Praxis II Business Education – Content Knowledge (5101) Practice Test

The term that refers to the strategies implemented by a company to shape its external operating environment is environmental management. This encompasses the practices and policies that organizations adopt to influence the regulatory, economic, and socio-cultural factors that affect their operations. Environmental management goes beyond compliance with laws; it involves actively engaging with stakeholders, assessing environmental impacts, and seeking to improve sustainability and corporate responsibility.

Market expansion relates to strategies for increasing a company’s market share or entering new markets, but it does not directly address the broader environmental strategies. Risk assessment focuses on identifying and analyzing potential risks that could impact the organization, rather than shaping the environment itself. Competitive analysis involves assessing competitors and the competitive landscape, which is also important, but it does not encapsulate the wider strategies used to manage external factors. Thus, environmental management accurately reflects the proactive role a business takes in influencing its operating context.