Tag: meaning and factors of business environment

Questions Related to meaning and factors of business environment

Which of the following technique can be used in environment scanning?

business organisation and correspondence meaning and factors of business environment dimensions of business environment business environment and its dimensions business environment

  1. SWOT Analysis

  2. PEST/PESTEL Analysis

  3. Industry Analysis

  4. All of above

Show answer
Correct Option: D
Explanation:
Environment Scanning is careful monitoring of an organization's internal and external environments for detecting early signs of opportunities and threats that may influence its current and future plans.Following technique can be used in environment scanning:
A) SWOT Analysis
B) PEST/PESTEL Analysis
C) Industry Analysis.

Porter's Forces Analysis assumes that there are important forces that determine competitive power in a business situation. These are:
I. Supplier power, Threat of new entry
II. Supplier power, Buyer power, Competitive rivalry
III. Supplier power, Competitive rivalry, Threat of new entry
IV. Supplier power, Buyer power, Competitive rivalry, Threat of substitution, Threat of new entry
Select the correct answer from the options given below-

business organisation and correspondence meaning and factors of business environment dimensions of business environment business environment and its dimensions business environment

  1. IV

  2. III

  3. II

  4. I

Show answer
Correct Option: A
Explanation:
The Porter's five forces tool is a simple but powerful tool to evaluate the power of business.Porter's Forces Analysis assumes that there are important forces that determine competitive power in a business situation. These are: a) Supplier power,
b) Buyer power,
c) Competitive rivalry,
d) Threat of substitution,
e)  Threat of new entryAs per Porter's Forces Analysis, supplier power assesses how easily suppliers may drive up prices.As per Porter's Forces Analysis, buyer power evaluates how easy it is for buyers to drive prices down.

As per Porter's Forces Analysis,_______ assesses how easily suppliers may drive up prices.

business organisation and correspondence meaning and factors of business environment dimensions of business environment business environment and its dimensions business environment

  1. buyer power

  2. supplier power

  3. threat of new entry

  4. threat of substitution

Show answer
Correct Option: B
Explanation:
As per Porter's Forces Analysis, supplier power assesses how easily suppliers may drive up prices.The Porter's five forces tool is a simple but powerful tool to evaluate the power of business.Porter's Forces Analysis assumes that there are important forces that determine competitive power in a business situation. These are: a) Supplier power,
b) Buyer power,
c) Competitive rivalry,
d) Threat of substitution,
e)  Threat of new entry

Which of the following are specific forces of business environment?  
(I)    Investors 
(II)   Social conditions  
(III)  Competitors 
(IV)  Technology 
(V)   Suppliers
(VI)  Political conditions 
   Select the correct answer from the options given below - 

business organisation and correspondence meaning and factors of business environment dimensions of business environment business environment and its dimensions business environment

  1. (I), (II), (III) & (V) only

  2. (II), (IV) & (VI) only

  3. (I), (III) & (V) only

  4. (II), (III) & (VI) only

Show answer
Correct Option: A
Explanation:

Specific forces of the business environment refers to those forces which does not affect every department of the business organization. For example: investors, social conditions, competitors and suppliers are the specific forces.

___________ affects the competitiveness of a firm.

business organisation and correspondence meaning and factors of business environment dimensions of business environment business environment and its dimensions business environment

  1. Technology

  2. Management

  3. Sub-standard goods

  4. Advertisements

Show answer
Correct Option: A
Explanation:

Technology affects the competitiveness of a firm. It affects greatly since improved technology helps to yield greater profit and reduce the cost.

As per Porter's Forces Analysis, _________ evaluates how easy it is for buyers to drive prices down.

business organisation and correspondence meaning and factors of business environment dimensions of business environment business environment and its dimensions business environment

  1. buyer power

  2. supplier power

  3. threat of new entry

  4. threat of substitution

Show answer
Correct Option: A
Explanation:
The Porter's five forces tool is a simple but powerful tool to evaluate the power of business.Porter's Forces Analysis assumes that there are important forces that determine competitive power in a business situation. These are: a) Supplier power,
b) Buyer power,
c) Competitive rivalry,
d) Threat of substitution,
e)  Threat of new entryAs per Porter's Forces Analysis, supplier power assesses how easily suppliers may drive up prices.As per Porter's Forces Analysis, buyer power evaluates how easy it is for buyers to drive prices down.

Financial factors consist of ___________.

business organisation and correspondence meaning and factors of business environment dimensions of business environment business environment and its dimensions business environment

  1. financial policies

  2. financial positions

  3. capital structure

  4. all of the above

Show answer
Correct Option: D
Explanation:

Financial factors consist of financial policies, financial positions and capital structure. It is an important internal factor which has a substantial impact on business functioning and performance. Financial facilities are required to start and operate the organization.

Management Structure and Nature is a part of _______.

business organisation and correspondence meaning and factors of business environment dimensions of business environment business environment and its dimensions business environment

  1. external environment

  2. internal environment

  3. both (a) & (b)

  4. none of the above

Show answer
Correct Option: A
Explanation:

Management Structure and Nature is a part of external environment. This structure of the organization influences the business decisions. These needs to be appropriately managed for smooth functioning and operations.

Demand for packaged food is a ________.

business organisation and correspondence meaning and factors of business environment dimensions of business environment business environment and its dimensions business environment

  1. political factor

  2. technological factor

  3. social factor

  4. economic factor

Show answer
Correct Option: C
Explanation:

Demand for packaged food is a social factor. It is one of the most important factors among other macro environmental factors. It leaves an impact directly or indirectly on the business environment.

PESTLE analysis is a useful tool for understanding the 'big picture' of the ________ in which an entrepreneur is planning to operate.

business organisation and correspondence meaning and factors of business environment dimensions of business environment business environment and its dimensions business environment

  1. environment

  2. strategy

  3. position

  4. marketing proposition.

Show answer
Correct Option: A
Explanation:

PESTLE analysis is a useful tool for understanding the big picture of the environment in which an entrepreneur is planning to operate.PESTLE stands for Political, Economic, Sociological, Technological, Legal, and Environmental.