Podcast
Questions and Answers
What is the primary focus of environmental economics?
What is the primary focus of environmental economics?
The impact of economic activities on the environment, including its implications for individual firms, industries, and the economy as a whole.
What is the main objective of environmental economics?
What is the main objective of environmental economics?
To maintain a balance between economic development and environmental quality.
How does environmental economics address environmental problems?
How does environmental economics address environmental problems?
By applying economic principles and tools to tackle environmental problems from an economic welfare framework.
What is the focus of environmental issues, according to neo-classical economists?
What is the focus of environmental issues, according to neo-classical economists?
What is the objective of clean technology?
What is the objective of clean technology?
What is industry environment analysis?
What is industry environment analysis?
What are the primary stakeholders considered in industry environment analysis?
What are the primary stakeholders considered in industry environment analysis?
What are additional aspects to consider in industry environment analysis?
What are additional aspects to consider in industry environment analysis?
What are PEST and PESTEL models used for?
What are PEST and PESTEL models used for?
What is the microenvironment in industry analysis?
What is the microenvironment in industry analysis?
What is an industry according to industry analysis?
What is an industry according to industry analysis?
What does upstream refer to in industry analysis?
What does upstream refer to in industry analysis?
What is PESTLE analysis used for by companies?
What is PESTLE analysis used for by companies?
What is the impact of strong supplier power on firms within a sector?
What is the impact of strong supplier power on firms within a sector?
How does strong buyer power affect firms?
How does strong buyer power affect firms?
What is competitive rivalry and what factors influence its intensity?
What is competitive rivalry and what factors influence its intensity?
What does the threat of substitution refer to?
What does the threat of substitution refer to?
Why is identifying new entrants important in industry analysis?
Why is identifying new entrants important in industry analysis?
What is meant by industry in terms of goods and services production?
What is meant by industry in terms of goods and services production?
What are the two main types of primary industries?
What are the two main types of primary industries?
What is an extractive industry?
What is an extractive industry?
What is a genetic industry?
What is a genetic industry?
What is the focus of secondary industries?
What is the focus of secondary industries?
What are the main types of secondary industries?
What are the main types of secondary industries?
What does a manufacturing industry do?
What does a manufacturing industry do?
What is an analytical industry?
What is an analytical industry?
What does a synthetic industry do?
What does a synthetic industry do?
What is a processing industry?
What is a processing industry?
What does an assembling industry do?
What does an assembling industry do?
What is a construction industry?
What is a construction industry?
Service industries are a part of secondary industries.
Service industries are a part of secondary industries.
What do service industries do?
What do service industries do?
Flashcards
Eco-development
Eco-development
Aimed at maintaining a balance between economic growth and environmental quality.
Environmental Economics
Environmental Economics
The study of how economic activities impact the environment and the implications for businesses, industries, and the entire economy.
Welfare Approach
Welfare Approach
The application of economic principles and tools to address and solve environmental problems.
Environmental Values
Environmental Values
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Clean Technology
Clean Technology
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Industry Environment Analysis
Industry Environment Analysis
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The Industry Environment
The Industry Environment
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PEST and PESTEL Analyses
PEST and PESTEL Analyses
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Microenvironment
Microenvironment
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Industry
Industry
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Upstream
Upstream
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Downstream
Downstream
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PESTLE Analysis
PESTLE Analysis
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Political Factors
Political Factors
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Economic Factors
Economic Factors
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Social Factors
Social Factors
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Technological Factors
Technological Factors
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Legal Factors
Legal Factors
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Environmental Factors
Environmental Factors
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Supplier Power
Supplier Power
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Buyer Power
Buyer Power
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Competitive Rivalry
Competitive Rivalry
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Threat of Substitution
Threat of Substitution
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Threat of New Entry
Threat of New Entry
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Industry
Industry
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Extractive Industry
Extractive Industry
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Genetic Industry
Genetic Industry
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Secondary Industry
Secondary Industry
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Manufacturing Industry
Manufacturing Industry
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Service Industry
Service Industry
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Study Notes
- Industry Analysis of Business Opportunities
- The analysis focuses on the business opportunities within a specific industry.
- Learners will be able to discuss principles, tools, and techniques.
- Learners will be able to define types of industries.
- Economy-Environment Analysis
- Environmental economics examines the impact of economic activity on the environment.
- Environmental economics considers implications for individual firms, industries, and the economy.
- Aiming for a balance between economic development and environmental quality is a critical objective.
- Welfare Approach
- Environmental economics tackles environmental problems with an economic welfare framework.
- Environmental issues focus on resources (e.g., fisheries, forests, fossil fuels, water).
- This field considers how the use of resources affects the environment.
- Clean Technology
- Clean technology defines sets of technologies aimed at either reducing or optimizing the use of natural resources, minimizing negative environmental impacts in the process.
- Industry environment analysis assesses the current state of a specific industry's environment, which helps predict future trends and other insights into the industry.
- Industry Environment
- The industry environment includes key stakeholders like competitors, suppliers, and buyers.
- Political, legal, and technological aspects are also considered critical elements of the industry environment.
- PEST and PESTEL analyses are models for examining political, legal, social, economic, environmental, and technological aspects related to a specific industry.
- Principles, Tools, and Techniques
- Microenvironment includes the organization's industry and related upstream and downstream aspects.
- An industry comprises firms producing similar products or services (close substitutes).
- Upstream industries provide raw materials or inputs.
- Downstream industries are those that use the output of the focal industry..
- PESTLE Analysis
- PESTLE analysis is useful for businesses to observe and understand their operating environment.
- Political factors determine governmental influence on the industry and economy.
- Economic factors affect company performance and have long-term impacts.
- Social factors examine the market's social environment and consumer determinants.
- Technological factors involve innovations and their potential effects on the industry and market.
- Legal factors include both external laws and internal company policies.
- Environmental factors encompass all elements influencing or determined by the broader environment.
- Key Points
- Supplier power: Strong supplier power makes it harder for firms in an industry to profit as suppliers dictate terms and conditions.
- Buyer power: Strong buyer power means buyers can demand lower prices and reduce the profitability of firms.
- Competitive rivalry: High rivalry between firms makes it challenging to generate profits due to intense competition. Factors include numerous competitors, slow industry growth, high fixed costs, lack of differentiation, and high exit barriers.
- Threat of substitution: Buyers can easily switch to alternative products, creating risk for firms.
- Threat of new entry: New competitors can enter the market, reducing existing firm market share.
- Types of Industry
- An industry produces goods and services by converting inputs into outputs or creating utilities for customers.
- Industries can include the extraction of goods, generation of utilities, and production or construction of specific products.
- Primary Industry
- Primary industries extract materials from natural resources or grow/develop vegetation and animals for reproduction.
- Types of primary industries – extractive industries extract raw materials from natural sources (e.g., mining, farming).
- Genetic industries focus on growing and developing vegetation and animals.
- Secondary Industry
- Secondary industries use materials from primary industries to produce finished products.
- Manufacturing is a key type of secondary industry – creating utilities in raw materials and semi-raw materials.
- Types of Secondary Industry
- Analytical industry – analyses and separates different components from a single material.
- Synthetic industry – combines materials to create a new product, or a new form of a product
- Processing industry – transforms raw materials into finished products.
- Assembling industry – combines existing components to create a new product.
- Construction industry – creates buildings, structures, and infrastructure.
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