The Firm and it's environment

Question 1

Systematic monitoring of the major external forces influencing organizations is necessary to improve the management of companies.

Answer 1

Environmental Forces

Question 2

includes the economic,socio-cultural, politico-legal, demographic, technological, and the world and ecological situations.

Answer 2

general business environment

Question 3

What are the different environmental factors?

Answer 3

(1) Economic situations
(2) Sociocultural situations
(3) Politico-legal situations
(4) Demographic situations
(5) Technological situations
(6) World and ecological situations

Question 4

Include factors/elements such as inflation, rates of interest, changing
options in stock markets, and people’s spending habits.

Answer 4

Economic Situations

Question 5

Include the customers’ changing values and preferences; customs
could also affect management practices in companies.

Answer 5

Sociocultural situations

Question 6

Refer to national or local laws, international laws, and rules and
regulations that influence organizational management.

Answer 6

Politico-legal situations

Question 7

Gender, age, education level, income, the number of family members, geographic origin, etc. may also influence some managerial decisions in organizations.

Answer 7

Demographic situations

Question 8

companies involve the use of varied types of electronic
gadgets and advanced technology such as computers, robotics, microprocessors, and others that have revolutionized business management; e-commerce, teleconferencing, and sophisticated information systems have rapidly changed the ways that business is
conducted in the 21st century.

Answer 8

Technological situations

Question 9

Related to the increasing number of global competitors and markets, as well as the nature and conditions of the changing natural environment.

Answer 9

World and ecological situations

Question 10

focuses on stakeholders, customers, pressure groups, and investors or owners and their employees as follows.

Answer 10

Specific business environments

Question 11

Failure to consider a company’s _________________________may affect the strategies that management will make and use.

Answer 11

general and specific environments

Question 12

Parties likely to be affected by the activities of the organization.

Answer 12

Stakeholders

Question 13

They are those who patronize the organization’s products and services.

Answer 13

customers

Question 14

who ensure the organization’s continuous flow of needed and
reasonably priced inputs or materials required for producing their goods and rendering their services.

Answer 14

Suppliers

Question 15

The one who decide what, where, and when to buy their supplies and which supplier to favor with their organization’s supply orders.

Answer 15

Managers

Question 16

They are special-interest groups that try to influence the organization’s decisions or action.

Answer 16

Pressured groups

Question 17

They provide the company with the financial support it needs.

Answer 17

Investors or owners

Question 18

The company, of course, cannot exist without them; thus, they greatly influence organizational
management.

Answer 18

investors or owners

Question 19

Top-level, middle-level, and lower-level managerial decisions are all influenced, in one way or another, by them of organizations.

Answer 19

investors or owners

Question 20

Branching out, offering new products and services, and applying for needed loans are all affected by the ________ way of thinking.

Answer 20

Investors or owners

Question 21

Those who work for an employer in exchange for salaries/wages or non-monetary benefits.

Answer 21

Employees

Question 22

They execute the company’s strategies and are important for the maintenance of the company’s stability.

Answer 22

Employees

Question 23

It is a widely used tool to identify the external forces that may affect an organization both positively and negatively.

Answer 23

PESTEL analysis

Question 24

PESTEL analysis is composed of?

Answer 24

Political
Economic
Social
Technological
Environmental
Legal

Question 25

These factors determine the impact of government and government policy on a particular organization or a specific industry.

Answer 25

Political

Question 26

It includes trade, fiscal, and taxation policies, among others.

Answer 26

Political

Question 27

These factors determine the impact of the economy and its performance, to an organization and its profitability.

Answer 27

Economic

Question 28

These include interest rates, employment or unemployment rates, raw material costs, and foreign exchange rates, among others.

Answer 28

Economic

Question 29

These factors determine the impact of the social environment and emerging trends to the business profitability of an organization.

Answer 29

Social

Question 30

These also help marketers to further understand the changing preferences of the customers.

Answer 30

Social

Question 31

These include changing family demographics, education levels, cultural trends, attitude changes, and changes in lifestyles, among others.

Answer 31

Social

Question 32

These factors determine the impact of technological innovation and development on a particular market or industry.

Answer 32

Technological

Question 33

These include changes in digital or mobile technology, automation, research, and development.

Answer 33

Technological

Question 34

These include technological influence on methods of distribution, manufacturing, and logistics.

