Environmental Forces and Environmental Scanning

Question 1

What is Environmental Scanning?

Answer 1

It is a process that provides an internal analysis of a firm, takes a look at the firm’s industry, and scans the macroeconomic environment.

Question 2

It is a study undertaken by an organization to identify its internal strengths and weaknesses, as well as its external opportunities and threats.

Answer 2

SWOT ANALYSIS

Question 3

Things your company does well
Qualities that separate you from your
competitor
Internal resources
Tangible assets

Answer 3

Strength

Question 4

Things your company lacks
Things your competitor does better
than you
Resource limitations
Unclear unique selling proposition

Answer 4

Weaknesses

Question 5

Emerging competitors
Changing regulatory environment
Negative press/media coverage
Changing customer attitude towards
your company

Answer 5

Threats

Question 6

Underserved markets for specific
products
Few competitors in your area
Emerging need for your products
Press/media coverage of your
company

Answer 6

OPPORTUNITIES

Question 7

What is Pest Analysis?

Answer 7

Is a measurement tool which is used to assess markets for a particular product or a business at a given time frame.

Question 8

What does Pest stand for

Answer 8

Political, Economical, Social, and Technological factors

Question 9

What are the Pest Factors

Answer 9

• Political
  -Economic
  -Social
  -Technological

Question 10

how technology can either
positively or negatively impact the
introduction of a product or service into a
marketplace is assessed here. These factors
include technological advancements,
lifecycle of technologies, the role of the
internet, and spending on technology
research by the government.

Answer 10

Technological

Question 11

a business
can analyze the socio-economic
environment of its market via elements like
customer demographics, cultural
limitations, lifestyle attitude, and
education. With these, a business can
understand how consumer needs are shaped
and what brings them to the market for a
purchase.

Answer 11

Social

Question 12

here government regulations
and legal factors are assessed In terms of
their ability to affect the business
environment and trade markets.

Answer 12

Political

Question 13

through this factor, business examines the
economic issues that are bound to have an impact on the
company. This would include factors like inflation,
interest rates, economic growth, the unemployment rate
and policies, and the business cycle followed in the
country.

Answer 13

Economic

Question 14

What is Porter’s Five forces?

Answer 14

It is an analytical model that focuses on the external factors that aims to help identify the structure of an industry and to help companies determine their competitive strategies

Question 15

This factor examines how suppliers can use their power to increase the price of goods and services. The fewer suppliers there are in the market means they have more power.

Answer 15

SUPPLIER POWER

Question 16

New (and more) entrants into the
market means a company’s power
also decreases. Most companies
prefer to operate in a market or
industry where there are fewer
players.

Answer 16

NEW PLAYERS IN THE INDUSTRY

Question 17

Products and services by a rival that
can easily be substituted are also a
threat to a business’ profitability.

Answer 17

THREAT OF SUBSTITUTES

Question 18

When consumers have more
bargaining power, they may be able
to affect the price of goods and
services, driving them down.

Answer 18

BUYER POWER

Question 19

A higher
means the
degree
power
of competition
of competing
companies decreases. When
competition is low, companies can do whatever they need to in order to
increase their profits.

Answer 19

INDUSTRY COMPETITION