Kaizine Rose C.

Neypes
BSTM- 1A

1. Environmental forces refer to the factors and conditions

outside an organization that can impact its operations and
strategies. These forces can be categorized into two main
types:
● Macro Environmental Forces: These are broad, external
factors that affect all organizations within a particular industry or
market. They include:
Political: Government policies, regulations, and stability.
Economic: Economic conditions, inflation rates, exchange rates,
and economic trends.
Social: Demographics, cultural trends, social attitudes, and
lifestyle changes.
Technological: Advancements in technology, innovation, and
R&D.
Environmental: Concerns about sustainability, climate change,
and environmental regulations.
Legal: Laws and regulations that affect the industry.
Micro Environmental Forces: These are specific factors closer
to the organization that have a direct impact on its operations.
They include:
Customers: Consumer preferences, needs, and buying behavior.
Suppliers: Availability, reliability, and relationships with suppliers.
Competitors: Actions and strategies of competitors in the
industry.
Intermediaries: Distributors, retailers, and other intermediaries in
the supply chain.
Public: Various stakeholder groups, such as media, activist
groups, and government agencies.
Internal Stakeholders: Employees, managers, and shareholders
within the organization.
Environmental scanning is the process of systematically gathering
and analyzing information about these environmental forces to
identify potential opportunities and threats. It helps organizations
stay proactive and adapt to changing circumstances. This process
involves monitoring, evaluating, and responding to changes and
trends in the external environment to make informed strategic
decisions.
Environmental scanning is the process of gathering information
about events and their relationships within an organization's
internal and external environments. The basic purpose of
environmental scanning is to help management determine the
future direction of the organization.
2. The local and international environment of a firm refers to
the various factors and conditions that can impact the firm's
operations and performance. These factors can be
categorized into two main areas:
Local Environment: This includes factors that are specific to the
firm's domestic or local market. Key elements of the local
environment include:
Market Conditions: This encompasses factors such as supply
and demand, consumer preferences, competition, and regulatory
conditions in the firm's home country.
Economic Factors: Economic indicators like inflation rates,
interest rates, and the overall economic health of the country can
significantly influence a firm's performance.
Legal and Regulatory Framework: Local laws and regulations,
including labor laws, tax policies, and industry-specific
regulations, can impact a firm's operations and strategy.
Cultural and Social Factors: Understanding the local culture,
customs, and societal trends is crucial for marketing and adapting
products or services to the local market.
Infrastructure: The quality and availability of infrastructure, such
as transportation and communication networks, can affect a firm's
ability to operate efficiently.
International Environment: This refers to the conditions and
factors in the global marketplace that can affect the firm,
particularly if it engages in international business. Key elements of
the international environment include:
Global Economic Conditions: Factors like global economic
growth, exchange rates, and international trade policies can
impact a firm's international operations.
Political and Regulatory Factors: Political stability, trade
agreements, and international regulations can create
opportunities or challenges for firms operating internationally.
Cultural and Market Differences: Understanding cultural
nuances and market variations in different countries is essential
for global expansion and adaptation.
Competitive Landscape: A firm operating internationally must
assess and respond to competition on a global scale, which can
differ significantly from the local competitive landscape.
Supply Chain and Logistics: Managing international supply
chains and logistics can be complex and requires consideration of
factors like transportation, customs, and tariffs.
Successful firms carefully analyze and adapt to both their local
and international environments to develop effective strategies and
remain competitive in the global marketplace.

3. Economic development can be defined and examined in

terms of different rates of growth or in terms of changes in
the key factors of economic influence.

1. Sustainable economic growth is essential for the prosperity

of a nation."
2. "Investing in infrastructure can stimulate economic
development."
3. "Entrepreneurship and innovation drive economic progress."
4. "Promoting small businesses is a key driver of local
economic development."
5. "Education and skill development are vital for economic
advancement."
6. "Foreign direct investment can boost economic growth."
 7. "A diverse economy is more resilient to economic
fluctuations."
8. "Government policies play a crucial role in fostering
economic development."
9. Economic development should prioritize poverty reduction."
"Global trade can contribute to the economic prosperity of
nations.
4. There are several forms of business organization, including:

Sole Proprietorship: A business owned and operated by a single

individual. It's the simplest form of business.
Partnership: A business owned by two or more individuals who
share responsibilities, profits, and liabilities.
Limited Liability Company (LLC): A flexible form of business
that provides limited liability for its owners (members) while
allowing for various tax structures.
Corporation: A legal entity separate from its owners, offering
limited liability to shareholders. It can be a C corporation or an S
corporation, each with different tax implications.
Cooperative: A business owned and operated by a group of
people with shared goals, typically to benefit the members.
Nonprofit Organization: An entity formed for a charitable,
educational, or social purpose, not focused on generating profits
for shareholders.
Franchise: A business model where individuals (franchisees)
operate under the brand and guidance of a larger company
(franchiser).
Limited Partnership (LP) and Limited Liability Partnership
(LLP): Partnerships with varying levels of liability protection for
some partners.
The choice of business organization depends on factors like
liability protection, tax considerations, management structure, and
the goals of the business owners. It's important to consult legal
and financial professionals when selecting the most suitable form
for your business