Business Environment

Question 1

PESTLE

Answer 1

Political, Environmental, Social, Technological, Legal, Environmental

Question 2

Micro Environment

Answer 2

Internal environment of the company.

Includes:
suppliers, customers, markets, competitors, intermediates and facilatators.

(corporate policy, competetitive strategy, management systems and resources and capabilities )
`

Question 3

Macro environment

Answer 3

PESTLE

( External factors that effect the company )

Done to analyse opportunities and threats in a business atmosphere

Question 4

Types of environment

Answer 4

1. Dynamic/Static(speed of change)
2. How many external influences( Diversity)
3. Interconnectedness ( complexicity )

Question 5

Environmental pressurs

Answer 5

1. market fragmentation
2. globalisation and regionalisation of a business.
3. product proliferation
4. Erosion of previously dominant brands
5. increase in customer expectations.
6. change in patters of distribution and shfts in balance of power.

Question 6

Socio - cultural; environment

Answer 6

dec popn
higher popn of 65+ 
high life expenctancy 
food shortages 
food waste
later marriage 
divorece rates 
etc

Question 7

Types of competition

Answer 7

1. BRAND
2. PRODUCT`
3. FORM
4. GENERIC

Question 8

Analysis of internal environment - MODELS

Answer 8

1. Resource Audit
2. Porters Value chain model
3. EFQM

Question 9

Resource Audit

Answer 9

financial resources
physical
human 
intangible 
marketing, rndm prodn etc.

Question 10

Porters value chain model

Answer 10

Involves analysis of the company’s competitive advantage and core competencies.

1. Cost based advantage
2. differenciation bsaed advantage