Topic 4 External Environment

Why is analyzing the external environment important for businesses?

• To focus only on internal operations

• To understand market trends and adapt to changes

• To avoid strategic planning

• To eliminate competition

Which of the following is NOT a component of the external environment?

• Customers

• Suppliers

• Employee salaries

• Government regulations

What are the three ways the external environment constrains managers?

• Job impact, environmental uncertainty, stakeholder relationships

• Company policies, customer loyalty, technology

• Profit margin, brand image, employee behavior

• Supplier power, taxation, economic growth

A highly uncertain environment is characterized by:

• Stability and predictability

• Minimal changes and fewer competitors

• Frequent changes and complexity

• No technological advancements

Which industry is considered to have high uncertainty?

• Food processing

• Soft drink bottlers

• Universities

• Mobile technology

Why is managing stakeholder relationships crucial for businesses?

• It guarantees higher profits

• It improves predictability of environmental changes

• It eliminates competitors from the market

• It reduces the need for marketing

What is the primary focus of customer analysis in the micro environment?

• Identifying competitors' weaknesses

• Understanding customer needs and preferences

• Reducing product prices

• Eliminating government regulations

Which of the following is NOT considered a supplier in the business environment?

• Raw material providers

• Logistics companies

• Financial institutions

• Government agencies

In competitive analysis, direct competitors:

• Offer completely different products and services

• Target the same customers with similar products

• Do not affect a company's market share

• Are usually government-regulated

Which of the following is NOT one of Porter's Five Forces?

• Supplier power

• Buyer power

• Technological advancement

• Threat of new entrants