4 environmental forces

Question 1

STEEP stand for?

Answer 1

social/demographic
tech
natural environment
economic
political/legal

=they all overlap with each otehr

Question 2

what does an environmental scan mean?

Answer 2

-looks at changing trends and understanding them
-they explain why they happen (contributing factors)
-analyze likely impact for your company (threats and opportunities) and to your customers (anything impacting our ability of sucess in the market place)

Question 3

what are some social factors?

Answer 3

attitudes/lifestyle/values etc

Question 4

what are demographic factors?

Answer 4

pop size
age
gender
ethnicity
income
occupation

Question 5

general cohort theory

Answer 5

-your similar to people who are born around the same time because you had the same experiences which then shape your purchase pattern

Question 6

what should you be careful about demographic factors?

Answer 6

only look at them as a proxy for understanding what people want

Question 7

what are two regulatory factors ?

Answer 7

-primary goal is for teh government to intervene with commerce in a capitalistic economy
1. protect competition
2. protect people (when 1 fails there needs to ne laws proetcting people)

Question 8

what can regulatory agencies do? examples

Answer 8

-they have the power to make changes but there power depends on whose in power
-driven by budget
FDA, FTC

Question 9

intellectual property

Answer 9

can look like they limit competition for some amount of time but they are for long term competition

Question 10

pure competition

Answer 10

only way to compete is to distribute your product or service everywhere
-distribution is important

Question 11

monopolistic competition

Answer 11

we shop mostly here because companies convince us there is an important distinction
-pricing is important

Question 12

oligopy

Answer 12

-small number of large firms dominating the market
-promotion is importnat to achivee percieved product differences

Question 13

monoply

Answer 13

single producer that dominates
laws and regulatiosn stop a lot of these

Question 14

business model canvas

Answer 14

breaks down what business does in terms of creating value for customers in the way we do
-way we understand our business and competition

Question 15

what are porters five forces?

Answer 15

understand the nature of the market place to help us understand competition
bargaining power of suppliers
potential entrants
bargaining power of buyers
substitues
-all lead to industry competitors

Question 16

bargaining power of suppliers

Answer 16

looking at different players and what power do they have in the market place

Question 17

bargaining power of buyers

Answer 17

-amount of power they have determines the profitability
-are end users
-they gain power when they organize themselves in buying units or if they can make yeh product themselves -firms that face powerful buyers have less pricing flexibility and must give more value to their buyers to keep them satisfied and have less negating power

Question 18

potential entrants

Answer 18

how easy it is for new competition to join the business

Question 19

situational analysis

Answer 19

analyzes the poltical enviornment to make sure a comapny is working within laws

Question 20

availability of substitutes

Answer 20

-when they exist consumers can easily shift their demands and so the availibuity reduces price points and increase the need for marketing expendiitures and drives down profitability

Question 21

opportunities

Answer 21

-external origin
-favorable trends or developments in external environment which leads to higher sales or profitability

Question 22

threats

Answer 22

-external
-close access to markets, increase competition and decrease. customers desire for and value of a product