Components of Business Environments

Question 1

Name three components of the micro-environment

Answer 1

Suppliers, employees, customers

Question 2

Name two components of the market environment

Answer 2

Competitors, new entrants

Question 3

Name three components of the macro-environment

Answer 3

Economy, technology, laws

Question 4

Why does a business have the most control over the micro-environment?

Answer 4

Direct relationships, internal factors

Question 5

Why does a business have less control over the market environment?

Answer 5

Competitors’ actions, industry trends

Question 6

Why does a business have no control over the macro-environment?

Answer 6

External, large-scale factors

Question 7

How do you identify challenges in business environments?

Answer 7

Analyze scenarios, case studies, statements

Question 8

Recommend ways businesses can be involved in the macro-environment

Answer 8

Lobbying, industry groups, public campaigns

Question 9

What are the benefits of businesses being involved in the macro-environment?

Answer 9

Influence policy, shape regulations, improve public image