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The External business environment - Coggle Diagram
The External business environment
Political factors
directly affected
could affect whole of business community
could affect just 1 sector
economic factors
microeconomic environment - economic factor that is specific to a particular firm operating in a specific market
macroeconomic environment
national and international economic situation in which business' operate
social - social values and attitudes - attitudes, nature and purity of products, social trends and attitudes and ethical issues
technological factors - robots and computer controlled systems - new range of opportunities - new IT innovation - great communication and online shopping - can reach global markets
environmental - has become more of an important issue - government - policy of name and shame big polluters - greener approach - better sales and more finance from government and investors
legal - affected by legal framework
ethical - under pressure to adopt a more socially responsible attitude toward business
globalisation and the changing business environment - hastened by STEEPLE factors
social - growing influence of western consumerist culture
tech - communications revolution - communicate with suppliers, customers and subsidiaries easier - reduction of size + weight of products
economic - markets are increasingly global - domestic increasing competition from abroad - on local level - economics more convergence - relatively same
environmental and ethical - concerns about burning of fossil fuels, depletion of fish , pollution, loss of bio diversity and killing rainforests
politcal and legal - development of trading blocs, international agreements to remove trade barriers, political power of the US and the meetings of the G8