SH Ch 6&7 - External Env: Social, Demographic and Technological

The overall average age of a population in a country is directly dependent on two demographic factors: Birth rate and death rate.

Assuming equal rates of change, which of the following must lead to an overall ageing of the population?

Increasing death rate (Yes / No)

• Yes

• No

The overall average age of a population in a country is directly dependent on two demographic factors: Birth rate and death rate.

Assuming equal rates of change, which of the following must lead to an overall ageing of the population?

Decreasing birth rate

• Yes

• No

Social influences have to be taken into account when an organisation is considering what type of products it wants to sell.

Which ONE of the following influences will have the least impact on a retailer of over-the-counter medication?

• Lifestyle changes

• Consumerism

• Social mobility

• Level of education

Country B has an ageing population. The government is concerned about the impact the proportion of the population who are retired compared to the proportion who are working is having on public finances in the country.

Which TWO of the following initiatives would be appropriate for the government to introduce to help address its concerns?

• Increase the retirement age

• Increase the number of hospital places available for elderly people

• Increase pension payments to retired people

• Increase incentives to help unemployed young people find jobs

Eatkleen is a pressure group that seeks to encourage food producers to eliminate harmful preservatives from food and make the public aware of the potential dangers of these additives. Frustrated with the government’s explicit policy not to act on this in the near future, Eatkleen is campaigning for consumers to boycott certain products.

What combination of environmental factors is Eatkleen exerting on food producers?

• Political and social

• Social and economic

• Political and technological

• Economic and technological

The new CEO of Company D has identified that the company could be made more efficient through delayering.

Which TWO of the following would be expected outcomes of the delayering exercise at Company D?

• Senior managers will have less understanding of business operations

• Junior managers will be more empowered

• Company D will look to buy in more services from external providers rather than carrying them out in house

• Decisions will be made more quickly

Company TF is undertaking a project that is estimated to take approximately six months to complete. It will involve a lot of extra work for the IT department of Company TF.

What type of outsourcing of the IT function might company TF consider?

• Partial

• Ad hoc

• Specialist project management

• Total

Downsizing an organisation may happen for a number of reasons.

Which TWO of the following are reasons for downsizing an organisation?

• Employee costs are too high for the level of revenue being created

• The company is entering a period of expansion

• The owner feels that he has lost control of the business

• There is a need for more promotion opportunities to be created.

Kimble Stadium (Kimble) is a major sports stadium and conference venue. Kimble has two refreshment kiosks which are open every day, and it employs a small number of permanent staff to serve refreshments from the kiosks. The stadium regularly hosts major events. At these events Kimble’s own staff are supplemented by additional staff from The Event Co – an agency which provides staff to different venues as and when they need them.

What level of outsourcing is Kimble using to meet the demand for staff at major events?

• Ad hoc

• Partial

• Project

• Total

Developments in technology have affected businesses in a number of important ways.

Are the following statements about the impacts of technology true or false?

The increasing amount of information available means that it is no longer a valuable asset for businesses (True / False)

• True

• False