Gr11 Business Environments

Environmental scanning only focuses on the external environments (macro and market)

• True

• False

A crisis is...

• a slow and anticipated change

• something a business will likely have a contingency plan for

• part of your mission and vision

• none of the above

Which of the following are strengths for a business?

• Location

• Work skills

• Business culture

• Access to financing

______ strategies use strengths to take advantage of opportunities.

Which of the following make markets more attractive?

• High barriers to entry

• Low barriers to entry

• Strong buyer bargaining power

• Strong supplier bargaining power

Which of the following makes a market unattractive?

• Few substitute products/services.

• High levels of competition

• Weak buyer bargaining power.

• Strong supplier bargaining power.

Which of the following are barriers to market entry?

• Capital required to enter the market is high.

• Existing businesses have strong patents and trademarks.

• Strict government legislation.

• Customer switching costs are low.

Which of the following is a factor that increases the level of existing rivalry in a market?

• Exit barriers are high

• Differentiated products being sold.

• Homogenous products being sold.

• Competitors are of equal size.

What increases buyer bargaining power?

• Buyers buy in bulk

• There are very few suppliers offering the product

• Many buyers exist

• It is easy for a buyer to switch to another supplier.

• It is expensive for a buyer to switch to another supplier