Flashcards
Business Chapter 4
Cards in this deck (78)
- 1What are the three sub-environments ?1. Micro environment
2.Market environment
3. Macro environment - 2Micro environment consists of the?Business itself
- 3What does the micro environment variables include?Vision,
Business function and
Resources of business - 4The analysis of the micro-environment allows managers to determine what?Capabilities, strengths and weaknesses of the organization
- 5Micro-en of business organizations have been subjected to changes relating to what?Re-engineering, restructuring and trimming of work forces
- 6What are the key variables of the market environment?1. Consumers(buying power and behavior)
2. Competitors(maintain or improve position)
3. Intermediaries(compete against each other)
4.Suppliers(supply raw material, services, products) - 7What tasks do management find most important in the market environment?1.Identify
2.Assess
3.take advantage of opportunities
4.develop and adapt strategies to meet comp - 8What is the market environment often called?Task environment
- 9Market and micro - environment are effected by ?The macro environment
- 10Macro-environment is a sub environment that is external to?Organizations and market environment
- 11What 6 distinctive variables does the macro-environment consist of?1.Technology environment(change and innovation)
2. Eco-environment(inflation, exchange rates, ressesion)
3.Social environment(consumer, lifestyle, habits and values)
4.Physical(natural resources, flora and fauna and manufactured improvements)
5.Institutional(government and legislation)
6.International environment(local and foreign) - 12What are the most important characteristics of business environment?1. Interrelatedness of environment variables
2. Increasing stability
3. Environmental uncertainty
4. complexity of environment - 13What is the interrelatedness of environment factors?Change in one of external factors may cause change in the micro- env. and one external factor may change in other external factors
- 14What is increasing instability and change?Comprised of consequences of interdependence in the environment
- 15What is environment uncertainty?The amount of information that management has about environmental variables
- 16What is the complexity of the environment?Indicates the number of variables to which organizations have to respond
- 17What are the 3 sets of variables of the Micro environment?1. Vision, mission & objects of business
2.Management
3. Resources - 18Variables are responsible for outputs of a business which lead to identification of?Organizations strengths and weaknesses
- 19What does a business statement do?Answers the question- What do we want to become?
- 20What does a mission statement do?It's developed after the vision statement and answers the question - What is our business?
- 21What is purchasing power?A personal disposable income, which is the portion of a personal income that remains after taxes
- 22The consumers market is subdivided 3 products what are they?1. Durable products(furniture)
2. Semi durable(food)
3. Services(insurance,rental & communication) - 23What do suppliers provide to the business?1.Materials
2.Capital
3.Labour - 24What other supplies do businesses need and what do they need to do first to fill this need?Human resources and turn labour brokers such as agencies 1st
- 25Who can also be regarded as suppliers of human resources?Trade unions and other pressure groups
- 26What do intermediaries include?1. Wholesalers and retailers
2.Agents and brokers
3.Representatives
4.Spaza shops - 27What do new trend with intermediaries provide managers with?Certain opportunities but also possibility of threat
- 28Who are the competitive forces in an industry?1.Suppliers
2.Potential new entrants
3.Substitutes
4.Buyers - 29What are the 5 factors that determine the nature and intensity of competition?1.New entrants
2.Bargaining power of clients and consumers
3.Bargaining power of suppliers
4. Substitute products or services
5.Number of existing competitors - 30What are the 5 competitive forces responsible for?Competition in a particular industry
- 31Variables constitute the uncontrollable forces in external environment which are called?Mega trends
- 32What is the main responsibility for the rate of change in business environment?Technology
- 33What are social trends influenced by?Politics and economy
- 34Technology innovations result in new machinery or products as well as ?1.New processes
2.Methods
3.Services
4.Approach to management - 35In 1913 Henry Ford introduced the moving of the assembly line.This resulted in a radical reduction in manufacturing.
- 36What is influenced by the number of new inventions?Economic growth measured by the terms of the GDP
- 37What doe social change do?Brings revolution in peoples lifestyle.
- 38What is nanotechnology?Engineering of functional systems at a molecular scale
- 39The assessment of the technology environment includes?1.identification of important tech. trends
2.potential change in current and future tech
3.impact of important technologies on competition
4.Strengths and weaknesses
5.strategy of the organization - 40managers should continually assess technology trends such as:1.Water tech.(water consumption is growing)
2.Mineral tech.(improve the processing of mineral treasures)
3.Marine tech.(coastal and oceanic resources)
4.Agriculture and veterinary tech.(genetic modification of crops)
5.Medical tech.(prevent epidemics)
6.Transport tech.(provide transport for people)
7.Power tech.(solar power) - 41The economy is influenced by?1. Tech
2.Politics
3.Scoial and international environment - 42The cross influences continuously cause changes in the -1. Economic rate grown
2. Levels of employment
3. Consumer income
4. Rate of inflation
5. Interest rate
6.Exchange Rate - 43What is the economic well being of a country or eco growth rate measured by?Range number of products and services in procedures
- 44What is the GDP (Gross Domestic Product)?The total value of all products and services finally produced with in boarders of a country in a particula period.
