Business Quiz 11/12

Is a business environment always changing?

Yes an environment is always changing

dynamic

meaning changing all the time

interrelated

meaning they affect each other.

Envrironmental scanning is the same as monitoring and analysis -businesses recognize potential oppurtunities and threats true or false

true

Internal environmental factors

finances, personnel, research and development, production, and marketing.

business landscape

gather, analyze, determine

Government Roles

-protecting business property -enforcing business contacts -settling business agreements -settling

Environmental scan 3-step process

1) gather information about their surroundings, 2) analyze that information, and 3) determine the future impact of that information.

Envrionmental scan 6 characteristics

1.demographics 2.society and culture 3.economy 4.competition 5.government 6.technology(rapidly changing)

Society and culture

>Changing family roles >Need for convenience >Concern for fitness and health >Going green

Why is environmental scanning important

>aids in anticipating changes >answers the question, "Where are we now" >Provides a starting point for a businesses planning of its goals. objectives, and actions that answer a question, "Where do we want to be"

Recession

A slowdown in a nation's economy-will eventually recover

What is an environmental scan?

An analysis and evaluation process that businesses use and can identify challenges and opportunities.

What is an environment?

An environment is your surroundings.

List the six categories of information that should be included in an environmental scan.

An environmental scan should include information about demographics, society and culture, the economy, competition, government, and technology.

Competition

Brand competition—competition between two similar products (e.g., Nike vs. adidas) Substitute products—competition between different products satisfying same need (e.g., Netflix's streaming entertainment vs. television networks) General competition

Government

Changing laws and regulations (e.g., minimum-wage laws, environmental-protection laws, and worker-safety laws) Monetary and fiscal policies (money supply and government spending) Import/Export restrictions and regulations Government relations with specific industries (e.g., subsidies for agricultural businesses) Marketing-specific legislation (e.g., laws against false advertising) State and local laws Political climates and stability in foreign markets

Demographics

Demographics are the physical and social characteristics of the population examples: age, race, ethnicity, gender, income, employment

What is environmental scanning

Environmental scanning is a three-step process in which businesses gather information about their surroundings, analyze that information, and determine the future impact of that information.

Why is environmental scanning important for business success?

Environmental scanning is important for business success because, like people, businesses must constantly be aware of potential threats and opportunities. Being aware of threats and opportunities—and knowing their potential impact on the organization—helps a business with strategic planning and management decision making. A business cannot control its external environment, but it can control its internal environment so that it can be prepared to meet upcoming threats and opportunities.

What tools can be used in environmental scanning?

Some of the tools used to gather information include surveys, questionnaires, focus groups, informal conversations, newspapers, magazines, and trade journals, television, Internet and social media , and market research studies.

The economy

Stage of the business cycle (prosperity, recession, recovery, etc.) Inflation Interest rates Unemployment rates Investor confidence Tax rates Currency exchange rates Foreign economic conditions

List the five steps in environmental scanning.

The five steps in environmental scanning are identifying participants and responsibilities, carrying out scanning activities, identifying and analyzing important issues and trends, reporting results or selecting issues and trends to act on, and scanning on a continuous basis. PreviousNext

What is the end product?

The identification of a number of broad factors and issues that will have a significant impact on a business and its plans for the future.

Technology

The most rapidly changing category included in an environmental scan is technology.

Why do businesses conduct environmental scans?

To identify trends, gaps, events, developments, and issues that will impact the business

Original Role of Government

To referee

As a result of conducting an environmental scan, a business might find that the rate of unemployment is slowly increasing, which is an example of a(n) __________ factor. a.)economic b.)geographic c.)political d.)regulatory

a.)economic

While conducting an environmental scan, a convention bureau obtained information revealing that consumer confidence was gaining strength in the nation. This is an example of a(n) __________ factor. a.)economic b.)political c.)technological d.)demographic

a.)economic

Who should participate in a business's environmental scanning?

all employees should be participating in environmental scanning. Everyone should be aware of the environment and how it affects the business as well as her/his particular job.

To gather information for an environmental scan, Greenburg Industries gathers 12 of its loyal customers to get insight about their needs, wants, and preferences. What method is the business using to obtain information? a.)Personal interview b.)Focus group c.)Conference call d.)Online survey

b.)Focus group

Which of the following elements is part of a business's external environment? a.)Personnel b.)Tax code c.)Research and development d.)Marketing

b.)Tax code

What is a legal factor that businesses commonly examine when conducting environmental scans? a.)Cost of living b.)Trade regulations c.)Natural resources d.)Beliefs and values

b.)Trade regulations

When conducting an environmental scan, which of the following is an economic factor that a business should consider: a.)Local demographics b.)Global trade regulations c.)Consumer spending habits d.)Restricted sales territories

c.)Consumer spending habits

Which of the following is an external factor that could impact a business: a.)Decrease in the advertising budget b.)Decrease in production levels c.)Increase in online shopping d.)Changes in advertising strategy

c.)Increase in online shopping

What is an economic factor that businesses might identify as a result of conducting an environmental scan? a.)Increased regulation b.)Lifestyle adjustment c.)Unemployment rate d.)Population shift

c.)Unemployment rate

The BVM Company examined economic and political factors to determine if it should expand its operations. The company obtained the information by conducting a(n) ___________ analysis. a.)strengths b.)internal c.)environmental d.)tactical

c.)environmental

When a company considers how a new trade agreement among several countries may impact its business activities, it is evaluating a(n) ________ factor. a.)cultural b.)universal c.)social d.)political

d.)political

External Environmental Factors

social, demographic, economic, technological, political/legal, competitive