Business Environment and Strategy

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Which of the following is NOT considered one of the three primary business environments?

Market Environment
Technological Environment (correct)
Micro Environment
Macro Environment

Environmental scanning is most crucial to strategic planning because it:

Reduces the need for any internal assessments.
Provides the insights necessary to make informed decisions aligned with the external environment. (correct)
Guarantees a business will avoid all potential threats.
Ensures a business always maximizes short-term profits.

Which statement best describes the key difference between a crisis and a trend in a business context?

A crisis is always negative, while a trend is always positive.
A crisis is predictable and controllable, while a trend is unexpected.
A crisis only affects large corporations, while a trend only impacts small businesses.
A crisis is an unexpected event requiring immediate action, while a trend is a gradual shift that evolves over time. (correct)

In a SWOT analysis, which pairing represents factors that are primarily EXTERNAL to the business?

Opportunities and Threats (A) Signup and view all the answers

A company with a highly skilled workforce is generally considered a strength. Under what circumstance could this become a weakness?

When the cost of maintaining the highly skilled workforce becomes unsustainable. (D) Signup and view all the answers

Which of the following scenarios would MOST strongly favor locating a manufacturing business closer to the source of raw materials?

The raw materials are perishable and must be processed quickly. (D) Signup and view all the answers

A business is considering opening a new retail location. Which factor, related to location, would be LEAST important to consider?

The availability of skilled labour in the area. (C) Signup and view all the answers

According to Porter's Five Forces model, which of the following scenarios represents a HIGH threat of new entrants?

There are minimal government regulations and low barriers to entry. (C) Signup and view all the answers

Which of the following is the MOST accurate description of how Maslow's hierarchy of needs influences workplace motivation?

Satisfying higher-level needs (e.g., esteem) is only effective after lower-level needs (e.g., safety) are met. (D) Signup and view all the answers

In the context of workplace discipline, which approach BEST balances the need for corrective action with employee well-being?

Providing consistent feedback and progressive discipline, focusing on improvement rather than punishment. (D) Signup and view all the answers

A marketing manager, operating at the middle management level, is MOST likely to be responsible for which type of decision?

Developing and implementing specific marketing campaigns to achieve departmental goals. (D) Signup and view all the answers

Which of the following BEST illustrates the difference between a manager and an entrepreneur?

An entrepreneur takes on the risks and rewards of a new venture, while a manager typically works within an established organization. (B) Signup and view all the answers

What is the PRIMARY purpose of delegation in a management context?

To distribute workload, develop employee skills, and improve organizational efficiency. (A) Signup and view all the answers

Top-level management decisions are MOST likely to be:

Strategic, concerning long-term organizational direction and competitive advantage. (B) Signup and view all the answers

According to traditional management theory, which sequence accurately represents the four basic management tasks?

Organising, leading, control, planning (A) Signup and view all the answers

According to Equity Theory on Motivation, what do employees compare to determine if they are being treated fairly?

Their inputs (effort, skills) and outputs (rewards) to the inputs and outputs of others. (C) Signup and view all the answers

Which of the following scenarios best illustrates the negative impact of the 'threat of new entrants' force on a business?

A new budget airline enters the market, offering significantly lower fares and drawing customers away from established airlines. (A) Signup and view all the answers

A mobile phone manufacturer relies heavily on a single supplier for specialized microchips. Which of Porter's Five Forces is most relevant to this situation, and what is a potential negative impact?

Bargaining power of suppliers; the supplier could increase prices or reduce the quality of microchips. (C) Signup and view all the answers

A software company is considering entering the antivirus software market. Which of the following barriers to entry would likely pose the greatest challenge?

The need to establish strong brand recognition and build trust with customers wary of security vulnerabilities. (A) Signup and view all the answers

How can a business leverage complementary products to enhance its performance in the market?

By bundling its products with complementary offerings to provide increased value to the customer. (B) Signup and view all the answers

Which scenario exemplifies the bargaining power of buyers/consumers having a negative impact on a business?

A coffee shop chain faces pressure to lower its prices due to intense competition and price-sensitive customers. (C) Signup and view all the answers

A company is conducting a PESTLE analysis before launching a new product. Which of the following best illustrates a 'Legal' factor that could significantly impact the business?

Changes in environmental regulations requiring costly compliance measures. (C) Signup and view all the answers

During a period of economic recession, a company experiences a sharp decline in sales and is forced to reduce its workforce. This scenario best illustrates which term?

Downsizing (C) Signup and view all the answers

A manufacturing company implements a new system to reduce waste, conserve energy, and minimize its environmental footprint. This initiative aligns most closely with which aspect of Corporate Social Responsibility (CSR)?

Sustainability (B) Signup and view all the answers

A business aiming for environmental sustainability might implement which of the following strategies?

Switching to renewable energy sources and reducing waste. (A) Signup and view all the answers

Which initiative would MOST directly reflect a business's commitment to social sustainability within its CSR program?

Implementing a diversity and inclusion program within the workplace. (D) Signup and view all the answers

If a business exerts pressure on its supply chain to adopt responsible corporate citizenship, this primarily focuses on?

Promoting ethical and sustainable practices throughout the entire value chain. (D) Signup and view all the answers

Which of the following statements BEST explains why staff members are considered stakeholders in a business?

Staff members rely on the business for their livelihood and career development. (A) Signup and view all the answers

When designing a CSR program, which initial step is MOST crucial for a business to undertake?

Conducting a thorough assessment of the company’s current social and environmental impact. (C) Signup and view all the answers

When implementing a CSR program, which principle ensures the business is transparent and accountable for its actions and outcomes?

Transparency: Openly communicating goals, progress, and challenges to stakeholders. (D) Signup and view all the answers

What is the PRIMARY reason a business should report to its stakeholders about its CSR program?

To build trust, demonstrate accountability, and enhance its reputation. (C) Signup and view all the answers

A manager is determining the resources needed, setting timelines, and defining the steps to launch a new product line. Which basic management task is being performed?

Planning (B) Signup and view all the answers

Market Environment

The immediate factors impacting a business's ability to serve customers, like competitors and suppliers.

Environmental Scanning

A process that involves gathering information about the business environment, analyzing it, and forecasting the future impact of environmental changes.

Importance of Environmental Scanning

Essential for spotting opportunities and threats, adapting strategies, and maintaining a competitive edge.