BSP CHAPTER 2

What does the term 'external environment' generally refer to?

• Factors and conditions outside an organization

• Internal policies of an organization

• Financial statements of a company

• Employee satisfaction metrics

What are the two main categories of the external environment?

• Macroenvironment and Microenvironment

• Internal and External Environment

• Political and Economic Environment

• Social and Technological Environment

What factors are included in the macroenvironment?

• Economic, Social, Technological, Political

• Customers, Suppliers, Competitors

• Brand loyalty and reputation

• Regulatory and legal factors

What is the significance of understanding the external environment?

• Helps businesses adapt to changes

• Increases employee productivity

• Reduces operational costs

• Enhances product quality

What does the industry environment refer to?

• Specific conditions impacting a particular industry

• General market trends

• Consumer behavior analysis

• Government regulations

What are barriers to entry?

• Obstacles that make it difficult for new firms to enter

• Strategies to enhance market share

• Techniques for customer retention

• Methods to improve product quality

What is one of the common barriers to entry?

• Economies of Scale

• Increased competition

• Market saturation

• High consumer demand

What can high capital requirements lead to?

• Deterring new entrants

• Increasing market competition

• Enhancing product innovation

• Improving customer loyalty

What role does brand loyalty play in barriers to entry?

• Provides a competitive advantage

• Increases production costs

• Reduces customer satisfaction

• Limits product variety

What is the impact of regulatory barriers?

• Can pose significant challenges for new entrants

• Enhances market competition

• Increases consumer trust

• Reduces operational costs