613 WordsOct 29, 20123 Pages
Katie Ryan September 4, 2012 Environmental Factors and Technology Reflective Artifact #1 This week in class, we discussed the environmental factors that affect all businesses. All businesses are affected by the economy, government policy, consumer trends and corporate citizenship. The economy strongly affects business’ because if the economy is at a strong point, consumers have more money to spend, therefore, putting money into business; likewise, if the economy is at a weak point, consumers have less money to spend and businesses suffer. The government also plays a strong role in the economy through monetary policy and fiscal policy. The federal government regulates monetary policy by having the power over money supply and also over interest rates. This power enables them to set the standards for being able to borrow money. The government also controls fiscal policy, by having the power to tax consumer goods, control the amount of money circulating the economy. Consumer trends play a big role in the success of businesses also because consumers decide what is in demand for businesses to supply. The last environmental factor that affects businesses is corporate citizenship. I feel this is one of the most important factors for a business because ethics play a strong role in keeping customers, therefore, staying in business. Most consumers will chose to give their business to a company with strong ethics over a company with weak ethics. The example we discussed in class regarding the car recall strongly proves this point. If General Motors had decided to not recall all the cars that had a defect, they probably would have lost a lot of business because consumers would have lost their trust in the company as well as their respect for the company. Although it cost General Motors a good amount of money to recall all the vehicles, in the long run they kept their

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