Answer 34

Technological

Question 35

These factors determine the influence of the surrounding and the impact of ecological aspects to a market or industry.

Answer 35

Environmental

Question 36

These include climate, recycling procedures, carbon footprint, waste disposal, and sustainability.

Answer 36

Environmental

Question 37

These factors determine the importance of understanding legal laws and procedures on a given territory where a business operates.

Answer 37

Legal

Question 38

These include employment legislation, consumer law, health, and safety, international as well as trade regulation and restrictions.

Answer 38

Legal

Question 39

Able to understand and predict the various changes, opportunities, and threats that may affect organizations in the future.

Answer 39

Environmental scanning

Question 40

Also known as business forecasting

Answer 40

Business predictions

Question 41

Is a method of predicting how variable in the environment will alter the future of business.

Answer 41

Business predictions or business forecasting

Question 42

It could be used in making decisions regarding off-shoring, branching out locally, and expanding or downsizing the company.

Answer 42

Business predictions / business forecasting

Question 43

An another component of environmental scanning that involves gauging the performance of the organization concerning those of others.

Answer 43

Benchmarking

Question 44

It is the process of measuring or comparing one’s products, services, and practices with those of the recognized industry leaders to identify areas for improvement.

Answer 44

benchmarking

Question 45

Best practices of said industry leaders are______ so that understanding their competitive advantage would be easier.

Answer 45

observed

Question 46

is a common tool used to assess and evaluate the competitive strength and position of a business.

Answer 46

Porter's Five (5) Forces

Question 47

Porter's Five (5) Forces is developed by whom?

Answer 47

Michael E. Porter

Question 48

This force analyzes how suppliers can easily influence price increases.

Answer 48

supplier power

Question 49

This is driven by the following factors: number of suppliers of each essential input; uniqueness of their product or service; relative size and strength of the supplier; and cost of switching from one supplier to another.

Answer 49

Supplier power

Question 50

This force analyzes how buyers can easily influence price decreases.

Answer 50

Buyer power

Question 51

This is driven by the number of buyers in the market, the importance of each buyer to the organization, and cost to the buyer of switching from one supplier to another. For instance, a few powerful buyers of a business are often able to dictate terms.

Answer 51

Buyer Power

Question 52

This force examines the intensity of competition in the market place.

Answer 52

Competitive Rivalry

Question 53

This is driven by the number and capability of competitors in the market.

Answer 53

Competitive Rivalry

Question 54

When_________ is high, advertising and price wars can ensue, which can pose a negative impact on the business in the long run

Answer 54

competitive rivalry

Question 55

___________ is high when there are few businesses equally selling a product or service, when the industry is growing, and when consumers can easily switch to a competitor's product for a cheaper cost.

Answer 55

Competitive Rivalry

Question 56

This force is threatening when buyers can easily find substitute products with attractive prices or better quality, and when buyers can switch from one product or service to another with little cost.

Answer 56

Threat of substitution

Question 57

This force determines how easy or difficult it is to enter a particular industry.

Answer 57

Threat of new entrants

Question 58

It is a framework used to evaluate a company's competitive position must be executed to examine important stakeholders like suppliers and customers within the firm’s environment.

Answer 58

SWOT Matrix

Question 59

What are the following components of the SWOT Matrix?

Answer 59

Strengths Weaknesses Opportunities Threats

Question 60

These are the internal areas where an organization excels and the factors which separate an organization from its competitors.

Answer 60

Strengths

Question 61

These are the internal areas that hinder an organization from performing at its optimum level.

Answer 61

weaknesses

Question 62

These are areas where the business needs to make some improvements to remain competitive.

Answer 62

weaknesses

Question 63

These are favorable external factors that could give an organization a competitive advantage.

Answer 63

Opportunities

Question 64

These are the factors that may pose potential harm to an organization.

Answer 64

Threats

Question 65

He took a historical approach in suggesting that developed countries have tended to pass through five (5) stages to reach their current degree of economic development.

Answer 65

Walt Whitman Rostow

Question 66

What are the degree of economic development?

Answer 66

Traditional Society Pre-conditions for take-off Take-off Drive to maturity Age of mass consumption

Question 67

This is an agricultural economy of mainly subsistence farming, little of which is traded.

