Chapter 2

Question 1

List the Internal Stakeholders of a company

Answer 1

• Owners
• Board of Directors
• Employees

Question 2

What are the 6 Forces in the General Environment?

Answer 2

1. Economic Forces
2. Technological Forces
3. Politcal-Legal Forces
4. Sociocultural Forces
5. Demographic Forces
6. International Forces

Question 3

Regarding the General Environment,

Define ‘Economic Forces’

Answer 3

• General economic conditions and trends that may affect performance: unemployment, inflation rate, interest rates, economic growth etc.

Question 4

Regarding the General Environment,

Define ‘Technological Forces’

Answer 4

• New developments in methods for transforming resources into goods and services

Question 5

Regarding the General Environment,

Define ‘International Forces’

Answer 5

• Changes in ecnomical, political-legal and technological global system that may affect the organisation; such as economic sanctions

Question 6

Regarding the General Environment,

Define ‘Sociocultural Forces’

Answer 6

• Influences and trends originating in a culture that may affect an organisation; such as beliefs, traditions, superstitions

Question 7

Regarding the General Environment,

Define ‘Demographic Forces’

Answer 7

• Influences arising from changes in the characteristics of a population that could affect the organisation; such as gender, age or ethnic origin

Question 8

Regarding the General Environment,

Define ‘Political-Legal Forces’

Answer 8

• Changes in the way politics and laws shape the opportunities for and threats to an organisation

Question 9

Regarding the Task Environment,

List down the 11 Stakeholders

Answer 9

1. Customers: people who pay to use a business’s goods and services
2. Competitors: people or organisations that compete for customers
3. Strategic Allies: describes the relationship of 2 or more organisations who join forces to achieve advantages neither can perform as well alone; such as an Airline, Hotel and Travel Agency combinination
4. Suppliers: people or organisations that provides raw materials, services, equipment, labour or energy
5. Distributors: people or organisations that helps another organisation sending goods and services to retailers to sell
6. Government Regulators: regulatory agencies that establish ground rules
7. Financial Institutes: such as banks and insurance companies
8. Mass Media: such as the television, radio and newspapers
9. Special Interest Groups: groups whose members try to infuence specific issues
10. Unions
11. Local Communities