Chapter 1 – Business Environments
Question Answer
1 3 B environments Macro
Market
Micro
2 Env. scanning definition Obtaining info about possible current + future
events that may have an impact on B
performance.
3 Env. scanning purpose To ensure a B can adapt to changing int + ext
env.
4 Steps of continuous env. scanning Vision/mission
Formulate a strategy
Implement a strategy
Evolution + control
5 Conduct env. scanning in internal env. Micro env. (S+W)
6 Conduct int. scanning in external env. Macro: use PESTLE to find O+T
Micro: use Porter’s forces to find O+T
7 What does SWOT analysis identify S+W = internal (micro)
O+T = external (macro, market)
8 Analysis of strengths factors add value to B performance
competitive advantage
factors = tangible + intangible
9 Eg of strengths Competitive price
Location
Work skills
B culture
Patents
Good marketing + strong brand
10 Factors to ensure it’s a strength Customers have access
Security
Future development
Competitors surrounding B
Type of B in neighborhood
11 Analysis of weaknesses Opposite effect of B success to strength
Not addressing effects = debilitating
Must put strategies in place
12 Opportunity definition External factor present B with chance to
outperform competitors.
13 Opportunities may include: Offer better product
Getting P to consumer faster
Having access to large markets
14 Definition of threats External factors can hamper success/ growth.
15 What to use PESTLE for Macro env.
16 Where to use porter’s forces In market env.
17 What to do once SWOT analysis is complete Look at how B uses info to look @ future +
evaluate how info could lead success/ failure.
18 What is SWOT matrix Used to develop B strategies
Look into different B elements to gain
, understanding of B
19 What makes a market attractive 1. High barriers to enter
2. Low levels of competition
3. Few substitute P/S
4. Weak supplier + buyer bargaining power
20 What makes a market unattractive 1. Low barriers to enter
2. High competition levels
3. Many substitute P/S
4. Strong supplier + buyer bargaining
power
21 Eg of O + T Threats to new + current competitors
Threat of substitute P
Power of suppliers + buyers
Impact of complementary P
22 PESTLE acronym P – political
E – economic
S – social
T – technology
L – legal
E – environment
23 What is PESTLE analysis for Used to help B understand macro env.
Helps B adapt + take advantage of
changes
Chapter 2 – Corporate Social Responsibilities
Question Answer
1 What is CSR Relationship between B (corporate) +
, society (social) + degree to which B
impacts society
2 What is the idea of CSR B should not just focus on profits but have
responsibility towards people + env.
3 What must B do when dealing w/ CSR Formulate policies + procedures
4 What does CSR in practice mean Ensure commercial sustainability +
profitability
Act in a manner to meet societies
expectations
5 What is the King Code B must be a good corporate citizen
Actions must show care for society +
environment
6 Who do stakeholders include Employees, customers, shareholders,
government, lobby groups etc.
7 What is the job of stakeholders Place pressure on the B + demand the B acts in
their interest.
8 CSR issues 1) Crime
2) Poverty
3) Lack of education
4) Unemployment
5) Env. concerns
6) Poor health services
7) Inequality
8) Poor housing
9 B 2 levels of responsibilities 1) Primary
2) Secondary
10 B primary level of responsibility Look after interest of stakeholders, directly
affected by success of B employees +
stakeholders.
11 B secondary responsibilities Towards stakeholders indirectly affected by B
activities community, government,
environment
12 4 levels of responsibilities 1. Discretionary
2. Ethical
3. Legal
4. Economic
13 What is economic responsibility Responsible to ensure B is economically
active.
Produces goods + services for profit.
14 What is legal responsibility Ensure its respecting the laws of the
country.
Obeying laws: B is responsible citizen
15 What is ethical responsibility Ensure ethical sound B decisions that
won’t have negative impact on
stakeholders.
Sustainable future of society +
environment.
16 What is discretionary responsibility B should consider what, who, how B will
give back.
