3.7.6 Analysing the external environment to assess opportunities and threats: social and technological

• Technological Factors cover innovations, automation, research and development, and access to technology
• What do cultural trends influence in a business context?

  Product demand
• Social Factors include cultural trends, demographic changes, consumer attitudes, and workforce management
• Order the steps in analyzing the external environment.

  1️⃣ Identify social and technological factors

  2️⃣ Assess the impact of these factors

  3️⃣ Distinguish opportunities from threats

  4️⃣ Develop strategies to exploit opportunities
• What consumer attitude shapes product preferences and marketing strategies?

  Sustainability
• Why is analyzing social factors important for businesses?

  To identify opportunities
• Increased emphasis on work-life balance influences workplace culture
• An aging population increases the demand for healthcare products and services.


  True
• Match the social factor with its impact on business:

  Cultural Trends ↔️ Influences product design

  Demographic Changes ↔️ Alters market segmentation

  Consumer Attitudes ↔️ Shapes marketing strategies

  Workforce Management ↔️ Affects recruitment policies
• Access to technology can provide businesses with opportunities to develop new products and services.


  True
• The external environment encompasses all factors outside of a business that can influence its operations, decisions, and performance
• Analyzing social factors is crucial for businesses to adapt to changes in society.

  True
• The rise of veganism is an example of a cultural trend influencing product design.


  True
• Innovation and automation are key technological factors.


  True
• Cultural trends can influence consumer tastes and product demand.

  True
• The rise of veganism is an example of a cultural trend impacting business.


  True
• What cultural trend has led to the development of plant-based product lines?

  Veganism
• The rise of veganism is an example of a cultural trend influencing business strategy.
• What is the primary benefit of analyzing social trends for businesses?

  Proactive adaptation to change
• How does innovation and automation affect production efficiency?

  By automating manual tasks
• What is the primary goal of innovation and automation for businesses?

  Improve efficiency and productivity
• Changes in cultural norms can influence consumer tastes and product demand.


  True
• Steps in adapting to changes in workforce management:

  1️⃣ Analyze labor laws

  2️⃣ Assess employee expectations

  3️⃣ Implement effective recruitment policies
• Growing concern for sustainability drives businesses to produce eco-friendly products
• Cultural trends influence product design and marketing campaigns
• What is the purpose of analyzing technological factors for businesses?

  Understand innovations and automation
• What are some key technological trends that significantly affect businesses?

  AI, cloud, IoT, blockchain
• What are opportunities in a business context?

  Favorable external factors
• What is one strategy businesses can use to exploit opportunities?

  Product development
• What does market expansion involve for a business?

  Entering new geographic markets
• What is the primary goal of developing strategies to exploit opportunities?

  Gain a competitive edge
• Technological factors influence production processes, product development, and competitive advantages.


  True
• Steps in analyzing the impact of social factors on a business:

  1️⃣ Identify social trends

  2️⃣ Analyze their impact on business operations

  3️⃣ Adapt strategies to address changes
• Emphasis on work-life balance has influenced workplace culture and HR policies.


  True
• Innovation and automation can enhance production efficiency and reduce costs
• Access to technology, such as cloud computing, allows businesses to create and deploy software without investing in expensive hardware
• What is one example of how AI improves customer service on e-commerce sites?

  AI chatbots assist customers
• Blockchain ensures secure and transparent transactions in supply chains by tracking goods from origin to delivery.


  True
• Stronger competitors and shifting consumer tastes are examples of threats
• Market expansion involves entering new geographic markets or targeting different customer segments