Answer 67

Traditional society

Question 68

The size of the capital stock is limited and of low quality resulting in very low labor productivity and little surplus output left to sell in domestic and overseas markets.

Answer 68

Traditional society

Question 69

Agriculture becomes more mechanized and more output is traded.

Answer 69

Pre-conditions for take-off

Question 70

Savings and investment grow although they are still a small percentage of national income or Gross Domestic Product (GDP).

Answer 70

Pre-conditions for take-off

Question 71

The manufacturing industry assumes greater importance, although the number of industries remains small.

Answer 71

Take-off

Question 72

Political and social institutions start to develop - external finance may still be required. Savings and investment grow, perhaps to 15% of GDP.

Answer 72

Take-off

Question 73

Agriculture assumes lesser importance in relative terms although the majority of people may remain employed in the farming sector.

Answer 73

Take-off

Question 74

There is often a dual economy apparent with rising productivity and wealth in manufacturing and other industries contrasted with stubbornly low productivity and real incomes in rural agriculture.

Answer 74

Take-off

Question 75

Industry becomes more diverse.

Answer 75

Drive to maturity

Question 76

Growth should spread to different parts of the country as the state of technology improves - the nation shifts toward a diverse economy, with massive growth in many sectors as influenced by the use of innovation that uplifts the individual income of the citizens.

Answer 76

Drive to maturity

Question 77

Output levels grow, enabling increased consumer expenditure.

Answer 77

Age of mass consumption

Question 78

There is a shift towards tertiary sector activity and the growth is sustained by the expansion of a middle class of consumers.

Answer 78

Age of mass consumption

Question 79

What are the Traditional form of business organizations?

Answer 79

Simple Business Organization Functional business structure Divisional business organizations Profit Business Organization

Question 80

This have few departments, centralized authority with a wide span of control, and with few formal rules and regulations.

Answer 80

Simple business organizations

Question 81

those that group together those with similar or related specialized duties that introduce the concept of delegation of authority to functional managers like the personnel manager, sales manager, or financial manager but allow CEOs to retain authority for strategic decisions.

Answer 81

Functional business organizations

Question 82

Made up of separate business units that are semi￾autonomous or semi-independent, with a division head responsible for his/her unit’s performance.

Answer 82

Divisional business organizations

Question 83

In other words, each division has its functional organization and its general manager.

Answer 83

Divisional business organizations

Question 84

Maintains responsibility for the delineation of organizational goals of the individual division.

Answer 84

Central Headquarters management

Question 85

It is designed to achieve their organization’s mission, vision, goals, and objectives and maintaining their organizational stability through income generation and profit-making activities.

Answer 85

Profit business organization

Question 86

It is designed to achieve their organizations’ mission, vision, goals, and objectives, providing service to clients without expecting monetary gains or financial benefits for their endeavor.

Answer 86

Non-profit organization

Question 87

It is formed to meet today’s changing work environment.

Answer 87

Open business organization or Flexible business organization

Question 88

what are the diff types of business organization have evolved into other forms?

Answer 88

(1) Team structures (2) Matrix business organizations (3) Project business structure (4) Boundaryless business organization (5) Virtual business organization

Question 89

Where the organization as a whole is made up of small teams that work together to achieve the organization’s purpose; popular in a collective culture.

Answer 89

Team Structure

Question 90

Refers to an organization that emphasizes the needs and goals of the group as a whole over the needs and desires of each individual.

Answer 90

Collective culture

Question 91

Those which assign experts or specialists belonging to different functional departments to work together on one (1) or more projects; exhibit dual reporting relationships in which managers’ report to two (2) superiors – the functional manager and the divisional manager.

Answer 91

Matrix Business organization

Question 92

A business organizational form with a flexible design, where the employees work on a project assigned to them within a definite time frame; projects may be short-term or long-term and members disband when the project is completed.

Answer 92

Project business structure

Question 93

a business organization whose design eliminates vertical, horizontal, or external boundaries, and is described to be flexible and unstructured; there are non-barriers to information flow and therefore, completion of work is fast.

Answer 93

Boundaryless business organization

Question 94

Made up of a small group of full-time workers and outside experts who are hired temporarily to work on assigned projects; members are physically dispersed and usually communicate electronically.

Answer 94

Virtual business organization

Question 95

This person must be creative in finding ways to structure or design and organize work in their respective firms.

Answer 95

Manager