external environment
What external environment means in Business A-Level, as defined for AQA.
Definitions of external environment
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Reference: AQA
Influences from outside that shape departmental targets, including competitor pricing, the state of the economy, technology, suppliers and law such as the national living wage.
This moves the walls without asking, through a rival price cut, a new regulation, a currency move or a change in the cost of borrowing.
Recession, new entrants, technology and law, which decide what the firm must attempt.
Topics that use external environment
- Mission, corporate objectives, functional objectives and strategy (AQA A-Level)
- Understanding management decision making (AQA A-Level)
Related terms
- Ansoff's Matrix
- balanced scorecard
- business ethics
- conflicting objectives
- Corporate Objective
- corporate objectives
- decision trees
- diversification
Using external environment in the exam
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