Context in which our business exists

Question 1

External Environment

Answer 1

These are outside factors that the business cannot control. The external environment is categorised into micro and macro environments.

Opportunities and threats

Question 2

Macro Environments (Pestle Analysis)

Answer 2

Political Factors 
Economic Activities 
Socioculutral Factors 
Technological Factors 
Environmental Factors 
Legal Costs

Question 3

Micro Environment

Answer 3

This is the environment that is immediate to the company such as

competitors
suppliers
customers
stakeholders

These factors cannot be controlled but can be influenced say if a customer complains we cannot control the complain however we can influence the complain.

Question 4

Internal Environment

Answer 4

This is the elements within the business organisation and these elements can be affected by the decisions of the organisations.

Strengths and Weaknesses

Question 5

Internal Marketting

Answer 5

This is where employees of an organisation is engaged with the companies purpose and its goals that the employees spread the word about the company. This is internal marketing by keeping the employees happy with benefits and incentives.

Question 6

Strategic Management

Answer 6

This is used by managers to form a vision and managers do this by analysing the internal and external environments and then selecting strategies that will create value for the shareholders and customers.

Question 7

Competitive Rivalry

Answer 7

This analyses the number and strength of your business rivals

Question 8

Supplier Power

Answer 8

How easily suppliers are able to increase their prices

Question 9

Buyer Power

Answer 9

How easy customers are able to bring the prices down by bargaining

Question 10

Threat of substitution

Answer 10

Customers finding a different method to obtain your services

Question 11

Threat of new entry

Answer 11

New people entering the market