MANAGING MARKETS AND ENVIRONMENTS

Question 1

What is the importance of macro environmental analysis?

Answer 1

It helps businesses understand external factors affecting their operations and performance.

Question 2

What does micro environmental analysis focus on?

Answer 2

It considers internal aspects of the organization, such as capital, capabilities, and resources.

Question 3

What are the two components of environmental analysis?

Answer 3

• Macro environmental analysis
• Micro environmental analysis

Question 4

What does macro environmental analysis examine?

Answer 4

External factors such as political, economic, social, technological, environmental, and legal aspects.

Question 5

What is the purpose of environmental analysis?

Answer 5

To prepare businesses for foreseen and unforeseen market conditions.

Question 6

List the frameworks that can assist in environmental analysis.

Answer 6

• PESTLE
• Five Forces
• SWOT
• The Three Cs

Question 7

What does PESTLE stand for?

Answer 7

• Political
• Economic
• Social
• Technological
• Environmental
• Legal

Question 8

What is the focus of Porter’s Five Forces analysis?

Answer 8

It evaluates industry competitiveness by examining power dynamics among suppliers, buyers, competitors, substitutes, and potential new entrants.

Question 9

What are the five forces in Porter’s Five Forces analysis?

Answer 9

• Threat of New Entrants
• Threat of Substitutes
• Bargaining Power of Buyers
• Bargaining Power of Suppliers
• Intensity of Competitive Rivalry

Question 10

What is a SWOT analysis used for?

Answer 10

To evaluate Strengths, Weaknesses, Opportunities, and Threats affecting an organization.

Question 11

What does the Three Cs analysis include?

Answer 11

• Company
• Customers
• Competitors

Question 12

What are the key components of PESTEL analysis?

Answer 12

• Political Factors
• Economic Factors
• Socio-Cultural Factors
• Technological Factors
• Environmental Factors
• Legal Factors

Question 13

True or False: Environmental analysis is not important for strategic planning.

Answer 13

False

Question 14

Fill in the blank: The PESTEL analysis helps organizations adapt their strategies and make _______.

Answer 14

[informed decisions]

Question 15

What does the ‘Threat of New Entrants’ in Porter’s Five Forces refer to?

Answer 15

The ease with which new competitors can enter the market.

Question 16

What are Strengths in SWOT analysis?

Answer 16

Positive attributes of an organization that help achieve its objectives.

Question 17

What are Weaknesses in SWOT analysis?

Answer 17

Internal limitations that hinder success.

Question 18

What do Opportunities in SWOT analysis represent?

Answer 18

External factors that a company can leverage to grow.

Question 19

What do Threats in SWOT analysis represent?

Answer 19

External risks that can harm the business.

Question 20

Why is customer analysis important in the Three Cs framework?

Answer 20

It helps businesses align products or services with market demand.

Question 21

What key areas are assessed in Company Analysis within the Three Cs framework?

Answer 21

• Products & Services
• Brand Image
• Customer Support
• Distribution Channels
• Financial & Human Resources

Question 22

What should businesses assess in Competitor Analysis?

Answer 22

• Pricing Strategies
• Marketing Tactics
• Distribution Channels
• Market Positioning

Question 23

How can SWOT analysis be integrated with the Three Cs?

Answer 23

Strengths & Weaknesses relate to Company; Opportunities & Threats relate to Customers & Competitors.

Question 24

What is the strategic goal of the Three Cs analysis?

Answer 24

To develop competitive advantages and marketing strategies.

Question 25

What does the Environmental Analysis allow businesses to do?

Answer 25

Adapt quickly to factors that improve or maintain their performance.

Question 26

What is the significance of understanding socio-cultural factors?

Answer 26

They shape business strategies based on cultural norms and demographic trends.

Question 27

True or False: Technology is not a key driver of innovation.

Answer 27

False

Question 28

Fill in the blank: The _______ analysis is used to evaluate industry competitiveness.

Answer 28

[Porter's Five Forces]

Question 29

What example demonstrates the impact of political factors on a business?

Answer 29

McDonald's adopted eco-friendly packaging ahead of regulations.

Question 30

What is a key consideration in the economic factors analysis?

Answer 30

Short-term and long-term economic conditions.

Question 31

How can businesses use SWOT analysis for risk management?

Answer 31

By anticipating and mitigating potential risks.

Question 32

Why is it crucial for businesses to stay updated with technological advancements?

Answer 32

To remain relevant and maintain competitive advantage.

Question 33

What does the intensity of competitive rivalry assess?

Answer 33

The level of competition among existing firms.

Question 34

What is the impact of climate change regulations on businesses?

Answer 34

They require adjustments in supply chains and operations.