ExpertThe business organisation and its external environment
Explore the fundamental purpose of business organisations and the complex external environments they navigate. This section covers stakeholder dynamics, macroeconomic forces, and the competitive landscape.
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The purpose and types of business organisation
Lessons in this section
1The purpose and types of business organisation
Define 'business organisations' and explain why they are formed.
Stakeholders in business organisations
Define stakeholders and explain the agency relationship.
Political and legal factors affecting business
Explain how the political system and government policy affect the organisation.
Macroeconomic factors
Define macroeconomic policy and explain its objectives.
Microeconomic factors
Define the concept of demand and supply for goods and services.
Social and demographic factors
Explain the medium and long-term effects of social and demographic trends on business outcomes and the economy.
Technological factors
Explain the potential effects of technological change on organisational structure and strategy.
Environmental and sustainability factors
List ways in which the business can affect or be affected by its physical environment.
Competitive factors
Identify a business's SWOT and the main sources of competitive advantage.
Section A Practice Questions
Test your knowledge across all Section A topics