Chapter 2

Question 1

Control over environments

Answer 1

• direct control and responsibility (marketing environment)
• no control, but limited influence (business environment)
• neither influence nor control (The external environment)

Question 2

Environmental scanning

Answer 2

Methods of environmental scanning:

• Study current events by attending seminars and conferences
• Analyse speeches of political leaders
• Read the analyses of management consulting firms and financial institutions
• Collect demographic data from government departments
• Analyse trade figures
• Following discussions on social media and blogs
• Collect information on economic indicators

Question 3

Potential sources of opportunities or threats:

Answer 3

• Technology – Internet threatens travel agents, publishers, the Post Office
• Legislation – Consumer Protection Act
• International competition – Walmart and Zara entering South African markets

Question 4

Environmental Factors

Answer 4

Physical- Climate and Pollution
Competitive-
Legal- CPA, Competition Act
Political- Rights to safety, privacy
Technological- Internet
Economic- Inflation and recession
Demographic- age, race or ethnicity and location
Social- generation, gender norms