market environment Flashcards

full description study guide

1
Q

meaning of market environment

A

challenges and influences outside the business
businesses have little or no control over the environment

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2
Q

components of market environment

A

suppliers
the market (customers
competitors
intermediaries
civil society

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3
Q

define suppliers

A

individuals who provide the raw materials , transport and other services to the business .

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4
Q

explain the market (customers/consumers)

A

market refers to people who have the money to buy good and services
people known as consumers
they are buyers of products and services

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5
Q

competitors

A

all the business that provide similar products or services for more or less the same target market .

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6
Q

porters five forces model

A

new entrants to the markets
power of suppliers
power of consumers
threats of substitutes products
competitive rivalry

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7
Q

intermediaries

A

play a role in distributing/promoting goods and services to customers
bridge gap between manufacture and consumer
serve as link to micro environment to market environment

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8
Q

civil society

A

organisations that deal with social problems

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9
Q

NGO’s

A

non profit organisations that don’t operate under control of government
adress socio economic issues

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10
Q

CBO’s
list the socio economic issues

A

assist community in job creation , socio economic development and becoming self sufficient
issues :
hiv/aids
unemployment
crime
poverty
substance abuse

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11
Q

unions
issues they deal with

A

concerned about wellbeing of members in the working environment
issues :
working conditions
unfair treatment

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12
Q

regulators

A

organisations that set rules and requirements for operation of business in that industry

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13
Q

strategic alliance

A

alliance refers to 2 or more businesses working together in joint venture

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14
Q

opportunity

A

factors in external environment that contribute to success of business

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15
Q

threats

A

factors in external environment standing in the way of business achieving goals

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16
Q

examples of opportunities and threats

A

opportunities
~entering into new markets
~decline in interest rate
~increase in production due to increase in demand

threats
~slower market growth
~increase in interest rates
~less investments in business