Environments

Question 1

Environmental scanning benefits

Answer 1

1. Identifies threats before they are imminent
2. Identifies possible opportunities and gaps in the market
3. Keeps finger on pulse of competitors
4. Allows entrepreneur to make both long and short term strategies

Question 2

What does environmental scanning look at before a business is started

Answer 2

• viability of product
• strength of competitors
• size of potential market to allow new player in industry
• stability of resources such as suppliers, financiers, staff, premises and investors

Question 3

Elements of micro environments

Answer 3

• vision, mission, goals and objectives
• organisational culture
• organisational resources
• management and leadership
• organisational structure
• eight business functuons

Question 4

Tools used in micro environments

Answer 4

• SWOT Analysis
• resource based approach
• value chain analysis
• balanced scorecard

Question 5

Elements in market environment

Answer 5

• costumers
• suppliers
• competitors
• regulators
• unions
• intermediaries
• NGOs, CBOs

Question 6

Tools in market environment

Answer 6

OT of SWOT

Porters six forces model