- 45Rate of 7-8% per year signals an economy that grows fast enough to create jobsMore exported products than inportes sustain a positive trade balance and currency, providing people with improved standard of living
- 46What influences consumer purchasing powers?Country's economic growth rate
- 47The purchasing power gives rise to?1. Changes in spending behavour
2. Changes in types of products or services purchased - 48To adjust strategies of a company accordingly, management must take note of -Structural changes in incomes of different consumer groups
- 49Inflation in the business?1. Is a economic variable that affects the decisions management has to make.
2. Increases the cost for exporting industries and local industries competing against imported products. - 50What happens when the inflation rate is higher than its major trading partners and international competitors?Reduction in it's international competitivness
- 51What is another economic variable affecting a business and its market environment?Goverments monetary policy
- 52What does the fiscal policy affect business and consumers through?1. Taxation
2. Tax reforms - 53How is the social environment affect management indirectly and directly?1. Indirectly in the form of consumers
2. Directly in form of employees - 54Consumption is also a function of culture and social change...
- 55What is demographic change?1. Change in growth and composition of populations
2. The most social variable that causes most change in market - 56What do the concerns surrounding high population growth rates in developing countries revolve around?1. Poverty
2. Pollution
3. Degradition of enviroment
4. Illness and famine - 57What is Urbanisation?Movement of people from rural areas towards cities
- 58Changes in population groeth patterns influence?Geographical distribution and mobility of worlds population
- 59Level of Education1. Better education
2. Training, meaning a more sophisticated consumer
3. Demands on management for quality of products, advertisements and working condition - 60What is comsumerism?Social force that protects the consumer by exerting legal, economic and political pressure on management
- 61What is the natural consequence of better educated pablics?1. Misleading advertisment
2. Unsafe products
3. Profitterring - 62What are the rights of the consumer?1. Safety
2. Informed
3. Freedom of choice
2. Heard - 63What is the corporate social responsibility?1. Defned as brood concept that businesses are more than just profit seeking entities
2. Have the obligation to benefit society - 64What other factors are included in assessing the performance of a business?1. Equity or empowerment of designated groups
2. Housing
3. Response to enviromental concerns
4. Provision of a responsible and safer work place
5. Health issues
6. Involvement with community issues - 65How do businesses measure their social performance?Perform on an annual social audit
- 66The King Report on Corporate GovernanceKing Report 1: was supersed by the 2002 King report in S.A. King Report 2
- 67What was the purpose of the "Code of Corporate Practice and Conduct"?Promote the highest standards of corporate governance and business ethics
- 68King Report IIIUpdated the earlier reports, incorporating a number of important changes
- 69What does the physical enviroment refer to?Physical resources that people need, to support life and development
- 70What are these physical resources?1. Water
2. Air
3. Climate
4. Oceans
5. Rivers forests - 71What are the most concerning issues of the physical enviroment?1. Population and health patterns (pop is rising)
2. Food (danger of starving)
3. Water (pollution in water)
4. Energy and climate (power supply)
5. Biodiversity (animals and plants threatened to distinction)
6. Cost of enegy (fluctuations in oil prices directly affect business - food and medicine)
7. Growing cost of pollutrion (destroying living space)
8. Enviromenalism (conservation)
9. Scarce resources (certain raw materials, shortage of products) - 72The government intervenes the macro enviroment and influences it by means of?1. Legislation
2. Annual budget
3. Taxation
4. Import control
5. Promotion of exports
6.Import tarrifs
7. Price control for certain products and servies
8. Health regulations - 73What does the government influence market through?Expenditure
- 74Internationally operated businesses find themselves in more complex global business enviroment because?Countries ahve their own peculiar enviroment factors, technology, economy, culture, laws, politics, markets and competitivness
- 75What is environmental opportunity?A favorable condition or trend in the market environment that can be exploited to the business's advantage by a deliberate management effort
- 76What is environmental scanning?The degree to which the environment influences the management of a business depends largely on the type of business and the goals and objectives of its management
- 77What is the importance of environmental scanning?1. Purposeful monitoring
2.Factors and patterns in the environment that pose threats
3.Factors that present opportunities
4. Businesses that systematically scan the environment - 78Environmental scanning is determined by the following factors...1.Basic relationship between the business and its environment
2.Nature of the environment within a business operates
3.Source and extent of change
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- Flashcards on Business Chapter 4, created by shane18rabbets on 22/10/2013.
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