The Business Environment for Competitive Strategy

Question 1

It is composed of dimensions in the broader society that influence an industry and the firms within it.

Answer 1

The General Business Environment

Question 2

It is a set of factors that directly influence the company and its competitive actions.

Answer 2

Industry Environment

Question 3

It refers to the gathering and interpreting of information and data about the business environment and how the other competitors are doing in the wide landscape of business.

Answer 3

Competitive Analyses

Question 4

It is where seeing the industry in the future and how it will affect present and future operations. The general business landscape is wide and open for exploration and seeing the business condition miles ahead is an important factor in the survival of business.

Answer 4

The General Environment

Question 5

It refers to the analyses of the firm’s conditions of profitability within the industry. The analyses will generate data on the firm’s capability to compete within the business industrial community on its products and services based on the programmed vision and mission.

Answer 5

The Industry Environment

Question 6

The analyses of the competitors are focused on predicting the dynamics of competition that are related to their operational actions, responses and intentions. Seeing how the competitors operate will give insights on what strategies will most likely overcome the market competitions.

Answer 6

The Competitor

Question 7

It is the process entails the study of all segments in the general environment. It is identifying the signals of potential changes in the environment that pose threats or opportunities that needed immediate actions.

Answer 7

Scanning

Question 8

It is the process of carefully observing the changes in the environment and seeing the effects from the scanning of information. It is important to detect meaning in the changes of events and trends.

Answer 8

Monitoring

Question 9

This is the result of scanning and monitoring, are derived from results of the analysis of the changes in the environment. It is the process of developing projections of what might happen and how quickly the company developed strategies to be competitive in the changing business landscape.

Answer 9

Forecasting

Question 10

It is the process of determining the timing and significance of the effects of the environmental changes and trends on the strategic management of the company.

Answer 10

Assessing

Question 11

This segment should be analyzed on the global basis as it has potential effects across countries. Globalization becomes the workings not only of big corporations but also small companies with borderless operations.

Answer 11

Demographic Segment

Question 12

This refers to the nature and directions of the country in their economic development. Companies operate profitably in a country with economic stability.

Answer 12

the Economic Segment

Question 13

It is the arena in which business organization operates and interest groups compete for attention and resources. It also deals with the voice of overseeing the implementation of the laws of the country which has something to do with trade and commerce.

Answer 13

The Political and Legal Segments

Question 14

These are concerned with the society’s attitudes and cultural values. Attitudes and values differ among nations, and these play as the cornerstone of the society as they drive the demographic, economic and technological condition and change.

Answer 14

The Social and Cultural Segments

Question 15

It is a social and business wherein activities have been pervasive and diversified in scope due to the advancement in technology. The advent of new technology has great effects in the development of new products, processes and materials required to produce new kinds of goods.

Answer 15

The Advancement on Technology Segments

Question 16

The globalization of the business market creates both opportunities and challenges. The present scenario in trade and commerce is the creation of borderless flow of product and services.

Answer 16

The World of Business Segment

Question 17

The industry is a group of firms producing products that are similar or close substitutes. They are competing for the share of the market pie and have influence on the strategy of the other firms.

Answer 17

Analysis of the Industrial Environment

Question 18

New entrants usually have a keen interest in gaining a larger market share and force competitors to be more efficient and effective in the delivery goods to their customers.

Answer 18

The Threat of New Entrants

Question 19

It refers to the marginal improvement in efficiency that the
firm experiences as it incrementally increases in size.

Answer 19

Economies of Scale

Question 20

It is the customer’s perception that the product entering the market first is unique and this captures customer’s loyalty and patronage.

Answer 20

Product Differentiation

Question 21

It is needed for the firm to enter a new market. Investments in terms of resources, manpower skills and new technology needed huge investments and the risk of overcoming those in the market is great.

Answer 21

Capital Requirements

Question 22

This can be a strong entry barrier for new entrants as the old firm has established foothold on their distributors who have developed loyalty over time.

Answer 22

Access to Distribution Channel

Question 23

The government policy on licensing and permit requirement can also control new entrants to an industry.

Answer 23

Government Regulations

Question 24

The suppliers of material inputs in the production of goods are determinants of quality products.

Answer 24

The Power of the Suppliers

Question 25

It is the firm’s objective which is to maximize returns on their invested capital as business operates for the desired profit.

Answer 25

The Buyer’s Bargaining Power

Question 26

It is where the industrial world is full of innovations and firms seek new opportunities. There are many firms looking for new products to make business by studying substitutes to existing products in the market.

Answer 26

The Threat of Substitute Product

Question 27

Competitive response is an active reaction that forces the
company to make innovations.

Answer 27

The Power of Competition

Question 28

What are the five information of competitor that must be able to seek by the firm for the counter strategic actions.

Answer 28

1. The competitors’ future objectives
2. The competitors’ current strategic actions
3. The competitors’ assumptions about the industry
4. The competitors’ strength and capabilities or their weaknesses
5. The government policy for the global market