the environment of business
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what is the difference between internal environment and external environment (general environment)?
Internal--> within organisation (technologies, structure, business process)
External/general--> industry-specific environment (organizations customers, suppliers and competitors)
what does PESTEL stand for?
give some examples for the Environmental influences from each PESTEL Letter
give some examples for the PESTEL letters in an INTERNATIONAL context
what are the 5 competitors in the five forces analysis
Suppliers, Customers,Competitors,Potential entrants, Substitutes
When does strong competitive rivalry occur?
-many firms but none dominant
-market is growing slowly
-high fixed costs
what can encourage new entrants?
-low costs of equipment and facilities
-readily available distribution facilities
-minimal loyalty to established company
-no relevant subsidies/regulations favoring existing firms
Bargain power of buyers will decrease profit if:
-many alternative products or suppliers
-cost of switching to other products is low
-buyer takes high percentage of supplier's sale
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