Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

L3 Business Administration > Unit 3 - Organisation and External Factors > Flashcards

Unit 3 - Organisation and External Factors Flashcards

1
Q

what is a vision statement?

A

it sets the future state of the organisation - broad, short statements.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

what is a mission statement?

A

tells the staff and customers how they an aim to achieve the vision statement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

what are organisational values?

A

they set out the beliefs that underpin the mission statements and visions. they can form a set of behaviours and principles that the customer can expect to receive from the employer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

what is the external environment?

A

the conditions and events that are outside of the company that affects the way it operates

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

what analysis studies the external environment?

A

PESTLE
political
economical
social
technological
legal
environmental

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what can pestle analysis help with?

A

-strategic business planning
-workforce planning
-marketing planning
-product development
-organisational change

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

name some advantages of PESTLE analysis

A

-easy tool to use
-enables and understanding of the wider business environment
-encourages strategic thinking
-threats to the business can be predicted and actioned
-opportunities can be spotted and acted upon

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

name some disadvantages of pestle analysis

A

-insufficient data can be collected and lead to ineffective results
-too much data can be collected which makes it difficult to interpret accurately
-fast changes within the environment can make it hard to anticipate
-time consuming as it needs to be done on a regular basis.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

name some political factors that can be considered

A

-taxation
-industry regulations
-trade agreements
-trade restrictions
-a counties political stabilityw

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

name some economic factors that can be considered

A

-exchange rate
-economic growth / decline
-inflation
-interest rates
-cost of living
-labour costs
-consumer spending
-globalisation (interdependency and connections)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

name some social factors that can be considered

A

-population
-lifestyles
-cultural norms
-expectations within career attitudes and within work-life balance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

name some technological factors that can be considered

A

-implementing automation within the workplace
-using AI technology
-advances in the products and services that the company offers
-the way social media is used to engage with the consumers
-the way they use the electronic communications

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

name some legal factors that can be considered

A

-employment law
-consumer law
-discrimination law
-health and safety law

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

name some environmental factors that can be considered

A

-carbon emissions
-waste management
-recycling
-pollution
-ethical sourcing
-switching to sustainable resources where possible

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what are some tips for carrying out PESTLE analysis

A
  1. know the organisation well
  2. know why you are carrying out an analysis
  3. focus on the relevant areas
  4. identify future opportunities and trends
  5. use alongside other tools such as SWAT analysis
  6. keep findings simple and understandable
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

what is SWOT analysis?

A

a planning tool to help find the
-strengths
-weaknesses
-opportunities
-threats

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

what are strengths relating to a swot analysis?

A

positive attributes that are within the internal environment (or that are within the organisations control)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

what are weaknesses relating to a swot analysis?

A

factors within the internal environment (or in the organisations control) that are preventing the organisation from reaching their goals.
can also be areas of the business that need to be improved

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

what are opportunities relating to a swot analysis?

A

external factors that give the organisation reason to develop
events in the external environment that will propel the organisation forward

20
Q

what are threats relating to a swot analysis?

A

external factors that place the organisation at risk or at a disadvantage
they can be classified by severity or by probability that it will occur.

21
Q

when can you use a swot analysis?

A

-workshop sessions
-generating ideas and solutions
-problem solving
-planning
-product evaluation
-competitor evaluation
-personal development planning
-decision-making

22
Q

what are the advantages of a swot analysis

A

-simple framework
-gives and understanding of strengths and weaknesses in the organisation
-develops strategic thinking
-flexible
-enables an organisation to spot business opportunities and exploit them

23
Q

what are the disadvantages of a swot analysis?t

A

-data can be oversimplified
-data can be based on assumptions
-lack of access to quality data
-lack of detailed structure so key elements can be missed

24
Q

what is a market?

A

the total number of buyers and sellers in a region, or the area covered by the seller.

25
Q

name four types of markets

A
  1. local market
  2. regional market
  3. national market
  4. international market
26
Q

what are participants in the market system?

A

the network of buyers, sellers and consumers that come together to trade a product or a service

27
Q

what are influencers within the market system?

A

organisations or bodies that influence the business environment:
- regulatory agencies
-infrastructure providers
-business associates

28
Q

what can market systems be commodified to be?

A

-specific to a product
-cross-cutting sector

29
Q

what are competitive markets?

A

competitive markets form when responding to the demands of the consumers for goods and services. they do this in order to gain and retain customers

30
Q

what are the five main types of competitive markets?

A
  1. perfect competition (or pure competition)
  2. monopolistic competition
  3. oligopoly
  4. monopoly (or pure monopoly)
  5. monopsony
31
Q

what is perfect (or pure) competition?

A

-large number of small sellers of similar size
-large number of buyers
-all produce similar products
-not possible to differentiate their products from the competitors
-freedom of entry and exit to the market
-not possible to create barriers for new firms
-buyers and sellers have complete or perfect knowledge of all prices in the market

32
Q

what is monopolistic competition?

A

where there are many sellers that sell products that somewhat differ but serve a similar purpose. products can differ in ways such as:
-quality
-style
-convenience
-location
-brand name
entry and exit to the market is also easy

33
Q

what is an oligopoly?

A

-there are few sellers
-sellers supply large portions of products sold in the market
-the number of firms entering the market is low due to the high costs
-there is only a limited number of companies that can dominate the market

34
Q

what is a monopoly?

A

-a single seller or product that assumes the more dominant position in the industry
-they are discouraged as it stifles competition and limits substitutes
-there is only one seller that has the power of the market
-buyers have no choice so they pay the price that is set by the seller
-market customers do not have power and market forces become irrelevant

35
Q

what is a monopsony?

A

-not a large number of buyers or sellers
-there may only be one buyer of a particular product or service
-this means that the customer have the power to set the price of the products and services

36
Q

what are the market forces?

A

factors that influence the direction of the market and the availability of goods and services:
1. cost
2. supply
3. demand
4. competition

37
Q

what are the two main market forces?

A

supply & demand

38
Q

explain supply

A

-the provision of goods, services or labour to a market
-opposite relationship with the price (increase in supply = decrease in price vice versa)

39
Q

explain demand

A

this has a direct relationship with price - if demand increase = price increases

40
Q

what are porters five forces?

A
  1. threat of new entry
  2. threat of substitution
  3. buyer power
  4. supplier power
  5. competitive rivalry
41
Q

what are the five forces for and why do we use them?

A

Michael E Porter made the framework for assessing and evaluating strength and the position of an organisation.
- helps organisations understand where the power lies in a market
-allows to focus on areas of improvement
-helps avoid potential mistakes

42
Q

explain threat of new entry

A

-this is when business has little competition so they may choose to raise the prices.
-if another company offers the same products or services, their competitive position may become at risk

43
Q

what is threat of substitution?

A

-goods or services from a provider that may compete with another organisation’s goods or services.

44
Q

what is buyer power?

A

the ability of customers to fight for higher quality and lower prices

45
Q

what is supplier power?

A

ability for manufacturers to fight for higher prices and terms that are in their favour

46
Q

what is competitive rivalry

A

-the strongest market force due to the intense competition
-seeks competitive advantage by reducing costs, improving quality and branding their products.

L3 Business Administration (11 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions