(p. 3) The _____ comprises economic and social conditions, political priorities and technological developments, all of which must be anticipated, monitored, assessed and incorporated into the executive's decision making. Clusters encompass an array of linked … Useful links. For example, in 2016, California citizens voted for a law to ban the use of single-use plastic bags, affecting the majority of retailers in that state. A. New Zealand is an island country located 1,000 miles (1,600 km) southeast of Australia in Oceania.It consists of several islands, the largest of which are the North, the South, Stewart, and Chatham Islands. The industry environment directly influences a firm and its competitive actions and responses. Geographic literacy will also be necessary for reasons of enhancing economic competitiveness, preserving quality of life, sustaining the environment, and ensuring national security. Indirect environmental factors can affect any business by creating changes in societal expectations and government laws and regulations in efforts to protect the environment. Indirect competitors are those that sell unrelated goods and services, but to similar target markets. Clusters are geographic concentrations of interconnected companies and institutions in a particular field. With technology creating a knowledge base accessible to anyone in the world, programmers have started to multiply in Tel Aviv. Demand is how willing and able a consumer is to purchasing what a business offers and supply is how able the business is to make available what the consumer needs. Economic and geographic environmental factors impact businesses that are beginning, expanding or currently competing. Direct competitors are those that sell very similar goods and services. 4. Current undergraduate students. Task environment C. Operating environment D. Internal environment Businesses often take into consideration the overall economic conditions in a country, such as whether a recession or boom is underway. Economic Factors Affecting Business Environment Demand and Supply. LSE Careers. ... geographic distribution, income distribution, interest rates, and process innovations are all elements of concern when studying the demographic segment of the general environment. There are several ways that a market can be geographically segmented. Geographic segmentation is when a business divides its market on the basis of geography. Remote external environment B. Department of Geography and Environment, St Clement's, London School of Economics and Political Science, Houghton Street, London, WC2A 2AE Follow us LinkedIn FaceBook Twiiter Instagram YouTube. The term "competitive environment" refers to the number and types of companies against which a given business competes in its industry. Find out more. 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