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6. Business and its environment

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2 topics · 9 learning objectives

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  1. 6.1 External influences on business activity

    1. 6.1.1Political and legal

      • Political and legal - the advantages and disadvantages of privatisation in a given situation - the advantages and disadvantages of nationalisation in a given situation - how a government might use the law to seek to control: employment practices, conditions of work (including health and safety), wage levels, marketing behaviour, competition, location decisions, particular goods and services - the impact of changes in political and legal factors on business and business decisions

    2. 6.1.2Economic

      • Economic - how government might intervene to help businesses and encourage enterprise - how government might intervene to constrain business activity - how government might deal with market failure - the key macroeconomic objectives of governments: low unemployment, low inflation, economic growth - how macroeconomic objectives and performance of an economy can have an impact on business activity - government policies used to achieve macroeconomic objectives: monetary, fiscal, supply-side and exchange rate policies - the impact of changes in these government policies on business and business decisions

    3. 6.1.3Social and demographic

      • Social and demographic - the impact of and issues associated with corporate social responsibility (CSR), e.g. accounting practices, paying incentives for the award of contracts, social auditing - why businesses need to consider the needs of the community including pressure groups - demographic changes at a local, national and global level - the impact of social and demographic change on business and business decisions

    4. 6.1.4Technological

      • Technological - the impact of technological change on business and business decisions

    5. 6.1.5Competitors and suppliers

      • Competitors and suppliers - the impact of competitors and suppliers on business and business decisions

    6. 6.1.6International

      • International - the importance of international trading links and their impact on business and business decisions - how international trade agreements might have an impact on businesses - the role of technology in international trade - the advantages and disadvantages that a multinational might bring to a country - relationships between multinationals and governments

    7. 6.1.7Environmental

      • Environmental - how physical environmental issues might influence business behaviour - how a business and its stakeholders may use an environmental audit - the impact of the growing importance of sustainability on business and business decisions

  2. 6.2 Business strategy

    1. 6.2.1Business strategy development

      • Developing business strategy - the meaning and purpose of business strategy - the meaning and purpose of strategic management: analysis, choice and implementation - approaches to develop business strategy, including: - blue ocean strategy - scenario planning - SWOT analysis - PEST analysis - Porter's five forces - core competence framework - Ansoff matrix - force field analysis - decision trees

    2. 6.2.2Corporate planning

      • Corporate planning and implementation - the meaning and importance of corporate planning - the meaning of corporate culture and its impact on business decision-making - the meaning and importance of transformational leadership - the management and control of strategic change - the meaning and importance of contingency planning and crisis management