SGS Business 1.2.4 The Competitive Environment

Which option lists the internal factors of a SWOT analysis?

• strengths, opportunities
• opportunities, threats
• strengths, weaknesses
• weaknesses, and threats

You are conducting a SWOT analysis and find out that a new competitor is opening within 5 miles of your store. This would be considered a __________.

• Strength
• weakness
• opportunity
• threat

Which of the following statements best describes the term, competition?

• When different businesses attempt to attract different customers

• When businesses do not have any rivals

• When different businesses attempt to attract the same customers

• When different businesses have only one supplier of raw materials

Which of the following is an example of a business that has a competitive strength based upon quality?

• A discount supermarket that offers value for money groceries

• A local convenience store that sells a wide range of commonly used products

• A restaurant which uses fresh, local produce in all of its dishes

• A coffee shop that has an outlet on a busy shopping street

Which of the following ways might a small successful technology firm manufacturing unique products use to compete with its rivals?

• Reduce its prices

• Offer an excellent after sales service

• Reduce its product range

• Relocate production to a busy high street

Which of the following is a competitive weakness based on location?

• A footwear shop offers a kids shoe fitting service by untrained staff

• A supermarket frequently runs out of stock of popular product lines

• A local café serves food to customers which is cold

• A restaurant locates on a quiet side street in a busy town

Which of the following businesses is best known for its ability to compete with its rivals on price

• Marks & Spencer

• Waitrose

• Lidl

• Tescos

A national retailer offers to refund the difference if customers find the same productcheaper elsewhere. This is an example of competition based on:

• Location

• Price

• Promotion

• Product range

In an extremely competitive market, a business may be forced to:

• Increase costs to enable a reduction in quality

• Increase costs to enable price rises

• Cut costs to enable price reductions

• Cut costs to enable an increase in quality

A change in customer's likes and interests may be seen as a

• opportunity
• strength