Tooic 5 Interrelationship Betwee. Micro Market And Macro Environments

Question 1

Interrelationship between functions

Answer 1

8 business functions depend on each other to achieve their goals and objectives.

Question 2

Interrelationship between departments

Answer 2

Depend on and influence each other when they perform duties and responsibilities.

Question 3

Interrelationship between employer and employee

Answer 3

Employer depends on employees to perform certain duties and responsibilities.

Question 4

Business and consumers

Answer 4

Consumers depend on businesses for goods and services to satisfy needs and wants . Businesses also depend on consumers for their income when they buy from them.
Without consumers business cannot survive

Question 5

Businesses and suppliers

Answer 5

Businesses depend on suppliers for raw materials and other inputs.
Without raw materials from suppliers business cannot produce goods and services.

Question 6

Business and intermediaries

Answer 6

Intermediaries distribute and sell goods or services of the business : They are link between business and consumers.
Agents are individuals or businesses that distribute and sell goods or services of another business for commission.

Question 7

Business and competitors

Answer 7

Businesses must be up to date with current trends and latest tech to remain competitive in the
market.

Question 8

Reasons why the competition poses a challenge to the business

Answer 8

Competition is one of the components of the market environments poses a challenge to the businesses because it’s not in control of the business.
Business could find it hard to differentiate itself from competitors to gain competitive advantage.

Question 9

Relationship between micro Market and macro

Answer 9

Businesses must adapt to challenges from Macro environment by formulating strategies to cope with these challenges. Businesses are challenged by changes in the market and macro environments which cannot be controlled by the business.