BUSI 4940 Exam 1 Review Questions With Verified Answers.

BUSI 4940 Exam 1 Review Questions With Verified Answers. General Environment - answerFactors in the external environment that can affect the company, but the company can not directly affect back. Or, dimensions in the broader society that influence an industry and the companies within it. In general, firms cannot directly control or significantly impact the segments of this environment. For example, the U.S. economy is so big that one company can't do much to impact it. However, the U.S. economy can impact any given company within it. Industry Environment - answerFactors that directly affect the company's competitive actions and responses. But the company CAN have a significant effect back on them as well. Think the threat of new entrants, the power of suppliers and buyers, the threat of substitutes, and rivalry among competing firms. There are some actions suppliers can take that will affect your company, but there are also actions you can take to affect your suppliers. Furthermore, customers can also affect you, but you can also affect your customers. Competitor Analysis - answerHow companies gather and interpret information about their competitors is called ______________________. General Environment - answerThe following are external factors that are Segments and Elements of the _______________. 1. Political/Legal 2. Economic 3. Sociocultural 4. Technological 5. Demographic 6. Environmental 7. Global We want to know if these will change and how they will affect our firm in the next 5 years. Opportunity - answerA condition in the general environment that, if exploited effectively, helps a company reach strategic competitiveness. Threat - answerA condition in the general environment that may hinder a company's efforts to achieve strategic competitiveness. External Environment Analysis - answerThis process is _____________________, 1. Scanning: Identifying early signals of environmental changes and trends 2. Monitoring: Detecting meaning through ongoing observations of environmental changes and trends. 3. Forecasting: Developing projections of anticipated outcomes based on monitored changes and trends. 4. Assessing: Determining the timing and importance of environmental changes and trends for firms' strategies and their management. Demographic - answerSegment of General Environment concerned with statistics regarding: 1) Population Size; 2) Age Structure; 3) Geographic Distribution; 4) Ethnic Mix; 5) Income Distribution *Remember P. E. S. T. /D. E. G. Economic - answerSegment of General Environment that refers to the nature and direction of the economy in which a firm competes or may compete; Interest rates, inflation rates, GDP, Budget deficits/surpluses, personal savings rates, unemployment. *Remember P. E. S. T. /D. E. G. Political/Legal - answerSegment of General Environment that refers to tax policies, trade restrictions, tariffs, subsidies, stability of the government, antitrust, health & safety, discrimination, child labor. Likely the most impactful potential issues a firm may face come from this segment. *Remember P. E. S. T. /D. E. G. Sociocultural - answerSegment of General Environment concerned with a society's attitudes and cultural values; Women in the workforce, diversity, shifts in preferences regarding product/service, work-life balance attitudes. *Remember P. E. S. T. /D. E. G. Technological - answerSegment of General Environment that includes the institutions and activities involved in creating new knowledge and translating that knowledge into new outputs, products, processes, and materials; Technological innovations, Industry 4.0 (smart factories), Industry 5.0 (robotics), service delivery, new medicines. *Remember P. E. S. T. /D. E. G. Global - answerSegment of General Environment that focuses on the extent to which PEST- DEG type factors in other countries affect America or the locations where your firm operates. *Remember P. E. S. T. /D. E. G. Environment - answerSegment of General Environment that refers to potential and actual changes in the physical environment (Natural disasters, weather) and business practices that are intended to positively respond to those changes in order to create a sustainable environment. (pollution, energy consumption)