TERM 1 Topic1.1 - Influences on business

Question 1

Define MICRO Environment

Answer 1

Factors close to a business (your mission, resources you use, etc.)

Question 2

Define MARKET Environment

Answer 2

Factors affecting their relationship with CUSTOMERS (cusomters, suppliers, competitors, etc.)

Question 3

Define CONSUMERS

Answer 3

People who buys goods or services to satisfy their wants or needs

Question 4

Define SUPPLIERS

Answer 4

Business supplying goods or services

Question 5

What is INTERMEDIARIES?

Answer 5

People who link consumers TO suppliers

(PS: They are in the middle of a consumer and a supplier)

Question 6

What do you call a business who sell the SAME or SIMILAR goods as yours?

Answer 6

Competitors

Question 7

What do you call a ‘body’ or agency that use LAWS and RULES to control the market environment?

Answer 7

Regulators

Question 8

What are STRATEGIC ALLIES?

Answer 8

Organisations that form partnerships for a COMMON goal

Question 9

Explain MACRO ENVIRONMENT

Answer 9

Factors OUTSIDE of a business (economic, social, cultural, political, etc.)

Question 10

Macro, Market or Micro Environment:

Which environment do you have very little control over and name 1 example.

Answer 10

Macro

Example: Political factors

Question 11

Macro, Market or Micro Environment:

Which environment do you have less control over and name 1 example.

Answer 11

Market

Example: Competitors

Question 12

Macro, Market or Micro Environment:

Which environment do you have most control over and name 1 example.

Answer 12

Micro

Example: Resources

Question 13

MICRO environment (business has MOST control over). Name a few examples

Answer 13

• determine goals
• control how to use resources
• decide who management /staff is
• choose the culture

Question 14

MARKET environment (business has LESS control over). Name a few examples

Answer 14

$ suppliers costs (but can choose not to use
them)
$ competitors prices (but can choose not to use
them)
$ customer’s shopping preferences (but can
choose to meet them)
$ union’s terms & conditions (but can choose to
compromise with them)

Question 15

MACRO environment (business has ALMOST NO control over). Name a few examples

Answer 15

> Physical environment (availability of resources)
Economic environment (taxes, inflation,
interest, rates, etc.)
Social, cultural & demographic environment
(diseases, traditions, beliefs, population)
Technological environment (advances,
innovation, new inventions)
Legal and political environment (laws &
regulations)
Global environment (exchange rates, trade
policies)
Institutional environment (subsidies,
government policies)