market environment Flashcards
full description study guide
meaning of market environment
challenges and influences outside the business
businesses have little or no control over the environment
components of market environment
suppliers
the market (customers
competitors
intermediaries
civil society
define suppliers
individuals who provide the raw materials , transport and other services to the business .
explain the market (customers/consumers)
market refers to people who have the money to buy good and services
people known as consumers
they are buyers of products and services
competitors
all the business that provide similar products or services for more or less the same target market .
porters five forces model
new entrants to the markets
power of suppliers
power of consumers
threats of substitutes products
competitive rivalry
intermediaries
play a role in distributing/promoting goods and services to customers
bridge gap between manufacture and consumer
serve as link to micro environment to market environment
civil society
organisations that deal with social problems
NGO’s
non profit organisations that don’t operate under control of government
adress socio economic issues
CBO’s
list the socio economic issues
assist community in job creation , socio economic development and becoming self sufficient
issues :
hiv/aids
unemployment
crime
poverty
substance abuse
unions
issues they deal with
concerned about wellbeing of members in the working environment
issues :
working conditions
unfair treatment
regulators
organisations that set rules and requirements for operation of business in that industry
strategic alliance
alliance refers to 2 or more businesses working together in joint venture
opportunity
factors in external environment that contribute to success of business
threats
factors in external environment standing in the way of business achieving goals
