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23 Cards in this Set
- Front
- Back
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Name the 3 sub-environments of the business environment
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Micro
Market Macro |
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Concept of the business environment
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Defined as all the factors or variables, both inside as well as outside the business organization, which may influence the continued and successful existence of the business organization.
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Explain the micro environment
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Consists of the business itself, over which management has complete control
Including the vision, business functions and the resources of the business Allows managers to determine the capabilities and the strengths and weaknesses of the organization |
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What are the key variables of the market environment?
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Consumers
Competitors Suppliers Intermediaries |
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Give another name for the market Environment
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Task Environment
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Name the 6 variables that comprise of the macro environment
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Political
Economic Social Technological International Physical |
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What are the characteristics of the business environment?
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Interrelatedness of the environmental variables
Increasing instability Environmental uncertainty Complexity of the environment |
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Name the 3 sets of variables that comprise the micro-environment
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Vision, mission and objectives
Management Resources |
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Name the 3 categories of resources in the micro environment
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Tangible resources
Intangible resources Organizational capabilities |
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Explain the concept of purchasing power
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Represented by consumers personal disposable income. PDI is the portion of income that remains after direct taxes plus credit repayments have been deducted and is available for buying consumer products and services.
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Name the 3 sub-divisions of the consumer market
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Durable products (cars, furniture)
Semi-durable products (food, tobacco) Services (insurance, rental, communication) |
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What are the 5 competitive forces in the industry
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Competition among existing enterprises, substitutes, buyers, suppliers and potential new entrants
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Which 7 technology trends should managers continually assess in a dev eloping country?
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Water
Mineral Marine Medical Agricultural + Veterinary Transport Power |
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Explain the concept of Gross Domestic Product
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GDP is the total value of all the products and services finally produced within a country in a particular period (usually 1 year)
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Name the 8 variables that comprise the social environment
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Demographic change
Urbanisation Level of education Changing role of women Consumerism Social Responsibility + Business ethics HIV/Aids Culture |
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Explain the concept of Urbanization
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The movement of people from rural areas towards cities. One of the foremost trends of the worlds population
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Name the 4 rights of consumers
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Right to safety
Right to be informed Right to freedom of choice Right to be heard |
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Explain the concept of social responsibility
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Businesses seek not only to maximize profits but also to constantly consider the consequences of their decisions and actions on society.
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Name the 9 issues the physical environment is concerned with
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Population and health patterns
Food Water Energy and Climate Biodiversity Cost of energy Growing cost of population Environmentalism Scarce resources |
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What is an environmental opportunity?
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A favourable condition or trend in the market environment that can be exploited to the business's advantage by a deliberate management effort.
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What is an environmental threat?
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An unfavourable condition or trend in the market environment that can, in the absence of deliberate effort by management, lead to the failure of the business.
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Name the 3 factors that determine the extent of environmental scanning
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The basic relationship between a business and its environment
The nature of the environment within which a business operates and demands made by the environment on the business Source and extent of change |
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Name the 5 factors that make environmental scanning important
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Environment is continually changing
Need to determine what factors & patterns pose threats Determine which factors present opportunities Business who scan environment are more successful then those who dont During last 50 years, half of the 100 largest corporations in the US failed because they didn't scan the environment adequately |
