ease of communication
Improved relationships with stakeholder
In a SWOT analysis “Predicting the reaction of competitors” corresponds to: Strengths, Opportunities, Weaknesses or Threats?
Threats
The percentage of total sales a business has in its industry.
For example, if a company sells 1 out of every 4 phones, it has a 25% ____________.
a) Market Share
b) Profitability
c) Value to customers
a) Market Share
It is defined as the business world’s response to increased social awareness. It involves businesses recognising that they need to positively impact on the community and environment.
Corporate Social Responsibility
Name 2 benefits of workforce diversity?
Increased adaptability – Different backgrounds bring flexible ideas for changing markets.
Broader service range – Skills like speaking other languages help serve global customers.
Variety of viewpoints – Different viewpoints lead to more creative solutions.
More effective execution – When everyone feels included, people work better, and the company becomes more successful.
In a SWOT analysis, “Having a competitive advantage” corresponds to: Strengths, Opportunities, Weaknesses, or Threats?
Strenghts
Refers to how useful, helpful, or satisfying a product or service is to the people who buy it
a) Market Share
b) Profitability
c) Value to customers
c) Value to customers
*Provide 2 examples of how Governments are altering government policy these days to influence businesses externally.
Self-reliance: The government might give less financial help (subsidies) to companies so they learn to grow on their own.
Cutbacks in government spending: When the government spends less, businesses that usually work with them might earn less money.
Increased Privatization: Some industries that used to be run by the government are now open for private companies (local or foreign) to run.
Free trade: The government might support easier trade between countries, which helps businesses sell and buy more freely.
Which are the current themes in the area of diversity needing attention?
- Integrating minorities more fully into the workforce.
- Dealing with non-traditional lifestyles.
- Meeting the needs of an aging workforce
Match the columns:
( ) Goals
( ) Aims
( ) Objectives:
1. Are the specific statements of purpose that detail where a company wants to go in the future.
2. The measurable outcomes linked to the aims.
3. Provide an overall vision for the company
( 3 ) Goals
( 1 ) Aims
( 2 ) Objectives:
Name and explain the 2 types of Business Performance Indicators.
Results-oriented indicators: Identify measurable performance, consequences or ends. They are closely linked to the objectives.
Process-oriented indicators: Identify implementation of agreed methods, resources and approaches.