business environment and steep analysis

Question 1

what is a trend?

Answer 1

trend is a pattern of change consisting of data points that show a general direction of how a situation is changing over time

Question 2

why understanding trend is important

Answer 2

1. to look for early opportunities
2. forewarn of dangers ahead and avoid the impact on their business
3. allow business to be updated on chnages in customer preference and needs
4. sharpen strategic management skill

Question 3

what are the macro environment factors?

Answer 3

STEEP
1. social
2. economic
3. environment
4. technological
5. polital/legal

Question 4

what is social factor?

Answer 4

based on change in demographic, lifestyle and behaviour
due to the hectic lifestyle, people prefer need a convenient and time saving way to shop to also avoid crowds
due to growing population - elderly prefer physical shopping out of familiarity as they are less tech savy

Question 5

what is technological factor?

Answer 5

which technology or r&d can shape the business future

Question 6

what is economic factor?

Answer 6

inflation and income changes can affect purchasing power and spending habits
strength of currecy: if currency is weak, will need to pay more for imports

Question 7

what is environmental factor?

Answer 7

the natural environment we live in
eg. food scarcity due to droughts and flooding causing crops to be more expensive

Question 8

what is political/legal factor?

Answer 8

consumer behaviour can be influenced by policy change and political/legal decisions.
during covid, due to the safety distancing measurement, people are not allowed to dine in