29 Questions
What does the industry environment of a business include?
Competitors
Which factor in the physical environment is highlighted as easily changeable?
Climate
What does 'entrepreneurial gut game' refer to?
The ability of an entrepreneur to be intuitive
What does an individual with entrepreneurial drive do according to the passage?
Identify opportunities and respond to people's needs
Which of the following is considered a source of opportunities for entrepreneurs?
Changes in the environment
How does an individual with knowledge in machine engine repair identify a business opportunity?
By discovering engine parts that reduce fuel consumption
How does the text describe the use of firecrackers during New Year's Eve?
Strictly prohibited by the government
What does the 'physical environment' for a business include?
Climate, natural resources, and wildlife
In the societal environment, what do 'economic forces' primarily refer to?
Income level and employment rate
What does the text suggest about government policies in terms of entrepreneurial opportunities?
They can lead to new business ideas
How do entrepreneurial ideas typically arise according to the text?
From changes in the external environment
'Wildlife' in the physical environment refers to:
All mammals, birds, reptiles, fish, etc., that live in the wild
What is the purpose of recognizing a potential market in entrepreneurship?
To look for solutions in terms of products and services
Which characteristic is essential for entrepreneurial opportunity seeking?
Having a positive and optimistic mindset
What is the role of entrepreneurial ideas in the creation of entrepreneurial opportunities?
Identifying potential business ventures
How does the entrepreneurial mind frame help in opportunity seeking?
By taking risks and finding solutions
What foundation must an entrepreneur have in seeking opportunities?
Having a driven passion for discovery
Why is it important for an entrepreneur to choose the best product or service that will meet the market need?
To satisfy the identified market need effectively
What is considered as one of the sources of opportunity?
Technological advancement
What does 'substitute' refer to in a business context?
An alternative that can replace a product or service
Who are the 'buyers' in a business context?
Individuals who pay for goods and services
What characterizes 'rivalry' in the business environment?
A state of competition and conflict among groups
What does 'new entrants' typically refer to?
Entities that join an industry for the first time
What factor gives a threat to a business with regards to potential new entrants?
High cost of product differentiation
What characteristic can intensify the rivalry among existing firms according to the text?
A large number of competing firms
In which scenario would a substitute product pose a threat to an industry environment?
Low cost of switching between products
What does high switching cost imply for a business in relation to substitute products?
It reduces the threat of substitute products
Which factor does NOT contribute to intensifying the rivalry among existing firms?
Low diversity of rivals
What deters potential new entrants from joining a business, according to the text?
High cost of entering and differentiating products
Study Notes
Sources of Opportunities
- Changes in the environment can lead to business opportunities
- Technological discoveries and advancements can create new opportunities
- Government's thrust, programs, and policies can inspire entrepreneurial ideas
- People's interests and past experiences can also spark new opportunities
Environmental Factors
- Physical environment: includes climate, natural resources, and wildlife
- Societal environment: includes political, economic, and sociocultural forces
- Industry environment: includes competitors, customers, creditors, employees, government, and suppliers
Entrepreneurial Mindset
- Entrepreneurial mind frame: seeing opportunities in difficult situations
- Entrepreneurial heart flame: driven by passion and desire to achieve goals
- Entrepreneurial gut game: intuitive confidence in oneself and one's business
Identifying Opportunities
- Look for emerging trends and patterns in the environment
- Identify target markets and their needs
- Analyze the external environment for opportunities
New Entrants
- Defined as individuals who enter a new market or industry
- Factors that can deter new entrants include high capital requirements, strict government policies, and high switching costs
Rivalry among Firms
- Characterized by the intensity of competition among existing firms
- Factors that influence rivalry include diversity of rivals, number of competitors, product characteristics, capacity, fixed costs, and industry growth rate
Substitute Products
- Defined as products or services that can take the place of another
- Factors that can make substitute products a threat include low switching costs, changing customer preferences, and price increases
Test your knowledge on various factors that influence the business environment such as sociocultural forces, technological innovations, industry environment elements, and physical environmental aspects. Explore how customs, lifestyles, values, competitors, government regulations, and climate can impact businesses.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
