#1.2 : The Role of Business in the Environment and how the Environment affects the Firm

Question 1

2 factors in the Environment

Answer 1

Internal and External

Question 2

It is the seeking and sorting data about the environment, and is essential to start-up businesses.

Answer 2

Environmental Scanning

Question 3

3 components of Environmental Scanning

Answer 3

Competitive mindset, business prediction, and benchmarking

Question 4

It is the factors outside the organization and most likely uncontrollable.

Answer 4

External Business Environment

Question 5

General factor that pertains to individuals’ information and influences managerial decisions

Answer 5

Demographic situations

Question 6

General factor about the economy of the country that affects the management practices

Answer 6

Economic situations

Question 7

General factor that includes customers’ changing values and preferences

Answer 7

Sociocultural situations

Question 8

General factor that uses varied types of electronic gadgets and pertains to the advancement of the technology

Answer 8

Technological situations

Question 9

General factor that is associated with the nature and conditions of the changing natural environment.

Answer 9

World and Ecological situations

Question 10

General factor that influences the management because of the law, rules, and regulation

Answer 10

Politico-Legal situations

Question 11

Specific factor that are the one who executes company’s strategies and is important in the maintenance of the company’s stability.

Answer 11

Employees

Question 12

Specific factor that are parties who are affected by the activities of the organization

Answer 12

Stakeholders

Question 13

Specific factor who patronize the organization’s products and service.

Answer 13

Customers

Question 14

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

Answer 14

Suppliers

Question 15

Specific factor that are special interest groups that try to exert influence on the organization’s decisions and actions.

Answer 15

Pressure Groups

Question 16

Specific factor that provides company’s needed financial support.

Answer 16

Investor’s/Owner’s

Question 17

It is the factors within the organization that affects the performance of the organization.

Answer 17

Internal Business Environment

Question 18

6 components of Internal Business Environment

Answer 18

Resources, Research and Development, Production, Procurement, Supplies, Products and Services

Question 19

The individual’s ability to favorably receive and adjust to an unfamiliar way of doing things.

Answer 19

Cultural Intelligence

Question 20

Difference of monochronic and polychronic cultures

Answer 20

Monochronic culture refer to cultures wherein people tend to do one thing at a time; while, Polychronic culture focuses on accomplishing many different things at once.

Question 21

The degree to which a society accepts or rejects the unequal distribution of power among people in organizations and the institutions of society.

Answer 21

Power Distance

Question 22

The degree to which society is uncomfortable with risk, change, and situational uncertainty.

Answer 22

Uncertainty Avoidance

Question 23

The degree to which a society emphasizes individual accomplishments versus collective accomplishments.

Answer 23

Individualism-Collectivism

Question 24

The degree to which a society values assertiveness and feelings of material success versus concern for relationships.

Answer 24

Masculinity-Femininity

Question 25

The degree to which a society emphasizes short-term thinking versus greater concern for the future or long-term thinking.

Answer 25

Time Orientation

Question 26

P in P.E.S.T.

Answer 26

Political, Governmental, and Legal

Question 27

E in P.E.S.T.

Answer 27

Economic

Question 28

S in P.E.S.T.

Answer 28

Social, Sociological, Cultural, Demographic, and Environmental

Question 29

T in P.E.S.T.

Answer 29

Technological and Technical

Question 30

5 components of Porter Model

Answer 30

Threat of New Entrants, Threat of Substitute Goods, Bargaining powers of Supplier, and Bargaining powers of Customers

Question 31

What is the Porter Model?

Answer 31

A tool to identify the level of management and competition of the organization.

Question 32

higher competition = _____ profitability of the business

Answer 32

lower

Question 33

SWOT Analysis means

Answer 33

Strength, Weakness, Opportunities, and Threat