Cambridge AS A Level Business Studies/ ZIMSEC Advanced Level Business Studies/ Business Enterprise Skills Notes: The Business Environment

  • Businesses do not operate in a vacuum
  • There are a number of factors/players that affect the way a business operates
  • For example, a business has suppliers and customers both who are critical to its operations
  • These factors can be external to the business i.e. outside the business itself
  • They can also be internal i.e. factors that are to be found within the business itself
  • The combination of these internal and external and internal factors is known as the business’s environment
  • The term business environment is used to refer to the combination of internal and external factors that influence a company’s operating situation
  • These factors influence things like:
    • The prices that the business will put on its products
    • The taxes it pays
    • The location of its premises
    • The number of units it produces in a given period
    • Its production methods
    • Who it sells to
    • The way it packages and distributes its products
    • The way it markets its products
  • Notes on:

To access more topics go to the Advanced Level Business Studies page

To access more topics go to the ZIMSEC Business Enterprise and Skills page

To access more topics go to the Cambridge AS A Level Business Studies page