Module 2 Unit 1: The global business environment

Question 1

What sort of techniques would an organisation use to stay aware of changes in the business and risk environment?

Answer 1

Managers will monitor trends and developments in their particular field which might affect the org.

Through industry meetings and conferences, awareness of the latest developments is maintained.

Question 2

What was the response of RBS to the impact on the bank of a rapidly changing business environment?

Answer 2

RBS developed a flexible approach to risk management and will change and extend their risk categories as risks change over time.

Question 3

Political disturbances in Ukraine in 2014 increased the risks of higher costs of energy for European countries. Why is this?

Answer 3

Reduced or cut supplies will mean demand exceeds supply, pushing up prices.

Question 4

Why was the vision and strategy of the Body Shop considered to be high risk?

Answer 4

The approach of environmentally conscious and ethical testing was unprecedented and unproven in the marketplace.

Question 5

What is meant by the expression “risk emphasis”?

Give three features of risk emphasis in the hotel business.

Answer 5

Risk emphasis is the term given to the set of prevailing risks in any particular org.

In the hotel industry these might be brand recognition, pricing policy and guest Health and Safety