TOPIC 1: NATURE OF BUSINESS
Influences in the business environment
- External influences: economic, financial, geographic, social, legal, political, institutional, technological, competitive situation, markets
- Internal influences: products, location, resources, management and business culture
- Stakeholders
Students need to be able to:
- explain how changes in external influences have contributed to the tertiary, quaternary and quinary industries in Australia
External and internal influences
READ:
- External environment (tutor2u)
TASKS:
- Devise a mnemonic for remembering the external and internal influences.
- Search newspapers for examples of external influences.
- Explain how changes in external influences have contributed to the tertiary, quaternary and quinary industries in Australia.
- Assess the importance of internal influences on business, conclude with the one you think is most important, explaining why (approx 1 page).
- Select a small business and outline factors that impact upon its operation, distinguishing between internal and external factors.
- Are internal or external factors more influential? Provide reasons in your answer.
Stakeholders
Firms have a ripple effect on society, like a stone being thrown into a pond. The activities of a business has an economic, environmental and social influence on those connected with the business.
(Marsden and Andriof, 1998, Towards an understanding of corporate citizenship and how to influence it. Citizenship Studies 2:2, 329-352
TASK: Define the term stakeholder. Explain why businesses are not only responsible to its shareholders but also its stakeholders (1/2 page).
