External Environment and Business Challenges

What is the economic environment?

• The conditions of the economic system in which an organization operates

• The relationship between businesses and government

• The customs, values, demographics, and societal characteristics of a society

• The ways firms create value through technology

What is the technological environment?

• The conditions of the economic system in which an organization operates

• The ways firms create value through technology

• The relationship between businesses and government

• The customs, values, demographics, and societal characteristics of a society

What is the political-legal environment?

• The conditions of the economic system in which an organization operates

• The ways firms create value through technology

• The relationship between businesses and government

• The customs, values, demographics, and societal characteristics of a society

What is the socio-cultural environment?

• The conditions of the economic system in which an organization operates

• The ways firms create value through technology

• The relationship between businesses and government

• The customs, values, demographics, and societal characteristics of a society

What is the goal of economic growth?

• To stabilize the economy

• To achieve full employment

• To increase the national debt

• To improve the standard of living

What does GDP measure?

• The total value of goods and services produced within a national economy regardless of ownership

• The total value of goods and services produced by a national economy, regardless of location

• The total quantity of goods and services produced within an economic system over a specific period

• The quality and quantity of goods and services that citizens can purchase with their currency

What does the socio-cultural environment influence?

• The total value of goods and services produced within a national economy regardless of ownership

• The total value of goods and services produced by a national economy, regardless of location

• The total quantity of goods and services produced within an economic system over a specific period

• Product and service preferences and business conduct standards

What are some strategies for companies to adapt to external challenges?

• Acquisitions, mergers, divestitures, and strategic alliances

• Fiscal and monetary policies

• Research and development

• Employee-owned corporations and subsidiary/parent corporations

What is the impact of technology on business activities?

• Technology has increased costs and decreased profits for businesses.

• Technology has had no impact on business activities.

• Technology has hindered efficiency and productivity in business activities.

• Technology has improved efficiency, productivity, communication, and opened up new markets for businesses.

How do companies adapt to external challenges?

• By ignoring external challenges and focusing only on internal operations.

• By identifying challenges, analyzing their impact, developing strategies, and implementing changes to their business operations.

• By blaming external challenges for their failures and not taking any action.

• By completely shutting down their business in the face of external challenges.