Chapter 2 - The global business environment (parts 5-9)

Question 1

What is liberalisation or deregulation?

Answer 1

The removal or weakening of any form of regulation in favour of the free market

Question 2

What is protectionism?

Answer 2

When one country/group of countries decide to restrict trade with another country or group

Question 3

Examples of protectionism (6 examples)

Answer 3

Tariffs
Import quotas
Voluntary export restraint
Export subsidy
Trade embargoes
Administrative controls

Question 4

Name porters 5 forces and potential 6th force

Answer 4

Substitute products
New entrants
Bargaining power of customers
Bargaining power of suppliers
Competitive rivalry

6th force: Government

Question 5

Porter’s competitor analysis framework (4 things)

Answer 5

SOAR:
Strategy
Objectives
Assumptions about the industry
Resources and capabilities

Question 6

Kotler’s 4 types of competitor

Answer 6

BIG F:
Brand - similar size/structure/products
Industry - same prod but diff size/structure/prod var
Generic - competing for same disposable income (e.g. dominos vs chippy)
Form - satisfy same needs in dif way (e.g. cinema vs netflix)

Question 7

Lynch’s innovative competitive strategies (3)

Answer 7

Use technology to innovate (Netflix)
Co-operate by building joint venture/strategic alliance (Star Alliance)
Rewrite ‘rules of game’ (GoCompare, MoneySupermarket, eBay)

Question 8

Environmental scanning - Coates (3 objectives)

Answer 8

Detecting LoNGPEST trends and events important to org
Defining potential threats/ops or changes implied by above trends
Promoting future orientation in the thinking of management and staff

Question 9

Describe the BCG Matrix

Answer 9

Stars - high growth, high share
Question marks - high growth, low share
Cash cows - low growth, high share
Dogs - low growth, low share

Question 10

What are the 3 Vs of big data

Answer 10

Variety
Velocity
Volume