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Readings 19 & 20: The external business environment and biotechnology…
Readings 19 & 20:
The external business environment and biotechnology
Political factors
firms affected by actions of government and political events
major events that affects business community
microenvironment
customers needs of product or service provided
competitors- how strong is a company compared to it's competitors, can it compete?
suppliers
distributors
macroenvironment
social
legal
economic
political
technological
Recession and recovery
Recession
Decreasing consumer spending
Business expectations increasingly pessimistic
Decreasing business investment
Sales and profits falling
Unemployment rising
Recovery
Increasing consumer spending
Business becomes expectations increasingly optimistic
Increasing business investment
Sales and profits rising
Unemployment falling
Peak
Wages and salaries at higher levels
Businesses operating at full capacity
Sales and profits at highest level
Low level of unemployment
Inflation may increase
Trough
Wages and salaries at low levels
Businesses operating below full capacity
Sales, profits and consumer spending at lowest levels
High level of unemployment
Inflation may remain stable or fall