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Business Management: Internal and external environments, Exams of Business Economics

Business Management: Internal and external environments

Typology: Exams

2024/2025

Available from 04/17/2025

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Business Management: Internal and external environments
Internal Environment✔✔Everything inside the organisation
They have total control over: Staff, Managers, Policies, Structures etc
Operating Environment✔✔Everything outside the environment which can have a
direct impact on the organisation or with which it directly interact.
Much less control over it: Customers, Suppliers, Competitors
External Environment✔✔Everything outside the organisation that it has little or no
control over.
Customers✔✔The buyers and users of the products of a LSO.
Important because without them there is no business hence why they need to meet
the needs of the customer
Suppliers✔✔Organisation or individual that supply resources to the organisation
allowing it to conduct operations.
Reliability, Consistency, Adaptability
Creditors✔✔Creditor supplies money to the business and in the long run get paid
back over time.
Keeps the business running
Competitors✔✔Other organisations that offer rival products or services.
Important because:
> Make you innovative
> Their customers are your potential customers
Lobby groups✔✔Groups of people who attempt to directly influence or persuade
an organisation to adopt particular policies.
Important because:
> Help employment policies
> Environmental groups (plastic bags)
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Business Management: Internal and external environments

Internal Environment✔✔Everything inside the organisation They have total control over: Staff, Managers, Policies, Structures etc

Operating Environment✔✔Everything outside the environment which can have a direct impact on the organisation or with which it directly interact. Much less control over it: Customers, Suppliers, Competitors

External Environment✔✔Everything outside the organisation that it has little or no control over.

Customers✔✔The buyers and users of the products of a LSO. Important because without them there is no business hence why they need to meet the needs of the customer

Suppliers✔✔Organisation or individual that supply resources to the organisation allowing it to conduct operations. Reliability, Consistency, Adaptability

Creditors✔✔Creditor supplies money to the business and in the long run get paid back over time. Keeps the business running

Competitors✔✔Other organisations that offer rival products or services. Important because:

Make you innovative Their customers are your potential customers

Lobby groups✔✔Groups of people who attempt to directly influence or persuade an organisation to adopt particular policies. Important because:

Help employment policies Environmental groups (plastic bags)

Macro environment✔✔Made up of the broad factors in the economy and society within which the organisation operates

Globalisation✔✔The effect of high tech communications, lower transport costs and unrestricted trade and financial flows turning the whole world into a single market, producing a more integrated global economic system

Political influences✔✔Actions of the federal, state, and local governments. There could be legal changes in the law or their actions/decisions could influence how an LSO conducts itself

Technological influences✔✔The use of technology to change the workplace and its activities. Technology changes rapidly and LSO's must keep up with these changes to stay efficient and meet competition

Economic influences✔✔How the economy is operating. Things such as:

Level of economic activity Exchange rate, interest rates Consumer confidence

Social attitudes✔✔The prevailing attitudes of society, these can change over time. As a consequence LSO's must be seen to be responding to these changes

Legal influences✔✔The laws made by Parliament and rulings sat foe by the courts. The conduct of an organisation must comply with these laws