chap 3' challenges in the internal environment

Question 1

there are existing unique and interrelated variables that directly affect any organization/business.

Answer 1

internal environment

Question 2

Understanding these variables is essential to conduct the organization successfully.

Answer 2

internal environment

Question 3

These areas are government, culture, the stakeholders, competitors, suppliers, customers, and the community.

Answer 3

internal environment

Question 4

government:

Answer 4

the business caretaker

Question 5

is the sole legitimate Institution tasked with overseeing organizational operations in the country.

Answer 5

government

Question 6

Creates an atmosphere of fair and robust competition among industry and company players, monitors and regulates monopolies and oligopolles, and eliminates unfair and illegitimate practices.

Answer 6

government

Question 7

Formulates business policies, implements business operating guidelines, regulates the conduct of business activities such as payment of taxes, health and safety practices in food, manufacturing, construction, and other service Industries, ensures quality of products and services, and mandates minimum wages of employees, and their fair and just treatment.

Answer 7

government

Question 8

culture:

Answer 8

a communal convergence

Question 9

is the communal aggregation and convergence of the country’s philosophy, bellefs, traditions, values, attitudes, aspirations, and practices that have historically evolved since a nation’s inception.

Answer 9

culture

Question 10

• Through many years of national growth and development, this culture has been shaped by _ happening within and outside the country, and until today, continues to change, mature, and transform.

Answer 10

environmental variables

Question 11

stakeholders:

Answer 11

the business investors

Question 12

Organizations exist because there are individuals who are willing to take risks, invest their capital, and engage in business activities in exchange for a return called profit.

Answer 12

STAKEHOLDERS: THE BUSINESS INVESTORS

Question 13

Some are actively involved in the conduct of their business while others prefer to be

Answer 13

silent investors

Question 14

are an asset to the country. They provide opportunities for exchange of products and services. They initiate business operations and compete among themselves.

Answer 14

Stakeholders

Question 15

They boost and energize economic activity. provide employment to the community, and help government by paying business taxes.

• While owners of businesses are the direct stakeholders, others are indirect stakeholders. These are individuals or entities that stand to benefit from the investments of the owners. They are the employees, the government, and the community.

Answer 15

Stakeholders

Question 16

While owners of businesses are the direct stakeholders, others are indirect stakeholders. These are individuals or entities that stand to benefit from the investments of the owners. They are the

Answer 16

employees, the government, and the community.

Question 17

COMPETITORS:

Answer 17

THE BUSINESS THREAT

Question 18

is an economic scenario where nations, communities, organizations. companies and individuals offer and sell their products and services.

Answer 18

Competition

Question 19

continuously strive to outplay and outsmart each other, hoping to get a larger share of the target market.

Answer 19

Competitors

Question 20

They are companies who sell exactly the same products or offer the same services. They are direct competitors. Examples are Unilever and Procter & Gamble. Both are engaged In the same line of business and they sell the same products.

Answer 20

Same Products

Question 21

They are companies who sell similar products. Tea and coffee are similar products,

Answer 21

Similar Products.

Question 22

For example, the competitors, of marketplaces are fast-food centers who sell primarily cooked food, and secondly, convenience. Instead of going to the market to buy meat, fish, and vegetables, they now go to fast-food centers for their meals

Answer 22

Substitute Products

Question 23

Still, there are companies who sell different products but market to the same market segments.

Answer 23

Different Products.

Question 24

Some companies appear to compete with themselves. For capturing a larger market, they produce the same products, use different brand names, and target different market segments. An example is a real estate company that sells low-cost housing to target markets, classes C and D, and average-cost housing to middle-income class familles.

Answer 24

Complementary Competition.

Question 25

Similarly, there are companies whose relationships among each other are strategic and cooperative. Examples are the oil companies in the country. They are in a “friendly” competition.

Answer 25

Collaborative Competition

Question 26

some companies produce “fake” products. They compete with legitimate businesses by boldly and unethically transgressing the intellectual property rights of other companies through plagiarism, duplication, and false branding. They produce and sell these products at low prices.

Answer 26

Corrupted Competition.

