Business Environments Flashcards
Micro
Inside Business and Can Control
Market
Outside business and Can’t control
Macro
Outside Business and Can’t control
A SWOT analysis
Action Tool
SWOT Matrix
Planning Tool
Strengths
Advantages created by internal factors for example : Work skills, Employee satisfaction, strong innovation, high adaptability
Weaknesses
Disadvantages for the progress of the business, e.g. Poor location, weak marketing, poor customer service
Opportunities
External factors that create advantages for the business. E.g. possibility of expanding, favorable exchange rates, creating a new product
Threats
External factors that create a disadvantage for the business. E.g New regulations, Floods, New competitors and Loadshedding
Porters six forces
Competition in the industry
Power of suppliers
Power of customers
Threat of substitutes
Threat of new entrants in the industry
Impact of complementary products
Competition in the industry
Number and strength of the competitors
Power of suppliers
Have to increase prices and reduce competitiveness
Power of customers
Force a business to reduce prices, service, value for money, location, spending money
Threat of substitutes
How easy it is for others to substitute your product
Threat of new entrants in the industry
How easy it is for new businesses to enter the market.
