External Environment

Question 1

Layers of the Business Environment (outside to inside)

Answer 1

The macro-environment
Industry or sector
Competitors and markets
The Organisation

Question 2

PESTEL

Answer 2

Political
Economic
Social - Demographics
Technological
Ecological
Legal

Question 3

Homogeneous Products

Answer 3

Products are the same

Question 4

Heterogeneous Products

Answer 4

Products vary

Question 5

Porter’s Five Forces (competition framework)

Answer 5

Bargaining power of supplier
Threat of Entry
Substitute Competition
Buyer Power
Industry Rivalry

Question 6

The Value Net

Answer 6

Map of organisations that give opportunities
- Customers
- Complementors (sony music and MP3 players)
- Suppliers
- Competitors