Unit 3 Topic 2 - Hostile environments

A hostile environment is:

• a situation in which businesses actively compete against one another for customer attention and market share

• specifying the vision and strategy the business seeks to develop over time

• a group of businesses producing products or services that are close substitutes

• a key factor that differentiates one product for another

____________ specifies the vision and strategy the business seeks to develop over time, framed within the context of environmental factors.

• strategic development

• industry

• strategic direction

• economies of scale

to successfully operate in a dynamic, hostile environment, all business must be aware of _____________ and alter their ___________ accordingly

• - the economy - taxes

• - environmental conditions and trends - Strategic direction

• - internal operating factors - business plan

• - competitors - product

_______________ is characterised as having a large number of businesses that offer similar, but slightly different, products to the market.

• monopolistic competition

• oligopolies

• market power

• duopoly

USP stands for?

• Unique Sales Power

• Unified Selling People

• Unique Sales Power

• Unique Selling Proposition

For true ____________ to occur, the leading four business in the industry should account for between 60 - 80 per cent of the market

• Monopolistic

• Duoploy

• Market Power

• Oligopoly

Telstra and Optus would be an example of a ___________ in the telecommunications industry

• Oligopoly

• Duopoly

• Monopoly

• monopolistic environment

The big 4 banks would be an example of an:

• Monopoly

• Market Power

• Oligopoly

• Duopoly

A competitor analysis can be employed to help understand which of the following? (Select all that apply)

• what drives the competitor

• what the competitor is doing and can do

• What the competitors strengths and weaknesses are

• how the competitor is positioning itself

Select any that are benefits of a business investing in R & D

• competitive advantage

• market power

• customer loyalty

• reputation

• strategic analysis