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Flashcards in The External Environment (15) Deck (35)
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1

The external environment is the...

landscape and context in which business occurs. I

2

What are the three characteristics of the external environment?

It is dynamic, ever-changing, and substantially affects how business is carried out.

3

It is dynamic, ever-changing, and substantially ______ how business is carried out.

affects

4

The external environment is grouped by the following forces... (PESTLE)

Political

Economic

Social

Technological

Legal

Environmental

5

Political forces cover the... 

stability and general state of politics in the region.

6

Political forces cover the ______ and general ______ of politics in the region.

stability, state 

7

When are political forces important to note? 

the political environment is especially important to note when both marketing internationally and when gauging the changes in the domestic environment as the political stability of a country can affect the risk level of doing business there

8

The political ______ of a country can affect the risk level of doing business there

stability 

9

The currency risk and potential profits of doing business internationally and importing goods is affected by what three forces in the political environment? 

Monetary, trade, and tariff policies affect...

10

What are some examples of political forces? 

Political stability in general

Trade agreements

Tariff policy

Tensions between domestic political groups

 

11

The economic forces in the external environment include... 

all factors that influence the wealth or buying power of consumers, including inflation, income, employment, interest rates, and productivity.

12

All factors that influence the wealth or buying power of consumers fall under which type of external environmnental force? 

economic 

13

The economic forces in the external environment include all factors that influence the ______ or ______ power of consumers

wealth, buying 

14

The economic forces in the external environment include..

inflation, income, employment, interest rates, and productivity.

15

What are some examples of economic forces/traits/trends that influence the wealth or buying power of consumers?

inflation, income, employment, interest rates, and productivity.

 

Per capita Gross Domestic Product (GDP) in a country

Disposable income per capita

The prime interest rate

The employment rate

Exchange rates

16

The social forces in the external environment include... 

demographic characteristics and the culture of the population, including cultural values and personal values.

17

The social forces in the external environment include... demographic characteristics and the culture of the population, including cultural values and personal values fall under which type of force in the external environment?  

social forces 

18

What do the social forces in the environment represent? 

 

 

the very market and target market itself 

19

The social force is the... 

customer base 

20

this changes the very makeup and viability of the market segments

21

If the demographics of the market as a whole change, then this changes the very makeup and ______ of the market ________. 

viability, segments 

 

For instance, if one is marketing to young married couples and fewer couples decide to get married, then the marketer’s target market group decreases in size. If the values of the population change, then that could affect customer preferences toward goods or purchasing behavior.

22

the customer basae is a ______ force. 

social 

23

Different generations also have different ______ and consumption ______.

values, behavior 

24

What are some examples of forces/trends/factors of the social environment? 

Demographic) age distribution of the population, population growth

(Demographic) marital status and average age of first marriage

Generational differences in consumption

Religion and faith

(Cultural and personal values) work ethic, environmental sustainability

Job mobility preference (tendency to stay at one job or change jobs often)

Cultural values such independence / individualism versus a team orientation; a tendency toward indulgence or restraint (Note that a framework called Hofstede’s cultural dimensions is a great resource for in-depth research on how cultural values affect members of a country.)

25

The technological forces include anything that affects... 

innovation, including technological advances, hardware and software capabilities, and the state of learning in general.

26

What are aome overarching themes and trends that mark the technological landscape? 

Computer processing speed

Wireless capabilities

Automation capabilities

Size of processor chips

Cell phone functionality

27

What do legal forces include? 

the regulatory systems that affect business at the local, regional, national, and international levels.

28

Legal forces include the ________ ______ that affect business at the local, regional, national, and international levels.

regulatory systems 

29

A government’s _______ decisions can have a widespread impact on the region’s policies.

legal 

30

Some examples of legal forces are..

Health and safety laws

Regulations for business formation

Employment laws

Antitrust laws against monopolies

Intellectual property, trademark, copyright law