Chapter

1.2. Understanding the Business Environment*

From IntroductionToBusiness OP 8D04gAa

Concepts

1. What are the sectors of the external business environment, and how do they influence business decisions?

   "Businesses do not operate in a vacuum but rather in a dynamic environment that has a direct influence on how they operate and whether they will achieve their objectives. This external business enviro

2. How do economic influences affect businesses and individuals?

   "This category is one of the most important external influences on businesses. Fluctuations in the level of economic activity create business cycles that affect businesses and individuals in many ways

3. How do political and legal influences shape business operations?

   "The political climate of a country is another critical factor for managers to consider in day-to-day business operations. The amount of government activity, the types of laws it passes, and the gener

4. How do demographic factors influence markets and business decisions?

   "Demographic factors are an uncontrollable factor in the business environment and extremely important to managers. Demography is the study of people’s vital statistics, such as their age, gender, race

5. How do social factors influence consumer behavior and workplace decisions?

   "Social factors—our attitudes, values, ethics, and lifestyles—influence what, how, where, and when people purchase products or services. They are difficult to predict, define, and measure because they

6. How can businesses support work-life balance for their employees?

   "In an industry driven by deadlines and details, it’s hard to imagine striking a balance between work and everyday life for full-time employees and seasonal staff. Fortunately, the management team at