External operating environment

• EXTERNAL OPERATING environment

  directly influences the operations of a business, consists of stakeholders that are OUTSIDE the businesses internal structure. includes:

  customers

  competitors

  suppliers

  interest groups
• customers

  directly impact the operations of a business.
• competitors

  can impact the success and profits of a business by taking their customers.

  direct competitors: offer same or similar products

  indirect competitors: indirectly gives customers options
• suppliers

  provides the resources that a business needs to operate shapes quality of products and delivery time
• interest groups

  an organisation that shares a common interest to work together to protect and promote specific industries
• the interest groups

  professional association: provide assistance and support to businesses

  trade unions: organisation formed by workers to work for the common interest of its members

  public interest groups: attempts to influence specific politics eg. environment