2.6 Economic conditions

Question 1

How do economic conditions affect an organisation’s strategy planning?

Answer 1

During growth periods, organisations can take a longer term strategic approach, but during recession they must deal with much shorter term strategic considerations.

Question 2

What are the four different types of competition for an organisation?

Answer 2

1) Perfect - many sellers with a homogenous product
2) Monopolistic - many sellers with a differentiated product
3) Oligopoly - few sellers with limited choice
4) Monopoly - one seller with a unique product.