Worksheets1.2.4 - The competitive environment
Total questions: 13
Worksheet time: 7mins
Which of the following statements best describes the term, competition?
When different businesses attempt to attract different customers
When businesses do not have any rivals
When different businesses attempt to attract the same customers
When different businesses have only one supplier of raw materials
Which of the following is an example of a business that has a competitive strength based upon quality?
A discount supermarket that offers value for money groceries
A local convenience store that sells a wide range of commonly used products
A restaurant which uses fresh, local produce in all of its dishes
A coffee shop that has an outlet on a busy shopping street
Which of the following ways might a small successful technology firm manufacturing unique products use to compete with its rivals?
Reduce its prices
Offer an excellent after sales service
Reduce its product range
Relocate production to a busy high street
Which of the following is a competitive weakness based on location?
A restaurant locates on a quiet side street in a busy town
A footwear shop offers a kids shoe fitting service by untrained staff
A supermarket frequently runs out of stock of popular product lines
A local café serves food to customers which is cold
In which of the following scenarios would a business face no competition?
When there are several suppliers of gas available to residents
When there are many telephone networks available to residents
When there is only one supplier of water to residents
When there are numerous electricity suppliers available to residents
Which of the following businesses is best known for its ability to compete with its rivals on price?
Primark
Marks & Spencer
J D Sports
Selfridges
An independent, high fashion retailer targeting teenagers has recently opened in a popular shopping centre located in a busy city centre. Which of the following is the best way the business could compete successfully with its rivals?
Charge higher prices and offer a smaller product range
Charge lower prices and offer a wider product range
Charge high prices for low quality clothing
Charge moderate prices and provide a low level of customer service
A national retailer offers to refund the difference if customers find the same product cheaper elsewhere. This is an example of competition based on:
Location
Price
Quality
Product range
Which of the following would be a suitable way for a start-up take away business to use to compete with its rivals?
Offer a limited choice of options on its menu
Offer higher prices for similar food options
Offer a highly efficient and friendly service
Price match in conjunction with offering smaller portion sizes
Which of the following best describes the term, competitive environment?
Where every business attempts to minimise its costs
When a business is the only seller of a good/service in a market
Where different businesses in different markets compete on price
The extent of rivalry between different businesses in the same market
In an extremely competitive market, a business may be forced to:
Increase costs to enable price reductions
Increase costs to enable price rises
Cut costs to enable price reductions
Cut costs to enable price rises
Which two of the following are likely reasons why a business may fail?
Select two answers:
When its competitors offer:
Higher levels of quality for the same or similar priced goods
Higher prices for the same or similar quality goods
Lower levels of quality for the same or similar priced goods
Lower levels of customer service and higher prices
Lower prices and higher levels of customer service
A business faces no direct competition in its market and sells a product that is in high demand. Which two of the following would represent possible decisions that this business would make?
Select two answers:
It will charge similar prices to its competitors
It will be less likely to develop new, innovative products
It will charge lower prices than its competitors
It will promote itself extensively to attract customers
It will charge higher prices
