Podcast
Questions and Answers
Which of the following best illustrates a company operating in an oligopolistic market?
Which of the following best illustrates a company operating in an oligopolistic market?
- A local bakery that is the only bakery in town.
- A single farmer's market offering organic produce.
- Numerous small boutiques selling unique handmade jewelry.
- A market dominated by a few major telecommunication companies. (correct)
A company notices a decline in sales after customers consistently find a product out of stock. This scenario exemplifies:
A company notices a decline in sales after customers consistently find a product out of stock. This scenario exemplifies:
- Direct competition.
- Monopolistic competition.
- Positive or reinforcing feedback.
- Negative or balancing feedback. (correct)
Which legislation was enacted to address actions that could potentially harm, ruin or prevent competition?
Which legislation was enacted to address actions that could potentially harm, ruin or prevent competition?
- Sherman Antitrust Act.
- Consumer Protection Act.
- Clayton Act.
- Robinson-Patman Act. (correct)
In the context of environmental factors affecting a business, which of the following would be considered an exogenous factor?
In the context of environmental factors affecting a business, which of the following would be considered an exogenous factor?
Which of the following scenarios is an example of brand competition?
Which of the following scenarios is an example of brand competition?
A new government policy restricts advertising for sugary drinks, impacting beverage companies. From a SWOT analysis perspective, this policy represents a(n):
A new government policy restricts advertising for sugary drinks, impacting beverage companies. From a SWOT analysis perspective, this policy represents a(n):
What was the primary goal of the early antimonopoly phase in the U.S. during the 19th century?
What was the primary goal of the early antimonopoly phase in the U.S. during the 19th century?
A company prides itself on its robust customer service and community involvement programs. From a SWOT perspective, these characteristics would be considered:
A company prides itself on its robust customer service and community involvement programs. From a SWOT perspective, these characteristics would be considered:
Which of the following rights is included in President John F. Kennedy's Consumer Bill of Rights?
Which of the following rights is included in President John F. Kennedy's Consumer Bill of Rights?
A consumer decides to spend their tax refund on a vacation instead of home repairs. This exemplifies:
A consumer decides to spend their tax refund on a vacation instead of home repairs. This exemplifies:
Flashcards
Exogenous Factors
Exogenous Factors
External factors or the macro-environment that an organization cannot easily control.
Endogenous Factors
Endogenous Factors
Internal factors that a company can control.
SWOT Analysis
SWOT Analysis
A strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or business venture.
Direct Competition
Direct Competition
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Pure Competition
Pure Competition
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Monopoly
Monopoly
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Oligopoly
Oligopoly
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Monopolistic Competition
Monopolistic Competition
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Generic Competition
Generic Competition
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Disposable Income
Disposable Income
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Study Notes
- Exogenous factors are external or macro-environmental elements that aren't easily controlled.
- Endogenous factors are controllable elements within a system or organization.
- SWOT analysis involves assessing:
- Strengths
- Weaknesses
- Opportunities
- Threats
- Positive or reinforcing feedback occurs when increased sales lead to satisfaction, resulting in positive word-of-mouth.
- Negative or balancing feedback occurs when sales lead to being out of stock, resulting in negative word-of-mouth.
- Management goals should be created with circular feedback systems in mind, rather than seeing it as a linear process.
- Direct competition includes firms competing for the same customers with similar products.
- Pure competition occurs between firms that sell identical products; no single firm is dominant.
- A monopoly occurs when a single firm sells in a market without direct competition.
- Regulated monopolies are often utility companies.
- An oligopoly exists when a small number of firms compete in a market.
- Monopolistic competition includes a limited number of firms selling differentiated brands that aim to satisfy similar needs.
- Brand competition occurs between very similar products in a category, for example, Coca-Cola and Pepsi.
- Category competition occurs between different types of products and categories, for example, Gatorade and Pepsi.
- Generic competition exists when customers consider products that satisfy generic rather than specific needs, for example, Pizza Hut and Whole Foods.
- Budget competition (wallet share competition) involves consumer decisions like taking a vacation, buying a new video game system, or saving for larger purchases.
- Disposable income is a consumer's income that can be used on non-essential spending.
- The antimonopoly phase involved early measures to regulate businesses and break up trusts/monopolies in key industries during the 19th century.
- Sherman Antitrust Act (1890) prohibits monopolies.
- Clayton Act (1914) supplemented the Sherman Act by prohibiting specific practices that substantially lessen competition.
- Competitor Protection Phase: discourages concentration in wholesaling, retailing, and among other intermediaries who could control supply.
- Robinson-Patman Act (1936) amended the Clayton Act to prevent actions that may injure, destroy, or prevent competition.
- Consumer Protection Phase: new concerns arose to protect consumers from fraud and deceit and prevent the sale of unsafe products.
- President John F. Kennedy's Consumer Bill of Rights includes:
- The right to safety
- The right to be informed
- The right to choose
- The right to be heard (and redress problems)
- Deregulation Phase involved legislators attempting to remove restrictively unfair regulations governing industries.
- Environmental Protection Phase goal: attempt to avert further environmental crises brought about by human damage to existing ecosystems.
- The current regulated phase brought on by global climate change crises, depletion of natural resources, environmental pollution, and increasing energy costs.
- The purpose of legislation is to protect companies from unfair competition, protect consumers from businesses with unfair practices, and protect the interests of society from destructive business behavior.
- Demographics is the field of study that examines trends and patterns in human populations.
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