Chapter 3 Flashcards
Microenviornment
Forces close to the company.
Company, suppliers, customers, competitors, publics
Ethical behavior
Are written standards of behavior to which everyone in the organization must subscribe.
Unethical behavior can lead to high cost
Macroenviornment
Large social forces
Cultural, political, demographic, economic, natural, technological
Consumer markets
Includes individuals/families who buy stuff for themselves.
Business markets
One company sells its product to another company
Ex-IBM selling to oil companies
Resellers market
The company in the middle
Pepsi sells their items to sheetz, then sheetz sells the items to the customers
Government market
When you sell stuff to the government
International market
Selling overseas
Disposable income
The income that is left after paying taxes
Gross income-taxes
Discretionary income
Gross income-taxes-necessities
Competitive environment
Perfect/pure competition
- numerous buyers and sellers
- similar products
- easy entry level
*not common at all
Oligopoly
- Few sellers in market
- very powerful and dominating sellers
- difficult to enter market
*common
Differentiated oligopoly
-brands are very different from each other
Undifferentiated oligopoly
- brands are fairly similar
- not big difference in product
Monopolistic competition
- many sellers
- highly differentiated products
Ex-restraunts