SOM 122 Lecture Notes - Lecture 2: Pest Analysis
Document Summary
Business profit- differe(cid:374)(cid:272)e (cid:271)et(cid:449)ee(cid:374) a (cid:271)usi(cid:374)ess"s re(cid:448)e(cid:374)ues a(cid:374)d its e(cid:454)pe(cid:374)ses. External environment- a(cid:374)(cid:455)thi(cid:374)g outside a(cid:374) orga(cid:374)izatio(cid:374)"s (cid:271)ou(cid:374)daries that (cid:373)ight affe(cid:272)t it. Domestic business environment- the environment in which a firm conducts its operations and derives its revenues. Global business environment- the international forces that affect a business. Political-legal environment- the relationship between business and government, usually in the form of government regulations in business. Economic environment- relevant conditions that exists in the economic system in which a company operates. Sociocultural environment- the customs, mores, values, and demographics of the society in which an organization functions. Technological environment- all the ways in which a firm creates values for their constituents.