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12 Cards in this Set
- Front
- Back
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What type of customer does market environment include? |
The market environment includes all stakeholders that effect the functioning of the business |
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True or False: Stakeholders are not part part of the business |
TRUE but they are part of the IMMEDIATE environment |
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How much control does a business have over the market environment? |
A business does not have control over the variables, but does have a degree of influence |
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What is another word for market environment and what does it mean? |
The market environment is also known as the task environment since the business must find ways in this environment to overcome challenges and threats eg. competitors, finance |
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Why do businesses need to be 'on the lookout' for customer needs/preferences? |
They need to be aware of changing trends in order to attract and keep customers |
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How can business capture a market or increase their share of a market? (4 points) |
1. Providing quality service, after-sales service (refunds) and products 2. Offering better products/service than their competitors 3.Ensuring customers feel like they get good value for their money 4. Watching competitors for what they are doing to attract customers |
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What makes up a large proportion of the total cost of production? |
Inputs from any suppliers |
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How can businesses keep supplier costs to a minimum? |
They can keep costs to a minimum by: 1. Keeping good relationships with the suppliers 2. Buying in Bulk 3. Shopping around for better deals |
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What are intermediaries and what is their job? |
Intermediaries are 'the link' between the provider of goods and the consumer. They ensure the goods and services get to the customer and they also help businesses buy the products/materials |
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What are seven examples of intermediaries? |
1. Wholesalers (buy products in bulk and sell) 2. Retailers (buy products from wholesalers and other producers and sell) 3. Agents (handle the goods of producers) 4. Brokers (buy & sell products on specialized markets) 5. Banks (provide loans to businesses) 6. Insurers (insure goods are safe from all hazards) 7. Transporters (advertising, telecommunication etc.) |
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What are trade unions? |
They are organizations that look after the interests of members (employees etc.) and negotiate payments and conditions of service on their behalf |
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What 5 factors are part of the market environment? |
Behavior of: 1. consumers 2. suppliers 3. competitors 4. intermediaries |
