CH 4: The Business Environment

Question 1

What is change?

Answer 1

Change refers to any alteration in the status quo

Question 2

Name 4 environmental variables.

Answer 2

1. Technological innovations
2. Economic fluctuations
3. New laws
4. Social factors

Question 3

What are the 3 business environments?

Answer 3

1. Micro
2. Market (Task)
3. Macro

Question 4

What are 5 factors influencing nature and intensity of competition

Answer 4

1. Possibility of new entrants (or departures)
2. Bargaining power of clients and customers
3. Bargaining power of suppliers
4. Availability of substitute products/services
5. Number or existing competitors

Question 5

What is environmental scanning?

Answer 5

Process of systematic measurement, projection and evaluation of change in environments?

Question 6

What is the importance of environmental scanning?

Answer 6

1. To keep abreast of continually changing environments.

2. Identification and monitoring of opportunities and threats.