Question 27

in the products and services offered, the specific technologies applied, and the strategies employed, whether marketing, financial, and managerial.

Answer 27

Determining similarity in characteristics

Question 28

by observing and studying consumers in terms of demographic variables: sex, civil status, age, educational attainment, monthly income, employment, and psychographic variables like needs, wants, attitudes, perceptions, purchase patterns, and buying behavior.

Answer 28

Studying consumers

Question 29

by identifying company data: capitalization outlay, number of customers, distribution outlets, employees, financial strength, number of years in operation, and company growth.

Answer 29

Researching company data

Question 30

by studying their sales volume and amount of sales, market leadership, and goodwill.

Answer 30

Considering corporate success

Question 31

CUSTOMERS:

Answer 31

THE BUSINESS CHALLENGE

Question 32

Competitors continuously compete to capture a bigger share of the market.

Answer 32

customers

Question 33

make the market. They are the very reason why companies pursue new product developments and differentiate their existing products and services.

Answer 33

Customers

Question 34

are the focus of companies’ business plans and programs and the thrust of their strategies. Without them, companies have no reason to exist.

Answer 34

Customers

Question 35

SUPPLIERS:

Answer 35

THE BUSINESS PARTNERS

Question 36

These refer to individuals and companies engaged in the delivery of raw materials, machinery. technology, labor, expertise, skills, and other forms of services

Answer 36

SUPPLIERS

Question 37

They are essentially business partners. Without them, certain products cannot be produced and some services cannot be rendered.

Answer 37

suppliers

Question 38

It is responsible for the quality of the products produced and the services rendered. If they are not managed well, it may result in the delivery and sale of substandard raw materials, low quality equipment and machinery, diluted admixtures of metals and chemicals, decrease in the number of delivered items, and deficiency in weight, size, and number of units of delivered items.

Answer 38

supplier

Question 39

it affects continuity in operational processes like production, scheduling, and delivery. Delays in delivery schedules may cause inventory problems like stock-outs, work stoppages, and workforce displacement.

Answer 39

supplier

Question 40

COMMUNITY:

Answer 40

THE BUSINESS CONCERN

Question 41

is the intermixture of people coming from all walks of life, with different “provincial or city cultures,” different values, attitudes, aspirations, traditional bellefs, standards of living, family backgrounds, religions. and educational attainments.

Answer 41

The community

Question 42

It is essentially heterogeneous but characteristically homogeneous in its end goal of attaining quality life.

Answer 42

The community

Question 43

As such, the community, in principle, is the rationale of the

Answer 43

business framework.”

Question 44

it is the very reason why stakeholders invest their capital and venture into business.

Answer 44

community

Question 45

It provides opportunities for businesses to thrive. It is “customers, suppliers, and competitors” all bundled as one. It is the primary concern of the government.

Answer 45

community

Question 46

One of the more popular ways of strategizing an organization to attain profitability and market share is to scan the competitive environment.

Answer 46

PORTER’S FIVE FORCES MODEL

Question 47

competitive environment is best described and Illustrated by

Answer 47

Michael Porter’s Five Forces Model of Industry Competition. Porter spelled out one by one when is each of these five forces high and proposed ways of reducing these situations.

Question 48

are sources of input needed to produce goods and services.

Answer 48

Suppliers

Question 49

The bargaining power of suppliers is high when:

Answer 49

a. few large suppliers dominate the market where they form a powerful oligopolistic bloc:

b. there are no substitutes for the specified input:

e. switching costs from one supplier to another are high; and

d. customers of suppliers are not united but fragmented. bnot united but have no choice

To deal with this situation, strategies may Include buying out, collaborating, and providing training on supply chain management.

Question 50

The bargaining power of customers is high when

Answer 50

a. customers buy in large volumes:

b. their products are not unique, such that they can be replaced or customers can produce those products themselves:

c. suppliers are fragmented and few; and

d. product switching is easy.

To deal with this situation, firms can collaborate, reach out, create loyalty, and increase value- added incentives in customers, improve on supply chain management, and work hard to move purchase decision from price.

Question 51

are present when complementary, alternative, and similar products are in existence and sold at lower prices.

Answer 51

Threats of substitutes