Business Environments

Question 1

What is the TOP, MIDDLE, and LOW LEVEL levels of management?

Answer 1

Top: executive coaching, delegation and empowerment

Middle: problem solving and performance management

Low level: emotional intelligence, and coaching for performance

Question 2

What are the types of FOUR leadership styles? (Give a definition for each) GIVE ADVANTAGES AND DISADVANTAGES OF EACH

Answer 2

1. Autocratic ( BY THE COMMAND :

ADV= good to have when employees are skilled DIS-ADV= demotivated employees)

2. Democratic ( *PARTICICIPATIVE LEADERSHIP FOR THE PEOPLE,

• GATHERING IMPUT FROM TEAM MEMBERS* ADV: motivated employees, CREATIVITY DIS-ADV: time consuming decision making

3. Laissez-faire ( FREE REIGN, EMPOWERING EMPLOYEES

ADV: stimulates creativity
DIS-ADV: creates confusion

4. Transformational ( COMBINATION OF ALL, COMMITMENT, UNITED TO COMMON GOAL OF TEAM)

Question 3

What is the market environment?

Answer 3

Little to no control

Question 4

What TOOL is in the market environment?

Answer 4

PORTERS 6 FORCES

(Analysis to assess ATTRACTIVENESS of a market= profits)

= 1. Threat of new competitors
2. Current competitors
3. Threat of substitute products
4. Power of suppliers
5. Power of buyer
6. Complimentary products

Question 5

Explain threat of new competitors:

Answer 5

Means assessing how EASY OR DIFFICULT IT IS FOR A NEW COMPETITORS TO ENTER CURRENT MARKET (based on location, parking, complimentary services)

Eg: soled power companies

Question 6

Explain current competitors:

Answer 6

Means NUMBER of current competitors in market (PnP, checkers)

1. Competitive market means business has to COMPETE AGRESSIVELY to gain and MAINTAIN MARKET SHARE (SIXTY60, SPAR2U, DASH)

Question 7

Explain threat of substitute products:

Answer 7

(Butter and margarine, glasses vs contact lenses)

1. Business can feel threatened when buyer can find substitute product at better price of quality

= DIFFERENT TRADEMARK= NOT A SUBSTITUTE PRODUCT (simba chips is not a substitute for Willard chips)

Question 8

Explain power of suppliers:

Answer 8

Means high BARGAINING power of supplier:
= business paying more for goods from supplier ** (CHARGE HIGHER PRICES)**

= COSTUMERS SWITCHING TO MORE AFFORDABLE COMPETITIOR

Supplier must reliever @:
1. Right time
2. At correct quantity
3. Right qualify
4 right price
5. Right place

= large suppliers supply products to wholesalers ** (MAKRO)**
And retailers (pnp)

Question 9

Explain power of buyers (consumers)

Answer 9

Means the power to demand a lower price, higher level of quality, longer trading hours, delivery of products, and wider variety of goods

= business decides if demands are worthwhile and the impact it has on their profit

= NOT MEETING THE CUSTOMERS DEMANDS= NO COSTUMERS AND LOWER PROFIT

Question 10

What are the factors to consider when selling to a final consumer?

Answer 10

1. Type of product/ service offered
2. If consumer brand LOYAL (will they swop brands for better deal)
3. Price sensitivity ** (ECONOMIC CRISIS)** eg: drive through
4. SNOB VALUE!! (Image associated with product eg: BMW)

Question 11

Explain complimentary products

Answer 11

Means potential in market place to INCREASE DEMAND OF ORIGINAL PRODUCT!!

Eg: iTunes complement the iPod

Question 12

What is the P2E2STLE ANALYSIS and where do you find it? (Explain what pestle stands for and examples)

Answer 12

= a tool to gain a MACRO picture of an industry environment

POLITICAL, ( political situation of country and situation with other countries eg: BRICS) laws, acceptability and what is ALLOWED from POLITICAL PARTIES

PHYSICAL: ( physical state of country)

ECONOMIC, ( economic growth and development rates, inflation, exchange rates, high unemployment rates)

ENVIRONMENTAL ( awareness to protect environment and move towards environmentally friendly products eg: recyclable bags and straws)

SOCIAL ( impact social trends have on economy influencers, life expectancy, heath conscious, number of single parents)

TECHNOLOGICAL (equipment for business that they use to make or buy and sell products, development and issues surrounding social media, automation, EPOSSE, R&D(research and development)

LEGAL (laws decided by government, CPA(consumer protection act), paying tax, rip offs, health and safety)

ETHICAL ( principles that determine actions are acceptable, legal but not ethical= tax avoidance, respect, CSR(corporate social responsibility, giving back to community employees privacy)

Question 13

what is CSR and what is its advantages?

Answer 13

(Meaning each business has a duty to contribute to society and planet) Through understanding corporate social responsibility, it can benefit society while boosting their brands. Helps society as a whole

Question 14

What is a CPA and its advantages?

Answer 14

It prohibits UNFAIR trade practices in the marketplace, and provides assistance to CONSUMERS that have been wronged with those violations.

Question 15

Innovation meaning:

Answer 15

Bettering, improving

Question 16

MAKRO vs MACRO

Answer 16

MAKRO: 22 WAREHOUSES (very big) selling merchandise to retail and wholesale customers

Question 17

What is TBL and why is it important?

Answer 17

THE TRIPPLE BOTTOM LINE = accounting framework with THREE parts:

1. Social
2. Environmental
3. Economic

ITS IMPORTANT BECAUSE IT MEASURES A BUSINESSES SUCCESS IN THOSE THREE AREAS: PLANET, PEOPLE AND PROFIT!!

= organizations adapt this to evaluate their performance as a business!!

Question 18

What are the 3 Ps ?

Answer 18

PROFIT, PEOPLE AND PLANET!!