r1 applied economics

• Environmental Scanning: It is a process of IDENTIFYING the internal and external elements that affect the organization’s performance.
• Business Environment: It includes all internal and external factors that affect the performance of the company.
• Internal Environment: These factors are controllable by the management.
• External Environment: These factors are beyond the control of the management however, have a great impact on the performance, decision making, and strategy of the business
• Environmental Analysis: It is a strategic tool to identify the external and internal environment.
• External Environment: There are two elements in the external environment: micro and macro. These environmental factors are beyond the control of the business but they still minimize

  the impact if the business has an effective strategic plan.
• micro and macro: two elements in the external environment
• MICRO ENVIRONMENTAL FACTORS:

  suppliers, resellers, customers, competition
• MACRO ENVIRONMENT FACTORS

  political factors, economic factors, social factors, technological factors, environmental factors, legal factors
• Suppliers: can control the success of the business when they hold power. The _ holds the power when they are the only or the largest supplier of the goods

  in the market.
• Resellers: Market intermediaries, middleman, or resellers have a great contribution to the delivery of products to the ultimate consumers.
• customer's: is an individual or business that purchases goods or services.
• Competition: Those who sell the same or similar products and services as your organization is called competitors.
• Political factors:

  These are about how and to what degree a government intervenes in the

  economy.
• Economic factors: have a significant impact on how and organization does business and also how it is profitable. These factors include economic growth, interest rates, exchange rates, inflation, disposable income of consumers and businesses.
• Social Factors:

  These include the shared belief and attitudes of the population. These factors are population growth, age distribution, health consciousness, career, attitudes and so on.
• Technological factors: affect the management and marketing in three ways. new ways of producing goods and services, new ways of distributing goods andservices, and new ways of communicating with target markets.
• Environmental Factors: These factors have become important due to the increasing scarcity of raw materials, pollution targets, doing business as an ethical and sustainable company.
• Legal Factors:

  It includes health and safety, equal opportunities, advertising standards, consumer rights and laws, product labeling, and product safety. It is clear that companies need to know what is and what is not legal in order to trade successfully.