BU111 Lecture Notes - Switching Barriers, Market Capitalization, Business Cycle

• School: WLU
• Department: Business
• Course: BU111
• Professor: Sofy Carayannopoulos

Document Summary

The process of scanning and evaluating the external environment of the business. This includes analyzing trends, changes in market forces, economic conditions etc. There are three ways of performing this external analysis: by using the pest model, by using the porters five forces, look for data, research, get trends, forecasts, statistics and expert analysis. Political and legal environment: government support/ opposition trade agreements trade barriers barriers to entry political system laws political stability government influence. Economic environment: economic condition: gdp, per capita, total aggregate demand, standard of living total market capitalization etc balance of trade. National debt imports and exports international trade linked to globalization and global dominance interest rates time value of money inflation business cycle. Technological environment: affects buying and selling internet affects ecommerce technology is required in production technology keeps on changing constantly technology is required in design and creations of new products and modification of existing products.