2. The Modern Business Environment

Question 1

Characteristics of the modern business environment

Answer 1

The business environment relates to the actors within the market (suppliers, customers, consumers, regulators, plus macro-environmental factors.

The internet has played a role in an increased rate of globalization (world wide economy) as consumers can purchase goods at their convenience from their phone, however they can also carryout more market research and comparisons more easily too. Globalization has also changed the way products are created with components and services being bought/sold from all over the world. This means that businesses need to be flexible on price and quality as their customers and competitors are global.

Our customers are able to leave public reviews and testimonials more easily and readily, this can either boost of damage a company reputation

Question 2

JIT

Answer 2

Jit is a pull system which means that products are created in response to demand. Products are made in small batch sizes.

Requirements for JIT to work:

• Close geographical proximity for suppliers with short lead times and low ordering costs.
• need to use high quality materials.
• Production throughput time needs to be very short so customers are not waiting too long.