Term 1 - Market Environment

Question 1

What are the 5 components of the MARKET ENVIRONMENT

Answer 1

1) Market
2) Suppliers
3) Competitors
4) Intermediaries
5) Other organisations

Question 2

A………provides goods or services to a business

Answer 2

supplier

Question 3

A …………sells the same / similar products and attracts the same customers

Answer 3

competitor

Question 4

An……..acts as a go-between between the manufacturer and the customer

Answer 4

intermediary

Question 5

How can REGULATORS affect a business?
(Regulators are a type of ‘other organizations’)

Answer 5

Regulators uses the law to control the market environment (example: prevent a business demanding too high prices or monopolising the industry)

Question 6

How can STRATEGIC ALLIES affect a business?
(Strategic allies are a type of ‘other organizations’)

Answer 6

Example: Unions (A union negotiates wages; working conditions on behalf of the employees)

Question 7

How can CIVIL SOCIETIES affect a business?
(Civil societies are a type of ‘other organizations’)

Answer 7

Example: NGO’s (volunteering time; their aim is to support the community; not big profit-making business)