Lecture 3 - Operating Risk Analysis

Question 1

What are the 3 key areas to focus on for Specific Business

Answer 1

1. Shareholders/Owners
2. Organisational structure/management
3. Company strategy

Question 2

What are the Michael Porter’s 5 forces?

Answer 2

1. Threat of new entry
2. Competitive rivalry
3. Buyer power
4. Supplier power
5. Threat of substitution

Question 3

Define PESTLE

Answer 3

P - Political
E - Economic
S - Socio-cultural
T - Technological
L - Legislation
E - Ecological

Question 4

What is Political?

Answer 4

• Changes in government policy

e. g.
- Increase in foreign worker levy
- COEs affect car business