What are the two main categories of business environment?

Internal Environment and External Environment

Fill in the blank: The business environment is described as ___ as it consists of various forces that influence its operations.

Aggregative

True or False: The micro environment consists of factors that are uncontrollable by the business.

False. The micro environment consists of factors that are within the company's immediate control.

What is the significance of environmental scanning for a business?

Environmental scanning helps identify opportunities and threats, allowing businesses to adapt strategies to changing conditions.

List the five forces analyzed in Porter's Five Forces framework.

Buyers, Suppliers, Substitutes, Industry Rivalry, New Entrants

Fill in the blank: The socio-cultural environment includes factors such as people's ___, values, and ethical issues.

Attitudes

What is the purpose of a SWOT analysis in competitive analysis?

A SWOT analysis identifies a company's Strengths, Weaknesses, Opportunities, and Threats, helping to strategize effectively.

True or False: The macro environment consists of factors that a business can directly control.

False. The macro environment includes uncontrollable factors that affect all businesses, such as economic and political conditions.

Explain how globalization has changed the competitive landscape for businesses.

Globalization boosts business competition.

• Foreign firms enter local markets.

• Local businesses face new rivals.

• Adaptation to global standards required.

Fill in the blank: Companies use ___ to predict future trends based on historical data.

Forecasting

Describe the role of technology in the modern business environment.

Technology drives innovation and efficiency, necessitating businesses to adapt to new methods and products to stay competitive.