Building brand with values to be
Question Answer
1 3 B environments Macro
Market
Micro
2 Env. scanning definition Obtaining info about possible current + future
events that may have an impact on B
performance.
3 Env. scanning purpose To ensure a B can adapt to changing int + ext
env.
4 Steps of continuous env. scanning Vision/mission
Formulate a strategy
Implement a strategy
Evolution + control
5 Conduct env. scanning in internal env. Micro env. (S+W)
6 Conduct int. scanning in external env. Macro: use PESTLE to find O+T
Micro: use Porter’s forces to find O+T
7 What does SWOT analysis identify S+W = internal (micro)
O+T = external (macro, market)
8 Analysis of strengths factors add value to B performance
competitive advantage
factors = tangible + intangible
9 Eg of strengths Competitive price
Location
Work skills
B culture
Patents
Good marketing + strong brand
10 Factors to ensure it’s a strength Customers have access
Security
Future development
Competitors surrounding B
Type of B in neighborhood
11 Analysis of weaknesses Opposite effect of B success to strength
Not addressing effects = debilitating
Must put strategies in place
12 Opportunity definition External factor present B with chance to
outperform competitors.
13 Opportunities may include: Offer better product
Getting P to consumer faster
Having access to large markets
14 Definition of threats External factors can hamper success/ growth.
15 What to use PESTLE for Macro env.
16 Where to use porter’s forces In market env.
17 What to do once SWOT analysis is complete Look at how B uses info to look @ future +
evaluate how info could lead success/ failure.
18 What is SWOT matrix Used to develop B strategies
Look into different B elements to gain
, understanding of B
19 What makes a market attractive 1. High barriers to enter
2. Low levels of competition
3. Few substitute P/S
4. Weak supplier + buyer bargaining power
20 What makes a market unattractive 1. Low barriers to enter
2. High competition levels
3. Many substitute P/S
4. Strong supplier + buyer bargaining
power
21 Eg of O + T Threats to new + current competitors
Threat of substitute P
Power of suppliers + buyers
Impact of complementary P
22 PESTLE acronym P – political
E – economic
S – social
T – technology
L – legal
E – environment
23 What is PESTLE analysis for Used to help B understand macro env.
Helps B adapt + take advantage of
changes
Chapter 2 – Corporate Social Responsibilities
Question Answer
1 What is CSR Relationship between B (corporate) +
, society (social) + degree to which B
impacts society
2 What is the idea of CSR B should not just focus on profits but have
responsibility towards people + env.
3 What must B do when dealing w/ CSR Formulate policies + procedures
4 What does CSR in practice mean Ensure commercial sustainability +
profitability
Act in a manner to meet societies
expectations
5 What is the King Code B must be a good corporate citizen
Actions must show care for society +
environment
6 Who do stakeholders include Employees, customers, shareholders,
government, lobby groups etc.
7 What is the job of stakeholders Place pressure on the B + demand the B acts in
their interest.
8 CSR issues 1) Crime
2) Poverty
3) Lack of education
4) Unemployment
5) Env. concerns
6) Poor health services
7) Inequality
8) Poor housing
9 B 2 levels of responsibilities 1) Primary
2) Secondary
10 B primary level of responsibility Look after interest of stakeholders, directly
affected by success of B employees +
stakeholders.
11 B secondary responsibilities Towards stakeholders indirectly affected by B
activities community, government,
environment
12 4 levels of responsibilities 1. Discretionary
2. Ethical
3. Legal
4. Economic
13 What is economic responsibility Responsible to ensure B is economically
active.
Produces goods + services for profit.
14 What is legal responsibility Ensure its respecting the laws of the
country.
Obeying laws: B is responsible citizen
15 What is ethical responsibility Ensure ethical sound B decisions that
won’t have negative impact on
stakeholders.
Sustainable future of society +
environment.
16 What is discretionary responsibility B should consider what, who, how B will
give back.
Building brand with values to be
