Exam (elaborations)
SGMA 591 Chapter 2 Exam Questions And Correct Answers
- Course
- Institution
SGMA 591 Chapter 2 Exam Questions And Correct Answers...
[Show more]
Content preview
SGMA 591 Chapter 2 Exam Questions And Correct Answersbusiness environment - Answer all the external influences that affect its decisions and
performance
PEST analysis - Answer Environmental scanning framework used to understand macro
environmental factors affecting industries and marketing in which companies compete.
political economic social technological
why is pest analysis popular - Answer it provides simple yet systematic approach to
identifying factors that are likely to shape the competitive conditions within an industry
Political example: licensing, taxation, trademark and intellectual property
Economic examples: cost of labor, capital and energy, level of economic activity
Social examples: shifting attitudes
Technological: shopping online vs brick and mortar
Strategic analysis approach : macro environment
Immediate industry environment
Specific competitors
Internal analusis
Industry microenvironment: customer
Competition and new entrants
Suppliers
Macro environment: PEST
the more compettion - Answer the less the surplus received by customers
, profit not always surplus - Answer when an industry has powerful / monopolistic
suppliers or employees united by a strong labor union surplus may be appropriated by
suppliers
profit = surplus - Value of the product to customers
Intensity of competition
Bargaining power of the producers relative to their suppliers
horizontal competition - competition from substitutes, entrants and rivals
absence of sunk cost - Answer make an industry vulnerable to hit and run entry
sunk cost - Answer investment whose value cannot be recovered on exit.
capital requirement - Answer cost so large discourage entry
the need to invest large financial resources in order to compete
economies of scale - Answer firms produce larger volumes enjoy lower cost per unit
absolute advantage - Answer result from acquisition of low cost sources of raw material
product differentiation - Answer advantage of brand recognition and customer loyalty.
New entrants would have to spend lots on advertising and gaining brand awareness
Access to channels of distribution - Answer shelf space
Governmental and legal barriers - Answer government grant exclusive right. While the
government can directly affect industry attractiveness it also has a powerful influence on
each of the other five forces.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Easton. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67096 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now